It’s been an exciting three years. But it’s also the right time for a change.

Since 7investing opened our doors in March 2020, we’ve already endured a COVID pandemic, historically fast interest rate hikes, and a shaky macroeconomy. On the brighter side, we’re also investing in a golden age of innovation – AI is redefining technology and new breakthroughs are defeating medical conditions.

“The Fed”, “interest rates”, “AI”, and “Elon Musk” seem to increasingly be finding a way into our everyday conversations.

And while there’s no shortage of provocative news headlines, 7investing remains committed to our mission of empowering individual investors. We’re tirelessly finding you the stock market’s best opportunities and providing you with actionable investment ideas every month. Focusing on the signals and tuning out the noise.

Yet as we look back on these past 44 months, we also realize that we need to make a much-needed process change. Beginning in December, 7investing will now provide two new recommendations per month instead of seven.

We’re Doubling Down on Conviction

The main reason for this is to reallocate our resources and focus on identifying our best ideas.

We’re setting up a new structure to prioritize quality over quantity. This will involve tradeoffs – we’ll be issuing fewer reports and generally publishing less content. But we also believe this is a good move that will make our membership even more valuable.

Here are a few additional reasons why we’re making this change.

First and foremost, we want to listen to what you told us.

One of the most common suggestions we receive is that we’re providing you with too many recommendations. We’ve repeatedly heard constructive feedback such as “I’m overwhelmed by too many picks each month” or “I don’t have enough time to read through all of your reports.”

We always intended seven picks per month to provide a diverse buffet of stocks to choose from. But it also appears that we’re overwhelming you with too much content. You would instead like us to focus more heavily on our highest conviction and favorite ideas.

Secondly, our scorecard is getting really big. We’ve now published 334 total reports on 214 unique companies. And we’ve been adding seven more to that tally every month.

This is an incredible amount of research and diligence that has provided us with a treasure trove of insights. But rather than continuing to aggressively add to our scorecard, we’re going to double down on more accurately defining our conviction.

We’ll now begin publishing monthly Conviction Rating Reviews, where our advisors will categorize their previous stock picks as Best Buy, Strong Buy, Buy, Hold, and Potential Sell.

• Best Buy — Each advisor’s highest conviction of all of our current picks on the scorecard. They can pick any stock as their Best Buy; even if it was originally recommended by a different advisor.
• Strong Buy — Very high conviction. Right now is a great time to start or add to your position.

• Buy — Good time to start a position and the thesis is intact. But just not the top-tier of the Strong Buys.
• Hold — Don’t add but don’t sell. Has noticeable red flags or an inflated valuation. Keep a close eye to watch how the thesis unfolds.
• Potential Sell — The red flags are turning into bigger issues. There is a rising risk of capital impairment.

We believe these Conviction Rating Reviews will serve as a useful and focused summary of the ongoing research we do every month, as well as how we’re currently thinking about the picks on our scorecard.

We’re also going to continue to put our highest-conviction ideas in the spotlight. Each advisor will present their Best Buy in our monthly Subscriber Calls and we’ll also publish these as a written Advisor Update on the 15th.

And finally, we have a bigger-picture goal for our 7investing service.

We don’t want 7investing’s scorecard to become overly diversified. In order for us to outperform the market, we must avoid simply “becoming the market”.

A well-curated scorecard that represents a smaller number of our higher-conviction ideas will be the key to our long-term success and outperformance. Our process of adding seven broadly diversified new picks every month isn’t a recipe for outperformance; nor is our process of letting underfollowed legacy recommendations lollygag for extended periods of time.

We want to double down on our conviction, to ensure that every Buy on our scorecard actually represents an actionable investment opportunity. We will also be more actively and attentively selling those that are not.

Conviction Leads to Recommendations

From this conviction-led process, we’ll then make two official stock recommendations every month.

The first will be our team rec. We’ll collectively powwow about several of our highest-conviction ideas, and our “7investing Team” recommendation will represent the highest-scored company that has been vetted by our group of expert advisors.

I (Simon) will also add a second new recommendation to our scorecard each month. And it will include a formal presentation and a Deep Dive conversation with the other advisors.

So as a quick recap of the above:

• Our Conviction Rating Reviews will more clearly define how we currently feel about all our existing recommendations.
• Our best ideas will bubble to the top. Our 7investing Team Rec will represent our group’s favorite from four of our highest-conviction ideas.
• Simon will add a second new recommendation and report each month.
• Each advisor will also pick a Best Buy and we’ll track it on our Portfolios page.

Aside from this process change, the rest of our service will remain the same. We’re still going to diligently watch everything going on in the market. We’re still going to provide updates and coverage in our Community Forum. And we’re still going to interact and provide our Best Buys in real-time on our monthly Subscriber calls.

And there’s one final thing we’d like to mention. We’re also going to reduce our pricing.

We want you to think of 7investing itself as an investment in your future. We want our stock research, actionable recommendations, and research process to all help you become a better investor.

Yet we’re also in the middle of a challenging market. The S&P 500 fell 19% in 2022 and 2023 has been volatile as well.

We acknowledge that things are tough out there, where rising interest rates and multiple international conflicts can put pressure on short-term returns.

But we also have faith that stocks will regain their mojo soon. Investing is a long-term journey and several of our own best investments have come when uncertainty was high and stock prices were low.

So in the spirit of our mission – to empower long-term investing – we’re going to revert our pricing back to $17 per month or $199 per year. We believe this price point will be affordable for most investors; even in the current climate.

If you’re an active 7investing subscriber and are currently paying more than this, we’ll automatically issue you a prorated rebate for your current term and also adjust your pricing to this lower rate for future renewals.

Let’s Go Find the Best Stocks

We want 7investing to be your investing copilot, to help you navigate the choppy waters of volatile markets but also to methodically compound wealth to financially empower your future. We believe these changes perfectly support our mission and will enable us to continue sharing world-class research that will collectively make us all better investors.

We’re excited to implement these next month and that you will enjoy a more focused process and streamlined scorecard going forward. If you have any questions, please reply email us at info@7investing.com.

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