James Altucher: Bringing Blogwatch to DailyFinance
Let's go back three years ago. In 2006, I decided hedge funds were a complete scam.
I had traded for several hedge funds and at the time I was invested in 15 different hedge funds. I had done all sorts of trading and investing: quantitative-based (see my book, Trade Like a Hedge Fund), fundamentals (see my worst-selling book, Trade Like Warren Buffett), demographic based (actually, I forgot -- this one is my worst selling: The Forever Portfolio). I had invested in or did due diligence on over a thousand hedge funds.
My final conclusion: 95 percent of them are scams and borderline ponzi schemes. And I know ponzi schemes. I once tried to raise money once from a little fund called "Madoff Securities."
Bernie didn't want to invest in my fund of hedge funds however, saying, "we can't take any headline risk by investing in other funds. The last thing we want to do is end up as a headline on the front page of AOL's DailyFinance."
Actually, he didn't say "DailyFinance." He said another publication. But that brings me to my second conclusion: The best investors are out there -- not with hedge funds -- but delivering their product to us now for free via the blogs they run. However, it is hard to find the best advice amongst the thousands of investing-related blog posts every day.
AOL Money & Finance, the parent of DailyFinance, reaches the broadest possible audience of investors on the planet. Many of its millions of visitors (like every investor out there), has been scammed and jammed in every possible way in the past two years. There's nobody they can trust.
You can't trust your financial advisers, who have their hands out for every type of fee. You can't trust mutual funds, since the best of them could blow up any second. You can't trust hedge funds since the most trustworthy of all could be scams. People want someone they can trust.
I've spent the past six years reading and cataloging every investment blog and picking the ones that I think are written by the best investors -- investors who don't have their hand out but just want to share their knowledge. These bloggers have reputation as their only motivation. And the best of them now have very good reputations.
Starting today, every day, I'll pick the 10-15 blog posts (out of potential thousands) that I think are portraying the most accurate view of the economy and the investment universe.
There will be stock picks and analysis. Each post will deliver value. I'll post here early in the morning, in time for people to drink their coffee and get their broad survey of the financial world before the morning bell rings. I like to learn new things every day from the best bloggers. And every day I hope to share what I've learned with you.