The BMW Method
Why not Share Stock Picks?

Format for Printing

Format for printing

Request Reprints


By BuildMWell
June 27, 2005

Posts selected for this feature rarely stand alone. They are usually a part of an ongoing thread, and are out of context when presented here. The material should be read in that light. How are these posts selected? Click here to find out and nominate a post yourself!

"Jim, everything you wrote here is in hindsight to us. I understand why you don't want to give stock-specific advice. Yet you have used, watched, and experimented with the BMW method far longer than any of us Beamer Converts. Would it kill your spirit to tell us once in awhile, "Hey, guys, I think you're fuxxing up?" We're not lemmings. I don't want your portfolio. I sure would like to see it once, though, just to see what companies you passed on, and which companies you chose to accept the risk on to see if I can figure out why, because for whatever reason, you don't say. You don't want to influence us? Holy crap, Batman, er, BMW, it's too damned late�look at this board!

If you aren't our mentor in making these decisions, who is? I was president of my own little corp. with 20-some employees before retiring at 44, so I'm comfortable making my own decisions, but if I had someone more experienced willing to share knowledge, I always jumped at the opportunity to learn. And in our case, having confirmation from other Beamers certainly helps. Having confirmation from you would put me totally at ease. Is that so hard to understand? I doubt any of us buy all Hidden Gems recommended either, nor Inside Value picks, or any other MF or non-MF picks�at least I don't. But we get to see what the masters recommend. But you are the guru for the BMWM, and I have learned more from reading between the lines of your great posts, than reading the lines themselves. Why be so humble? You want to share�share the CAGR so we can all get off on the right foot and gain the confidence so many Beamers are so hungry for!"
I do not share my picks because I do not know they are right. This board is about learning the BMW Method, not about leading someone to buy a stock that I happen to like. I could be wrong. Eventually, the BMW Method will let me down and I do not want anyone else going down with me.

I think that I am sharing all that I need to share with you folks. This is how I fish...I know what fish I like to that is what I catch. However, if you use the same techniques, you will know how to fish like I do. That is scary enough for me. What if someone fishes like I teach them and they get eaten by the sharks? That will bother me as much as I care to be bothered.

If I see what I think is a really bad move, I will definitely speak up. But, each of us has to learn the BMW Method for him or herself. The beauty of this system is in the application. The more you use it, the more you learn about using it. If I give out too much in detailed suggestions, I will have failed in teaching the BMW Method.

The whole idea here was to tell people about what I have discovered and to get help in "computerizing" the BMW Method. That has succeeded far beyond my expectations. But, we are all learning here together. I have actually learned more than anyone here might think. I invented this thing, but like you did in your business, I am learning from you all the time.

There are no bad decisions the way I see it. What we are all learning is how to make better decisions. That is the "art" of the BMW Method. I do not know how to teach that. It comes from experience and good judgment. Good judgment cannot be taught and experience comes from bad judgment. Half of the game of life is learning what not to do.

"Why be so humble? You want to share�share the CAGR so we can all get off on the right foot and gain the confidence so many Beamers are so hungry for!"

That is what I am doing. I learned this the hard way and I think I am better for it. You all are starting where I was 5 years ago. I have already saved you folks 21 years of bad decision-making on my part. I used to listen to the "experts" and that never really paid off for me. I went solo in 1995 and developed the BMW Method as we know it by 2000. The BMW Method is the culmination of everything about investing that I learned that did not work in those 21 years. No one ever told me about the CAGR. I am still learning, so what if the BMW Method has a fatal flaw and is not worth the paper it is written on? Then, we are all wasting our time here. I am not absolutely sure that this whole thing is flawless.

I prefer to keep the pressure on all of us to be the best we can. Let's work together to find the best stocks that we can find. There will be a stinker eventually. I do not think we have found one is hard to do better than that. So, what more can I do? The rest is up to personal taste. What kind of fish do you prefer?

Now, all that I do differently is that I have higher expectations than many of you. I am trying to beat myself at this game that I invented...I am my competition. But, when I lose, I have no one to blame but me. That is the basic design of this thing. This method of mine is all about self-confidence in investing. I cannot give that to anyone else. But, the BMW Method sure helped me find that confidence for myself.

Become a Complete Fool
Join the best community on the web! Becoming a full member of the Fool Community is easy, takes just a minute, and is very inexpensive.