GEO Investing

Deploying effective cybersecurity measures for your business today is a continuous, ongoing battle with cybercriminals; and cybercriminals, like conventional terrorists, have a built-in advantage.  It’s asymmetric warfare – just as it only takes one suicide bomber to breach a physical perimeter, it only takes one response to a phishing email to get past conventional “perimeter-based” IT protections, and thereafter it becomes easy to roam through target networks and extract sensitive data.

I cover this concept in a video case study of RWWI below. I also cover two other multi-bagger factors that led to the RWWI impressive performance and go over the concept of what a BigCapMicro is…and why I think this kind of stock will be a big beneficiary of a multi-year microcap bull market we see forming.

The news of William O’Neil’s passing on May 28, 2023 stirred memories of my early ventures into the world of momentum (aka Momo) investing. O’Neil was an American investor, entrepreneur, and author (“How to Make Money in Stocks” and “24 Essential Lessons for Investment Success”). He was the founder of Investor’s Business Daily (IBD) in 1984 and the creator of the CANSLIM investment strategy. (more on that later)

When thinking about his significant contributions to the field of stock market analysis and investment strategies, I found myself in a nostalgic headspace back to the days when I obsessively began tracking stocks attaining new 52-week highs, armed with nothing more than a pen, paper, and the Wall Street Journal/Baron’s.

When a stock of yours is doing well, one of the hardest things you will face is deciding if you should make a decision to take short-term profits, especially if you strongly believe the stock has much more potential in the long run. But it gets even worse. Sometimes we make decisions to hold onto stocks longer than their expiration dates because of the “what if it goes up” thoughts that creep into our minds

You want to hold it, but on the same token, you are not being fair to yourself when your discipline promotes a making-money strategy. 

Now, I could have just as well started this post…one of the hardest decisions you’ll have to contemplate as an investor is to let a stock with great potential sit in your portfolio for a very long time. You have faith, after your hours of due diligence, that it will give you great annualized returns in 5, 10 or 20 years, but what if it doesn’t happen on your timeline?  Would the capital that would have been made available with a more swing-style trade be better deployed in another investment? And should you even preoccupy yourself with these thoughts?

Last week, we said that we’d be addressing some of the most common shortcomings that plague investors, and provided a cursory overview of one aspect of the investment process that is often overlooked – deep research. We’ll continue with the “investor oversights and failures” theme as we move through May and June, investigating additional facets that are pain points that must be addressed to become successful.

As we continue to ruminate over the next topic, the short term versus long term investing dilemma, we thought that a good prelude to that would be to take a look at some investment scenarios that fit in with that discussion. We’ve covered the topic before, but there is much more to expound upon on the subject that might help us reach some conclusions on the best approach investors should take, or maybe even a blended approach

Personally, in the first part of my full time investing career, much of my focus was in trying to find great companies in the meat of their growth cycles, holding them through that growth cycle and then selling them when the cycles were coming to an end. It was a great formula that worked fantastically for me.