Annual Fraud PSA (Part 4)

“GetFolio.com” offered a guarantee in our last installment, which served as a springboard for my skepticism.

If in doubt then do your internet research. I found a forum post by “Ray” about the web site in question:

     > I would offer a guarantee like that if I was selling a service in
     > which I had no confidence. Following bad advice for a year to try
     > to get a $600 refund is a bad idea. To qualify for the guarantee, I
     > cannot tell if you must buy all of the “timely recommendations” or
     > just buy only from that group. Also, when do you close a position?
     >
     > The [site lacks] concrete info… an annual performance table for
     > the last 16 years (live for the last 10) has no other numbers like
     > intrayear drawdown. They calculate performance using stock price
     > when first suggested and year-end price. I don’t know how they
     > handle stocks sold during the year or held past year-end. I did
     > not see much info about exits on the site…
     >
     > [I can’t] see what they actually do without buying a subscription…
     >
     > No model portfolio or any other way to verify their performance is
     > available. They appear to suggest too many stocks to actually buy.
     >
     > I might like this service, but there are just too many loose ends.

If it seems questionable to you then it probably is to others as well. I highly recommend making use of the knowledge-sharing platform that is the Internet.

A post from another forum answers some of Ray’s questions:

     > I wanted to comment on my one year subscription ($600) with this
     > lousy company. First, their philosophy is to invest in very small
     > amounts–equal to 1/4 of 1% of the total amount you have to invest
     > per stock recommendation. Second, they only give you recommendations
     > when the market tanks… To become fully invested… would literally
     > take several years. After you calculate service cost and cost of
     > stock transactions, you would likely be losing money the first few
     > years until significantly invested… My problem isn’t necessarily
     > with their philosophy as it is their guarantee… if you don’t beat
     > the market, they will return your money. But you have to subscribe
     > the whole year and provide proof of recommended stock purchases.
     > In my case, not only did they not beat the market, I didn’t receive
     > any recommendations! Not one! According to tutorials, you’re not
     > supposed to purchase when the “Market Gauge” is > 20… [which meant]
     > I didn’t receive any recommendations for the whole year. Their
     > response? “The guarantee is only for new subscribers who follow
     > the recommendations and can provide proof.” How’s that for customer
     > service? “Hey, sorry we didn’t provide you with any recommendations
     > but I’m sure your $600 taught you something!” Yes… buyer beware!

Is this just a shill from a competing service? He doesn’t write with excessive gloss. He gives lots of consistent details. He makes sense. I personally think he’s conveying actual personal experience.

As with anything, you ultimately have to decide for yourself what reviews you believe. The more you read, the more of an appreciation you will get for different styles ranging from blatant deception to honest reality. I deem this to be the latter, which makes me reflect upon my skepticism and think “I couldn’t have said it any better myself!”