Archive for April, 2012

P.T. Barnum Was Correct

Posted in Internet Frauds and SCAMS on 24, April 2012 by nathanbusch


John Bell, Alexander John Hunter, Thomas Edward Hunter, Shane Whittle, etc.

The amazing part of all this is that the Hunter Brothers managed to steal more than “$1.2 million from investors primarily in the U.S. who paid $47 apiece for annual newsletter subscriptions.” Also, they managed to defraud 75,000 “investors”, who appear to be lacking in understanding as to the workings of the darker side of modern society, out of millions of dollars by convincing these “investors” that a stock picking robot, which the Hunter Brothers had “invented”, could identify penny stocks that were set to more than double in price. In fact, according to the SEC, “Alexander Hunter wrote that the software should ‘not actually find stocks at all. It should connect to my database and simply request any new stocks I have put in.'” At least Shane Whittle puts some effort into setting up a penny stock company as material for a stock SCAM.

One hundred years ago, or even 15 years ago, it was possible to be successful with such simplistic con schemes because the information required to identify such SCAMS was not readily available. However, in the modern era in which a tremendous volume of information is available to anyone who can use Google, it seems that such schemes should not succeed today. Nevertheless, gullible investors who are looking for a get-rich-scheme fall victim to these schemes and then go crying to the SEC when they have lost their life savings. They could preserve their money by going to the SEC EDGAR website before giving their money to the criminals.

Making money in the market is not terribly difficult. Have a solid investment strategy, stick to that strategy even if the market is increasing rapidly or decreasing rapidly, buy some microcaps that have sound fundamentals but have not yet been discovered by the big boys on Wall Street, and buy some mid-caps and large-caps that will create a solid foundation of stocks that you will hold until you die. Understand that Mr. Market is in a very bad mood about half of the days and is in a very good mood about half of the days. When he is in a very bad mood for a good number of days, then buy solid stocks that are set to increase in value and that will pay a dividend. When he is in a very good mood, stay calm and enjoy the increase in your portfolio.

Preserve your capital by staying away from any stock that is being pushed by promoters. By the way, that was one of the “don’ts” articulated by Philip Fisher in 1958. Kenneth Fisher is correct, there is nothing new in the market.

Nathan A. Busch

Mr. Market: 10th April 2012

Posted in Uncategorized on 11, April 2012 by nathanbusch

It makes me jump for joy when I have cash

and the market does crash.

Nathan A. Busch