Here Is Your “Perfect” Investment — Keep This Between Us For Now…
July 26, 2016
Table of Contents
As expected, your responses to my request for your “perfect investment” were spot on. Here’s some of what you submitted and a few thoughts of my own. Plus, an important, time-sensitive announcement regarding your Smart Investing service. Please read over and RSVP below…
For the past month or so, we’ve been attacking an important question here at my Wall Street research and wealth management firm. You may have chimed in on the discussion yourself.
If you weren’t able to get your two cents in— or if you prefer to “hang back” and hear what others are thinking — that’s okay, too. The freedom to just “take it all in” is a great benefit of joining a community of likeminded thinkers like ours.
In any event, please read on. I have something important to share with you. Including what I believe is the “perfect investment”— and how you can boost your chances of claiming your share of the massive spoils if I’m right.
Though please believe me when I tell you. Cashing in hasn’t always been easy, even when it comes to seemingly “perfect investments” — perhaps especially so. And it won’t get easier in the coming weeks, months, or years.
I hope you’ll also believe me when I assure you that the too-often “path not taken” I’m about to reveal to you has unfailingly led thousands of otherwise “ordinary” investors to truly extraordinary wealth for generations.
I speak from experience. I also speak for the real-life experience of my extended family, my closest friends, and my longtime clients — who all can testify to the wealth-building power of what I’m about to share with you.
It’s also a bit complicated. For starters, you are one of a small number of my associates receiving this message. Including my Smart Investing and Smart Trader Charter Members and a handful of others who have contacted me personally.
Moreover, while the “secret” I’m about to share you with you is not really a secret at all (in fact, you’re more than welcome to share that part with anybody you like), I’m going to follow it up with something a little more “cloak and dagger.”
I don’t exaggerate when I tell you that even this hint of “exclusivity” goes against my nature. Frankly, I’m not happy about it. But I’ve given it a lot of thought, and there’s no way around it, at least for now.
I’ll explain everything in a moment. Then you can decide if I’m being unnecessarily cautious or discriminating. In any case, when I tell you what I have in mind just ahead, I hope you can keep this last tidbit between us.
But before we pull back the curtain and reveal what I have in mind for you, let’s take a look at some of what your fellow members consider to be “perfect” investments.
Not surprisingly, given that we’re self-directed investors, your responses included names of individual companies. Microsoft, Amazon, Apple, and Costco are just a few of the long-term winners you brought to my attention.
Again, that stands to reason, given that owning even modest positions in these stocks, and many others just like them over the decades, minted multimillionaires many, many times over.
Others favor more recent market superstars. For example, Netflix, Priceline, and Intuitive Surgical, which have disrupted entire industries and made investors fortunes in their own right — or LinkedIn and Tesla, which may yet do so.
On the other end of the spectrum, more conservative members of our community seem to favor established multinationals and dividend payers. One reader mentioned Ford and Caterpillar; another suggested General Dynamics.
Bridging the gap between “hyper growth” and “safety,” one reader mentioned “buying 100 shares of Wal-Mart in the 1970s,” while another wrote simply “Coca-Cola in 1919” — though, as I’ll explain, I suspect the latter was more of a hypothetical.
If you take one thing away from our discussion over the next week or so, I hope it’s the important distinction between those last two examples I just showed you — that is, the life-changing difference between those two “perfect” investments.
And by that I don’t mean any differences in the investments themselves. In fact, Coca-Cola and Wal-Mart are more similar than you’d think. Both were once hyper-growth “story stocks” of their day that grew into long-term core holdings.
But it wouldn’t matter if we were talking about companies as antithetical as Smith & Wesson and Taser (which one reader offered up) or Wells Fargo and silver coins in the 1980s, (the “perfect investment” submitted by another reader).
In fact, the distinction between the Wal-Mart and Coca-Cola “situations” offered above is deeper and more fundamental. One that is best illustrated by way of another, entirely different “perfect” investment you might have cited yourself.
