Lee Wenzel

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Why Success?                   

The Wenzel Analytics Advantage

To consistently do better than the market, it is necessary to have access to information, tools and skills not available to most investors.  Why would you expect Wenzel Analytics to do better than you could do, or better than mutual funds or other money managers?  

  1. I am very patient in applying analytical and data management skills.  I usually require data and statistics to support decisions and strategies.  Consistent strategies are used to purchase clusters of stocks, rather than individually picking stocks using a variety of reasons. 
  2. The focus with investing is to use money to make money.  I have portfolios designed to do better than the markets, and portfolios designed to produce reliable income independent of what markets might do.
  3. Time and expertise is focused on investing.  No attempt is made to be expert in broader areas such as insurance, estate planning, taxes, long-term care or plans to finance college education. 
  4. Exceptional newsletters or online databases often form the starting point for analysis and screening.
  5. Empirically tested technical analysis covering varying time frames is utilized to make the final selections within a screen. 
  6. Purchasing limited quantities of stocks with limited liquidity or supply allows us to play in an arena where investors with millions of dollars cannot find enough shares to buy, or enough buyers for selling, without driving the price up or down to their disadvantage.
  7. All stocks and portfolios are closely monitored.  The number of stocks is high enough to limit emotional attachments.  When a stock looks weak it is sold. 
  8. Trading and data management can be efficient on a small scale, while limiting the significant overhead associated with layers of large financial institutions each taking a piece of the action.
  9. Investing is both a science and an art.  I have learned from experience of more than twenty years managing other people's money. 

Success comes from keeping organized and tracking against benchmarks.

  • Be in control

Being in control is critical both for managing the complexity, as well as maintaining a psychological sense of safety and control when the market may appear uncontrollable. Risk as a feeling is different than risk as a reality, and often more dangerous.  Being in control is dependent upon having efficient and workable systems for selection, monitoring and selling.

  • A watched pot never boils (over)

Denial is insidious and pervasive, both for amateur and professional investors.  Denial is one way to avoid the discomfort of risk.  Many investors do not know how performance compares to benchmarks, and may be comfortable while performance is suffering.  Many people are penny-wise in their lifestyle choices, and dollar-foolish in ignoring opportunities for better management of their investments.  Even if gains exceed losses, many investors see the losses and irrationally fear risk.  They want a team that never gives up a touchdown.  Mutual funds help them by cutting off visibility to individual stock losses.  Significant gains are achieved not by fearing any losses, but by having more and bigger gains than losses.   

  • Be systematic

Wenzel Analytics employs rigorous management systems that involve portfolio management software, data sources, charting software, defined operating procedures, and brokerage data integration.  Growth and improvement come through discretionary review of a limited number of ideas, methods and recommendations while ignoring the avalanche of competing hype available on the Internet and media.

  • Rarely use funds

The many reasons for the direct purchase of stocks rather than to use mutual funds are elaborated elsewhere (Mutual Funds).  Wenzel Analytics will use exchange traded funds occasionally such as for small cap international investments.

 

     8666 Westwind Circle

    Eden Prairie, MN 55344

    (952) 944-2699

    Lee@WenzelAnalytics.com