Nate’s Notes Review – How Does This Stock Picking Service Perform?

Nate’s Notes is a monthly investing newsletter and stock-picking service created by Nate Pile. The service is designed for long-term investors and it has a terrific track record relative to the major US stock indices.

So, is Nate’s Notes right for you? We’ll cover everything you need to know about this stock-picking newsletter to help you decide.

Nate’s Notes Pricing Options

Nate’s Notes costs $289 for one year, $519 for two years, or $699 for three years. You can also sign up for a one-issue trial (including 28 days of website access) for $34. If you sign up for a multi-year plan, you can cancel anytime and receive a prorated refund.

About Nate Pile

Nate Pile is the editor behind Nate’s Notes. Unlike the editors of similar stock-picking newsletters, Pile doesn’t have a Wall Street background. He started Nate’s Notes in 1995, shortly after graduating from the University of California Berkeley, where he majored in mathematics. Pile has been focused on Nate’s Notes and his company, NotWallStreet.com, which is home to several other investing newsletters.

Nate’s Notes Investing Style

Nate’s Notes is designed for long-term investors. Pile typically recommends a portfolio of 18-25 stocks, and positions are intended to be held for several years at a time. As an extreme example, Pile first recommended purchases Apple shares in 1998, and those shares remain in the Nate’s Notes portfolio today. Many of the recommended stocks are in the tech sector since Pile has a personal interest in this area.

Nate’s Notes tracks two different portfolios, a “Model” portfolio and an “Aggressive” portfolio. The two portfolios typically contain the same stocks, but the Aggressive portfolio uses leverage to increase the sizes of the recommended positions. In addition, shares in the Aggressive portfolio may be sold sooner than in the Model portfolio, leading to divergence in how the set of stocks in the two portfolios are weighted over time.

Nate’s Notes Monthly Newsletter

A subscription to Nate’s Notes gets you access to the monthly newsletter, which is available on the Nate’s Notes website as well as delivered to your inbox.

The newsletter starts out with an overview of changes to the portfolio, including any new buy or sell orders. This overview is helpful because you can see, on the first page, what orders you need to enter in order to keep up with the portfolio over the coming month.

Pile goes into detail covering the market’s movements over the past month and the outlook for the coming month. He does a particularly nice job of explaining market conditions and his strategy for approaching them, writing in a style that even new investors can understand. Pile also includes “Eyebrow Levels,” which succinctly summarize the prices of the major stock indices and highlight important support levels.

The newsletter then gives a brief update on each stock currently in the portfolio, as well as introduces any new stock picks. Each update is concluded with guidance on whether to buy, sell, or hold, as well as the prices at which that guidance applies. For example, the newsletter might note that Apple shares are a strong buy under $120 and a buy under $130.

At the end, a table displays all of the current holdings in both the Model and Aggressive portfolios as well as a summary of any new buy and sell orders. You can also see what orders from the prior month’s newsletter were filled and at what prices.  

It’s worth noting that Pile will occasionally issue special alerts by email in the event of major market events that happen between newsletters. These alerts contain detailed buy, sell, and hold orders, just like the monthly newsletter.

Nate’s Notes Historical Performance

Nate’s Notes has dramatically outperformed the broader stock market since its inception in 1995. The Model portfolio has generated a return of 4,012% and the Aggressive portfolio has generated an incredible return of 14,253%. That’s compared to 736% for the NASDAQ and 341% for the Dow Jones over the same period.

The service has outperformed the market over the past year as well. The Model portfolio posted a 12-month gain of 119%, while the Aggressive portfolio grew by 271%. Over the same time period, the S&P 500 gained 48%.

Nate’s Notes Service Differentiators

There are many stock picking services out there, so what sets Nate’s Notes apart? Nate’s Notes is different than other monthly stock-picking newsletters, such as The Motley Fool’s Stock Advisor, in that it focuses on building and managing a long-term portfolio rather than introducing new stocks every month. It’s not uncommon for several months to pass without new stocks being added to Nate’s Notes portfolio, although the service issues new buy and sell orders for many of the stocks already in the portfolio each month.

Nate’s Notes is also set apart by its long-term performance. While Stock Advisor has returned an impressive 597% since its inception in 2002, Nate’s Notes has generated a return of 4,012% (using the Model portfolio) since 1995. While Nate’s Notes is significantly more expensive than Stock Advisor and other monthly newsletters, the difference in performance arguably justifies the premium.

Check out some of our other in-depth stock picking service reviews to see how Nate’s Notes compares:

• Motley Fool Review
• Oxford Club Review
• Gorilla Trades Review
• Forbes Investor Review
• Fidelity Investor Review
• Action Alerts Plus Review
• Stansberry Research Review

What Type of Trader is Nate’s Notes Best For?

Nate’s Notes is best for long-term investors who want to build a high-growth portfolio. Since the newsletter recommends buy and sell orders in certain price ranges rather than at predetermined limit prices, it is best suited for investors who can keep an eye on stock prices every day and enter orders as needed. However, investors can also use limit orders to track the portfolio updates in a more hands-off way.

Pros

• Monthly newsletter with updates on all stocks in the portfolio
• Includes both Model and Aggressive portfolios
• Extremely strong historical performance
• Most positions are held for several years or longer
• New buy and sell orders are very easy to follow

Cons

• Expensive annual subscription
• Requires monitoring stock prices throughout the month