Investment Intel

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August 2016 Six-Month Performance Review

Reviewing the past six months to see what we've done right, where we've gone wrong, and welcoming any input from our members to improve Investment Intel.

August 2016 performance review

August 4, 2016

Investment Intel has been live and streaming for over six months now—since late January of this year.

In that time, we have focused on two distinct strategies:

  1. Finding classic, margin of safety type investments (great companies on sale)
  2. Building a profitable precious metals portfolio (what we call Special Ops)

In an honest self-review, we think we’ve done a pretty good job with those strategies so far.

Since starting, we have covered—in-depth—over 22 margin of safety type investments. By no means were we recommending or indicating we were purchasing all of those companies, but we attempted to be very clear about what our price or criteria for each of these companies were. With every company we analyze, we indicate what our likely actions are—for our portfolios. Our goal is for you to take what we say and conduct an analysis and evaluation for yourself, to see what fits for your personal financial situation.

Some of the stocks we covered, like Smith and Wesson (SWHC), Hibbett Sports (HIBB), Apple (AAPL), Michael Kors (KORS), Southwest Airlines (LUV) and a few others, we were clearly buyers of (or put-sellers) at the time. Each of these, with the exception of HIBB and LUV so far, are now up well over double digits in a very short time span. Every put option we sold this year has been profitable, and we have generated (and will continue to generate) returns from covered calls on some of these positions as well.

Others, like Nike (NKE), Disney (DIS), Boston Beer Company (SAM), C.H. Robinson (CHRW) and CBRE Group (CBG), we tried to clearly convey that we were waiting for lower prices at the time before considering buying. With the exception of SAM, each of these companies we were waiting to buy have dropped in price since we covered them, so it’s a good thing we waited.

By most measurements, our patience to avoid overpaying and only buy shares, or sell puts, on great companies at great prices has paid off so far in this tough 2016 stock market.

This is why it’s important to review companies we analyze as new information comes out. Just because a company like Nike or Disney appears to be high today, does not mean they will still be richly valued a few months down the road. When we say that Disney is too high of a price for us at $100/share (which we did), and news comes out that drops the price into the $80’s (which it didn’t, but we can hope), then we owe it to ourselves and to you, our members, to revisit the company and determine if it’s a fair price with updated information. This is the way we’ve always approached it, and it’s the same approach we will use moving forward.

Reviews can sometimes be boring, or unexciting to many of you. Don’t forget that great investing should not be exciting. Great investing should be somewhat boring. We analyze many companies before coming up with one solid company worth deeper analysis. When we find a good one, we will come back multiple times to see how we can get involved. This is how great investing has to work.

It takes just one, solid investment to make your year. We will never ignore or forget a wonderful company just because it’s priced high today. Reviewing and revisiting is important, and it’s how we can buy formerly high-priced companies when they go on sale.

Of course, the list above is not all of the companies we covered—there were many more in the past six months. With each company covered, we hope that we adequately analyzed them with you, explained our approach in their valuations, and helped you learn by example how to conduct such analyses for yourself.

Then there’s also the precious metals portfolio, the Special Ops component of our investment strategy. We began building our precious metals portfolio with you back in mid-April. Our margin of safety investing strategy has done quite well, but the precious metals portfolio has knocked it out of the park.

Every single gold and silver stock we analyzed with you has increased by well over double digits—some more than 50%. We analyzed 12 in all. We strongly believed (and continue to believe) that picking the best of the gold and silver mining companies, royalty and streaming companies, and small explorers is the best way to leverage the upward movement of gold and silver prices.

We have not been shy about indicating our bullishness on these precious metals, and left no doubt about our willingness to buy each of those companies we analyzed with you at any point in the last few months. We sincerely hope you conducted your own analyses, reviewed it for your own financial situation, and have been along for the ride with us.

We also still see an enormous amount of potential in this industry, and will continually update our precious metals portfolio in future Investment Intel webinars.

The point of our review is to assess how we’ve done after six months. Beyond what we believe to be some pretty good stock analyses of over 34 stocks, we also taught strategies and techniques (with live examples and illustrations) for selling naked puts and covered calls, conducted lessons on the enterprise multiple and the importance of free cash flow, and extensively detailed our valuation methods. We also laid out our four-step plan in approaching these central bank-manipulated global markets. These strategies, plans and techniques are what we believe will not only protect you in the months ahead, but will yield above-average returns for you over the long-term.

Every single week, we aim to deliver first-class analysis, information or education. And if we can find just one or two great investments in a six-month time span along the way, then we believe we are performing a great service to our subscribers.

We think we’ve done that.

We will continue to get better, adapt to what you want to see, and invest based on our rules and what the markets are presenting. We will continue to remain patient if prices are high, and not hesitate to buy when our companies go on sale. Every step of the way, we will do our best to indicate what our actions and thoughts are, and our approach going forward. From there, it’s up to you what you would like to do with the information we present.

We look forward to what the financial markets have in store for us over the next year, and are eager to navigate them with you alongside.

We welcome your comments, agreements or disagreements on our self-review. If you like what we’ve done so far, please let us know. If you don’t like what we’ve done, or think we should change our approach, please let us know that as well. We appreciate your input.

Good investing,

Randy Tudor, CEO
Kevin Tudor, CFO
Investment Intel
Tudor Coaching Group, LLC
August 4, 2016