SmartMoney Comparison

‘SmartMoney Comparison’ from reader:

“I just wanted to send you a quick note thanking you for writing such an insightful and helpful book. I purchased the expanded edition of Trend Following on Tuesday and finished it Saturday. Today, however, I found myself reading a copy of SmartMoney and much to my surprise, I was mentally critiquing the columnist’s recommendations based upon the trend following philosophy I had just read about! The columnist was talking about his recent efforts to cleanup his portfolio, including trimming winners, adding to laggards, eliminating stocks that no longer met the original criteria for the initial purchase, and, he even stated that he could not remember why he had purchased some of the stocks! Finally, he stated that some of the stocks would be held for 10 years because that is what he told his readers he would do. I couldn’t help but think “gee, what if the stocks are in a downtrend for the last five years? The drawdown is going to hurt!” In short, everything he was saying was 180 degrees off from the philosophy you discuss in your book. Unfortunately for SmartMoney, I have to cancel my subscription because the advice no longer seems to make much sense! Now I need to find something else to read. Finally, I want to thank you for answering a question I have had for the last several months…when to sell my shares in JCPenney. Purchased five years ago at $11.65/share, they are now trading over $65 and I have been thinking about taking the profits off the table. Now I know to take my profits when the trend reverses, and to be prepared to take advantage of the downtrend too. Thanks again for a great book. Best Regards, Steve H.”