Thursday, February 3, 2011

Portfolio Update

I am not a financial advisor, nor do I hold any designations within the financial services industry except one.  While working in the life insurance industry I did obtain the designation of Fellow of the Life Management Institute (FLMI) which means I have passed a series of exams relating to the life insurance industry.

My story is similar to the fisherman who lived in a small shack located in a tropical paradise. He would take people who knew little, if anything about fishing on guided tours of the best fishing spots.  On one such occasion, one of those people asked him why he didn't borrow some money and buy more fishing boats?
"Oh, and then what?" the fisherman asked. 
"Well, you could grow the size of your company and make lots of money," the other said.
"Oh, so then what?" asked the fisherman. 
The person said to him, "You could buy a bigger house, faster boats, and save for your retirement." 
Again, "Oh, so then what?" asked the fisherman. 
"When you are ready to retire," the other said, "you can sell your company, buy your dream home, move there, and live happily ever after!" 
"But," protested the fisherman, "That is what I already have!"

I understand having various industry designations would give me more credibility with people who don't already know me, but I remain unconvinced they would make me better at what I do.  Personally, I believe most "how to" advice regarding stock markets is, largely, marketing advice.  I don't want lessons in marketing. I want to help others who are interested in having more money.  Since I am not legally qualified to do so, rather than offer stock picks, I will reveal my methods and returns so others can decide whether, or not, I do have any credibility.  I will help those I can, and not worry about the fact others will reject (and criticize) my ideas.

Indeed, I welcome constructive criticism.  The quickest way to improve is by learning from the experience of others.  Although I have learned much over many years, I look forward to the thrill of future discovery.

I am not a day-trader, nor am I an advocate for buy-and-hold.  With that in mind, I will post monthly portfolio updates.  Earlier I wrote about setting aside an amount to be invested in the name of charity.  That amount is determined by the returns on my advanced market timing model.  I will also update the returns of the basic timing model (seen here) .

One month return for TSX @ Jan. 31, 2011 = 1.01 percent
One month return for Basic Timing Model using XIU = 1.5 percent
One month return for Advanced Timing Model (my returns) = 4.1 percent
Money for charity = $411.27

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