CNBC Million Dollar Portfolio Challenge - Interview With Bradford Pine
We've got a special treat for you today. One of our readers who first found our humble site during the previous Portfolio Challenge is investment advisor Bradford Pine, who went on to win third prize for a cool $50,000.
Lest you think Brad got lucky last time, he's been a frequent fixture on the leaderboard during the current contest too, and as of this morning was ranked #1 with $3,075,312 million (a 208% gain in two weeks).
Brad was good enough to lend us a few minutes of his time today to share some details about his contest strategy and his approach to real-world investing.
Given his track record, you might want to think about talking to him about your own real-world investments...
Flip: So, Brad... What's your day job?
Brad: I am a Registered Principal / Investment advisor for Cantella & Co. I manage money for individuals from CEO’s to mom & pop organizations.
I offer services such as Fee based Wealth Management, Financial Plans, Mutual Fund Diversification Programs, Mutual Fund Reviews, IRA’s, 401(k) Rollover, and others.
Flip: How does your Portfolio Challenge trading strategy compare with your approach to real-life investing?
Brad: I have many different approaches to investing but most of it is for the longer term. The riskier investing I do would be when trading trends for the short term using ETFs (2x) or individual stocks. This is the strategy I try to employ for the contest although the risk I take during the contest I would never take with my clients. I also would like to add that the rules of the contest allow you to do many things that you would not be able to implement in the real world.
Flip: Last year, you won a 3rd prize share in the million dollar cash prize pool. What were some of your best trades?
Brad: Without a doubt it was the financials - Washington Mutual (WAMUQ) Freddie Mac (FRE), Lehman Brothers (LEH), and Fannie Mae (FNM). The last week of the contest there was a moratorium on shorting this sector so I took advantage of the short squeeze.
Flip: How have the new rules (inclusion of ETFs, the return of the post-season "finals") changed your strategy this time around?
Brad: As you have been preaching on your site I have been trying to use the short and long strategy to win the weekly prize, which could get you into the finals. I believe that last years gains are going to be pale in comparison to this year because of the introduction of the ETFs that allow you to short.
Flip: Do you trade currencies or just stocks/ETFs?
Brad: Mostly stocks and ETFs As far as currencies, I got my head handed to me in the beginning but I have been getting better… I made a little over 11k today.
Flip: How do you generate new contest trading ideas and what do you look at when evaluating a trading opportunity?
Brad: I trade the ETFs long and short on any given day and if you ask me how I decide to go long or short, my answer would be intuition and a lot of luck. I trade individual stocks by reading and watching the market very closely.
Flip: Your position at the top of the leaderboard puts you in a strong position to capture one of the "top 10" overall bids for the finals. What recommendations do you have for traders who are chasing the weekly winner slots?
Brad: Firstly, there is a long 7 ½ weeks left and as quick as I got to the top spot I could be wiped off the board in one day. Chasing volatility can crush you but I believe this is what it takes to be in the finals. I think your daily suggestions are right on track. I never think too much, once I make a decision I stick to it and reevaluate the next day… As trivial as this may sound one thing to remember is that the leaders change on a day to day basis.
Flip: What would you do with the $500,000 if you finish in 1st place?
Brad: Bear in mind the prize is given as an annuity, so with each year’s payout I would invest some in long term planning, some in my children’s 529 plans, some for fun and some for Uncle Sam.
Consider all of the above to be for entertainment purposes and not meant to be used as real-world investment recommendations. The goals and strategies of the Portfolio Challenge are not to be confused with those of sensible investing.
See all related posts in the CNBC Portfolio Challenge archive.
Week 3: Monday, Tuesday
Week 2: Monday, Tuesday, Wednesday, Thursday, Friday
Week 1: Monday, Tuesday, Wednesday, Thursday, Friday
Pre-game: CNBC Million Dollar Portfolio Challenge Is Back, Stragety Primer
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Handcrafted by Flip on December 2, 2008 |
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