IBI Educational Series: Classify Your Stocks Into Stories

Summary

I share with you tips on your investment research and monitoring.

Placing your stocks into their appropriate categories helps you to monitor them better.

Categories include growth, stalwart, value, asset, and turnaround.

Make sure you follow the stories in each respective classification and place companies into new categories as the story changes.

Either holding or averaging down during this biotech bear market would lead to lucrative gains in the next bull market cycle.

bombermoon/iStock via Getty Images

Such a study indicates that the greatest investment reward comes to those who by good luck or good sense find the occasional company that over the years can grow in sales and profits far more than the industry as a whole. It further shows that when we believe we have found such a company we had better stick with it for a long period of time. It gives us a strong hint that such companies need not necessarily be young and small. Instead, regardless of size, what really counts is a management having both a determination to attain further important growth and an ability to bring its plans to completion. - Phillip Fisher (Warren Buffett's mentor)

Dear Investors,

To assist you in tracking your stocks, I want to share with you various strategies for classifying your investment into thesis, stories, or categories. That way, you would be more organized and methodical in your investment approach. In my view, being more organized leads to higher returns.

What exactly is an investment thesis?

As you can see, an investment thesis is essentially a story of why you invested in a particular company. Asides from gurus like Warren Buffett, Benjamin Graham, Charlie Munger, Phillip Fisher, John Templeton, etc., I studied Peter Lynch's work. As you can tell, I got this inspiration from Peter Lynch.

Accordingly, Peter Lynch recommended investors write down the investment story for each of their holdings. Back when he was running his fund, Peter Lynch would write down the stories for his universe of thousands of stocks. As for you, I highly recommend that you keep track of your own in this simplified way. Additionally, be sure to utilize all the resources that I provide to you inside IBI.

Figure 1: Peter Lynch and his wife Carolyn

Retirement Secrets: Ask More From Your Life & Investment

 To the maverick bio-investors,

At IBI, I focus on boosting all aspects of your life. 

As you're now in New Year 2022, I want you to focus on the first and most important investment: YOUR HEALTH!

Source

IBI Market Insight: To Profit From Value Disconnect

Summary

In recent years, stellar breakthroughs such as CAR-T and gene therapies painted the bioscience landscape.

Previously limited by expertise, we're witnessing an increasing number of companies brewing gene-editing molecules.

Precision medicine therapeutics and companion diagnostics are powering the next wave of innovation.

Nonetheless, the China Trade War and drug pricing pressure lead bioscience stocks to exchange hands at a deep discount.

At the turn of the next market cycle, the long-term oriented investors will enjoy sizable profits.

I like the idea of using artificial intelligence because we're so short of the real thing. - Charlie Munger

I hope that you guys had a great weekend. Asides from doing light tasks like posting on my social media, I shifted away from work during the weekend. In my view, it's best to conduct investment research and news analysis during weekdays. As family and God are matters of the heart, they should at least have the weekend. I believe it's more healthy and balance for you to reserve the weekend to rejuvenate and improve other arenas of life. After all, there is more to life than investing. And, the investment process is not a sprint. It's a marathon so pace yourself accordingly.

Figure 1: Charlie Munger and Warren Buffett (Source: Robyn Twomey)

That being said, I'd like to kick off the week with another series coined Market Insight. This publication is similar to the Industry Trends analysis that I conducted from time to time. Despite the resemblance, there are significant differences. Specifically, Market Insight explores current affairs that are driving broader market behaviors. Aside from providing you with the intelligence affecting your investment value, Market Insights offers various strategies to help you capitalize gains and minimize losses.