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Rick Currin's Investment Philosophy

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** Announcing some great news for our premium members** 

Rick's Research (formerly CurrinResearch.com) notched a top 10 finish among all the newsletters tracked by the Hulbert Financial digest in 2010.

(Top Ten Letters of 2010, Peter Brimelow, Marketwatch, December 27, 2010).

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Sharing the Wealth of Research

My passion for research and investing is something I want to share with you.  I truly enjoy investing, technology, life sciences, and discovering the next generation technology that can bring investors big profits.

As the editor of the technology newsletter Fredhager.com from 2003 through 2010 I am proud of what investors were able to achieve with the research and insights provided.    

In the first full year as editor I turned in a 154.8% gain for Fredhager.com.  This led every investment newsletter independently audited by the Hulbert Financial Digest.  As delighted as I am about the returns members were able to achieve when I started managing the portfolios, I am even more pleased with what members have been able to achieve in the turbulent market of the past few years.

Since the Lehman Brothers failure and the follow on decline in the market many investors have soured on the stock market.  And despite the latest gains in the market, the DOW and the S&P 500 have struggled to simply get above the level they were at the time of the Lehman bankruptcy.   Investors in portfolios managed by the team at rick'sResearch have done much better.

Portfolios of Rick Currin since Lehman Brothers

 Post- Lehman performance based on the independent audit of Hulbert Financial Digest

10/1/2008 through 11/1/2010

Doing well when the markets are doing generally well is one thing.  Delivering high returns to members while the DOW and S&P are basically flat is another.

As I launch an independent newsletter I bring the talent of the Fredhager.com and CurrinResearch editorial and research teams with me.  And we add even more research punch in the life sciences area with our research collaboration with CurrinBiotech.com

What many of the members who have already joined me in this newsletter can attest to is that you can expect to receive a high level of research for a reasonable price. Better still is the fact that you will be introduced to stocks that deliver that market- beating performance.

I'm so confident in the value of the information you will receive that I believe your satisfaction will be the best advertising money can buy.  That's why I will occasionally encourage you to share the wealth of research content by enabling you to forward it to like-minded investors via your favorite social media.  By sharing the wealth of research you'll be able to share your money making secret as well.

 The Key to Unlocking the Power of High Return Investments is Understanding

Over the years, I've found the key to soundly investing for high returns that I sum up in one word...Understanding. 

 

  • Understand why you are invested in something.
  • Understand the return potential and seek investments with superior growth prospects.
  • Understand your tolerance for risk and volatility.
  • Understand when you are confident in what you know.
  • Understand when it is time to move on to an even better opportunity.

 

It requires some time and research to acquire this level of understanding.  If you are like most people, you can use help in acquiring it.

This is a rare, rigorous approach I seldom see with most investors I've come across over the years.  But this diligent commitment to understanding is an obvious trait of mine to investors that know me and value both my opinion and my research.

Portfolios of Rick Currin since Lehman Brothers

  Post- Lehman performance based on the independent audit of Hulbert Financial Digest

10/1/2008 through 11/1/2010

Warren Buffett said he did not invest in technology because he did not understand it. Obviously there were and are many great investments in technology but he chose to avoid them. A lesson on the internet boom and bust can also be summed up with words from the oracle of Omaha ..."as happens in Wall Street all too often, what the wise do in the beginning, fools do in the end". 

Some of you have experienced what can happen when you do not understand your investments.    With the research you'll receive, you will understand the investments selected here and confidently seek the big profits you deserve. .

I love Jim Cramer

I should rather say I love that Jim is passionate about what he does.  But when I watch Cramer ringing his sound effects and putting on a general carnival barker presentation of investment decisions I simply feel entertained.  In 30 minutes you can find out almost nothing about 10 to 20 stocks a night without understanding any of them!  Well you can't beat the price.  But what exactly you are supposed to do with this flurry of some 50 stocks a week I'm less clear on. 

If you are looking for 50 stocks to trade a week this is definitely not the place for you.  If you are looking for weekly research to make you confident in investments to achieve performance like illustrated in the charts above you are in the right place.

