At last count, there were 10 of these portfolio-busting landmines (in fact, you can get full details on all 10 today. I'll rush you full access for FREE. Full details just ahead). But three in particular are so pernicious you must know about them right now.
Each one could cost you a fortufne in 2006. Here's a HUGE one...
Investing Blunder No. 1 -- Chasing the Rush
Investing in growth and story stocks is like playing roulette with your future. It's that simple. But here's what I really don't get: Any 11th grader with a passing familiarity with statistics can show you roulette is a sucker's game.
Same with growth investing. So, why do investors keep gambling their retirements, their dreams for the future, and their families' fortunes on growth stocks? Two reasons.
First, as in roulette, "growth investors" occasionally do get lucky and strike it rich. Just enough of them, in fact, to convince us that we can do it, too.
But it's a mirage! In fact, over meaningful periods, growth stocks vastly underperform the broader market. And so do growth investors. Just take a look at this chart... you have to see it to believe it.
Just so we are 100% clear, let's translate that back into plain English:
If you'd invested $1,000 exclusively in the growth stocks in the Ibbotson universe, you'd have $800,000 today. You might think that's pretty decent.
But compare that to the $1.8 million you'd have if you'd simply bought the S&P 500 instead. And I bet you're REALLY curious about that third "bar" in my chart.
If you'd invested in this particular kind of "mystery" stocks (you'll hear all about these special market-crushers in a moment -- and how to find them), you'd have more than $8 million today!
But can you really find these unstoppable market-crushers? Yes, you can!
You know as well as I do that the surest way to get rich in the market is to consistently buy better stocks at better prices. Period. And these are the very opportunities you'll discover when you accept a free trial to Inside Value.
That's why my Inside Value research team and I spend hundreds of hours each month to bring you and your fellow subscribers two new recommendations fitting the strict criteria of the stocks represented in that chart.
And why, along with each recommendation, you get...
- My detailed risk rating
- My specific buy-below price
- My rigorous estimate of intrinsic value (more on this ahead)
You never need to guess. When you are an Inside Value member, I tell you when to buy... and at what price. Plus, you get my detailed forward estimates and precise calculation of fair value (here at Inside Value, we call it "intrinsic" value). I even tell you when to sell.
That's how my Inside Value subscribers scored 50% profits, 64% profits, and 100% profits in just a few months!
Of course, not every Inside Value recommendation has performed so well, so quickly. After all, one of our primary goals is to safely protect your wealth -- not take silly risks with your future.
But good things happen to good companies when they trade a great prices. And that's precisely why my Inside Value subscribers managed to earn...
- 102% profits on Omnicare in 13 months
- 42% profits on First American in 15 months
- 50% profits on MCI in 6 months
Do those returns sound good to you? Especially when you consider that we subjected all three to a strict criteria that assures us a generous margin of safety.
Then you're going to love my 3 Dirt Cheap Money Stocks revealed just ahead. But before we move on, let's take a look at one more reason growth investors "chase the rush." Because they've been sold a bill of goods, that's why.
Because they've been shafted by crooked Wall Street investment banks... by brokers who churn their portfolios... and by a financial media that couldn't care less about your wealth and well-being.
Those are just some of the reasons why chasing growth is Investing Blunder No. 1 and can wreck your wealth in 2006.
Investing Blunder #2 -- Churning and burning
Earlier, you saw an amazing graph demonstrating the awesome wealth-building power of U.S. stocks. And you're right to wonder:
How on Earth can anybody ever lose money in stocks over the long-term?
Great question -- but a lot of folks do. And you're 100% on the money to wonder why. In fact, there are just three ways I know it can be done...
- Rolling the dice on a small number of losers
- Jumping into and out of individual stocks
- Trying to time the market
And it's no wonder investors do all three. After all, that's what the so-called professionals on Wall Street do. It's also why roughly 85% of all mutual funds can't keep pace with the market, either!
Even worse, this is how "investment advice" is peddled. You probably hear from "advisors" and gurus all the time, touting the next 20-bagger, space-age proprietary computer model, or inside information.
I imagine you also know that 99% of it is bunk! But what you may not realize is that there is one proven way to make money with stocks -- and it's no secret. Remember, the entire strategy was laid out for us in a book written way back in 1934.
That book is called Security Analysis and you can get it at your local library (though it is 770 pages of small print). And yet its "secrets" can lead you straight to that special kind of stock represented in the "$8 million bar" in that chart I showed you.
Of course, you don't have to read a 770-page book. Who has the time? Fortunately, there's a better solution, and it's called Inside Value. With it, you can ride the coattails of the world's greatest investors... in just minutes per week.
Now, for some actionable advice you can profit from today...
By now, I hope you have a notion to take a hard look at your portfolio, especially if you had a decent year in 2005. After all, a year-end rally is a perfect opportunity to shore up a portfolio built on a slippery slope.
In a moment, I'll tell you how you can get instant access to literally dozens of market-thumping value stocks on my Inside Value buy list, entirely without risk or obligation. In fact, you won't pay a cent.
And, of course, you're eager to discover Investing Blunder No. 3... not to mention The No. 1 Fatal Flaw in Most Stock Research. But first, it's time I revealed my 3 Dirt-Cheap Money Stocks. Here they are...
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