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Is the oxford club communique worth it to join?
Can it really help you make good investment decisions and grow your investment portfolio?
On its website, its marketing message sure catches my attention.
There is this video called ” The Single-Stock Retirement Play: Here’s Why This $4 Stock Should be the Cornerstone of Your Portfolio” (you could also read the transcriptions if you don’t have time for the video), I became very curious to find out what this $4 stock is.
I mean, who doesn’t like the idea of turning $1000 into millions in 10 to 20 years, right?
So, I subscribed to the oxford club communique.
In this review, I am going to share with you my experience of using the oxford club communique and help you make an informed decision.
Oxford Communique (or Alexandra Green’s) Investment Philosophy
So, who is Alexander Green, the man behind the Oxford Communique newsletters and its stock recommendations?
What is his investment philosophy?
Is he legit?
Alexander Green started out in the business as a registered representative in the securities industry in 1985.
Before long, he was writing his firm’s research reports and client communications and managing discretionary accounts.
After 16 years in the money management business, he left to become the Chief Investment Strategist of The Oxford Club, where he has been for the past 16 years.
Now, how does Alexander Green pick his stocks?
What investing principles does he follow?
He thinks that the most common mistake that investors make is listening to the noise and acting on it.
Every day, there are people on the TV or YouTube telling everyone their predictions on where the market will go next or where the economy will go next.
But, the truth is that nobody can predict the market in the short term.
So, it’s smart to resist the temptation to form opinions about the direction of the markets.
The only way to determine the best stocks is to look at business fundamentals.
Companies that increase sales, compound earnings at high rates, grow market share, improve operating margins, pay down debt and buy back shares post superb returns, regardless of what the economy or stock market is doing.
And those companies that have flat or negative sales, lackluster earnings growth, and small profit margins are the laggards.
In short, Alexander Green thinks that stock market success is about analyzing businesses, not investing in some expert’s macroeconomic forecast.
Instead of always asking, “Where will the markets head next?”, he thinks that we need to be asking, “Where will a particular company’s earnings head next?”
He is not saying that we ignore or don’t care about the general direction of the market or the economy.
What he is trying to say is that it’s impossible to predict the next gyration, so why not embrace this fact?
He also advocates the “four pillars of wealth”:
- Allocate your assets and your investment strategies with The Oxford Club’s Wealth Pyramid to increase your returns and dramatically lower your risk. And the foundation of the Wealth Pyramid is a properly diversified long-term portfolio – the Gone Fishin’ Portfolio of the Communiqué.
- Know your exit strategy and stick to it. Let your winners ride and cut your losers short.
- Understand position sizing and know the risk level of every stock recommendation
- Cut investment expenses. Avoid paying Wall Street’s outlandish fees and always tax-manage your investments.
Oxford Communique Portfolio & Track Record
There are five recommended portfolios inside Oxford Communique.
One of them is a core portfolio that is meant for holding for the long term while the others are for the short-term or long-term targeted trading.
Gone Fishin’ Portfolio
This is a simple diversified long-term investment portfolio that requires annual re-balancing only.
As they believe that asset allocation is the single most important investment decision, in the Gone Fishin’ Portfolio, they recommend that you implement that you divide your portfolio among different asset classes through a selection of exchange-traded funds (ETFs).
For example, they would recommend a mix of bond market ETF, TIPS ETF, Stock Market ETF, Real Estate ETF, and Gold Miners ETF.
Actually, you can find the Gone Fishing portfolio online for free on Alexander Green’s website.
In his book called “Gone Fishing Portfolio”, you can also find the exact portfolio holdings.
This “Gone Fishing Portfolio” was created in April 2003.
How has it performed so far?
It has done pretty well with all the ETFs generating a positive return with the highest total return being 563% and the lowest total return being 49% from April 2003 to July 2022.
Over the same period, S&P 500 returned 354%.
“Gone Fishing Portfolio” slightly underperformed the S&P 500 during this period of time.
The reason why “Gone Fishing Portfolio” underperformed S&P 500 is that the market has been in a bull run for the past 10 years.
Theoretically speaking, “Gone Fishing Portfolio” would perform better than S&P 500 in a bear market and is designed to better protect your downside.
This is very similar to Warren Buffet’s Berkshire Hathway.
