The One REMARKABLE
Stock to Own Now
Stock to Own Now
At the core of this report is a proven investment strategy that has provided a considerable boost to my personal net worth.
In fact, the man who literally wrote the book on investing, Benjamin Graham, followed this very strategy and averaged 20% returns for over 30 years. During that time, a modest $10,000 investment would have grown to $2.37 million.
This powerful, yet elegantly simple, approach involves scouring the market for companies trading for 50 to 70 cents on the dollar. Solid companies that have suffered a bad quarter or two… are turning around after troubled times… or are moving toward the high points of their business cycles.
And finding these rare investments is well-worth the trouble. They have consistently helped generations of the word’s most successful investors preserve capital, minimize risk, and achieve long-term, market-trampling returns.
A history of excellent investment returns
Author and investing legend Seth Klarman of the Baupost Group said, “The strategy of investing in securities trading at an appreciable discount from underlying value has a long history of delivering excellent investment results with very limited downside risk.”
Martin Whitman of Third Avenue Management said this strategy “is probably how most fortunes have been made for strictly passive investors.”
Benjamin Graham, author of The Intelligent Investor, said, “A strong-minded approach to investment, firmly based on the margin-of-safety principle, can yield handsome rewards.”
Think of it like this: If you find the famous 24 cent U.S. postage stamp with the picture of the inverted biplane, selling for $20,000 you might buy it after researching and discovering the real value of the stamp is somewhere between $50,000 and $75,000…
If you sell it later and ONLY get the stamp’s fair value, you make about 250% to 375% on your original investment.
Not a bad deal, right? Well, that’s exactly what the company you’re about to discover… as well as the investment newsletter service, which you’ll hear about shortly… are all about. Have a look…
Why ONE stock deserves a spot in your core portfolio
It’s simple. You’re buying one of the few insurance companies that offer the kind of underwriting discipline, and some of the investment acumen, found at Berkshire Hathaway.
If you’re not familiar with Berkshire Hathaway, you probably do know its legendary founder, Warren Buffett. Second only to Bill Gates, Buffett’s company helped make him the richest man in the world.
But it may still surprise you to hear that since the 1970s, ordinary Berkshire Hathaway investors just like you and me have seen their shares balloon more than 5,500%!
- Investors like Bill and Carol Angle. They invested $30,000… half their life savings… and walked off with over $300 million!
- Or like David Gottesman who piled up $368 million… Ernest Williams and his family grew their investment into $250 million!
- In Omaha alone, more than 30 families are sitting on more than $100 million worth of Berkshire stock.
And yet, in light of his outrageous success as an investor, few remember that it was the plain vanilla insurance business that put Warren Buffett on the map. That’s right — a boring, old company called GEICO. And everything grew from there.
It was virtually a formula. Buffett milked his lucrative insurance business to load up on tons of cash. Then he took that cash and snapped up shares of companies with assets and advantages that most everyone else was overlooking…
He gobbled up shares of See’s Candies and Coca-Cola, American Express and Gillette. You see how it really was a formula. Each time, Buffett showed up, cash in hand, at the precise moment the stocks were most out of favor with investors.
More than anything else, he used his business valuation savvy to recognize hidden assets, and help shareholders, like the ones we just saw, get rich in the process.
This same simple Buffett strategy drives the company we’re discussing today
Let’s be realistic. You and I both know the Berkshire miracle doesn’t come along more than once in a lifetime. But suppose you could do half as well… or even a quarter as well!
I think that’s reasonable for a company that’s following the Berkshire model to a “T.” In other words, if you missed out on the Warren Buffett stock market miracle, you have a second chance, with the potential for serious wealth-building results.
Because unlike Buffett’s Berkshire Hathaway (now worth in excess of $150 billion), the company we’re discussing today is still small with just a $4.4 billion market cap in an industry where competitors routinely top $40 billion.
But just like Berkshire in the early days, the company you’re about to discover is accumulating a massive stockpile of cash. Over $320 million as we speak. And also like Buffett, this company’s management uses it when the time is right to snap up fire-sale investments.
Given this uncanny knack for the battle-tested strategy that built Berkshire into a global powerhouse (and made Buffett the second-wealthiest man alive), you’d think the herd on Wall Street would be catching on. In fact…
This stock is already starting to move
In the last few years, every dollar you held in this stock would have more than doubled. Meanwhile, how would you have fared holding shares in the S&P 500? Over that same period, you would have LOST money.
That’s right, by holding just this one stock, you would’ve left most investors in the dust. Not to mention most mutual funds.
And yes, that includes all the folks who shrewdly bought the smaller, faster-moving stocks of the Russell 2000.
So, you’re right to wonder: Why would any self-respecting value investor even consider investing in a company that’s already up this much?