My investment philosophy is actually quite simple:

Invest in good companies with high potential for high return and do it

with a long term horizon in a target market that is expanding. 

With that philosophy, returns are highest providing one caveat.  You have to pick the right companies.  Picking the right companies is a lot easier if you understand the investment.

Many investors are simply stock traders.  Although we occasionally trade a stock in event driven situations, we are certainly not traders.

I am an investor in companies.  I've heard people bemoan buy and hold is dead and that frequent trading and market timing are the only way to make money in the stock market.  If you are investing in "the market" there is some element of truth to this.  Macro issues, especially of the sort we have experienced over the past few years, can certainly impact valuations of the entire market.

However, if you are focused on investing in companies as if you were truly an owner of the company, "the market" has far less to do with how well you do in the long run.

Take Apple for example.  Did the financial crisis really have much impact on this company (or stock) for a long term investor?  Perhaps it did for a long term investor seeking to add to the position.  Certainly selling Apple before Lehman failed and magically buying it back when Steve Jobs was rumored to be on his death bed would have worked better than buying it and holding it or simply adding to it.  (tax consequences aside)  However, buyers that held Apple through the market downturn are pretty happy campers today I'd say.

Stocks are always traded.  That makes a market. But continuously outsmarting the direction and timing of the market is a skill I have not run across in anyone.  And in this era of rapidly shifting market trading, fueled by lightning fast computers changing the direction of the market in a nanosecond, the task of timing the market is more of a challenge than ever. 

Investing in the right companies will always yield the highest returns in the long run and need not be a full time job of trading, deciphering chart patterns and avoiding inadvertent limit orders. 

If that really worked we'd just have a program automatically doing it anyway for high returns--and that's the patented software company I'd be heavily invested in.

The right companies for high returns

The dot com craze was a frenzy of undisciplined investor activity.  Undeniably there were fine technology companies that profited immensely from the internet.  Several still do.  But there were also far too many dot coms that made no sense, had no real barriers to competition, had faulty business models and were doomed from the start. 

The problem was understanding value.  How could an internet retail site be valued at nearly the entire bricks and mortar world of the same product when they are selling stamps or toys or pet food?  Wouldn't the post office, toy retailer or pet food chain just get their own servers and fight such an assault?  Well maybe not the post office...but who wants to pay more than face value for a stamp?  That simple understanding is why I missed euphoria.com and the shock back to reality.

Similarly, there was lots of buzz surrounding nanotechnology a few years ago.  As the editor of currinResearch.com I even launched a nanotechnology portfolio.  You see just like with the internet there were fine technology companies harnessing the power of nanotech to create value.  Several still are.  And just like with the internet there were many companies that had big red "nanoflags" on them.

Billy Joel, Rock and Roll, and Nanotech

Perhaps the most compelling thing I can show you to understand what we do is to show you how the nanotech investing landscape has performed. 

Total 3 Year Return of Available Nanotech Investment Portfolios  

                                                       Through November 2010.  Source Hulbert Financial Digest

While the financial crisis that roiled the markets occurred during this period, there is a vast difference between what these nanotech investement vehicles were able to acheive.  There has been no such thing as successfully investing in "nanotech" outside of the nanotech portfolio managed by Rick Currin.  Why is that?  It's because by focusing on understanding the company, understanding the technology, understanding which comanies were targeting explosive growth markets, and understanding the competition and threats, nanotech becomes plain ole technology investing.  It may be nanotech but it's still tech.  Or as Billy Joel might say:

"It's the next phase, new wave, dance craze, anyways It's still rock and roll to me."

Why would one invest in a basket of nanotech stocks (i.e.  the good, the bad, and the ugly) when you can carefully select the best nanotech companies as investments instead?    Of course you have to have the knowledge to make the distinction; but that's what we're here for. 

This is a simple powerful example of what we do.  Rock and Roll.  We think you'll find some nice tunes in our portfolios.

Rick Currin

editor, rick'sResearch