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It seems every investor I meet is a stock picker and always in search of the next Microsoft. The story is always the same: they are in love with their stock, and it's always got unbelievable potential. What's wrong with this picture? Statistically speaking, the odds of you discovering the next Microsoft are stacked against you. And even if you did discover the next Microsoft, chances are you would sell it before it fully appreciated.  

Stop and think for a moment. Why take the most difficult route when the alternative is easier, and more probable to achieve? Why try to discover the next Microsoft when hundreds of great stocks, funds and Indices are offered on sale? Why take the risk of investing in a small and unknown company with the hope of discovering the next great stock, when great stocks are offered at bargain prices each and every year?

For the past 20 years, the GetFolio Investment Strategy has consistently outperformed the market, simply by buying high growth value-stocks. This year, as well as in every year for the past 20 years, more than half of the top 500 large caps in the U.S. will correct; a bloodbath for the amateur investor, and an incredible source of income for the smart investor. 

As a hedge fund manager, I have been tracking value stocks for over 20 years, and to this day I am still amazed by the process. What amazes me is the predictability of events like corrections. After all, a stock correction on Wall Street is not a rare event, yet when it happens, investors react as if the end of the world is truly coming. AAPL, MSFT, GOOG, RIMM, INTC,  AMZN, ADBE, CMG, CRM are all great companies, but sooner or later they all correct. That is the exact time you should be buying them.

 

"Buy at the time of maximum pessimism and Sell at the time of maximum optimism"

When a company announces earnings disappointment or a slow-down in growth, Analysts downgrade the stock and Wall Street freaks out and says, "Sell, sell!"  To the average investor who bought the stock at its high of $40.00 and watched his stock fall to 30-20-15,  this signals the end of the world.  In his mind, this stock was going to 0. In panic, he sold his stock at 15, and that so happened to be the low. A few months later the stock recovered back to $40.00.

On the other side of the same trade sits a GetFolio.com subscriber.  He is a risk/reward kind of a guy, and is in the habit of buying ONLY when there is a SALE going on. He doesnít care about a stock when itís at an all time high and consensus is very optimistic; he is looking at his down side. He has seen plenty of great companies crash on earnings disappointment. He has learned his lesson. Instead, he waits for a sale. When it happens, he starts accumulating, slowly building a position.

Funnily enough, after a few weeks of nervous energy the stock seems to stabilize. Other investors jump on board, and before long the stock is catching an upward momentum.  A few months later, the stock is nicely recovered and Wall Street loves it again. Analysts upgrade the stock to a strong buy, raising estimates. Overeager investors come in and buy the stock at an all time high, while our GetFolio.com subscriber dumps his stock for a handsome profit. He is no longer interested in the stock and moves on to another "SALE".

In sharp market declines each year millions of investors dump their shares in panic for one simple reason- they fear losing it all. About one half of the 500 stocks that make up the S&P Index correct every year. Ask yourself a simple question: how many are out of business?

The GetFolio.com ranking system ranks all high growth stocks, combining technical, fundamental, sector timing, and (most importantly) risk/reward analysis, all into a highly accurate ranking system. The strategy guides subscribers to invest strictly in high quality stocks, or Indices, only at a time when they represent the most value, with the least amount of risk.

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