Because it’s just getting started! And with the remainder of this report, I intend to prove it to you. Read on for the specific reasons you should consider it for your core investment portfolio, and for why…
The planets are aligning
for investors like us!
My name is Philip Durell, founder and senior advisor for Motley Fool Inside Value.
If you’re not familiar with The Motley Fool, we’re the grassroots community of investors The Economist calls “An ethical oasis in an area that is fast becoming a home to charlatans.”
Barron’s named us “The No 1 source for financial education on the web.”
But that’s small potatoes compared to when Arthur Levitt, former chairman of the Securities and Exchange Commission, called The Motley Fool…
“As close to being an effective investor advocate as any organization in America.”
After all, a big part of our mission is to help hardworking investors like you break free from a corrupt U.S. financial services industry the most-respected voice in mutual funds calls “the next big financial crisis in this country.”
Fortunately, when you take my advice and invest directly in a rock-solid businesses (like the insurance company we’re discussing today) and hold them in your own personal account, you’re taking an important first step.
Now, your profits are yours to keep compounding
away until YOU decide to sell!
For one thing, you won’t pay a red cent in fees beyond your modest brokerage commission. That means no finder’s fee… no management fees… no marketing fees. And you’ll never pay a commission or taxes associated with needless turnover.
In short, you’ll incur none of the outrageous “financial intermediation” costs that routinely eat up nearly 80% of your profits over the course of a long investing career.
Yes, you read that right, up to 80% of your rightful profits… PROFITS earned on your money… at YOUR risk.
And I didn’t pull that astonishing figure out of my hat, either. I got that number directly from John Bogle, the founder of the prestigious Vanguard Group of mutual funds.
But that doesn’t have to be your concern, anymore.
Once you start following my simple plan of seeking out and buying the market’s most profitable stocks, you won’t pay ransom to a financial services industry that Mr. Bogle calls “a giant marketing system… to bring in the most money by fair means or foul.”
Your broker may have to trade his
Mercedes for a Toyota!
At the same time, you may be uneasy finding stocks on your own — ones you’re comfortable holding onto for years at a clip. Most investors feel that way. And to sleep well at night, you need someone to keep an eye on them in case something changes.
That’s where a trusted newsletter service like my Inside Value can help.
After all, I’m no financial services crony. I spent 20 years as an executive, specializing in company turnarounds. Trust me, you can’t succeed at resurrecting failing companies without developing a first-rate set of valuation skills and a specialized knowledge of the bottom line.
You can imagine how honing these skills helped make me a shrewder, more successful investor… as evidenced by the track record I’ve racked up for our Inside Value members.
That includes past recommendations that helped Inside Value members lock in returns of:
- Mittal Steel — up 50% in 8 months
- Intuit — up 83% in 18 months
- Omnicare — 105% gain in 13 months
I’ll show you more of our past winners just ahead. But it’s not my intention to cherry-pick individual stocks. I don’t have to…
Overall, across every value stock I have recommended to my Inside Value members, there’s never been a time when our portfolio failed to beat the S&P 500.
How value turns $1,000 into $8 million
So, how do we do it? Well, for one thing, at Inside Value, we religiously apply the strict value investing principles passed down to us from Benjamin Graham and Warren Buffett. And it’s a lot of hard work.
For starters, I fully examine the company’s books. I burrow deep into the numbers… digging out hidden liabilities… and sometimes, finding hidden assets Wall Street never seemed to know about.
You see, the kinds of “soft numbers” and “hot stories” that work on Wall Street don’t work for me. Instead I prefer to turn every stone. And not just price-to-earnings ratios and the other blunt instruments that slap-happy Wall Street brokers love to wave around.
And that’s a major reason my time-tested value investing approach can help you safely make money just about EVERY TIME you invest. But there’s also research showing you could clobber the returns of all other investments with these stocks…
This chart shows that if you invested $1,000 exclusively in growth stocks — beginning 7 decades ago — you’d have grown your money into $800,000. If you put the same $1,000 into the S&P 500, you’d have $1,800,000 today. Not bad.
But if you owned only the kind of stocks I invest in instead, you’d have more than $8 million!
That’s right. Disrespected, undervalued stocks like these… and like the fantastic insurance company you’re about to discover… actually crushed the performance of the top stocks in the S&P 500, which of course, are the core of very popular “index” funds.
Now, I admit 70 years is a long time. But that’s just the point: When it comes to investing, fads come and go. You must look at the long-term to know what really works.
And buying and holding those special stocks I just showed you in that graph works. Period.
Of course, this point cannot be over-emphasized. It is an undisputed fact: These stocks turned $1,000 into $8 million over the course of EVERY TYPE OF MARKET.
Now that we can all agree that value investing is the only intelligent way to invest, it’s time we took a more in-depth look at “The ONE Remarkable Stock to Buy Now!”