Our Guiding Principle
Our Guiding Principle
At its core, the Samwise Strategy is a four (4) part framework that is executed by:
(1) buying stocks, options and ETFs during stock market corrections;
(2) hedging those positions during market rallies;
(3) reducing the cost-basis of those positions by selling covered-calls; and
(4) holding those positions for the long-term.
When backtested over four decades of investing, this strategy has a near flawless track record. Purchasing high quality stocks during major market downturns, selling covered calls against those positions, and holding them throughout the entirety of an ensuing bull market cycle is the most reliable way to build generational wealth.
This fact has been illustrated time and again. The most successful fund managers are those who take risk management seriously and commit to investing for the long-term. Any investor who bought virtually any well established tech company during the 2008 financial crisis and then held those positions for the next 15-years made 100x on their money. If you put in a $1 million into high quality tech names like Apple, Amazon, Microsoft, Google etc., that investment is likely worth upwards of $100 million+ today.
Our approach requires an enormous amount of patience, discipline, and, most importantly, the ability to resist the overwhelming temptation of cashing in on short-term profits at the expense of long-term wealth. A task much easier said than done.
To get the most comprehensive understanding of our strategy, please read Chapters 1-6 of Investing Basics or click “The Four-Part Framework” link in The Samwise Strategy menu options. “The Four-Part Framework” page provides a deeper summary of the strategy without going into the level of detail found in Investing Basics.
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How the Samwise Newsletter Fits with This Investment Strategy
How the Sam Weiss newsletter fits within this Investment strategy?
If you wanted to know how to get the most out of your Sam Weiss membership, this is the place to be. To begin with, Sam Weiss publishes a daily blog each trading day which can be found under the “Daily Briefing” menu tab of the website. We use the Daily Briefing to provide general technical and financial analysis on the direction of the stock market as well as the assets we’re holding in our model portfolios. Its core function is for us to illustrate how we execute the Samwise Strategy by making live trades for the various Samwise Portfolios. With that in mind, here’s how the Daily Briefing plays a central role in the execution of our general strategy.
(1) Daily Briefing & Market Corrections
First, as we mentioned above, Part 1 of our guiding principle is to wait for major market corrections to do most of our buying. We explain our reasoning for that in Chapter 5 of investing basics. We use the Daily Briefing to publish our Current Outlook which includes all types of short, intermediate and long-term forecasts involving the timing of market corrections. We often forecast when we believe a market correction is about to begin. We publish evidence in support of why we believe a market correction might be ending (once they occur) and, most importantly, we publish Trade Alerts live in the Daily Briefing whenever we believe it’s time to buy.
Many of the core principles and forecasting tools we use to analyze corrections are outlined in Chapter 5 of Investing Basics. We use the Daily Briefing to apply those principles in real time to forecast all aspects of a correction including their beginning, middle and end.
And as we mentioned above, anytime we make a trade, we send out (1) a SMS text alert, (2) a tweet @XSamWeiss and (3) an auto-generated e-mail to subscribers who have opted in to receive such notifications. We use the Daily Briefing to outline our reasoning behind each trade and the general strategy going forward.
(2) Daily Briefing & Risk Management
Once we’ve made purchases for our Samwise Model Portfolios, we also use the Daily Briefing to illustrate how to execute the various Risk Management strategies outlined in Chapter 3 and Chapter 4 of Investing Basics. That might include buying 1-year expiring put options to hedge each of the various Model Portfolios against a large market downturn and/or bear market. Remember, the Samwise Strategy is a 4-part strategy. While Part 1 involves buying on corrections, Part 2 involves hedging our positions. We use the daily briefing as an opportunity to apply our risk management strategy live and in real time.
(3) Daily Briefing & Cost-Basis Reduction
Part 3 of the Samwise Strategy involves reducing cost-basis through the sale of “covered & non-covered calls.” Selling calls against our currently held long positions in the Model Portfolios is absolutely essential to the Samwise Strategy. We cover the issue in-depth in Chapter 4 of Investing Basics and execute the strategy live in the Daily Briefing.
(4) Daily Briefing & The Current Outlook
We publish and update our “Current Outlook” which outlines our expectations and core forecast for the near-term, intermediate-term and long-term direction of the stock market. We use the Daily Briefing to make live up to the minute course corrections as well as new risk factors that may derail our outlook. You can always find our most Current Outlook either at the top of ANY Daily Briefing article or here in the Samwise Portal.
(5) Daily Briefing & Subscriber Questions
Finally, we use the daily briefing as a gathering location where all of our subscribers can meet and ask question. It’s the central hub for the entire newsletter.
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The Samwise Portfolios
The Samwise Portfolios
Sam Weiss launches a brand new model portfolio each time the NASDAQ-100 (QQQ) sustains a market correction. This approach allows us to execute our strategy in real-time for all of our subscribers, regardless of when they join. Once a new portfolio is launched, it’s here to stay. Permanently. And we continue to manage into perpetuity.
By consistently launching new portfolios over time, newer members who missed out on earlier buying opportunities can still follow the progress of new and future portfolios — from their inception and through their entire development. This also ensures that every subscriber has the opportunity to observe how our strategy performs in practice over time. This isn’t much different than how the fund industry operates.
Most open-ended hedge funds accept new capital on a monthly basis until they reach their investment cap. What many people may not realize is that within the same hedge fund, investor returns can vary widely depending on when an investor subscribes.
For example, investors who joined a particular fund in September might be up 60%, while those who invested in the same fund in November could be down 12%. That is because an investor’s returns is based on how the fund performed from the moment they joined. Not based on the fund’s current annual returns.
A skilled fund manager focuses on building a well-hedged strategy that aims to deliver strong, long-term returns for all investors. This puts the onus on fund managers to perform at a consistently high level. While it may be impressive for a hedge fund to return 30% annually, it’s even more remarkable when the fund can generate positive returns for all of its investors — regardless of when they joined.
Fund managers are always under pressure to perform, ensuring that every investor benefits from their strategy, not just those who got in early. The Sam Weiss newsletter operates no differently. Our Samwise Model Portfolios are held to the same high standards of continued performance as those placed on any well managed fund. We launch new model portfolios during every market correction with the goal of illustrating how our strategy delivers in practice across multiple portfolios, market environments and time frames.