The Wenzel Analytics Advantage
To consistently do better than the market,
it is necessary to have access to information, tools and skills not
available to most investors. Why would you expect Wenzel Analytics to do
better than you could do, or better than mutual funds or other money
managers?
- I am
very patient in applying analytical and data management skills. I
usually require data and statistics to support decisions and strategies.
Consistent strategies are used to purchase clusters of stocks, rather
than individually picking stocks using a variety of reasons.
- The
focus with investing is to use money to make money. I have
portfolios designed to do better than the markets, and portfolios
designed to produce reliable income independent of what markets might
do.
- Time and
expertise is focused on investing. No attempt is made to be expert in
broader areas such as insurance, estate planning, taxes, long-term care
or plans to finance college education.
- Exceptional newsletters
or online databases often form the starting point for analysis and screening.
- Empirically tested technical analysis covering varying time frames is
utilized to make the final selections within a screen.
- Purchasing limited quantities of stocks
with limited liquidity or supply allows us to play in an arena where investors with millions of
dollars cannot find enough shares to buy, or enough buyers for selling,
without driving the price up or down to their disadvantage.
- All
stocks and portfolios are closely monitored. The number of stocks is high enough
to limit emotional attachments. When a stock looks weak it is
sold.
- Trading
and data management can be efficient on a small scale, while limiting
the significant overhead associated with layers of large financial
institutions each taking a piece of the action.
- Investing is both a science and an art. I have learned from
experience of more than twenty years managing other people's money.
Success comes from keeping organized
and tracking against benchmarks.
Being in control is critical
both for managing the complexity, as well as maintaining a psychological
sense of safety and control when the market may appear uncontrollable.
Risk as a feeling is different than risk as a reality, and often more
dangerous. Being in control is dependent upon having efficient and
workable systems for selection, monitoring and selling.
Denial is insidious and
pervasive, both for amateur and professional investors. Denial is one
way to avoid the discomfort of risk. Many investors do not know how
performance compares to benchmarks, and may be comfortable while
performance is suffering. Many people are penny-wise in their lifestyle
choices, and dollar-foolish in ignoring opportunities for better
management of their investments. Even if gains exceed losses, many
investors see the losses and irrationally fear risk. They want a team
that never gives up a touchdown. Mutual funds help them by cutting off
visibility to individual stock losses. Significant gains are achieved
not by fearing any losses, but by having more and bigger gains than
losses.
Wenzel Analytics employs
rigorous management systems that involve portfolio management software,
data sources, charting software, defined operating procedures, and
brokerage data integration. Growth and improvement come through
discretionary review of a limited number of ideas, methods and
recommendations while ignoring the avalanche of competing hype available
on the Internet and media.
The many reasons for the direct purchase of
stocks rather than to use mutual funds are elaborated elsewhere (Mutual Funds). Wenzel Analytics will use
exchange traded funds occasionally such as for small cap international
investments.
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