My friend Marcus is a trader. These days he is setting up an investment fund specialized in aggressive growth: small cap companies.
As I expressed interest in his undertaking - how do you go from wanting to run your own fund to actually creating and running it? - he added me to his mailing list and I receive his updates on the 30 companies his fund is invested in.
Peter Lynch, the former star investor at Fidelity, already identified way back in the book One Up On Wall Street the importance of 'the story' when investing in a company: the story has to make sense, this is otherwise not a good investment.
Well, this is exactly what you receive from Marcus: little updates in the form of stories. The stories are structured the following way:
- ticker & name of the company,
- 2 indicators his system is based on,
- HOLD/SELL message, depending if the company's indicators still fit the model,
- Update on the story of the company: major business decisions, product/service update, industry update, the information being mentioned only when relevant.
Advantages of this form of story telling for the investor =
- you feel like you are in charge by being kept in the loop of what is going on with the companies,
- you can follow overtime the evolution of the company,
- by being told only what is actually relevant about the company: you save time and feel empowered with the knowledge necessary to make a sound decision.
Advantages of this form of story telling for the fund manager =
- the investors feel involved,
- they feel empowered,
- investing makes sense to them,
- they feel they follow a company on its journey and are part of this journey.
One of his investors calls it "the charm" of investing with Marcus.
Keep it up Marcus!
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