Andrew Abraham

andy-0101 My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I adhere to the philosophy of trend following. Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets me apart from other traders is that I am not only concerned about the return on investment but how much risk I will have to tolerate to achieve my goals.

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If you are interested in contacting for speaking engagements. Please email me at Andrabr9@gmail.com or call 954 903 0638.

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Futures and commodity trading involve substantial risk. The evaluations of futures and commodities may fluctuate and as a result, clients may lose more than their original investment. In no event should the content of this website be construed as an express or an implied promise, guarantee or implication by, that you will profit, or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible, where projections of future conditions are attempted.

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Investment Strategies and Trend Following Concepts over the Decades.

This morning in my daily scan of articles and news came across a great piece regarding investment strategies of Walter Schloss. Walter Schloss was one of the most successful investors in history, achieving a 15.7% CAGR over the 45 years from 1956 to 2000. Walter Schloss is the example I always bring about the concept of compounding money over long periods of time. His way of compounding money was not trend following rather value investing. However there are many similarities to his thought process that is in line with trend following and the correct mindset in order to succeed overtime.

Walter Schloss’s rules.

1..Price is the most important factor to use in relation to value
2.Try to establish the value of the company. Remember that a share of stock represents a part of a business and is not just a piece of paper.
3Use book value as a starting point to try and establish the value of the enterprise. Be sure that debt does not equal 100% of the equity. (Capital and surplus for the common stock).
3.Have patience.
4.Don’t buy on tips or for a quick move. Let the professionals do that, if they can. Don’t sell on bad news.
5.Don’t be afraid to be a loner but be sure that you are correct in your judgment. You can’t be 100% certain but try to look for the weaknesses in your thinking. Buy on a scale down and sell on a scale up.
6.Have the courage of your convictions once you have made a decision.
7.Have a philosophy of investment and try to follow it. The above is a way that I’ve found successful.
8.Don’t be in too much of a hurry to sell. If the stock reaches a price that you think is a fair one, then you can sell but often because a stock goes up say 50%, people say sell it and button up your profit. Before selling try to reevaluate the company again and see where the stock sells in relation to its book value. Be aware of the level of the stock market. Are yields low and P-E rations high. If the stock market historically high. Are people very optimistic etc?
9.When buying a stock, I find it helpful to buy near the low of the past few years. A stock may go as high as 125 and then decline to 60 and you think it attractive. 3 years before the stock sold at 20 which shows that there is some vulnerability in it.
10.Try to buy assets at a discount than to buy earnings. Earning can change dramatically in a short time. Usually assets change slowly. One has to know much more about a company if one buys earnings.
11.Listen to suggestions from people you respect. This doesn’t mean you have to accept them. Remember it’s your money and generally it is harder to keep money than to make it. Once you lose a lot of money, it is hard to make it back.
12.Try not to let your emotions affect your judgment. Fear and greed are probably the worst emotions to have in connection with the purchase and sale of stocks.
13.Remember the work compounding. For example, if you can make 12% a year and reinvest the money back, you will double your money in 6 yrs, taxes excluded. Remember the rule of 72. Your rate of return into 72 will tell you the number of years to double your money.
14.Prefer stock over bonds. Bonds will limit your gains and inflation will reduce your purchasing power.

15.Be careful of leverage. It can go against you.

I have been professionally trading 18 years and the investment strategies that Schloss states are as important today as they were 50 years ago. The investment strategies that Walter Schloss have presented are timeless.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (“FOREX”) IS SUBSTANTIAL.

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