Provocation:

you’re in way over your head. you’re going to lose a lot of people a lot of money. if you can live with that, fine, but don’t be a shill. you seem too smart for that.

tim hanson

I wasn’t sure how to respond to this so I outsourced the response:

Wow, he sure gave you a clear, well thought out argument for why your investment methodology will lose people money, huh? Funny that it is coming from someone at the Motley Fool, I wonder if he is from the Global Gains segment.

The way I would respond to an email like that is to either ignore it completely…Or say something like this:

I believe in my investment strategy. It has worked for me, it has certainly given me greater average returns than any service at Motley Fool would have. If I lose money for people who invest with me, which is always a risk for anyone in the stock market, I will also be losing my own money. I do not believe this will happen as I am a strong believer in the potential of China. As China companies gain greater acceptance in the US, I believe their P/E multiples will expand strongly. Now is the time to exploit this ‘China Hesitation’ among the US investor-class and get into this segment before it becomes flavor-of-the-month. The China-exposure is the greatest risk anyone faces when they invest with me, as I diversify my positions well among the China-stocks. That is a risk they know and choose to take for themselves, I will not take responsibility for them choosing that exposure with putting money at my disposal.

An article by your fan, Tim Hanson:

http://www.themoneytimes.com/featured/20090905/buying-opportunity-you-wont-want-miss-id-1082657.html

Weird how he sent you an email like that when he is pumping companies like YONG and CMFO. Obviously he is ok with the China risk.

CMFO is a nice company, so no complaints there. Just too pricey for me.

If his objection was not to your China exposure, is it due to the specific China picks? There is always the risk of ‘scams’ in these China companies, but many of the names we both like seem fairly solid and clean-cut.

-Fernando

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Anyway, I figured the least I could do is analyze stocks he owns:

http://boards.fool.com/Profile.asp?uid=214846910

abb – no, not enough upside, at most a double in 2 years

amx – not sure, not interested, fair price

aob- hmm. not bad. looks like they cut their dilutionary ambilical cord, i still own call options on this 2011

bbbb – overpriced, i hate this software as a student, expect some web2.0 stuff to replace it
bbsi – at most will double, not interested
brk-b – haha, who owns berkshire and hathaway, i just sold it out of one of my new investors accounts, paying the buffett premium are we?
bsv – short term bond? this is a terrible investment. I advised shorting US-T’s in january (TBT) and made more than this will ever make.
cfx – nice chart, nah
cmfo – i believe i’ve expressed interest in this one back in marchish.. some guy from NYC raised my awareness on it then. good but not great. definately a doubler
cmg.b – as much as i like chipotle, no. too expensive
cresy – wow. what’s with the explosive groth and suck share price?, could be a 3 bagger. would have to research more
dhil – no. way expensive. own better for less.
dwsn – i rec’d this one back when i started on seekingalpha. should double, but not enough for me.
esgr – no clue, not enough upside for me.
faf – no
fhco – female health? cool. but not with my investment dollars; pricey
fmx – no clue
hdb – nah
iaac – looks interesting, no clue though, but if you research, could double, looks good at first glance
mmm – no
mpel – prolly not. no clue though
nvs – too expensive
pm – loves the smokes ( i don’t smoke) but buy ckgt instead
praa – hmm. expensive
oxps – i use etrade. but i dont like oxps. wayy expensive
ushs – if they can do better than break even. worth looking into. but their profit margins stink
wti – could do some serious upside damage, maybe 5 bags, natty gas is about to bottom. or has. heads up.
wynn – too expensive for me.
yong – is this the old yuhee, ygii one? or the one that raises chicken eggs and then sells them? this should definately double.

some more:

akyi – pink, nah
csgh – yeah, duh
ckgt – yeah, screw the whole ciggy thing, this is still a yes (whatever people on boards are griping about… some ciggy thing. ignore them. it’s going to happen. it could be huge. and it’s very cheap.
apwr – nah

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