Trend Following Feedback

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Hi Michael,

I wanted to take a minute to tell you your podcast is great. I ordered your book, “Trend Following” and received it a couple of days ago. Nice work.

You asked if we started to make money with trend following. First, I should say I made all of my money investing following a value (and often contrarian) philosophy so trend following does not come naturally to me. Still, I started experimenting and developing my own momentum tools (backtesting in Matlab) following some of Meb Fabers ideas and I am getting the hang of this whole buy-high-sell-low thing 🙂 I am taking my time and will go through your book and (and most probably your turtle book) before I decide how I will introduce trend following into my investing framework (I feel lucky as my portfolio is large enough to accommodate partitioning a portion for trend following). I will be sure to let you know how things are going if/when I make the jump.

The only advice I would give is to be careful that the enthusiasm and passion you have for trend following does not come at the cost of denigrating other ways of investing (e.g. fundamental investing a la Stan Druckenmiller) as it may make you seem closed-minded when in fact you really seem extraordinarily curious.

Thanks again for all the great interviews.

Cheers
[Name]

Is Stan a trend follower?