TENSTOCKS.COM -A Concentrated Deep Value Global Portfolio. The portfolio invests in common, preferred, and exchange traded debt securities of companies from micro-cap to large cap, in all sectors and across all geographies. The focus is on buying companies at a discount to tangible book or liquidation value. Often, the portfolio invests in companies, sectors, or the market in general, during times of extreme stress and fear. Typically the portfolio invests in fewer names, and hold more cash, during confident periods of market pricing (exuberance) and in more names, and more invested during times of company specific, sector, or general market stress (fear). The concentrated nature of the portfolio (5 to 15 names with the average around 10) means the portfolio can exhibit extreme price volatility (though not necessarily underlying value volatility) compared to more diversified portfolios. The inherent price volatility, and the fact the portfolio often invests in unpopular, unwanted, and troubled companies and/or sectors, means that this portfolio is not suited for everyone.

TENSTOCKS.COM Third Floor Portfolio. I believe there is generally three levels or 'floors' of undervalued asset pricing. The first floor is when an asset is undervalued relative to an estimated fair value. If fair value is, say, $10 the first floor valuation may be $7 to $8. This represents good value but the stock can still get cheaper. I view it as a 'train leaving the station'. Sometimes you want to nibble at first floors so you know you have at least something on board the train if it leaves the station before you get a chance to biuld a full position. The second floor is when an investment is selling at around half of an estimated fair value (the $10 EFV now selling for $5). This could be also be close to liquidation value. The profit potential is higher here and the risk lower. Also, the win ratio (% of investments that are not permanent loss of capital) is higher than first floor investments. The third floor is when fundamentals and valuations are no longer reflected in any way in the stock price. This only occurs during periods of extreme stress and fear when panic and forced selling is swamping the market, sector or an individual company. When third floor pricing hits, the $10 EFV is now selling at $3-4 and sometimes at $2. The long term win ratio is highest here. But perversely it's also psychologically the hardest to do. To buy when everyone else is panic selling goes against human nature. But it's the best place to invest. The tenstocks third floor portfolio seeks to stay away from making first and second floor investments and instead waits for third floor pricing opportunities. This can mean waiting a long time. It is a lot harder to find investments. The portfolio often sits with high cash levels while awaiting crisis and panic pricing. It will also miss out on many good investments at higher prices. That said, another element of long term successful investing is having the ability to maintain buying power during times of extreme stress. It is likely third floor investing will contribute to this.

The Tenstocks.com After Tax Portfolio is managed to minimize short term capital gains tax. Investing for tax efficiency and after tax performance is likely to be even more important over the next decade.