The No. 1 Fatal Flaw With Stock Research

A Motley Fool Inside Value Special Report

Here it is: You don't learn to invest in "stock college." And you sure don't learn it in boiler rooms or the rotting caverns of Wall Street.

That, my friend, is the No. 1 fatal flaw with 99% of what passes for stock research... and with most independent advisory newsletters, too.

Think about it: How do you get a cushy job on Wall Street? You go from prep school to college to business school and directly on to Goldman-Morgan-Merrill. That's right, the vast majority of the chaps that turn out this dreck have never even worked for a Main Street company, much less run one.

Sure, these guys talk about turnarounds, but have they ever turned a company around? Fat chance! They go on and on about quality management and corporate DNA, but have they ever worked for, much less run a large-scale organization? Hardly.

Well, that night at sea, I made a decision: Before I would try my hand at picking stocks or advising others, I would try my hand at business! And that's precisely what I did.

I came ashore and went straight to work. Before I was through, I served as a senior executive at corporations all over the world... from Southampton, England to Jeddah, Saudi Arabia to Vancouver, Canada.

Over much of that 30-plus-year career, I specialized in leading startups and turnarounds. The lessons I learned during those years still directly influence the stocks I recommend to you today.

You see, unlike other advisors, I've been there... done that. That's one of the biggest reasons I feel comfortable giving you investment advice that can profoundly affect your future.

So, does that mean I can promise you a fortune overnight...

Sadly, no. Nobody can. But here's what I can do. I can do the research. I can run the numbers. I can apply 30-plus years of business experience to helping you build real wealth over time.

What it does mean is this: I can help you make money in stocks.

Twice today, I showed you proof in a fancy graph -- how value stocks outperform growth stocks and the broader market. That's on average. That's buying a "basket" of value stocks.

But imagine how much better you could do if you had a team of experienced analysts who would spend hundreds of hours each month picking over that huge universe to find just the very best values -- here at home and abroad.

Finding stealth values for Inside Value members like Gretchen...

"Seeing that the Admiral was in charge of this ship was all I needed to know. I cannot think of a better leader or of a ship with so much promise to carry the Foolish mission of educating and enriching investors."
-- Gretchen, IV member

Bargains like MCI, which I recommended to my subscribers in August 2004. That's right, poor, unloved, beaten-down MCI. You may have heard that telecom giant Verizon recently agreed to buy out MCI -- at a significant premium to what my subscribers paid.

Does it take guts to buy a deep value stock like MCI. Sure, but having the full support of my Inside Value team behind you makes it a whole lot less stressful. And the rewards are out of this world. Which brings us to Investing Blunder No. 3.

Investing Blunder #3 -- Riding the Bench

If you remember just one thing from our discussion today, please remember this: Except in extremely rare situations, you MUST be invested in U.S. stocks. Period.

The U.S. stock market is by far the most powerful machine for building and defending your personal wealth this Earth has ever seen. And over the years, the stocks of U.S. companies have vastly outperformed all other asset classes.

And, yes, that includes gold... and real estate... and collectibles... bonds... and all other financial securities. If you want to get wealthy or just to stay there, you simply must be "in" the stock market.

And this is critical: Over the past 10 years, the S&P has returned on average 12% per year. But if you'd been out of the market on just the best 30 days during those 10 years, you'd have actually LOST money.

And nobody can predict when those days will be. Nobody. If somebody tells you he can, by all means show him the door at once!

Staying out of the market can wreck your wealth in 2006. And you MUST not do it.

Here's a better idea: I'll do the work for you

What I perhaps haven't made clear is just how easy it is. As a member, you'll receive 12 newsletter issues per year (you can read them online or in print -- your choice). Plus, you receive my mid-issue updates and special email bulletins.

But Inside Value is much more than an investment newsletter. It's The Motley Fool. It's an active community of smart investors.

At Inside Value, you can join me -- and your fellow members -- online in spirited discussions day and night. We can talk about the market, your favorite value picks, and those on my current watch list.

Perhaps it would be easier to let one of my subscribers explain the Inside Value experience:

"To all those awed by the caliber of posters
[in the Inside Value community], don't be.
Be inspired. Each and every person has a particular point
of view of the market and of any single company."
-- Simon, Inside Value member

Or, if you're not a talker like Simon, you can simply wait for your monthly newsletter to arrive in your mailbox with my latest value picks, watch list, and monthly commentaries.

Remember, with Inside Value, it's all up to you. Here's everything you get when you join :

  • 12 monthly issues of Inside Value
  • My 2 top value recommendations each month with all the facts, projections and in-depth analysis so you can decide if the stock is the right investment for you
  • A Watch List of companies that have great potential
  • Between-issue updates and alerts on current holdings

You'll also get:

  • FREE -- Your questions answered: By me, my team, and by a growing community of smart value investors
  • FREE -- Members-only access to a dynamic online network of smart investors like you -- exchanging ideas, sharing strategies, dissecting the market, and breaking down my latest picks
  • FREE -- Great extras, including special reports, interviews, features, recommended reading, and more

Here's an even better idea

You don't have to make any decisions today. That's right, respond to this email promotion today, and you can try out the complete Inside Value service for 30 days on me.

This way, you can profit from all the benefits enjoyed by full-fledged Inside Value members, and you won't pay a cent. There is absolutely no obligation or pressure to subscribe.

Now, you'll agree the risk is entirely mine. In return, you get the peace of mind that comes from avoiding the costly blunders (and deadly blow-ups) that threaten investors today -- and from owning stocks that offer long-term profit potential and a margin of safety.

Make 2006 the year you clobber the market!

Believe it or not, 2006 is already upon us. My sense is that it's going to be a make-or-break year for many investors. And frankly, I'm downright suspicious of the latest run-up, especially in low quality growth and story stocks. Careless investors could be in for a rude awakening.

Not you, however. Just by reading this Special Report, you've taken a critical step toward making 2006 the year you CRUSH the market. You're mere seconds away from making that happen -- a richer, brighter, safer and more secure future.

And remember, the entire first 30 days of Inside Value is on me. If you are not 100% convinced that I am making you more money (and that you're resting easier, too), you will not pay a cent. You really owe it to yourself to take me up on this one-time offer today.

Simply click on the big button below right now to get started.

To many more years of great investing,

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