In the chart below, the red and blue columns show the performance of my recommendations, compared against FT All Share and Bloomberg World in green and mauve
The most compelling reason for subscribing to any of my publications, including Quentinvest, is that over many years I have developed an approach to stock selection that produces exceptional results. In absolute terms the shares I pick go up a lot. Relative to the indices I use as my benchmarks my selections beat them by a country mile.
The two indices I use for comparison purpose are the FTSE All Share index and the Bloomberg World index. The former captures the performance of the 750 biggest companies quoted on the UK stock market. The latter includes all the equities in the Bloomberg World Index Series. Equities in the series cover some 85pc of the world’s quoted stocks by market capitalization.
The Bloomberg World index has beaten the FTSE All Share index every year since 2009 except 2015 so it is a tougher standard of comparison. However it makes sense for QL, which has a global reach in its recommendations. There are 433 shares in the QL Live Portfolio table of which 181 are quoted in London. Many of the rest are American with a handful from the rest of the world.
What immediately catches the eye is the exceptional performance in 2009 and 2010. Part of the reason for this is that share prices collapsed in 2008, when investors feared that the banking crisis was going to lead to a global depression. It didn’t and share prices rebounded almost as fast as they fell but the initial effect was seismic.
One example, the Russian Trading System Cash Index, which is calculated in US$, fell 80pc between the 2008 peak and the 2009 low point, with most of that fall taking place over eight months.
My publications turned bullish in March 2009 and I picked some spectacular performers over the rest of that year including Bellway (+332pc), Inchcape (+990pc), Hargreaves Lansdown (three times, +578pc, +571pc and +436pc), Rightmove (+1366pc), Micro Focus (+515pc), Alibaba (+694pc), Amazon.com (+1012pc) and Alphabet (+230pc).
This was followed by an even more outstanding year in 2010, when top picks included Abcam (+419pc), Rightmove (+552pc), Apple (+451pc), Gooch & Housego (+638pc), Netflix (twice, +1830pc and +1241pc), ASOS (also twice, +854pc and +673pc), IQE (+412pc) and Staffline (+971pc).
If we include an elementary stop loss selling strategy to eliminate the dud performers the gain on all recommendations for 2009 was over 260pc and nearly 337pc for 2010. For comparison, since 2009, the FTSE All Share and the Bloomberg World index are up 44.6pc and 50.9pc respectively. For 2010 the figures are plus 34.1pc and plus 47.1pc.
That’s right; in 2010 my recommendations beat the performance of the FTSE All Share index by a factor of almost 10 times. Any stock market professional will tell you that is an almost unbelievable performance but that is what I did.
Just for clarity the performance figures are for both shares and indices from the date of recommendation to the present day. QL is a buy-and-hold-unless-something-goes-wrong strategy so this is the correct way to look at the figures. You get great performance from shares like Amazon and Netflix not by trying to trade them but by buying and holding, or better still buying and buying more.
Netflix shares have been recommended 29 times since 2009 across all my publications. Amazon shares have been recommended 28 times. Anyone, who had bought on all those occasions, which is very similar to the strategy of my new publication/ service, Quentinvest, would have made stunning profits.
I mean stunning. We are talking 100-fold appreciation or more on the money invested. I know this sounds incredible but remember these are strategies that most people don’t follow so they never find out just how well they work; with Quentinvest they will and also with QL and CB if they apply the Quentinvest-recommended strategies to the stocks recommended in those publications.
Incidentally, I do want readers to take on board just how good are these figures. Globally there is a huge shift by savers from actively managed funds to passively managed funds like ETFs. The reason for this is a growing disenchantment with paying high charges for active managers, who consistently fail to beat the indices. Forget the 10-fold beats I am achieving in some years; they underperform.
If those active managers had a story anything like mine to tell they would not have a problem. On the contrary they would have a lot of absolutely delighted customers. Yet here am I, with all my recommendations, taken as a group, beating the indices out of sight year after year. And that applies even if you don’t sell the obvious duds.
The only years in which my recommendations, before selling of duds, failed to beat the indices, were 2014 and 2015, which were generally lackluster years. Did I find it a little harder to find good shares in those years, possibly but even then, if you sell the duds, I still beat both indices by handsome margins.
Since then it has been normal service resumed, with my selections, with or without selling the duds, beating the indices by the proverbial country mile. Relative to the indices the beat in the latest year is the best ever, even better than the huge outperformance achieved in 2009 and 2010.
This gives me great confidence that I am doing something right; that my way of researching and selecting shares, really does enable me to zero in on many of the stock market’s best performers. This makes Quantum Leap and Chart Breakout excellent publications able to do a very good job for their subscribers.
It gives me great optimism that Quentinvest, a portfolio-building stock accumulation strategy based on curated selections, mostly from QL and CB, will do an excellent job for subscribers. It may even achieve its stated goal, which is to enable you to build a portfolio reaching overall values exceeding your wildest dreams and literally changing your life.
Bottom line: with Quentinvest, Quantum Leap and Chart Breakout not only do you beat the market by miles but the charges for doing this, the cost of a monthly or annual subscription, are both fixed, regardless of how well you do and are very low. If your aim is consistent long-term investment success you have to give me a try. If your dream is financial independence based on creating and managing a large, carefully selected portfolio of the world’s highest quality, fastest growing businesses you may need me even more.
P.S. Since writing this copy we have calculated the figures to show not just the total gain since recommendation (chart 2 below) but the annual rate of appreciation since the date of recommendation (chart 1 above). For example, a total gain after stop losses of 260.2 per cent for all 2009 recommendations translates into an annual rate of appreciation between 2009 and 2017 of 17.5 per cent. Similarly the 336.6 per cent gain for 2010 equals 23.5 per cent a year. Any investment professional will tell you these are incredible figures.
The advantage of expressing the figures for each year as annual rates of appreciation is that this makes for a fairer method of comparison. Of course the 2009 and 2010 recommendations have done much better in absolute terms than the 2016 and 2017 ones because they have enjoyed eight and seven years of growth respectively. The 2016 and 2017 recommendations overall have had a year or even less.
By expressing the appreciation as an annual rate we can see more accurately how the figures compare and see just how well the 2016 and 2017 recommendations are doing. It turns out they are doing even better than the 2009 and 2010 ones.
My feeling, as I noted above, is that such good performance maintained so consistently over a period of years confirms that I must be doing some right and that my approach to stock selection delivers excellent results.
All trading involves risk. Losses can exceed deposits. Quentinvest provides information only and subscribers should seek financial advice before acting on any recommendations. Past performance is not a guide to future performance.