How Nicolas Darvas Created a $2.5 Million Dollar Portfolio From Scratch!

HOW NICOLAS DARVAS CREATED A $2.5 MILLION DOLLAR PORTFOLIO FROM SCRATCH!

The true story of how Nicolas Darvas made $2.5 Million in the stock market in the 1950s as covered by Time Magazine. | taught by Doc Brown

Course description

New York, New York (Time Magazine), Monday, May 25, 1959, 12:00:00 EDT

RE: A Financial Documentary of the Astounding Success of Nicolas Darvas

Dear stock investor,

It was the last early summer of the 1950s.

The Darvas brother and sister dance team were as entrenched in the media then as Circe de Soleil is today. Their graceful dances delighted television viewers in Europe and America.

The Darvas name was regarded with respect in show business circles in Las Vegas, New York, Toronto and far overseas. Nicolas Darvas had cemented his name in the public conscious as one of the best dancers worldwide.

Celebrities were shocked when a full page article in Time Magazine covered Nicolas not as a dancer but as a rich stock investor "who ignores tips, financial stories and broker’s letters." This was followed with a 1960 book entitled, “How I Made $2,000,000 In The Stock Market.” The book fell out of favor when business schools began teaching that the market could not be beaten by reasoned analysis.

And by The Way, He Made $2.5 Million in 6.5 Years.

Away from the public hidden underneath arcane math exists recent evidence from the very top of investing that Darvas was correct. See ** Moskowitz, T., Cliff Asness and Lasse Pedersen, “Value and Momentum Everywhere,” Journal of Finance (2012).

World class performance comes from world class brains. Darvas studied at the University of Budapest — the most erudite of Hungary.

He was trained not just in classical dance but also as an economist.

Economics paid less than dance. But he was a brilliant scholar with precise organization.

This allowed him to precisely document his agonies and elations on a trade-by-trade basis, “I decided I had been missing a good thing all my life. I made up my mind to go into the stock market. I have never gone back on this decision.-Nicolas Darvas

Learn What Worked from A Major State University Finance Professor!

You can read his book but will you really understand it? Not likely.

I don’t want to push your buttons. I am just pointing out that most of my adult life has been a sole minded dedication to mastering finance.

Just read my Udemy profile. I am a finance professor at a major state university — The University of Puerto Rico Graduate School of Business. We are the leading business school in the Caribbean.

Look Over My Shoulder as I Dissect Nicolas Darvas’ Secrets For You …

Thousands of MBA students grasp the deepest principles of finance in my classes. They work in diverse industries from pharmaceuticals to Wall Street.

I train these professional financial managers. And I can train you to go toe-to-toe against the wolves of Wall Street.

Level the playing field with the skills you will learn in this course. And you will improve over the years to come.

I am your ultimate financial coach. I know how to guide you through chunks of financial knowledge that are hard for all.

That’s because I have trained thousands of young adults in finance. Let me guide you through the black forest.

Here Are The 25 School of Hard Knocks Worst Challenges for Beginning Stock Investors …

Nicolas Darvas faced many of the same challenges at the start that I have. That is part of the reason that his classic book rings so true for so many stock investors in-the-know today. Here is a sample of difficulties Darvas had to overcome.

CHALLENGE #1: BLIND LUCK. The first profit in stocks Darvas landed was not from his own thought process making him naively believe investing was easy.

CHALLENGE #2: GOSSIP. Nicolas Darvas in realizing that he knew nothing about stocks seeks the wisdom of random strangers leading to a chaotic portfolio from asking “Do you know a good stock?

CHALLENGE #3: MISFEASANCE. Neither casual acquaintances in his travels nor brokers know the secret to making money in stocks.

CHALLENGE #4: COSTS. Brokerage commissions and transfer taxes decimate the initial stock market returns of Nicolas Darvas — and he realizes he must control them.

CHALLENGE #5: OVER-TRADING. Darvas fidgets for fast profits spreading his stake between upwards of thirty stocks — degrading control and tracking while ramping up account depleting fees.

