Happy Anniversary to us! It is hard to believe that we are now in our 40th year of publication for The Prudent Speculator newsletter. March 10, 1977 is a day we will forever remember because it is the inception date for our original portfolio, TPS Portfolio, and the newsletter itself. In honor of this anniversary, we are launching TPS Portfolio as a private managed account strategy. Yes, you heard me correctly- the strategy that has been used in The Prudent Speculator newsletter, which contributed to its status as #1 ranked for total return performance by The Hulbert Financial Digest for the last 20, 25 and 30 years, will now be available to the public. Click here for more information.
Our founder, the late Al Frank, first learned the value of a good bargain by necessity in his personal life. Later, his frugal approach became his most effective financial strategy as he found that undervalued stocks tend to outperform. He watched his portfolio grow, and as word of his success grew, family and friends started following his insight. He founded TPS in 1977 and I came on board in 1987, becoming Chief Portfolio Manager in 1990. Today, I and my team carry on Al Frank’s vision through the management of The Prudent Speculator Portfolio Strategy.
Since 1977, we have employed a long-term investment philosophy that’s based on three core tenets: selection, diversification and patience. We don’t limit ourselves to the constraints of those nine little style boxes so we’re free to go wherever we think the best stock values currently are found. After crunching thousands of numbers to unearth these bargains, we feel we can be confident that their value has the potential to emerge in time, so patience comes easily. And patience in turn enables us to have low turnover of our holdings, which keeps our trading costs down while potentially improving our after-tax returns (as realized capital gains are often of the long-term variety). To minimize risk and maximize opportunity, we also believe in broad diversification, with TPS Portfolio holding 80-90 stocks, improving our chances, we think, of owning those rare few stocks that everyone wishes they’d noticed earlier.
– John Buckingham
AFAM Capital, Inc. is a Registered Investment Advisor. Al Frank Asset Management and Innealta Capital are divisions of AFAM Capital. AFAM is editor of The Prudent Speculator newsletter and is the investment advisor to individually managed client accounts and certain mutual funds. Investing involves risk, principal loss is possible, and there can be no assurance that investment objectives will be achieved. Past performance is no guarantee of future results. AFAM only transacts business in states where it is properly registered or exempt from registration.
*Past performance is not indicative of future results. The Prudent Speculator (TPS) has been the #1 ranked, not adjusted for risk, investment newsletter for the past 20, 25 and 30 years according to The Hulbert Financial Digest (as of 1.31.15). The Hulbert Financial Digest was published from 1980-2016. A newsletter’s Hulbert Financial Digest’s performance ranking is based on an average of its several newsletter portfolios in the event it recommends more than one (and includes portfolios that the letters have discontinued).