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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 16 years, the GetFolio Investment Strategy has
consistently outperformed the market, achieving an
average appreciation of
28.67%
a year, simply by buying value-stocks. This
year, as well as in every year for the past 16 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. MSFT, TWX, HD, INTC, SBUX, FAST, QCOM, PAYX,
AMAT are all great companies, but sooner or later they
all correct. That is the exact time you should be buying
them. |
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"Buy at the time of maximum pessimism
and Sell at the time of maximum
optimism" |
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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 doesn’t
care about a stock when it’s 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 stocks above
$1Billion in market capitalization,
combining technical, fundamental, sector
timing, and (most importantly)
risk/reward analysis, all into an
accurate ranking system with
82.19% Win/Loss Ratio. The strategy guides subscribers
to invest strictly in high quality
stocks, ETFs, and Indices, only at a time when
they represent the most value, with the
least amount of risk. |
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