CHALLENGE #5: LOSER-LOVE. Nicolas became attached to particular stocks giving him the proclivity of holding loss exploding falling shares.

CHALLENGE #6: GAMBLERS-ANNONYMOUS. On stage this trained dancer was the pinnacle of disciplined control. Chasing a fast buck over-trading stocks was quickly losing him two hundred dollars a day.

CHALLENGE #7: GURUS. Nicolas Darvas was attracted to advisory service that made speculation sound like a snap and fed his need for urgently making money fast but recommended falling stocks. Have you been spending hundreds or even thousands on investment newsletter financial advisory services? If so, you have probably asked yourself, “where are all those hundred percent returns promised in the glossy marketing?

CHALLENGE #8: DATES. The famous dancer does not know when to enter the market. This pulls eleven thousand dollars down to five thousand eight hundred.

CHALLENGE #9: TIPS. A broker offers up advice in the form of a safe stock based on fundamentals — that drops. Brokers are bad for advice as well.

CHALLENGE #10: PROJECTION. Darvas is quick to blame his broker for mistakes truncating his ability to learn.

CHALLENGE #11: IGNORANCE. Even the greatest dancer in the world is a dunce without an understanding of the jargon making it hard for Nicolas to communicate clearly with his broker — remember that this was before online trading and retail stock investors had to have a broker.

CHALLENGE #12: VISION. Nicolas Darvas quickly realizes that he cannot see the strongest trees in the forest and sets out to find the most strongly rising stocks.

CHALLENGE #13: LIQUIDITY. Darvas has a hard time reselling his small stocks in the chaotic discontinuously trading over-the-counter (OTC) market.

CHALLENGE #14: INSIDE-IDIOTS. The Hungarian trained economist gone world class classical dancer begins tracking inside trades of the largest executives. He quickly finds that insiders don’t know any more about the direction of the stocks of the firms they manage than you do! And we confirmed this “too-late-too-soon” factoid in Brown, S., Cao-Alvira, J. & Powers, E. (2013). Do Investment Newsletters Move Markets? Financial Management, Vol. XXXXII, (2), 315-338.

CHALLENGE #15: OVER-CONFIDENCE. Fundamental filtering as is done widely with Value-Line leads Nicolas into the limbo land of false-hope.

CHALLENGE #16: REGRET-AVOIDANCE. If Darvas were alive today, he would be glued to the screen for fear of a loss on his stock. He wastes massive amounts of energy over-monitoring his equity returns.

CHALLENGE #17: TOPPING-OUT. Buying into the very top of a run burns Nicolas out so he focuses on price consolidations he terms “boxes.”

CHALLENGE #18: EXHAUSTION. Chasing stocks just because they rise brings his attention too late by the time the broker calls.

CHALLENGE #19: COIN-FLIP. Making more on profitable trades than is lost on losers becomes his mantra as he realizes that he is never better at picking a winner than a simple coin toss — but that is pretty darn good!

CHALLENGE #20: DATA. Darvas realizes that he must have access to high quality data on not just price but also volume.

CHALLENGE #21: PAPER-TRADE-THIS. Nicolas eventually figures out that paper trading gets him nowhere — he has to be emotionally involved.

CHALLENGE #22: DIONYSUS. In embracing the central truth that stocks owned and watched make unexplained price collapses — and in so realizing understands that he is as knowledgeable as any guru.

CHALLENGE #23: TAX-PARALYSIS.

Many people hold on to stocks for more than a year for a lower tax rate on capital rather than short-term gains. He decides that he has to sell even if the taxes on his gains will he higher.

CHALLENGE #24: BUY-&-CRUMBLE. Holding stocks for very long periods of time doesn’t work for Nicolas Darvas — buy-&-hold strategies he decides are for gamblers,

CHALLENGE #25: CYCLE. Nicolas notices that stocks cycle from small to large in and out of fad creating even less predictability.