As Warren Buffet said, Berkshire Hathway would do well but might not outperform in a bull market.
However, it would do better in a bear market.
After the crash in the first half of 2022, I believe that we would very much appreciate a diversified portfolio that is designed to limit your risks.
For this reason, I recommend Oxford Club‘s “Gone Fishing Portfolio” and other long-term oriented portfolios such as All-Star Portfolio.
Oxford All-Star Portfolio
This is a diversified basket of funds managed by some of the world’s top-performing money managers such as Warren buffet. ( trailing stops in this portfolio are not required)
There are a total of 7 recommended funds.
Three of the funds were first recommended in the early 2000s and still maintained a “Buy” rating.
As of July 2022, all the recommended funds have a positive total return with the highest total return being 529.9% and the lowest total return being 9.1%.
The performance is very impressive.
I highly recommend its All-Star Portfolio because it’s like having the best investment managers such as Warren Buffet manage your money.
The Fortress Portfolio is a new recommended portfolio that was only recently introduced in July 2022.
So, why Fortress Portfolio?
With inflation running high, supply chain constraints, US-China decoupling, and regional conflicts, it’s wise to build a “fortress” to protect your wealth from being eroded by inflation.
When I first saw this “Fortress Portfolio”, I was saying to myself that this is exactly what investors like you and me need to have in times like this.
This portfolio is made up of eight sector funds, each carefully selected to handily outpace inflation while providing complete security and peace of mind.
It requires no economic forecasting, no market timing, no stock selection, and no political punditry.
Also, it will protect your hard-earned money against inflation, recession, rising interest rates, stagflation, weak markets, and even geopolitical conflict.
Best of all, it gives you eight distinct ways to bolster your investment returns, even in this year’s uncertain economy.
Yes, you can choose to put your money in super-safe investments like T-bills or certificates of deposit.
But, it only guarantees a sharply negative return after inflation.
In other words, you will have reduced purchasing power and, ultimately, a later retirement or lower standard of living.
Inside the “Fortress Portfolio”, there are no unprofitable companies, small-cap stocks, and interest-rate-sensitive bonds, as well as crazy speculations like SPACs, NFTs, and crypto.
There is no individual security risk.
Each sector fund offers broad diversification.
This strategy avoids the pitfall of being in the right sector but the wrong stock.
If you are thinking about putting together a safe and inflation-protected portfolio, then you should definitely consider Fortress Portfolio.
Oxford Trading Portfolio
This is an active and diversified portfolio of the market’s short-term trading opportunities.
These are stock picks for short-term trading opportunities.
This needs active management and it is much riskier.
For example, they gave a “Buy” recommendation in May for the stock “Under Armour” at the buy price of $11.42 with a “25% trailing stop, this stock hits the stop loss.
That means whatever you invested in this stock, you would suffer a loss of 25%.
In April 2021, it recommended Merke & Co at the buy price of $75.97, the current stock price is at $92.78.
So, how has this trading portfolio performed?
So far this year, most of the stock recommendations are not doing so well because the market has been going down since the beginning of the year.
However, Oxford trading picks in the past years have been doing pretty well.
Ten-Baggers of Tomorrow Portfolio
As the name suggests, it recommends highly speculative (i.e. highly risky) stocks with the potential to rise tenfold.
For this portfolio, only a tiny portion of your money should be allocated because you could also potentially lose all your capital invested in speculative stocks.
A 25% trailing stop in this portfolio is not required.
Instead, a sell recommendation will be triggered if a company misses the quarterly consensus revenue estimate by 20% or more – or if the company’s business prospects have changed for the worse in some fundamental way.
So, how have the stock recommendations in this “Ten-Baggers of Tomorrow Portfolio” performed?
As of my writing today (July 2022), I can see there are six stock recommendations with three losing stock picks with a maximum loss of 52.9% and the other three winning stock picks with a maximum gain of 127%.
Given such a challenging market environment, it’s reassuring to see that Oxford Club really does its research well and makes responsible stock recommendations.
Because I have seen the performance of the high-growth stock picks from other investment letters such as Paul Mampilly’s Profit Unlimited.
The subscribers have seen most of their stocks fall by almost 90% in a span of months and face losses that might never be recovered.
