Why This Blog?

"What can I do with X dollars? What stocks should I buy?"

So, I write this blog for you.

Will I lose money?

If you are prepared to invest for 10 years, you can expect to double your money. If you pull out halfway because you are scared - you will lose money.

The Rules

If you are new to this and want to use it, there are a few rules.

The rules are to help you to reduce risk. Stocks over the long term give good returns. But you must manage the risk properly. The main rule is to diversify - don't put all your eggs into one basket. Spread your money out equally among different countries and different stocks.

Rule No 1: Make sure you have at least 30 different stocks. If you have up to 100 stocks or more, that is best. For example, if one stock fails in a portfolio of 30 stocks ie. it goes to zero. You only lost 3.3% of your portfolio, and that can be recovered from the dividends for that year. If you have 100 stocks, that is 1% of your portfolio.

Rule No 2: Make sure you have at least 5 countries. If you have 10, that is best. Countries can go to war, suffer economic declines, be run by bad governments, and so on. So, don't just put all your money in one country.

Examples :

If you have $60,000 to invest: Buy 30 stocks at $2,000 each. Buy 6 stocks from each country making up 5 countries.

If you have $500,000 to invest: Buy 50 stocks at $10,000 each. Buy 5 stocks from each country making up 10 countries.

If you have $1M to invest: Buy 100 stocks at $10,000 each. Buy 10 stocks in each country making up 10 countries.

Do you get the idea? The idea is to manage risk by diversification through countries and stocks.

If you have $5M to invest: Why invest? Just travel the world, and give your money to starving children.

If you have no money yet but want to start:

First, save $2,000 - buy one stock from one country. Pick any country. Save another $2,000 - buy another stock from another country. Keep doing this until you have 10 stocks in 10 different countries. Then repeat all over again. Keep doing this until you are rich.

How to Use the List

The list shows the top stocks from each country. The list is generated weekly, and sometimes fortnightly. It depends on the speed of the data downloads, system availability, and my workload. Just make sure that when you want to buy the stocks, the date is recent and not more than a week old. The date is in the list, called "Buydate". The price is also there - try not to pay too much above the listed price in the list.

Does it Work?

It has worked quite well if you don't give up halfway and stick to it. You can see the past results here.

What is AI? Is it God?

AI is not God. It can't pick stocks with 100% certainty. Think in terms of probabilities. Each stock picked by the AI has a 60% chance of doing better than average. So, if the average stock market return for that year is -10%, and the stock that is picked by the AI returns -9%, then it is a success, as it returned better than average results. If the average stock market returned +20% for that year, and the AI stock pick returned +15%, then it has failed in that pick. Remember, that the odds the AI will win is 60%. This means that if you buy the 30 stocks that the AI has picked, then most likely 18 stocks will be better than average (60% * 30) and 12 stocks will be below average (40% * 30). If you have an intuitive feel of numbers, then it is better to have more stocks than less stocks so that the AI's 60% chances of winning is more certain. If you don't understand all this, just make sure you buy at least 30 stocks, and if the market is down, very likely the overall AI picks will be down too, but maybe a bit less. And if the market is up, the overall AI picks will be up too, but maybe a bit more. Do not think in terms of a single stock, or measure the performance of a single stock. It does not make sense to ask "Why did this stock went down -10%?". Evaluate the overall portfolio together and measure the average returns of all the stocks. So if you have 30 stocks, measure the average return of all the 30 stocks that you have. If your average return is higher than the average stock market return, then the AI is working well. If the AI picks can always return slightly above the average stock market return, it can do quite well longer term. Be patient.

When to Sell

The short answer: Sell your stock 3 months after you have bought it - whether you made money or not. If you don't have a lot of time to manage your stock portfolio - you can choose to sell it after 6 months you bought it.

The long answer: It depends.

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