Darvas was gifted enough to find his own way up and out into the light from deep within his initial darkness in Plato’s cave with secrets he willingly shared to those even unborn who could understand.

Here’s 15 Cures for The 25 Worst Challenges for Stock Investors …

CURE #1: TABLES. Tracking the relationship between volume and price allowed Darvas to identify stocks with sudden explosions of volume.

CURE #2: MOMENTUM. Simply buying stocks that are rising saves Nicolas Darvas.

CURE #3: TRADING-VOLUME. The highest money makers are stocks with fast rising prices on accelerating volume.

CURE #4: BUSINESS. Darvas treats his stock investing as a business by giving it the required attention.

CURE #5: CHANNELS. Trend consolidations map entry and exit points for Darvas.

CURE #6: BUY-STOP. Runaway stocks are captured from above by a simple limit stop buy order.

CURE #7: SELL-STOP. A simple sell limit stop-order saves Nicholas Darvas from being wrong half of the time.

CURE #8: TEST-PURCHASE. Test purchase of 4 or fewer stocks work for Nicholas Darvas like risk cutting little experimental oil wells in wildcatting.

CURE #9: GODZILLA. A slumping stock market can stomp out even the strongest stock with the same dynamic as when Bambi Meets Godzilla in 1969 — watch the classic movie on YouTube for more.

CURE #10: BOTTOM-LINE. Sharply up trending earnings foretell the strongest of the strong rising stocks on pumped up volume.

CURE #11: NEWCOMERS. Overtime the most important hunting ground for Darvas is new industries — these are more important than specific products within those sectors.

CURE #12: MARGIN. Leverage dramatically increases the portfolio beta and the gain for Nicolas Darvas — today we use deep in the money call options.

CURE #13: SAFETY. A critical rule becomes the resolute decision to never feed passive losses with active income.

CURE #14: ENTITY. Nicolas Darvas could have used a corporate structure to reduce taxes — learn more inside.

CURE #15: ISOLATION. Independent thought becomes the saving grace for Darvas he can only find through solitude as he stops all gossip and chat calls.

Once Darvas understood what worked he began to reap huge benefits…

Nab These 5 Advantages of Curing the 25 Worst Stock Investing Challenges

ADVANTAGE #1: SCHOOLED. Develop a broad financial vocabulary to condense investment data into your Holy grail to finding the fastest rising momentum stocks.

ADVANTAGE #2: CONCENTRATION. Focusing on no more than ten [10] stocks at a time kept Nicolas Darvas attentive to just his most worthwhile finds.

ADVANTAGE #3: PROFICIENCY. Mastering a compact group of essential skills gives you massive advantages as was so for our dancing economist.

ADVANTAGE #4: PEACE. Maturity as a stock investor brings the wisdom of simply reversing, and learning from, mistakes. This gives you an unexpected benefit of having your safety net in place.

ADVANTAGE #5: WORTH.

And just as Akhrot becomes the richest man in Babylon so did Nicholas Darvas continue to enrich himself with the knowledge herein.

Read some of these rave words about this course and the way I teach...

I started by taking a finance refresher with Robert Schiller’s openYale course on Financial Markets. Then through a book recommendation for How I Made $2,000,000, I came across your Nicholas Darvas course which I thoroughly enjoyed. I think its your teaching style coupled with the simplistic message of volume, earnings, and making decisions as an individual that intrigue me. My finance courses in the past would teach you about equations and fundamentals, but you never encounter any real coaching on how to effectively invest.” -Gavin Ripley, MBA North Carolina; March 15, 2015

Listening to the Darvas Lecture with my 15-year-old now. He is developing an interest in the markets without me ever even talking about it. You are the perfect teacher for all ages.-Jeff

You are a great teacher, mentor and writer. I wish i could articulate my gratitude for you, but I would fail miserably. To put in the present day vernacular- YOU ROCK MAN! So PLEASE keep on rockin. Well, I'm going to go...I'm getting all misty.-T-Bone

Enroll now while this course tuition is just $19!