You see, without exception, when I asked you and your fellow members for your “perfect investments,” one investment was cited many times more than any other. Despite the fact that it hasn’t technically been a blockbuster investment!
After all, you could have done many times better owning any of a thousand different individual stocks. With few exceptions, you could have made more by investing in a broad market index or even a portfolio of high-quality corporate bonds.
Yet, in spite of all that, I don’t deny that you’re right when you say it’s a great investment. So what gives? Well, as it turns out, there’s a good reason so many of us consider (did you guess?) OUR HOMES as our best investments.
If you give it some thought, I bet you can also guess what that reason is.
I put this same “perfect investment” question to my own research team. We were equally divided on the “answer.” This makes sense when you consider that my research analysts cover dedicated sectors and industries.
So, of course, they have their own biases and favorites. In their defense, great investments come from all corners of the market. Over the years, investors have made fortunes in technology, healthcare, consumer staples, and banking…
Likewise, in energy, as two Smart Investing members point out, citing Chevron in the 1960s in one case and master limited partnerships in the 2000s in another. All of the above has merit, and the list goes on.
So which of my research analysts is “right”? It turns out they all are.
You see, when pressed, my team and I realized that, as varied and divergent as they might at first appear, for more than 20 years, ALL OUR BEST IDEAS have had one trait in common.
I won’t beat around the bush…
From our unique perspective, as security analysts and registered investment advisors, the perfect investment is the one that makes our clients money. Period.
This might seem self-evident or even silly at first glance. But you’d be surprised how many of our “best ideas” don’t cross this simple threshold. Whether it’s because our well-meaning clients…
- Don’t act on our best ideas in time…
- Do get into our best ideas on time, but then get OUT too early and miss the bulk of the profits…
- Or simply don’t take the time to fully consider our recommendations or ignore them altogether!
This is especially curious when you consider how much some of these folks pay for investment ideas they never get around to profiting from. And, remember, these are often professional investors with millions of dollars on the line.
Which brings me around to the surprising reason why I believe so many of us cite our homes as our “best” investments…
You see, like the Smart Investor member who “bought 100 shares of Wal-Mart in the 1970s” — but UNLIKE the reader who submitted, “Coca-Cola” in 1919” — our HOMES aren’t hypotheticals pulled from market folklore or the historical record.
Our homes are real-life investment opportunities we actually acted on. More important, our homes are long-term investments we’ve stuck with and handled prudently over the years.
Of course, I’m not writing to gripe about my clients. They pay good money for the research we provide them. How they choose to use it is up to them. Though it does pain me to see them miss opportunities and leave money on the table.
This goes double for the hardworking individual investors who watch me on TV. Even more so for investors like you who have taken the leap of faith to join me as a member of my Smart Investing and Smart Trader investment advisories.
My sworn mission from the start has been to help you reclaim your American Dream — by leading you to the truly life-changing investments the global equity markets have to offer and giving you the courage to profit from them.
And while the choice is always yours, it’s important to me that you have every opportunity to profit to the utmost along with us. Yet, more and more, I’ve realized there are hurdles we must overcome together to make this happen.
For example, in the short time we’ve been together, members have noted that we are assembling quite a list of recommendations. Given that there will always be game-changing companies in any market, this list will only grow longer.
It doesn’t surprise me to hear that some members already sometimes struggle to decide which recommendation to buy in any given month, or…
How much of each recommendation to buy… or whether you should sell all or part of one holding to raise cash to buy a new one… even how much you should dedicate to your Smart Trader trades and how much to your core long-term positions.
Again, the list goes on. These are all important and reasonable questions. Just remember that my ultimate goal is to help as many investors as possible reclaim their American Dreams — but it’s important to me that you do it on your terms — in a manner that works best for you.
In the meantime, I’ll follow up with a second message in a few days, highlighting a few “concerns” I think the perma-bears might finally have right about this late-stage bull market — and how together we can easily overcome them.