You may ask, “If your advice in strategic-stock-investments is so good, why are you practically giving it away?” That is a fair question, and a good one. This whole idea took root because we decided that we wanted to expand our money management business.

When it really comes down to it, there were only two basic business growth strategies to consider: differentiate our product, or become the low cost producer. We thought about the product differentiation alternative. But no matter how good the performance of strategic-stock-investments has been, it is an intangible product against which there are a vast number of competing claims about superior performance. And of course depending on what time frame and index with which a money manager chooses to measure his funds performance, those are reasonably legitimate claims.

Our conclusion was that perhaps the best way to differentiate our product was to avail the customer of an investment strategy that has demonstrably outstanding performance, but at a price considerably less expensive than our competitors.

Moreover, experience has taught us that the simplest approach is usually the best and the cheapest (the Wal-Mart strategy). The success of Wal-Mart stock in the marketplace attests to how profitable a well executed strategy of being the low cost producer can be. We then asked ourselves, “Could we structure our business so that strategic-stock-investments can be the low cost producer in the industry?”

We could not do it as a mutual fund, because the costs associated with running a fund would require us to charge similar management fees if we were going to make money. Finally it dawned on us! Why not eliminate most of the costs associated with funds, i.e., simply provide the information we would use if we were investing as a fund, go for volume, and pass the savings on to our clients.

We could do this by creating the strategic-stock-investments newsletter, showing experienced, conservative investors how to create a portfolio similar to a high quality mutual fund. We could then pass the savings on to them, so that those savings could be reinvested each year, giving our clients a higher return….. a great value proposition.

Why in the world would anyone pay 1.5% per year for the same advice when they can get it for 0.15%. When you consider all of the facts, we don’t think you will.