Growth, the way the newspapers use it, is the opposite of value investing. Warren Buffett is usually put forth as the “icon” of value investing.
But when you grab growth, you grab a tiger by the tail. Whipsawed by momentum, investors sell and try to grab another, and then another momentum stock. If there are any winnings from all this frantic activity, they are swallowed in taxes and commissions, leaving crumbs for retirement.
And that’s in a bull market.
Back to Basics
We had better get back to basics, my friend. Times being what they are, you and I don’t have the luxury to ignore fundamental value in stocks. Value is the investor’s North Star. When every other measurement is suspect, the North Star of value will keep you on track.
Consider The Certainty Principle your most faithful servant these days. By certainty I mean: can I count on its earnings to grow for the foreseeable future? Is the cash flow projection sound? Are margins under pressure going forward–or are they actually expanding? What about sales–can we really count on the contracts you have in hand and do we really know where the next contracts will come from? For more on my investment strategies, check out “Grow Enormous Profits This Earnings Season!”
Wall Street’s Shattering New Scandal
Let’s put this Certainty Principle up against a new scandal that is just about to rock Wall Street. The job of our Certainty Principle is AVOIDANCE OF RISK, and the risk I’m talking about now is a DOOZY.
The biggest bond insurers in the world could go bust in the following weeks.
Bond insurance held by companies such as Ambrac Financial and MBIA is simply not enough to cover derivatives-gone-bad.
I guarantee you: This new shock will put Wall Street into a fresh panic–and slam the entire financial sector AGAIN!
I Hope You Understand:
Growth that takes no account of fundamental value is a hoax, and you will die poor if you fall for it. I put this strongly to you because I have been hailed as an “icon of growth,” and I want to use my prominent position in the business to get you to pay attention!
But also, opportunities abound. Where earnings accelerate, stock gains follow as surely as day follows night. THAT is certainty. To get an idea of what I’m talking about here you’ll want to read, my “Top 5 Stocks for July.”
Join Blue Chip Growth now, and I’ll send you a free copy of my latest research, 20 to Trust, 200 to Shun. This urgent report is designed to help you thrive during these risky times. One of the greatest feelings in the world is to know that you are growing your portfolio like a mighty oak grows. That’s what Blue Chip Growth is all about. Try Blue Chip Growth RISK-FREE today!