This is a no brainer win-win-win for you since Udemy gives you a 30 day full money back guarantee. They ask no questions. And if you like this course you get to learn from me for life!

Time Waits for Nobody!

I wish I could just plug a cord into your head and download everything to your mind directly and permanently in a few seconds. But I can’t.

This material will take you time to learn. The longer you wait to learn this the more opportunities you will have missed.

Enroll Now to Super-Charge your Investment Education!

-Scott

Dr. Scott Brown, Associate Professor of Finance of the AACSB Accredited Graduate School of Business of the University of Puerto Rico

P.S. The tuition of this course will rise. Don’t wait enroll now.

P.P.S. As my community grows my time per student naturally diminishes. Get the most out of my teaching while you can!

Doc Brown
Doc Brown
Professor of Finance of the AACSB Accredited Graduate School of Business of the University of Puerto Rico

"There is no one like you that I know of who is this transparent, that is what makes your service and education so valuable. Please keep on." -L.B. A Washington State Stock Investor

Dr. Scott Brown and “Intelligent Investing” — helping you get the most out of your hard earned investment capital.

As an investor, I have spent over 35 years reading anecdotal accounts of the greatest investors and traders in history. My net worth has grown dramatically by applying the distilled wisdom of past giants.

I have researched and tested what works in the world’s most challenging capital markets — and I teach you every trick I know.

>>>Learn from leading financial experts!

>>> How about discovering how I have tripled family member’s accounts in six years with simple stock picks?

>>> Want to master set and forget limit stop loss tactics for sound sleep?

>>> Does Forex interest you?

>>>Is your employer sponsored 401(k) plan optimized?

>>>Do you know the fastest rising highest dividend yielding common stock shares in the market today?

>>> High roller? How would you like to know how to dramatically lever your savings with deep-in-the-money call options?

Enroll in my programs — you can prosper from all of this — plus much, much more now!

(In the last six years we have exploded our net worth and are absolutely debt free, we live a semi-retired Caribbean lifestyle in a triple gated upscale planned community from a spacious low maintenance condo looking down on our tropical beach paradise below).

My Curriculum Vitae:

Investment Writing and Speaking:

I am an international speaker on investments. In 2010 I gave a series of lectures on board Brilliance of the Seas as a guest speaker on their Mediterranean cruise. Financial topics are normally forbidden for cruise speakers. But with me they make an exception because of my financial pedigree.

On day 6 the topic I discussed was “Free and Clear: Secrets of Safely Investing in Real Estate!“ The day 7 topic was “Investment Style and Category: How the Stock Market Really Works!” Then on day 8 I spoke about “The 20% Solution: How to Survive and Thrive Financially in any Market!” The final talk on day 11 was “Value Investing for Dummies: When Dumb Money is Smart!

Gina Verteouris is the Cruise Programs Administrator of the Brilliance of the Seas of Royal Caribbean Cruise Lines. Regarding my on-board teachings she writes on June 19th, “You have really gone above and beyond expectations with your lectures and we have received many positive comments from our Guests.”

I sponsored and organized an investing conference at Caesars Palace in Las Vegas in 2011 under my Wallet Doctor brand. This intimate conference was attended by 14 paying attendees.

As such many strides were made in financial education that week. For instance I met a woman who is a retired engineer from the Reno, Nevada area.

She made a fortune on deep in the money calls during the bull markets of the 90s.

This humble and retired engineer inspired me to look more seriously at deep in the money calls with far expiration. She also gave me an important clue regarding trading volume.

Her call option and volume insights have been confirmed in the Journal of Finance.

In 2012 I gave a workshop at the FreedomFest Global Financial Summit on stock investing at the Atlantis Bahamas Resort. I was also a panelist on a discussion of capital markets.

My course “How to Build a Million Dollar Portfolio from Scratch" at the Oxford Club is an international bestseller. In 2014 I co-authored “Tax Advantaged Wealth” with leading IRS expert Jack Cohen, CPA. This was the crown jewel of the Oxford Club Wealth Survival Summit.

