Multiple studies - and more than 35 years of personal experience - have shown that when a company's shares are under heavy accumulation by its officers and directors, they generally outperform the market by a significant margin. The strategy requires a bit of due diligence about who is buying how much, at what price and when. But the main point is that corporate insiders have access to material, nonpublic information about the future prospects of the business - and that gives them an unfair advantage when they go into the market to trade. So the recommendation (Continental) was based on a specific strategy (insider buying). But what is the underlying philosophy? One used by all-time investment greats like Warren Buffett, Peter Lynch and John Templeton. It's called market agnosticism. No one can tell you with any certainty what the stock market will do from day to day, week to week, month to month or even year to year. People who pretend to know these things are either fooling you or kidding themselves... or both. History shows that investment outperformance comes from evaluating businesses, not outguessing the market. How about the underlying sensibility? It's the recognition that - despite all the negative news in the media each day - things are getting better for most people in most places in most ways. It's an appreciation that human beings, machines and capital markets drive innovation, solve problems, raise living standards and create prosperity. Despite our innumerable challenges and setbacks, we live in an astonishing age of instantaneous communication, space probes, heart transplants and lifesaving vaccines in record time. So let's do a bit of summing up. The recommendation was Continental Resources. The strategy? Insider buying. The strategy, in turn, is based on a philosophy of market agnosticism - also known as a "market-neutral" approach - and an underlying sensibility: human progress in a chaotic world. Compare this approach - fact-based, logical and rational - with the typical punter who day trades or buys hot tips, not knowing what he really owns or why. These folks are like newbies in a poker game. No way are they taking the chips home at the end of the night. They're just fattening the pot for the rest of us. Don't be one of them. Before you invest in any recommendation, make sure it's based on a dedicated system, a proven philosophy and a valid sensibility. Combine these with a proven sell discipline - like trailing stops - and only one further step is required. The discipline to follow through. Good investing, Alex | 
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