Enter the complicated world of brokery
 

Welcome to our brokery Archive. Have fun browsing!

 

Article #177: 10 Surefire Ways To Make An Investment Fortune, Part I

(Browse for more articles)

 
People have often asked me how I always terribly wrong about their calls than
pick stocks that end up with 20% gains in right. So it's up to you to get off your
a couple of months or triple-digit gains proverbial bum and learn how to invest
in a year. They ask me is it luck? Maybe for yourself. Chasing stocks higher and
with a couple of stocks it may have been buying when everyone else is speaking
luck, but luck doesn't play a role in about them is a sure way to lose money.
buying ten or more stocks in the same And so is listening to talking heads.
year that earn more than 80% returns. The Learn a system that teaches you to buy
key is not to follow the herd, stop assets when everyone is ignoring them and
listening to the investment talking you'll outperform everyone else.
heads, and to learn an investment system (3)Concentrate, Don't Diversify
and then be unwaveringly courageous in If you've read the paragraph above, you
applying your system. There have been already realize that Private Wealth
times family and friends have asked me Managers and Financial Consultants are in
for advice, and I have told them, "Buy short supply of time as they partake in
this stock. I guarantee you, you will not the race to gather as many assets as
lose money." possible for their respective firms.
Now I know that there are no guarantees Thus, this is the reason they employ the
in the stock market, but if you follow rule of diversification for your
certain strategies, you can be 90% sure portfolio. U.S. Navy SEALs will tell you
that the stock will appreciate. With this that during an operation exfil exercise,
particular agricultural stock, it was the easiest way out is rarely the safest
almost the perfect stock, and I was 99.9% way out. The same holds true in
sure that the stock would produce investing, yet diversification is by far
monumental gains. Sure enough, the stock and away, the easiest investment strategy
exploded almost 130% higher in about a that anyone could possibly teach to tens
year. And this stock was not some risky of thousands of financial consultants.
penny stock trading at less than a dollar Certainly, diversification cannot be a
a share. This stock was trading at about complex strategy if tens of thousand
$70 a share at the time I advised my consultants from varied backgrounds and
friends to buy it. So below are the 10 industries can all efficiently apply this
surefire rules I employ to build enormous concept to their clients' portfolios with
gains in investment portfolios. very little training. Diversification is
(1)Buy When Fear is Rampant, Sell When the biggest cop-out investment strategy
Mania is the Greatest of all time. It screams of incompetence
Every investing course should be and lack of skill - "I have no idea what
accompanied by a psychology course as asset classes are going to perform well
well. The most difficult thing to do in this year so I'm going to invest you in
investing is to buy more when fear and everything under the sun."
panic is rampant and to sell when mania Assume everyday, a NBA coach looked at
is the highest. Stock markets and asset his active roster of 12 players and said,
classes cycle in peaks and troughs. Most "I have no idea who are the best players.
people will not buy stocks until after Because I don't know, and don't care to
stocks are plastered all over the news take the time to figure it out, I'm going
and after they have just risen by 30%, to ensure that all 12 players share equal
40%, 50% or more, believing that they time every game." This coach is unlikely
will rise higher forever. Buying at the to win many games versus the coach that
troughs when nobody is talking about a takes the time in training camp to assess
stock or during steep corrections who his best 5 players are and then
provides a low-risk, \high-reward setup consequently plays these 5 players the
for your portfolio. majority of minutes during every game.
(2)Learn What Your Neighbor is Doing, This is the difference between
Watch Investment Shows on MSNBC and diversification and concentration. The
Bloomberg on TV, Listen to the coach that diversifies may win some games
Recommendations of Your Financial based upon pure luck because maybe he has
Consultant - Then Make Sure that You a couple great players that can make up
Don't Have a Single Thing in Common With for the deficiencies of the poor players
Their Strategies he puts on the court every night. Still,
If you are one of the thundering sheep most nights, the deficiencies of the poor
herd and perpetually follow the mindless players will drag down the performance of
actions of others, you are virtually the excellent players.
guaranteed to lose money or forever However, the coach that concentrates and
relegate your portfolio to average to puts his best players on the court every
below-average returns. The surest way to night will be able to field a team every
build an investment fortune is to buy night that has an excellent chance of
asset classes and stocks when nobody is winning. This is why we concentrate in
discussing them and to sell them when investing. To give us the best possible
everyone is talking about them. This chance of winning. Diversification will
requires a nose for market timing. Is never achieve this.Study the best
market timing impossible as all the investors in the world. The best
global investment firms always tell you? investors in the world always manage
Hardly. Learning what asset classes and their own money and they concentrate