I have been a regular speaker at the Investment U Conferences.

In 2012 I gave a workshop entitled “How to Increase Oxford Club Newsletter Returns by 10 Fold!” The conference was held at the Grand Del Mar Resort in San Diego, California. This resort destination is rated #1 on TripAdvisor.

In 2013 I spoke at the Oxford Club’s Investment U Conference in San Diego California. The talk was entitled “The Best Buy Signal in 103 Years!” Later in the summer I spoke at the Oxford Club Private Wealth Conference at the Ojai Valley Inn.

This was at the same time that Jimmy Kimmel married Molly McNearney in the posh California celebrity resort. It was fun to watch some of the celebrities who lingered.

I also operate a live weekly investment advisory subscription service "The Momentum Forecast Stock Investing Newsletter" every Monday night by GoToWebinar.

Academic Research:

I am an associate professor of finance of the AACSB Accredited Graduate School of Business at the University of Puerto Rico. My research appears in some of the most prestigious academic journals in the field of investments including the Journal of Financial Research and Financial Management. This work is highly regarded on both Main Street and Wall Street. My research on investment newsletter returns was considered so important to investors that it was featured in the CFA Digest.

The Certified Financial Analyst (CFA) is the most prestigious practitioner credential in investments on Wall Street.

Prestigious finance professor Bill Christie of the Owen School of Business of Vanderbilt University and then editor of Financial Management felt that our study was valuable to financial society. We showed that the average investment newsletter is not worth the cost of subscription.

I am the lead researcher on the Puerto Rico Act 20 and 22 job impact study. This was signed between DDEC secretary Alberto Bacó and Chancellor Severino of the University of Puerto Rico.

(See Brown, S., Cao-Alvira, J. & Powers, E. (2013). Do Investment Newsletters Move Markets? Financial Management, Vol. XXXXII, (2), 315-338. And see Brown, S., Powers, E., & Koch, T. (2009). Slippage and the Choice of Market or Limit orders in Futures Trading. Journal of Financial Research, Vol. XXXII (3), 305-309)

Graduate Degrees:

I hold a Ph.D. in Finance from the AACSB Accredited Darla Moore School of Business of the University of South Carolina. My dissertation on futures market slippage was sponsored by The Chicago Board of Trade. Eric Powers, Tim Koch, and Glenn Harrison composed my dissertation committee. Professor Powers holds his Ph.D. in finance from the Sloan School of Business at the Massachusetts Institute of Technology [MIT]. Eric is a leading researcher in corporate finance and is a thought leader in spin offs and carve outs.

Dr. Harrison is the C.V. Starr economics professor at the J. Mack Robinson School of Business at Georgia State University.

He holds his doctorate in economics from the University of California at Los Angeles. Glenn is a thought leader in experimental economics and is the director of the Center for the Economic Analysis of Risk.

Tim Koch is a professor of banking. Dr. Koch holds his Ph.D. in finance from Purdue University and is a major influence in the industry.

My dissertation proved that under normal conditions traders and investors are better off entering on market while protecting with stop limit orders. The subsequent article was published in the prestigious Journal of Financial Research now domiciled at Texas Tech University — a leading research institution.

I earned a masters in international financial management from the Thunderbird American Graduate School of International Business. Thunderbird consistently ranks as the #1 international business school in the U.S. News & World Report, and Bloomberg BusinessWeek.

Academic Conferences:

I spoke at the 2010 annual conference of the International Association of Business and Economics (IABE) conference in Las Vegas, Nevada. The research presented facts regarding price changes as orders flow increases in the stock market by advisory services.

I spoke at the 2010 Financial Management Association [FMA] annual conference in New York on investment newsletters. The paper was later published in the prestigious journal “Financial Management.”

I presented an important study named “Do Investment Newsletters Move Markets?” at the XLVI Annual Meeting of the Consejo Latinoamericano de Escuelas de Administración (CLADEA) in 2011 in San Juan, Puerto Rico. The year before that I presented my futures slippage research at a major renewable energy conference in Ubatuba, Brazil.

