Feedback from a reader who wasn’t sure I answered my emails:
…is this the real Michael Covel and not his assistant tasked with responding to these? If so I am really impressed…I found your podcasts on iTunes yesterday and have been listening to them. They are awesome keep up the good work. As some background I used to work at Vanguard, not really a company that embraces the idea of trend following as you know. Anyway I was talking to a friend of mine that worked there and I told him how I thought Vanguard, a buy and hold company, was really hypocritical since we had actively managed funds. (The Vanguard answer to this criticism is that these managers are really good, super human almost, and no is able to do what they do so buy and hold and have another glass of Kool-aid.) This was before I knew about you or trend following. I told him that there had to be a way to make money in the market without feeling like you are on a roller coaster, which is what buy and hold feels like to me. He asked me if I was serious about what I thought and when I told him I was he said, “Ok then there are two guys whose books you need to read, Michael Covel and William O’Neil. But, don’t tell anyone about them because people at Vanguard think those guys are nuts.” So he let me borrow “How to Make Money in Stocks” by O’Neil first (he was in the process of re-reading “Trend Following”) and then he let me borrow “Trend Following”. I consider myself a religious person and reading those two books was like a religious awakening. We used to joke that your books and O’Neil’s books were Vanguard porn. We thought it was funny, but the financial planners there didn’t think so. Since then I have just tried to get my eyes on all those books that I can. I am currently reading “Reminiscences of a Stock Operator”. I have tried to apply what I am learning and after about 2 1/2 years I feel like I am starting to get the hang of it. I have taken my lumps and learned from them. I guess that is the thing with expensive lessons you only should have to pay for them once. Although many people like paying for the expensive lessons over and over. Anyway, I know you were probably only expecting a [simple] response but I thought I would take the time to tell you that I think you are doing a great job and to keep up the good work. Thanks, Jeremy C.
Thanks! Great story!