I Know First Survey: What Is Your Stock Picking Strategy?

How do Wealth Managers, Portfolio managers, Financial advisors, Analysts, Investment Strategists and Fund Managers working in family offices approach investment?

This article takes a look at how different industry professionals customise their stock picking strategy for different client profiles and their specific needs. Additionally, it outlines the tools that they are using for each unique stock picking strategy.

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Name: Dr Scott Brown, Ph.D.

University: Professor of Finance of the University of Puerto Rico Graduate School of Business

Website: LinkedIn Profile


“I use psychological profiles for people I don’t know to define investor utility functions. Clinical psychologist Van Tharp, Ph.D. has an excellent instrument based on the Briggs Myers test. I have investors show me their results. If Van’s test shows low propensity for trading, then I direct them toward fully diversified strategies using index funds exclusively. If the person shows a high propensity for investing, then I teach them a core and satellite strategy. In this case, they use an index fund as a stable diversified core strategy. Then they can devote a fifth to a third of the portfolio with single stocks and call options. These are identified by positive price impact (trend and volume) with common sense analysis of what is easily known about the company.”

Name: Chad Shoop

Company: Banyan Hill

Website: Chad Shoop Guru


“Everyone has a unique approach. I boil it down to two types of investors: those looking for long-term gains, and those seeking active investments to navigate the ups and downs of the stock market. 

If an investor is looking for something less conservative, it’s best not to sell them a product and direct them to high-yield savings accounts, or treasury bonds. The 2% to 3% steady returns may be exactly what they are looking for. 

For long-term investors, the fundamentals of the stock are the most important. You want strong fundamentals, a growth industry, and a company with competitive advantages over its competition. The price is arbitrary, because growth stocks like Netflix can hold unreasonable price-to-earnings ratios for years. To not miss out on the gains you expect, it’s best to align those three items, and then let price work itself out over the long-term. 

My personal favourite approach is navigating the markets ups-and-downs strategically. This allows investors to hold stocks for less than a year and pick up short-term gains. The goal is to outpace a long-term investors’ return enough to offset the extra tax paid on short term trades. To do this, you will utilize technical indicators. If you want to make money in less than a year, the fundamentals don’t matter. The technical patterns of a stock’s price will drive the short-term movement.” 

Name: Cory J Nichols

Company: Yes Life Financial

Website: Yes Life


“I’m the owner of a registered investment advisor that specializes in the retirement market of everyday people, not medical professional or attorneys but the millionaire next door.  I think that makes me highly qualified to talk about a stock-picking strategy that is universally applicable.

Focus on investing best practices.  Know your appetite for risk, diversify your portfolio, rebalance regularly and minimize fees with the use of index funds and ETF.  Stop trying to beat the market.  If you want to get rich quick, you are better off going to the casino. Investing is about longterm returns.”

I Know First Stock Picking Method

The new I Know First stock picking method takes all 10,200 assets, the “global set” which includes stocks, commodities and currency pairs, etc. , that are forecasted by I Know First. The assets are then filtered by predictability and the top 30 most predictable assets are selected. A volatility measurement is then conducted. These top 30 assets’s signals are then adjusted for this volatility measurement. In case of picking S&P 500 stocks, the candidate stocks are then selected from this final set of top 30 global most predictable assets with volatility adjusted signal.

By implementing this new stock picking method, we are selecting only the most predictable assets and the ones with the highest signals. However, there could be occasions where no such S&P 500 stocks fall in this final set of 30 assets. If this was the case, a stock selection will not take place on such occasion.

Further examples to I Know First Stock picking methods can be found here.

Disclaimer: The opinions and strategies above are personal responses and do not necessarily reflect the opinion of the company the individual work at.

Asset Management