Saturday, June 8, 2013
We have two major announcements to share with you...
The first announcement is that Dan Ferris has unveiled a new "World Dominator" buy recommendation. It appeared in this month's issue of Extreme Value, out yesterday after market close. And this new recommendation is special... It could turn out to be Dan's best ever.
Before we get into the details, we need to discuss why a new "World Dominator" recommendation is a big, big deal for our best readers and our staff...
Longtime subscribers know that our firm recommends more than 100 different trading positions and investments per year. We cover growth stocks, value stocks, options, corporate bonds, exchange-traded funds, oil and gas royalties, real estate stocks, mining stocks, and currencies.
Some folks aren't interested in our options research. Navigating the options market requires a level of sophistication that some folks will never reach... and aren't interested in reaching. And that's fine. While we believe adding options knowledge to your investor "tool box" is a great thing, an investor can do fine without it. The same goes for buying individual corporate bonds, resource stocks, and many other investment/trading vehicles.
But one idea that is absolutely necessary to your success as an individual investor is a deep commitment to buying extremely high-quality businesses at good prices. You need to know how to spot great businesses. You need to know how to value them. You need the patience to hold them for years... to allow compounding to work its magic. A reminder: Compounding is the most powerful financial force on the planet. (Read about it here.)
When an investor makes this commitment to buy and own quality stocks (usually only after years of trying everything else), he reaches an important level. He graduates to a level of knowledge that most people never reach. He "joins the club." He joins wealthy, successful investors like Warren Buffett and his business partner Charlie Munger.
Over the years, we've written volumes on how to identify these businesses.
Porter's writings on "capital efficiency" contain some of the most important ideas we've ever published. Doc Eifrig's phenomenal "118 for 118" Retirement Trader track record is built around these exceptional businesses.
And Dan's work on "World Dominators" like Coca-Cola and Wal-Mart is a revelation to many people. It has guided thousands of readers to safe gains of more than 10% annually, year after year after year.
Dan's Extreme Value track record is ridiculously good. It's full of 40%... 50%... 70%... and 100%-plus winners. And readers earned all of these gains while sleeping soundly at night... rather than watching green and red lights flicker on a screen all day.
That's the power and safety of buying "World Dominators" at great prices. When people "get" this idea, they often refuse to buy any other kind of stock. Why eat bologna when you can have filet mignon?
This is why we all get excited when Dan introduces a new World Dominator recommendation.
Dan's standards are extremely high. (This is just the second new Extreme Value recommendation this year.) He's extremely patient waiting for bargain prices. He waits for rare times when you can buy trophy beachfront estates for ghetto prices.
These opportunities are rare... but they do occur in the stock market. When you see them, don't hesitate. They don't last long. Take advantage of them with substantial position sizes. These positions can help build a lifetime of worry-free wealth.
To many of us, "new World Dominator recommendation" might as well read "incredible buying opportunity."
In his newest Extreme Value issue, Dan recommended a controversial stock. Dan calls it one of the "most misunderstood" businesses in the world today.
Because of this misunderstanding, this World Dominator is trading at a price that Dan says offers "an enormous margin of safety." He says this is the cheapest price for a World Dominator that he's ever seen.
This World Dominator is also a solid dividend-payer. Its dividend isn't eye-popping right now, but Dan expects the payments to grow so much that in a few years, it will be regarded as one of the best income investments in the world.
Dan describes how this company has all the financial attributes of a wonderful business... consistently thick profit margins... consistently high returns on invested capital... tremendous free cash flow generation... a fortress balance sheet... and it rewards shareholders with dividends and share buybacks.
Out of fairness to Dan's paid-up subscribers, we can't say much more about this stock. Only once you learn the story, you'll be amazed at how this company is poised to be one of the world's top income investments... and why it's currently one of the world's safest stocks.
The second announcement regards a new milestone in our misguided, thankless efforts to help readers understand basic investment ideas.
We've covered why these efforts are extremely unpopular. Remember, learning is work. It can be painful. Most people just want a fish... They don't want to learn how to fish.
Most newsletter readers just want to hear about the next Facebook... or the next great gold mine... or the magic strategy that will make them rich overnight. They reject our efforts to teach key concepts, like proper asset allocation, business evaluation, position sizing, and stop losses.
As Porter has said many times, if you want to run your publishing business into the ground – if you want to receive piles of angry letters telling you to shut your mouth and just pick stocks – try to help people learn.
Still... despite the abuse we receive... we press on. We want to share the ideas we'd like to hear from you if our roles were reversed.
We also know that unless you see the value and importance of learning the basics of finance, you'll never read our work carefully or internalize its meaning. Unless you understand the basics, our newsletters won't help you. The most valuable information we can provide isn't just a stock tip. It's the understanding of how to use that tip.
That's why last week, we introduced the Stansberry & Associates "Education Center."
In the Education Center, you'll find a large collection of our best essays and interviews about timeless investment concepts. You'll find our best essays on how to identify and value great businesses. You'll find our best pieces on "unconventional" investments, like timberland and royalty companies. You'll find interviews that cover the most important trading concepts, like sentiment analysis, short selling, and "anaconda" trading.
You'll also find general wealth ideas, like Steve Sjuggerud's popular "Seven Secrets From the Best Businessman I Know" essay.
These pieces contain knowledge you can use to achieve a lifetime of success in the markets and business.
In addition to our essays and interviews, you'll also find our Recommended Reading list. This is a list of our favorite books on investing, trading, history, and economics. Collectively, S&A analysts have read more than 1,000 books on these subjects. This list contains 50 or so of our favorite books. These are the best of the best. We plan to add to the list over time... and add Analyst Favorite lists.
Now... an embarrassing admission. We're very good at analyzing the markets. But we've struggled with developing the perfect website. Right now, our "Education Center" section is ONLY visible if you are not logged into our website. To find it, you'll have to log out as a user. You'll find the link at the top of the log-in page, below the boxes where you enter your user ID and password. You can also simply click here.
We're moving into 2013 with our website technology, but we're not fully there yet. Our apologies in advance.
Please... take 10 minutes and check out our Education Center. It's a work in progress.
Date Range:5/30/2013 to 6/6/2013
Date Range:5/30/2013 to 6/6/2013