I spoke at the Clute International Conferences in 2011 in Las Vegas, Nevada. The research dealt with the price impact of newsletter recommendations in the stock market.

I presented a working paper entitled “The Life Cycle of Make-whole Call Provisions” at the 2013 Annual Meeting of the Southern Finance Association in Fajardo, Puerto Rico in session B.2 Debt Issues chaired by Professor LeRoy D. Brooks of John Carroll University. Luis Garcia-Feijoo of Florida Atlantic University was the discussant. I chaired the session entitled “Credit And Default Risk: Origins And Resolution.” Then I was the discussant for research entitled "NPL Resolution: Bank-Level Evidence From A Low Income Country" by finance professor Lucy Chernykh of Clemson University and Abu S Amin of Sacred Heart University and Mahmood Osman Imam of the University of Dhaka in Bangladesh.

That same year I presented the same study to the Annual Meeting of the Financial Management Association in Chicago, Illinois. I did so in session 183 – Topics in Mergers and Acquisitions chaired by James Conover of the University of North Texas with Teresa Conover as discussant. I chaired session 075 – Financial Crisis: Bank Debt Issuance and Fund Allocation. Then I was the discussant for TARP Funds Distribution: Evidence from Bank Internal Capital Markets by Elisabeta Pana of Illinois Wesleyan University and Tarun Mukherjee of the University of New Orleans.

Academic Service:

I am a member of the MBA Curriculum Review Committee, the MBA Admissions Committee, The Doctoral Finance Admissions Committee, the Graduate School Personnel Committee, and the Doctoral Program Committee of the School of Business of the University of Puerto Rico.

Financial Journalism:

I am the editor of Momentum Investor Magazine. I co-founded the magazine with publisher Daniel Hall, J.D. We have published three issues so far. Momentum Investor Magazine allows me to interview very important people in the finance industry. I interview sub director Suarez of the DDEC responsible for the assignment of Puerto Rico act 20 and 22 licenses for corporate and portfolio tax reduction in the third edition. Then I interview renowned value investor Mohnish Prabia in the upcoming fourth edition — to be made available via Udemy. Valuable stock market information will be taught throughout.

Charity:

In October of 2010 I arranged for the donation to The Graduate School of Business of the University of Puerto Rico of $67,248 worth of financial software to the department that has been used in different courses. This was graciously awarded by Gecko Software.

I have guided thousands of investors to superior returns. I very much look forward to mentoring you as to managing your investments to your optima! –Scott

Dr. Scott Brown, Associate Professor of Finance of the AACSB Accredited Graduate School of Business of the University of Puerto Rico.

Please contact Dr. Brown at support@ffosupport.com.

Reviews (1)

Great things can come in a little box.

by Charlie White
This enlightening course that Doc Brown has put together tell the true story of a remarkable man who learned stock trading the hard way, the way most of us do. Every thing that I or you have done wrong, Nicolas Darvas has already done it. Darvas' observations of stock behavior and his rules to trade by are valuable tools and should be taken seriously or you will learn it the hard way too. All his knowledge is contained in a small, inexpensive little noticed book, that Doc Brown tell you about. Read and study this little book and you will come out way ahead. When I started reading it I couldn't put it down. It was like watching my trading past. It's the most valuable book on my book shelf. Charlie W.

Great things can come in a little box.

by Charlie White
This enlightening course that Doc Brown has put together tell the true story of a remarkable man who learned stock trading the hard way, the way most of us do. Every thing that I or you have done wrong, Nicolas Darvas has already done it. Darvas' observations of stock behavior and his rules to trade by are valuable tools and should be taken seriously or you will learn it the hard way too. All his knowledge is contained in a small, inexpensive little noticed book, that Doc Brown tell you about. Read and study this little book and you will come out way ahead. When I started reading it I couldn't put it down. It was like watching my trading past. It's the most valuable book on my book shelf. Charlie W.