James Altucher has made waves in recent years with his popular podcast “The James Altucher Show” and bestselling books sharing his unorthodox perspectives on life, business, and money. But Altucher has also built an increasingly prominent platform in the financial media world through its suite of newsletters, premium services, and educational products marketed under the Altucher Investment Network brand. For investors intrigued yet skeptical of altucher’s oddly effective ways, here is an in-depth look at his strategy and whether it may complement your money approach:
Controversial criteria
To pinpoint promising opportunities early, Altucher employs some controversial screens that defy traditional financial analysis:
- Emphasis on future potential and disruption rather than financials – He deliberately ignores metrics like P/E ratios to not miss the big picture.
- Willingness to chase momentum and “hot stocks” – Altucher will buy stocks already up 100%+ if the underlying strength remains.
- Buying pullbacks in leading stocks – Any dip is a buying opportunity for stocks with strong stories.
- Prioritizing founder-led companies – If the visionary founder is involved, the company is likely still in the early innings.
- Invest in your interests – Passion for a company’s product can signal undiscovered potential.
These criteria flout the tenets of value investing and fundamental analysis. But, Altucher argues identifying outlier success stories requires going against orthodoxy.
Transparency on performance
Importantly, Altucher does provide transparency within his premium services about the performance of past recommendations. So, members see how picks did rather than just hearsay. This level of openness and disclosure on his actual track record – both wins and losses – is admirable compared to advisors who only tout victories. For investors intrigued by Altucher’s outside-the-box process, how can you implement elements of his approach within your overall portfolio strategy? A few tips:
- Focus a small allocation purely on moonshot potential stocks – 10-20% of your total portfolio can chase home runs.
- Consider his premium research services for finding undiscovered ideas – But use discretion and always do your diligence.
- Don’t overexpose yourself to anyone’s pick – Losses happen, so ensure proper diversification and risk management.
- Focus on big emerging trends as much as specific stocks – Identifying macro shifts like e-commerce or streaming before they disrupt is powerful.
- Maintain core holdings in proven value stocks – Balance moonshot investing with stable blue-chip companies.
Altucher’s provocative criteria for identifying tenfold winners early on initially seems nonsensical and risky to traditional investors. But a sober historical review shows his unconventional thinking could reward patient investors handsomely. Had you bet on his past recommendations early on despite the uncertainty, you would have made out extraordinarily well. While such 100X returners are rare, even a few greatly amplify overall portfolio returns over time.
For at least a small part of your investing capital, Altucher’s outside-the-box methods are worth consideration. But, temper the exuberance with realism, so implement the approach responsibly within your risk limits. While not for the faint of heart, is altuchers investment network really legit offers a potentially lucrative window into one of today’s most creative investing minds. You may discover an overlooked gem just starting its disruptive rise.