Two Ways to Build and Preserve Wealth


For all of the chatter coming out of the financial industry about building wealth, I continue to believe that two of the best methods for individual investors are process and automation. The likelihood of success is enhanced when a good process is put in place and automation is used when it is both reasonable and realistically possible to do so.

Process is how you go about managing your finances, or accomplishing any other task for that matter. chartThe more clear, defined and easy to follow your process is, the more likely you will be to achieve the desired outcome. Checklists can really help: Have a list of procedures you follow when making decisions or taking certain actions and then refer back to this list regularly.

Let’s say you’re analyzing a stock. What do you look at? Chances are there are some characteristics you favor. Maybe it’s a certain valuation; perhaps it’s a certain level of growth. You could require a certain yield or a particular level of momentum in the price. I make a point of scanning through the 10-K report (an annual filing required by the U.S. Securities and Exchange Commission) to see if there is anything odd or alarming. Having a checklist of what specifically to look for can help you avoid skipping an important step. As much as we might think we do the same things every single time, we all get distracted and, at times, forgetful. Continue Reading »

This month, AAII is publishing our popular year-end review of stock screening strategies and if you join AAII today, I’d be pleased to pass along a copy for your review.

The data in this special report is pulled from the popular Stock Ideas area on and if you’re not familiar with this free members-only service, you’d be amazed at the investment ideas it can generate.

In a nutshell, AAII Stock Ideas allow you to tap into the investment philosophies of promising investment professionals as well as see the resulting stock picks. With Stock Ideas, you can choose one of our more than 60 screening approaches to build a list of winning stocks. The stock approaches and investment ideas are virtually endless and the resulting performance is top-notch. In fact, over the last 18 years, more than 90% of our stock screens outpaced the overall market.

Here’s a quick peek at some of our more popular screens
and their impressive 2017 returns:

MAGNET Complex up 150.8% …
Fisher (Philip) up 101.4% …
O’Neil’s CAN SLIM Revised 3rd Edition up 79.3% …
MAGNET Simple Revised up 66.7% …
MAGNET Simple up 59.6%

Return data as of 11/30/2017.

Join AAII Now and you’ll receive our year-end overview
of the AAII stock screening strategies, plus gain
full access to the Stock Ideas Area on

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 Highlights from this month’s AAII Journal

AAII Sentiment Survey

Optimism pulled back from last week’s seven-year high, but is still at an unusually high level. More about this week’s results.

This week’s results:

  • Bullish: 48.7%, down 11.1 points
  • Neutral: 26.3%, up 1.6 points
  • Bearish: 25.1%, up 9.5 points

Historical averages:

  • Bullish: 38.5%
  • Neutral: 31.0%
  • Bearish: 30.5%

Take the Sentiment Survey.

What’s Trending on AAII

  1. Insights on Using the 4% Withdrawal Rule From Its Creator
  2. Minimizing Taxes With Asset Allocation
  3. Conversations on Picking Good Stocks and Funds

The Week Ahead

The U.S. financial markets will be closed on Monday, January 15, in observance of Martin Luther King Jr. Day.

Fourth-quarter earnings season will start to pick up steam, with 27 S&P 500 members reporting, mostly mega-cap companies. Included in this group are Dow Jones industrial average components: UnitedHealth Group Inc. (UNH) on Tuesday; Goldman Sachs Group Inc. (GS) on Wednesday; and American Express Co. (AXP) and International Business Machines (IBM) on Thursday.

The week’s first economic report will be the January Empire State Manufacturing Survey, released on Tuesday. Wednesday will feature December industrial production, the January housing market index and the Federal Reserve’s periodic Beige Book. December housing starts and building permits and the January Philadelphia Business Outlook Survey will be released on Thursday. The University of Michigan’s preliminary January consumer sentiment survey will be released on Friday.

Three Federal Reserve officials will make public appearances: Chicago president Charles Evans, Dallas president Robert Kaplan and Cleveland president Loretta Mester will all speak on Wednesday.

The Treasury Department will auction $13 billion of inflation-indexed securities (TIPS) on Thursday.

Local Chapter Meetings

AAII Local Chapter Meetings offer you a variety of presentations from expert speakers who will give you their view on the world of investing. A bonus of attending a Chapter Meeting near you is the opportunity to meet other AAII members who share your interest and enthusiasm for investing. You can even share the Chapter experience with your family and friends by inviting them to attend Chapter Meetings with you! Upcoming Meetings »


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