Introducing A New Tier for WSG 🤠
I want to feel the heat of sticking my neck out and becoming accountable. This will be great way to do it.
Happy New Year everyone!
I have some new exciting plans for WSG in ’24. For the entirety of its life, WSG has been the place where I have done my best to add value to the investing community. It has been free so far and I am proud to announce a small change.
In 2024, I will offer a paid portion to the website where I will be sending out one actionable stock pick a month.
The first one will be free but the remainder of the year will go behind a paywall.
(You can pledge your support today but won’t be charged until next month when the newest pick is sent out)
I have contemplated for a few years now how I wanted to go about turning WSG into a full-time thing for myself and I am comfortable using the platform to make public picks and establish a track record with them.
I have always told myself I have what it takes to outperform, there will be no hiding now.
On the first Sunday of every month going forward I will be sending out a name and a write-up covering the needed components for a pitch and the background information to give the reader enough context. Each pick will then be tracked against the performance of the SPY.
A specific name cannot be recommended again unless that has been at least 6 months since the last recommendation.
It is part of my process to “average up” and 6 months seems to be a good minimum amount of time between recommendations for more information to surface and either strengthen or weaken the thesis before I add additional capital.
I working to move fast and slow.
I will also eat my cooking. Each idea will be sent out on a Sunday, and I will buy a position at the opening of the next trading day. If I am going to recommend it, I should have skin in the game also. (See item 4 for my “position sizing for each”)
Before the first idea is sent out I want to outline some expectations so we are all on the same page.
First and foremost I am not an investment adviser or a financial adviser. All of my ideas and writings are for educational and entertainment purposes only and should not be interpreted as investment advice. I write about situations thats I find attractive but I am not responsible for the gains or losses. You must do your own due diligence. I strongly recommend you seek out a professional investment advisor before making any decisions. Each investment comes with a risk of financial loss.
Here is what you can expect from me.
1) I won’t bat 1.000 but I can promise you I will work as hard as I can to find the best actionable idea each month.
It is my goal to outperform the S&P over time and the only way I know how to do that is to look for things attractively priced with a wide margin of safety.
Just to strengthen the point above, the best stock investors in the world are right 60% of the time and I don’t consider myself in that basket yet so I will be happy if 50% of my picks work. The winners will make up for the losers and it is my goal to lean into the winners over time.
You should take each name with a grain of salt and the base rates above, and if you want to add it to your portfolio, size it appropriately.
2) Each name should be given a time frame of 3-5 years before a result is taken.
I have no idea how the names will do in the short term (12-18 months).
I focus on the long-term earning power of the assets and it seems to me that if I am correct on the business and the earning power over a 3-5 year time period, the stock will follow. It is a blind faith we all have as long-term investors and I fall in the same ballpark.
Don’t expect any “quick” ideas here.
3) I will benchmark each pick next to the S&P 500 represented by the SPY ETF.
The point of being an active manager is to produce alpha. I feel the same is true for this newsletter.
Each idea will be benchmarked to the SPY ETF and it is the goal that over a few years the collection as a whole on an equal weight basis will do better than if the money was invested in the benchmark.
I am not naive to think each name will outperform. There will be losers. The game is about how much money you make when you’re right vs how much you lose when you’re wrong. I believe the winners will compensate for the losers.
4) My job is to find good opportunities, not decide how to size them.
My goal is to source an above-average opportunity set, it is up to the reader how they wish to respond and position sizing is one of those choices.
I believe the big winners will emerge over time and it is my goal to use these picks as a way to uncover them.
I will be taking a smaller position out the gate and then laying on additional funds when supporting evidence shows the thesis is working. Plus, if we enter an environment of panic, I will be doing my best to be more “greedy” in this situation when the odds are in my favor.
This newsletter is a way to stay sharp and “stay prepared”.
5) My flavor profile for investments is in high quality and special situations.
Over the past 7 years, these are the types of situations I have naturally drifted to, I like holding quality and I believe one can outperform by researching and digging into special situations like spin-offs or hidden asset plays.
My portfolio is filled with both so you can expect to see the same here.
6) The names will generally be on the smaller side but I am going to stay away from the really small names
There is an edge to cover names on the smaller side of the spectrum but for me, I feel comfortable with market caps that are >$800M. Other newsletters focus on microcaps but that isn’t my specialty.
Launching this paid product is a moment that feels both exciting and filled with some imposter syndrome. For those who are willing to come with me on this journey, I can promise I will give you everything I have to make sure I bring the best ideas I can every month.
Thanks for reading Wall St Gunslinger! 🤠 Subscribe for free to receive new posts and support my work ❤️
Please be advised, Wall St Gunslinger is not an investment adviser and does not give personal investment advice. All content is for educational and entertainment purposes only and should not be interpreted as anything other than such. Investing entails a lot of risks and should be managed appropriately. Please do your own research and consult with an investment professional before making any investing decisions. Thank you.