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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

#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).

"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.

Stock quotes in this article: P 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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