March 14, 2024

Taking The Emotion Out of Stock Investing with Jeff Weber

Taking The Emotion Out of Stock Investing with Jeff Weber

I'm thrilled to share with you some golden nuggets from our latest podcast episode that I believe will tickle your investment fancy. In this episode, I had the pleasure of sitting down with the brilliant Jeffrey Webber, a seasoned investor and author who's turning heads with his contrarian approach to investing.

🎯 The AIM Strategy Jeffrey introduced us to his Automatic Investment Management (AIM) method. It's a strategy that's all about making the market's ups and downs work for you. If you're tired of the same old investment advice and looking for a fresh, systematic approach to growing your portfolio, you won't want to miss Jeffrey's insights.

📈 Stock Options Simplified Ever felt intimidated by stock options? Jeffrey breaks it down for us, making it accessible and, dare I say, exciting. He shares strategies that could potentially help you leverage stock options to aim for the millions. Yes, you read that right – millions!

His Book

Here Are the Customers' Yachts: How to Systematically Buy Low, Sell High, and Earn Lifetime Profits

https://a.co/d/7e5xKFQ

Next Steps

Transcript

Speaker 1 (00:00:03) - Hey, good day, fellow dealmakers. We got seven minutes on the clock and we're going to have a conversation with an investor who's going to teach us his way of investing and give us maybe some strategies that,, we might want to consider for ourselves. So with that, Mr. Jeffrey, welcome to the show.

Speaker 2 (00:00:18) - Thank you very much for having me.

Speaker 1 (00:00:20) - Yeah. Now you have,, you're an author. You're you're,, you've done a bunch of stuff. You've been an investor for a very long time, but you've you've discovered a way of investing that works well for you. And it's very contrarian,, to, to way a lot of people do. So why don't you explain high level what kind of investing do you focus on?

Speaker 2 (00:00:41) - Okay, I used to haunt books, used bookstores in my college days, and I found a book by a gentleman named Robert Lazlo who invented the ehm, investing method, which is a contrary method of investing. I embraced that book. I knew he had the great ideas of taking.

Speaker 2 (00:01:07) - The biggest enemy of all investors is emotion and his method, the A method which stands for Automatic Investment Management, completely eliminates emotion from investing and replaces it with logic. Okay, so long story short, I picked up the book and didn't use it for years because I was poor back then. But finally I got a good job with the US Army and I started doing Aim investing. Well, at first I could only do it with stocks. But then later on in my career, I moved back to San Antonio, Texas, and I went to a free financial seminar. And I found. Out about a wonderful way of investing called leaps. All leaps are. Are long term options that have more than a year before they expire. And they expire on the third Friday of January. So right now I am investing in January 16th, 2026 options. Well, why would you want to use options? There's two great reasons. Obviously, the aim, pun intended of investing is to make the highest possible profits in the safest possible manner.

Speaker 2 (00:02:42) - So what I found was that you don't want to buy, for example, Apple stock, which might be $100 a share, but you could buy an Apple Leap. At the money and all at the money means is that the strike price of the option is higher than the stock price at the time. So if I'm sorry, it's lower at the time. So if. Apple is 175 and you buy a strike 150. You have bought an option that's in the money. Okay. Now quickly how do I. How does a mark when I want to buy the options? And I'll give you a quick example. Okay. Let's say you're going to start with aim okay. Let's say you're going to start with $10,000. What you would do is you would start with I'm sorry, $20,000. You'd start with 10,000 in cash and 10,000 in options or leaps at the time. Here's the key to aim. You always compare the. Portfolio control to. The value of the leaps. So for example, you start off with 10,010 thousand.

Speaker 2 (00:04:11) - Let's say your leap goes up 50% and that is possible. So your leap goes from $10 to $15. Now you would find your portfolio value is 15,000. Yet your portfolio control has stayed at 10,000. So you look for the highest number. And since 15,000 is higher than 10,000, you have a possible sell on Apple. And the way Aim works, it has a built in feature. To make even more profits. You would go 15,000 -10,000. Aim wants you to sell $5,000 worth of leaps because they're profitable right now. The whole purpose of Aim is to transfer some paper profits to real profits. So I would add and to cover for that in advance, I would have put in a limit buy and sell for exactly the number of contracts I wanted to buy or sell. So I all I have to do is. When I do it the first time. Let's say I started $10 and $10 for the leap. I would find. That 25% lower is a good starting price for the next buy on a leap.

Speaker 2 (00:05:38) - So if I buy it at $10 initially, I'm going to buy put the buy in for 750 for the next buy. So if it drops 25%, I'm going to make another buy. So all aim really is is a sophisticated dollar cost averaging system with buying and selling. And you do every time you also put in a sell. I have found from experience you want to pick a sell price that's about 35% higher than your original buy price. So again, if I bought a $10, I'm going to be putting in a sell, a sell for like 1350, I'm going to. But in Dubai, I find you can get away with 25% on the buy at 750. And then I wait for one of those to happen. And then every time a buy or sell happens, you adjust both the next buy and sell. If you had to buy the first time, your next buy is going to be lower and your next sell is going to be lower. And if you had to sell, your next buy is going to be higher and your next sell is going to be higher with that same rough ratio.

Speaker 1 (00:06:48) - So Jeff, we got 12 seconds left. I know you wrote a book on this. It's on Amazon. What's the name of the book. So for the dealmakers there you go.

Speaker 2 (00:06:56) - Check it out. I wrote in the book I guarantee you will buy low, sell high and make money that I give away for free. And.

Speaker 3 (00:07:05) - Yeah. Keep going. Where can we find the book?

Speaker 1 (00:07:07) - What's the name of the book?

Speaker 2 (00:07:09) - Okay. The name of the book is aimed for millions with stock options. It's available on Amazon under my name, Jeffrey Webber.

Speaker 1 (00:07:19) - Very cool. Hey, fellow dealmakers, I hope you're enjoying the seven minute deal talks. Talking about investing, talking about deals., as always, reach out to our guests and say thank you. We went a little over this time, but we give it to him because he served our country well. So, Jeff, thanks for coming on the show.

Speaker 3 (00:07:35) - Fellow dealmakers.

Speaker 1 (00:07:36) - Yeah. Fellow dealmakers. Thanks for tuning in.

Speaker 3 (00:07:38) - All right. See you all.

Speaker 2 (00:07:39) - Thanks for having me on, Josh.