individual stocks are poised to skyrocket their portfolios in the best asset
every year just takes a little bit of classes every year. Don't believe the
time, but is really not that difficult. hype about diversification -
Since time is a commodity that Private diversification stinks, it doesn't
Wealth Mangers and Financial Consultants protect your portfolio, and it certainly
employed by large commercial investment will never make you wealthy.
houses lack, they tell you that market (4)Learn Everything You Can About the
timing is impossible merely because they Relationship Between Politics and Stocks
don't have the time to perform the On September 18, 2007, the U.S. Federal
necessary research. Reserve cut the Federal Funds Rate (the
However, purchasing stocks that are rates banks borrow from each other and
likely close to cyclical bottoms instead the rates the rates banks loan to
of believing that market timing is customers) by 50 basis points. The U.S.
impossible and indiscriminately buying stock markets soared that day, followed
stocks will easily add another 10% in by strong surges in Asian markets the
returns to your portfolio per year. Do following morning. The interest rate cut
you really believe that you can make a undoubtedly was not just motivated by a
fortune by buying any stock that is desire to manufacture stability and
advertised on a TV program watched by confidence in the U.S. economy, but also
millions of investors worldwide? motivated by politics. If you don't
Ultimately, if you own the same stocks as \understand what I mean by this, then you
your neighbor to the right, your neighbor have homework to do.
to the left, the talking head on TV, and Governments and corporations in every
the talking head at your commercial major global economy in the world have
investment firm, then are doing something formed relationships that have since been
the proper things to build an investment coined as "corporatocracies". Politics
fortune. has a major hand in all of the following:
If you don't seek out stocks and asset interest rate cuts, interest rate
classes at times when nobody is increases, the price of oil, the price of
considering them, you will never make gold, the valuation of the Euro, the
serious money in investing. You may make valuation of the dollar, the valuation of
10% a year or maybe even 15% a year but the Pound Sterling, permits to mine
if you want to enter the world of the big uranium in Australia, defense spending
boys and earn 25% or more in annual for national security, decisions to go to
returns, you have to dig a lot deeper war, and contracts awarded to
than your investment peers. Just a couple corporations. If you don't understand
of months ago (June 25, 2007) this email politics, you cannot possibly understand
landed in my inbox from a big investment global macro-economic trends and what
newsletter publisher. "Over the past asset classes and stocks offer the best
week, I've crisscrossed northwestern low-risk, high-reward opportunities year
Canada looking for the next great after year. The lack of understanding of
investment. I'm up here to find out what politics is what causes Chief Investment
everyone's invested in. And after Officers of major commercial investment
attending an investment conference in houses to make poor calls in the
Vancouver last week, I can tell you direction of commodity prices and the
absolutely that no one is interested in direction of global economies. Understand
gold...Base and minor metals will politics and your investment returns
continue to be the best place to have should increase tremendously.
your money over the next few years. Gold, (5)Learn Everything You Can About Gold as
as a virtually useless metal that has few an Investment.
industrial uses, appears to have hit its Gold, as an investment, is perhaps the
peak and could be running sideways for most misunderstood and poorest understood
years like it has many times in the asset class in the world. Some people
past." believe that the physical commodity is
Then, in August, when the HUI (the major the only way to invest in this asset, and
AMEX gold index) took a sharp hit in as such, only put money into the paper
response to global market corrections, gold ETFs. Other people that invest in
everyone proclaimed that gold was no gold stocks don't understand the
longer a safe haven and that gold was differences in price behavior between the
"done". Now, just a one-month later, on juniors and majors; explorers,
September 26, 2007, a lot of people are developers, and producers; hedged and
talking about gold's strong rapid surge. unhedged companies; and the political
So was the newsletter that ended up in my risk of operating in different countries.
mailbox that proclaimed gold as dead in Therefore, they never understand the
June right in June but terribly wrong in risk-reward quotient of their gold
September? The answer is neither. The portfolio, sell out during steep
only person that is wrong is you if you corrections, always lose money, and think
blindly listen to talking heads that end that gold investments are speculative and
up in your inbox or that you watch on TV. stink. Furthermore, they don't understand
The fact is that little-discussed asset that short-term manipulation of prices of
classes and stocks are ignored because the underlying commodity and stocks can't
perhaps 1 out of 1000 investors truly change the long-term outlook and
understand them, and even the ones that performance.
parade as experts on TV have been more






1- A- B- C- 2- 3- 4- 5- 6- 7- 8- 9- 10- 11- 12- 13- 14- 15- 16- 17- 18- 19- 20- 21- 22- 23- 24- 25- 26- 27- 28- 29- 30- 31- 32- 33- 34- 35- 36- 37- 38- 39- 40- 41- 42- 43- 44- 45- 46- 47- 48- 49- 50-