James Muninn

@inninuM

2 Tweets • 2023-07-04 •  See on

rattibha.com 

Qullamaggie isn't the first to turn a few thousand into

$100 million+

5 years ago Qullamaggie recommend a book called

"Killing the Market: Legendary Investor Robert W.
Wilson"

I started reading it and the similarities with

@Qullamaggie are striking

Here's some of them:

Returns
Qullamaggie's returns are even better than Wilson's,
but they traded in completely different market
environments
Year Net Worth
1958 $15,000
1960 $195,000
1962 $300,000
1966 $1 million
1968 $7.4 million
1971 $12.4 million
1972 $21 million
1977 $42 million
1980 $81 million
1982 $110 million
1983 $173 million
1984 $154 million
1985 $197 million
1986 $230 million

2020 was to Qullamaggie what 1970 was to Wilson

After the market topping in December 1968, Wilson
lost 90% of his Client's money in the following bear
market. But in the bull market that followed he made it
all back (1000%+), just like Qullamaggie did in the
post-covid bull market.
After this Wilson stopped managing other people's
money.

Similarity with Livermore?

Similarly to Livermore, Wilson jumped out a window at
age 87.

However, the circumstances was very different as he

did it after having "lived a wonderful life and was fully
rational" when he decided to do so, as he wrote in his
suicide note.

In the same note he also left instructions for meetings

which needed to be cancelled after his passing.

Steal others ideas

In an 1985 interview (together with famed investor
Warren Buffet and John Tempelton) he started the
interview saying "Unlike these other distinguished
gentelemen, I am not an original thinker. I rely on
other's ideas. I'm a derivative thinker".
Sounds familiar? Qullamaggie has repeatedly said
that he has copied all of his setups.

Sentiment change drives the market

He continues the interview explaining how he tries to
be in stocks with accelerating earnings and in the
stocks with the highest potential to make huge gains.

He also address something I think is lost in many of

the CANSLIM'ers method/screening. When the
interviewers asks him "but are'nt these accellerating
earnings reflected in the price?", he says:

"Let me refine what I said. The only way to make

money in the market is when the perception of a stock
changes"

This sentiment change takes the from of a huge gap

(EP) or a breakout from a price point.

The full interview can be viewed here:

Famous for the wrong reasons

It's worth a watch just to hear himself say things like "I
was Godlike in picking shorts. And we all know what
happens to God", when he explains how he landed on
the front page of the Wall Street Journal (he lost
approx 50% of his net worth!).

Remember who else was in WSJ due to a huge loss?

Be in the fastest moving stocks

Wilson said he wanted to be in the fastest moving
stocks. "The stock that was held by the fearful, or the
greedy, or both, and thus had the potential for a big
price move. The individual stock that had publicity and
public attention, and was drenched in human
emotion."

The ADR-concept (Average Daily Range) is based on

the same underlying principle.

Have a flexible mind

Here's another facinating quote from the book:

"Wilson said something quite marvelous at one point,

long ago: “I know absolutely everything. But I am
willing to change my mind.” Unlike millions of
hardheaded, insistent investors out there, insisting on
this idea or that, and treading water or losing money,
Wilson worked very hard to understand the
complexities of the U.S. stock market, was always
determined to be aligned with it properly, and was as
flexible as a willow, and could change his mind in a
minute."

Remind you of anybody?

Use of leverage
But an area where Qullamaggie differs from Wilson is
with the use of leverage. Wilson was a big fan of it and
said he tried to have 1:4 leverage on most of his trade
ideas.

Qullamaggie is very clear that "leveraged is earned"

and that he is very rarely more than 150% invested.

2020 was to Qullamaggie what 1970 was to Wilson

The market topped in November 1968 and didn't
bottom until May 1970. His fund had lost around 90%,
but year end he had gained most of it back making
around 1000% in just a few months.

These are similar returns Qullamaggie made in the

bull market of 2020.

Short sellers are into kinks

Unlike Qullamaggie (at least the more experienced
Qullamaggie), Wilson shorted the frontside. This
brought him a lot of pain, and he once said "To be a
short-seller you have to be a masochist, and then try
to make money later on."

Qullamaggie has a eerily similar quote: "If you're into

BDSM, you may like shorting a lot"

This is the tweet that started it all

https://youtu.be/LFWj0ps9DqA https://www

.wsj.com/articles/short-selling-stocks-p

roves-costly-for-some-investors-11599645
600

The formatting got all messed up after editing the

tweet. I hope the readability is still ok.. If not, please let
me know

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