Wade Cook - Background

Background

In the 1990s, Cook was notorious for paid radio programs which he used to market investment seminars. He claimed he could teach people to double their money every 2.5 to 4 months. The government forced him to recant that claim.

Cook is a proponent of rolling stocks (stocks that regularly vacillate between "predictable" highs and lows) and has been very vocal about stock splits being a good way to make money, claiming that many stocks rose post split (since the end of the 1990s bull market, Cook has not been as strong a proponent of this concept). One of his more famous phrases was meter drop. Cook said that as a cab driver he learned that money was made every time the meter dropped, and that it was better to take many small fares rather than one big one. This translated to Cook's short-term investment strategy of buying and selling many stocks for smaller, quicker profits rather than buying and holding securities for an extended period in the hope that they will increase greatly.

In 2002, Cook's company, Wade Cook Financial Corporation (WCFC), filed for bankruptcy. The stock now trades on the pink sheets for around a penny a share. Since the bankruptcy of WCFC, Cook has kept a considerably lower profile, using the internet as his primary means of marketing. He has continued writing books and launched a multi-level investment program.

Wade Cook is a member of The Church of Jesus Christ of Latter-day Saints and has been known to use references to religion in his writings and presentations.

At one time his net worth was estimated at $200 million.