Introduction
Given the fact that this site just launched back in mid-August, I thought it might be prudent to outline how to get the most out of your membership to this community. To begin with, I plan to publish at least one article every day during the trading week that covers market related issues of the day. I’ll update that article throughout the trading sessions depending on how things sort of evolve. If the trading session is slow and not much changes, then there won’t be a lot to update. Days like today will require more frequent updates as the trend evolves. The sub-heading below outlines the most relevant issue with which I believe our members need to be most acquainted.
Trade Alerts
We’re currently working on creating some sort of trade alert system and will probably give our members the option to subscribe to e-mail or text notifications. Until that comes on-line, we’ll be posting our trade alerts directly on our Daily Briefing. In most cases, the types of investments we’re making aren’t all that time sensitive and it won’t be super important to be timely. At least not in most cases. Our investment time horizon is always 2+ years and so we don’t often make near-term trades.
Samwise Strategies & investing Basics
Now I’d like to briefly talk about our Samwise Portfolio, a little about the strategy and how we plan to implement the model. First, it’s important to note that our Samwise Strategies and Rules for Investing will form the basis of our portfolio’s underlying investment strategy. I highly suggest everyone read those rules first. The basis of those rules and the reasoning behind them will be posted under our Investing Basics tab. If you’re relatively new to investing, I highly suggest you read the content in Investing Basics. Especially the first lesson on time, which has already been posted. I’ll be posting the other lessons in the coming weeks. So again, I think Samwise Strategies which contains our rules for investing. Right now, there’s only 7 key rules up on the page, but we’ll be expanding those over time. The most important ones are up already.
I do think Lessons 1, 2 and 4 are probably among the most important things I’m going to publish on the site. We’ll be using inherent leverage in many of our trades and will be hedging with covered calls. Those lessons cover both our thinking and the mechanical aspects of all of those things.
The Samwise Portfolio
That brings me to the Samwise Portfolio and how we plan to implement it in a way that’s practical and makes sense. What you’ ll find is that we have a very firm belief that the best way to create generational wealth is in long-term investing. Being long stocks and staying long through a full bull market is the most surefire way to succeed. Furthermore, we’re firm believers that investors do all of their buying during corrections instead of when the market is rising. I cover all that on the lesson on time. You can read about that here.
So the way I plan to run the Samwise model portfolio is by creating different portfolio at different points in time. Our plan is to create a new portfolio each time the market sustains a correction and/or each time we believe the markets present a buying opportunity. And we’ll manage these model portfolios separately.
The reason for doing it that way is simple. An old portfolio that is up X% over the past year doesn’t really help a new members who wasn’t there when the portfolio was launched. The value in Sam Weiss is in our strategy. And if our strategy is solid, then our portfolios will constantly outperform.
For example, on August 5, we published an article entitled NASDAQ-100 has bottomed and believed we’d see a huge rally for the month of August. We launched the following two portfolios based around that forecast (after the fact). Those purchases were made on the basis of a long-term 2-year+ time horizon and our plan is to manage those portfolios over time by hedging with covered calls and rolling forward to longer dated expirations as those options are released.
Samwise Model Portfolios
The portfolios below are separated by launch dates. Each portfolio is entirely separate and has no bearing on any other model portfolio.
Please login to view the Samwise Portfolio.
Now here’s the problem. Those who member who weren’t around on August 5 to follow the portfolio aren’t going to care much about the August 5 portfolio. It will serve as a teaching aid and illustrate how to manage a portfolio with relatively good cost-basis entries. But those portfolios have less value than ones lunched when subscribers are there to view the entire process from start to finish.
For that reason, we’ll be launching new portfolios anytime we believe there’s a strong buying opportunity in the market. It may seem like it will be a lot, but it really won’t. Buying opportunities don’t occur all that often. In fact, since the lows of December 2022, there are only a handful of instances where we had clear-cut buying opportunities. We had opportunities in December 2022, July 2023, November 2023, April 2024 and August 2024. We’re talking four big buying opportunities in 2-years time. Once every 6-months on average. With this recently sell-off we’ve seen in the markets recently (Sep 2024), we may be approaching one soon.
The last thing to note about the Samwise Portfolio, is thatI plan to launch two side-by-side portfolios. Both will allocate the exact same way. The only difference will be that one will be a LEAPS portfolio and the other will be a common stock portfolio.
the week of september 2
As I mentioned at the end of the trading day today, there’s a good chance we’ll be making some purchases tomorrow. While the indices aren’t quite oversold yet and aren’t anywhere near their lows, Nvidia (NVDA) is getting rather oversold. I do think that we’ll probably see Nvidia retest $100 now that the stock has pushed all the way down to $106 in after-hours. So we’ll probably make our purchases in parts. We’ll post the trade alert and the portfolio update on our daily briefing.
Very interested in this, not sure I will have the liquidity to go in this week on anything. Do you see any more buying opportunities between now and year end? Cheers
Yeah of course. We’re seeing one today. We should see more in the coming weeks.
I read your investing basics chapter 2 on using inherent leverage. Really excited on the upcoming articles comparing DITM calls vs margin and leveraged ETFs. Also, could you provide guidance on which contracts to buy and what delta to look for? I think another thing missing is a more concrete example of how someone would go into their trading platform and determine/calculate which contracts to buy.