That’s why it’s very important to choose wisely when it comes to investment newsletters.
And these Oxford Club’s recommended portfolios are asset-allocated portfolios with low-modest risk, low volatility, and a high probability of long-term success.
Oxford Communique Pricing
So, how much is the Oxford Club subscription?
What do you actually get from it?
If you sign up for Oxford Communique, here is what you get:
- Monthly Oxford Communiqué Issues: You’ll receive one recommendation (occasionally two) per month in the newsletter. The opportunity will most often fall into the Oxford Trading Portfolio but may occasionally fit into one of the other three portfolios.
- Weekly Portfolio Updates: You’ll also receive weekly portfolio updates on Tuesdays to keep you up to speed on any developments in the portfolios. These updates will most often feature one stock, highlighting any news or a recent earnings release, plus reiterating our investment thesis.
- Safety Switch Alerts: When a stock closes below our 25% trailing stop or its investment thesis changes, we will send out a Safety Switch Alert the next morning, letting you know to exit the stock.
- Library of Investor Reports: you have online access to ALL of the reports available in the Communiqué library
There are two pricing plans for Oxford Communique:
- Standard subscription: $129/year
- Basic subscription: $49/year (then $79/year thereafter)
So, what is the difference?
The standard subscription includes both digital and print subscriptions to Oxford Communique while the basic subscription only includes a digital subscription.
The Oxford Communique is quite affordable, compared to most of the other investment newsletters.
Is it worth paying for the Oxford Communique?
If you are a new investor who is looking for recommended portfolios for long-term wealth building in a safe and passive way, then the Oxford Club Communique is a good option.
Oxford Communique Vs Motley Fool
So, what is the difference between Oxford Communique and Motley Fool?
Oxford Communique provides asset-allocated portfolios for long-term wealth building as well as specific stock picks for short-term gain.
On the other hand, Motley Fool is focused on giving you specific stock recommendations that are high-quality companies with long-term growth potential.
What about the performance comparison between Motley Fool and Oxford Communique?
Let’s just look at the “Gone Fishing Portfolio” because it’s long-term focused.
This “Gone Fishing Portfolio” was created in April 2003.
As of July 2022, it had a total return of 284%.
Its “All-Star” portfolio also performed very well, especially during the recent market crash.
So, I would say that Oxford Club’s recommended portfolios are good options for you if you prefer a safer and passive way to grow your wealth.
On the other hand, Motley Fool makes specific stock recommendations and recommends that you have at least 15 to 20 stocks in your portfolio.
The good thing about investing in specific stocks is that you could get outsized returns.
But, the downside is that you also have to bear the stock-specific risks.
For example, companies might have dishonest management or might get disrupted by new technology and made redundant.
So, that is a trade-off that you need to be aware of.
Having said that, let’s look at the performance comparison between Motley Fool Stock Advisor and S&P 500 between 2002 and 2nd June 2022.
As of 2nd June 2022, average Motley Fool Stock Advisor recommendations have returned over 357% since inception while S&P 500 has returned 123%.
In short, the Motley Fool Stock Advisor has outperformed the market 3 to 1.
But, what about its individual stock picks?
This metric is important because you might not be buying every single stock recommendation made by Stock Advisor.
Below is a table that shows you the performance of individual stock picks over the years.
As of May 2022, Motley Fool Stock Advisor has had 171 stock recommendations with 100%+returns.
What that means is that you would have easily doubled your money if you had invested in any of the 171 stock picks by Motley Fool Stock Advisor.
Here are just some of their best-performing stock picks:
- Amazon: it’s up 19,806%*
- Netflix: it’s up 23,901%*
- Walt Disney: it’s up 632%*
- NVIDIA: it’s up 16,423%*
- Shopify: it is up 4,107%*
- United Health Group: it is up 2,338 %*
[*Returns as of 31st Dec 2021. Past performance is no guarantee of future results. Individual investment results may vary. All investing involves risk of loss.]
Just imagine that you actually found out about these great stocks way before everyone else did.
In terms of pricing, Motley Fool Stock Advisor is also much more affordable than IBD SwingTrader.
Usually, Motley Fool Stock Advisor is priced at $199/year.
Right now, you could get unlimited access to Stock Advisor for just $79/year. (This special offer is for a limited time only).