No. of Recommendations: 12
Manlobbi, does your enthusiasm for small caps indices, combined with you no more posting on the Manlobbi board mean you turned away from picking stocks with your method ("IV10") of which your board was all about?
Yes, I very happily use the 'Manlobbi Method' for pretty much all my savings, which requires the investment to be (1) Steadfast followed by (2) maintaining very concentrated high IV10/price allocations, and (3) switching capital from the lowest IV10/price situations to the higher IV10/price opportunities. Your long-term return is already likely to outperform the market just from 1 and 2 (if just holding) but the benefit of 3 causes the outperformance to be a little higher again.
Index ETFs are just one possibility as to what one might evaluate as Steadfast and then go on to calculate the IV10/price ratio for. Index ETFs are, very nicely, Steadfast by definition - it obviously not possible for all firms to go bankrupt at once, so you are really just faced with temporarily price collapses from valuation multiple collapses, which the method doesn't try avoid. It partly avoids it inherent because when an index has a high IV10/price ratio, compared to other indexes, then almost by definition the valuation of the index will be cheap at the time so multiples won't have so far to collapse (the index already trading at, near, or below its own average valuation multiples, particularly after normalising the earnings for changing margins).
The Manlobbi's Descent board was popular at TMF, but I never really even started to post on the Manlobbi's Descent board at Shrewd'm since simply for lack of time, and a higher priority to help momentum/culture with the other boards. I may post my holdings and reasonings there occasionally.
- Manlobbi
