This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

#DigitalSkeptic: Investor Sees Pandora as Dumbest Way to Double Your Money

THOMASTON, Maine ( TheStreet) -- Rick Tonge has this to say to Bank of America Merrill Lynch's (BAC) Nat Schindler, Goldman Sachs' (GS) Heath Terry or any one of the dozens of Wall Street analysts who cover red-hot online streaming service Pandora Media (P - Get Report).

"There is not one thing about the company that makes any sense," the owner of Tonge Investments told me from this rocky, mid-coastal Maine town. "But that has not stopped me from doubling my clients' money by buying the stock."

Tonge is my kind of investment professional. He doesn't have some stuffy office in the World Financial Center. Rather, he works out of his rural hometown of Waterville, Maine, near his alma mater of Colby College.

Despite his central Maine roots, Tonge -- who pronounces his name to sort of rhyme with the french pronunciation of "orange" -- grew up in the financial markets. He took his Series 7 exam back in 1974 to work in his father's and grandfather's brokerage business while still in high school.

And he's made his living making his clients' money ever since.

"I have directly participated in every crash of the modern era," he told me, nibbling on pizza during a reception here. "If you're going to be a sole proprietor like I am, you learn a thing or two about protecting your clients' money."

Not even a subscription to The Wall Street Journal
What Information Age skeptics will love about Tonge is how he has little room for the supposed must-haves of the information era. He does not use sophisticated risk management models or complex, real-time, computer-driven trading algos. He keeps CNBC turned off during the day and struggles to keep up with the pile of Barron's magazines in his office.

"I'm not looking at my stupid computer all day. I can't remember the last financial statement I studied," he said. "That's all noise. The trick actually is cutting down on those inputs. Instead, I use my brain."

Tonge relies on a simple mix of throwback technical, so-called "point and figure" charting and a seat-of-the-pants value investing style, a la Fidelity Investments' Peter Lynch, to manage $33 million in a mix of stocks, bonds, electronically traded funds and the occasional covered call. A handful of his 100 some-odd clients with whom I spoke confirm that their returns are worth the between one-half and one-percent annual fees he charges.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
P $16.32 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs