Tobin Smith – ChangeWave Investing 2.0 Picking the Next Monster Stocks While Protecting Your Gains in a Volatile Market

Wouldn’t it be great if we could identify the next big stock and jump in before everyone else? Investment professional Tobin Smith believes he has developed a solid means to that end, and he lays it out with confidence. ChangeWave Investing. . Smith’s approach begins with a detailed system for identifying the most promising of future highfliers, which has delivered more than 150 percent annualized gains since 1995 and more than 430 percent gain per stock pick in 1999 alone. Smith uses the same free-flowing method of information exchange that has been successful in the Linux software community to charge this approach. Smith contends that investors can enhance his aggressive growth-stock model by learning how programmers have continually improved Linux.

Will it work? The financial source code of New Economy should be made available to all participants if investors who support Smith and play along combine his advice with their own collective expertise.

Some of the jargon-laden process may befuddle casual investors, but serious stock watchers searching for an ambitious and original strategy with high upside may just want to strap on a virtual seat belt and see for themselves. The man is Howard Rothman.

REVIEW

A landmark book! Don’t invest in tech stocks if you don’t read ChangeWave Investing. Harry Domash is a columnist for the San Francisco Chronicle.

FROM THE PUBLISHER

[from the Author’s Preface]

ChangeWave Investing is about your prosperity in the new economy and two big ideas. The New Economy stock-picking model has delivered 150 percent annual growth since 1996. The model allows investors to turn tens of thousands of dollars into hundreds of thousands in a short period of time. You can take advantage of the greatest growth stock opportunities in the New Economy before the majority of the investing public. It is called open source investing.

ChangeWave investors have been able to catch many of the monster stocks of the New Economy thanks to these two ideas. We hope after reading this book that you will want to participate.

I’ve always been torn between two loves, the hunt for emerging growth stocks and the hunt for new customers. Ten years ago, I wondered if analyzing and creating marketing strategies was the key factor in a company’s success. Wouldn’t figuring out which publicly traded companies had strategies that are likely to dominate or outsell their competitors be a key factor in a company’s stock appreciation? My answer? It makes sense.

I was enamored with the idea that winning stocks were more about analyzing marketing and business strategies than balance sheets. I could make up my rules from scratch because I was not a trained securities analyst.

After researching investment managers and investment strategies for years, I came to the conclusion that the weakest part of their research was their understanding of the markets their companies competed in. It is the difference between a finance and a marketing perspective. My new approach to marketing seemed to focus on companies’ ability to beat competitors rather than how they looked on a spreadsheet. When the Internet came along, I didn’t know how valuable the approach would be.

I was made another observation that was not very radical. I was looking for companies that used radical changes in strategic business design. The greater the rate of fundamental change in an industry, the greater the companies leading that change appreciated in value. I didn’t know it at the time, but this was the beginning of the strategic analysis concepts you are about to learn.

In 1995 I started publishing my ChangeWave Portfolio of stock recommendations for friends and colleagues based on the pattern I had observed. The first five companies I recommended were in the ChangeWave Investing e-letter.

Orthodontic Centers of America, QUALCOMM, and Medicine Shoppe International are included.

The woman went broke. Orthodontic Centers of America rose 600 percent before giving back half of it’s 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 Medicine Shoppe International was swallowed by a drug distributor. You know the success of the other two. My early success was a glimpse of what the future would hold.

The stocks of the companies I was doing business with exploded in value as I became more and more a student of the emerging New Economy. I wondered if the theory of radical change in an industry would lead to radical changes in the entire economy. Is the pattern the same? I never imagined the answer would be yes.

ChangeWave Investing grew into an e-letter to thousands of friends, family, and New Economy professionals by the beginning of 1999. The better our results were, the more WaveWatchers were involved in the discovery and analysis process. By the middle of the year, our band was making more money than we ever thought possible. Our strategy led us to invest in New Economy companies and markets. WaveWatchers had grown their portfolios to six-figures in less than 18 months. Several became millionaires. I continued to improve the strategy and pass the test with flying colors.

Eric Raymond wrote a book about the Cathedral and the Bazaar. The case for the open source software movement was made by Eric. I knew that the future would be open source investment research. My experience with the WaveWatchers convinced me that most of the principles of open source software development could be applied to investment research.

During the summer of 1999,Phillips International agreed to be my partner in launching ChangeWave.com, which now offers a variety of research decision support tools for free to any and all investors. The web site sponsors and manages the ChangeWave Alliance, a massive network of New Economy professionals who package the end results of our investment intelligence-gathering and peer-review analysis into a buy/sell/hold advisory service.

Isn’t open source investing like a stock message board? No. These come-one-come-all web sites and message boards with God-knows-what basis or professional credentials behind their posts have some flaws.

Money invested via the ChangeWave Investing process has grown more than 2,500 percent in the last 48 months. The growth rate on a compounded basis is more than 150 percent annually. We grew our growth capital more than 500 percent in 1999. Our results have been getting better every year as the power of our open source approach has continuously improved our stock-screening and investing logic.

Take a tour of the New Economy in the beginning of the book to understand what it means to you and your monster stock picking. We will make sure you are up to speed on the basics of aggressive growth investing. We will cover the basic economic assumptions and rules in the ChangeWave Investing application. We will get into core behavioral assumptions and rules we have included in ChangeWave Investing to mimic institutional investing behavior. When you get into the ChangeWave approach to screening and buying aggressive growth stocks, you will discover that buying them well is easier than owning them. Help with that as well.

ChangeWave Investing has a mission.

We can achieve financial security by sharing our brainpower to find the best growth investments in the first decade of the twenty-first century.

ChangeWave Investing is here!

ABOUT THE AUTHOR

The founder and CEO of ChangeWave.com is Toby Smith. He is the managing partner and chief investment officer of ChangeWave Capital, a private hedge fund. He worked as a marketing executive for 15 years in the investment banking and financial services industries. Toby and his wife Marjorie live in Maryland.

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