Successful Investing is NOT Luck
Why These Stocks Move Higher
A few days ago, a good friend sent me a text:
Made RSVP for dinner Wed. at 6pm. My treat.
Now, I have to admit that his text really surprised me. We've been friends since high school (more than 30+ years ago!), yet never once did he ever offer to pay for dinner!
When I walked into the restaurant, I could’ve spotted our table from a mile away. He was sitting there with a really big grin. You know the kind I mean — the one that makes your eyes disappear.
“There’s the man!” he shouted as I approached the table.
As I made my way over to him, I still had no idea why I was being treated to dinner... and with such a greeting, too.
I sat down, we ordered drinks, and then he filled me in on why he was in such a great mood: “Remember a few weeks back when I asked you what stocks you liked in this market?”
Truth be told, I vaguely remembered, but I nodded along anyway.
He continued, “You sent me a report a few weeks back. Well, I looked it over and bought a few of the stocks... you know, the ones that were really cheap. And I'm still raking it in, Chuck! One of those stocks is up more than 40%, and four other ones are up double digits!”
“I just wanted to thank you, buddy. If you have any more great ideas, send them right over,” he said, as if he was the only one that took advantage of the report.
Don't get me wrong; I was glad to hear he did well. But to be honest, I wasn't surprised at how well they've performed for him.
He did nothing more than follow one of the simplest, most effective investment approaches in today's market.
Nailing Your Next Big Winner
As we sat talking about our families, work, and the like, it wasn't long before he steered the conversation back to stocks.
He wanted to know, “What makes these stocks move higher?”
That’s a fair question.
Before I share with you what I told him, however, let me give you a little background...
About two months ago, May 18th to be exact, I offered a free report to all of my Energy and Capital readers... including you! The investment report listed 12 stocks that pass all my filters, and I believed that Wall Street was practically giving away them away.
These stocks hit everything on my checklist: They had ironclad balance sheets and were trading for pennies on the dollar.
So when my friend read the list and acted on it, picking up one of them... well, you know how things turned out for him.
I’m not sure if you took advantage of those recommendations, but I sure hope you did.
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Why These Stocks Move Higher
First, you have to understand that these kinds of stocks — the ones that are financially sound and trading at bargain prices — don't stay cheap for long.
To put it very simply, the stocks I target are severely depressed — usually due to a negative outlook or some other uncertainty.
Yet what the investment herd doesn't realize is that much of the negative sentiment is already baked into the stock’s price.
And here’s the best part: since the bad news and uncertainty is already reflected in the stock’s price, buying them becomes a low-risk trade for my readers and me.
And here’s why: If the negative expectations turn out to be right, the stock might trade a bit lower or not move at all. But! If future expectations are just a tiny bit better, for whatever reason, the stock price usually zooms higher.
Buying stocks that are financially sound and trading for bargain prices is truly one of the few win-win trades you can ever make.
It all boils down to this...
If you can value what something is worth and pay a lot less... it really doesn’t matter what happens in the near future. If you keep doing that over and over again... eventually you’ll make money.
For the past eight years, that’s exactly what I’ve being doing for readers of my investment service, the Inevitable Wealth Portfolio.
Since inception, we’ve closed out 107 winning trades (a 75% win rate) — and almost half those winning trades were closed out with a profit of 50% or more!
But I'll be completely honest here — it's not enough.
I want YOU to experience the same success as my friend. And once you learn the same easy rules that my readers have, you'll kick yourself at how simple it is.
All my best,
Charles cut his chops on the trading floor of the New York Futures Exchange before moving on to become a wildly successful money manager on Wall Street.
And with more than 35 years of recommending stocks under his belt, Charles has knocked the cover off the ball, compiling an amazing record of success and posting gain after gain for his loyal readers. He is the editor of Park Avenue Investment Club and the Insider Alert newsletters.
Charles is also the author of the highly acclaimed book, Getting Started in Value Investing.
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