Look for a Foundation
In spite of their slick appearance, many investment newsletters are operated without an overarching philosophy. Many don’t even bother to tell you what their methodology is, or the investment philosophy is that guides their thinking. If you find an investment plan that lacks this foundational information, then you should be wary. If they do not have a guiding outlook, then they may very well be making decisions arbitrarily or on instinct. This is a surefire way to lose money.
Many investment plans overstate the probabilities of beating the market
I have paid attention to many investment plans for a number of years, only finding that they delivered far less than promised. Which is why The Cake Investment Plan doesn’t make any promises at all, except to explain clearly our methodology and how that is built upon our investment philosophy.
Striving to be the best investment plan, Cake Investment Group keeps track of the performance of the market and offers investment signals based upon our clearly explained perspective and strategy.
The Cake Investment Plan also provides contrary perspectives as I am not afraid of being challenged. Also, you will see investment signals that I personally act upon at the same time as a subscriber would. This perspective is extremely valuable. Without it, you have nothing but promotional material, which may be, to say the least, quite misleading.
I have gone through almost every major investment program that is on the market, and I have learned a tremendous amount. Here are some insights:
- Investment plans are often expensive, and they often attract desperate investors. You may only pay a few thousand dollars annually instead of a few hundred that is more in line with what is reasonable and that allows the publisher to make a fair profit but not an obscene one. While you often get what you pay for, sometimes after having been burned and yet still seeking control of your financial life many investors fall prey to an investment plan whose promises match its exorbitant price but whose performance does not. Price is what you pay, value is what you get. Look for an investment partner that does not shroud their underlying philosophy in gobbledygook or jargon but instead look for one that explains what they are doing and why, in plain language.
- Performance over meaningful periods of time is elusive, yet the losses occur consistently.
- The plans do not give specific guidance on how to manage risk. Money management is crucial to successful long-term investing, avoid any partner who fails to address this issue.
- Somehow, publishers of losing investment plans manage almost entirely to hide their failures. One of the most consistent losing plans saw their portfolio go down at an astounding rate. Still, the purveyor of that plan has been a frequent speaker at financial conferences. It isn’t unusual for participants to swarm him soon after his presentations. Go figure!
- The recommended strategy offered by The Cake Investment Plan showed the most consistent, if in the short-term unspectacular returns. The Cake Investment Plan has always stated that the goal is to hit singles consistently not to strike out repeatedly while trying to swing for the fences.
If you study what Cake Investment Group has to offer, you’ll find a steady partner with a sound and logical outlook with easily understandable signals and a willingness to share our results, both when winning and losing. You’ll also understand their money management techniques designed to minimize and clearly establish your risk, so as to enhance your opportunity to consistently make excellent profits.