Hello, Reader.
Every successful investor has a system. A “north star” that guides their decisions through good times and bad.
Some rely on algorithms…
Others lean on fundamentals…
Even contrarian legends like Warren Buffett and John Templeton followed repeatable playbooks.
That’s because luck can make you right once… but only a process can make you right again and again.
Apogee is the culmination of my process.
In the essay I shared with you yesterday, we went over why my new computerized stock-picking system – Apogee – picks certain stocks but not others.
As we saw, during extensive backtests, it picked Amazon.com Inc. (AMZN) before it went on to gain 1,115%. But it avoided Tesla Inc. (TSLA) before that stock went on to big gains… but took investors on just about the riskiest, wildest ride the stock market has ever seen.
As I’ll even further reiterate in a video I’ll share with you tomorrow… it’s a rules‑based trading system built for one thing: finding 1,000% winners without taking outsized risks.
How?
By fishing in a corner of the market that most investors ignore: established, high-quality companies that have fallen a lot… and risen a little.
This “sweet spot” represents a stretch of blue skies right after a storm – the moment when the clouds are parting and prices are ready to soar again.
Over my career, this system of investing has helped me find:
- Humana Inc. (HUM) +3,591%…
- And 38 other 1,000%+ gainers.
And during those backtests, Apogee – basically my “mental” system turned into code — identified:
- Nvidia Corp. (NVDA) before it generated 1,871% gains…
- Cadence Design Systems Inc. (CDNS) before it went on to 1,551% profits…
- And Apple Inc. (AAPL) before its 4,285% run.
And now, I’d like to share some more about Apogee and how it works with you…
The Apogee Difference
Most systems chase what’s already hot. If a stock has already doubled in price, you can bet that trend-seeking algorithms and hot-money day- traders are piling in.
These momentum-driven traders are hoping for more gains… and their crowding can often inflate hot stocks into full-blown bubbles.
Of course, we all know what happens after that.
Apogee does the opposite. It’s more like a “contrarian robot” that avoids these speculative bets that can lose 80%… 90%… 95% of their value almost overnight.
In other words, Apogee is the patient investor waiting to buy high-quality companies after the bubble bursts and things are set to rebound.
Consider Humana, a recommendation I made back in 2000 after shares of the health insurance firm had fallen 70%. The company had just swung from a $200 million profit to a $400 million loss, and investors were betting on more pain to come.
After all, when insurers announce a “failure to align our pricing with cost trends,” the resulting problems can often last decades. Dozens of insurance companies have folded because someone years before wrote policies on Florida real estate or assumed that long-term care would only cost $20,000 a year.
Yet, health insurance companies have an important quirk. You see, this is one of the few corners of the insurance market where prices are renegotiated yearly. Companies like Humana can simply raise prices the following year if premiums are too low. In addition, the medical cost increases of the late 1990s were largely triggered by a one-time event, the Balanced Budget Act of 1997.
That meant Humana quickly swung back to a profit in 2000, sending shares straight back up. By 2007, it had returned 500%. Seven years later, 1,000%. And by 2020, shares had returned a stunning 3,591%.
Not bad for an established company with hundreds of thousands of subscribers.
How Does Apogee Work?
Humana was an incredible investment because it followed the key tenets – the 10X Factors – I used to build Apogee.
- Down a Lot. The best investments start off at low prices, and Humana had fallen more than two-thirds from its previous peak. This gives investors an unusual amount of upside potential.
- Up a Little. Humanawas also quick to recover by raising prices to match the new Medicare reimbursements. The initial upswing marked the perfect moment to buy shares.
- Valuation. Shares were sitting in a “sweet spot” at the time – not expensive, but also not too cheap.
- Growth. Humana’s revenue was growing throughout the period as Medicare insurance demand soared… but not too rapidly. Revenues more than tripled through the 2000s.
- Outperformance. The company was also performing better than the market in general – it was generating alpha – a strong sign of gains to come.
These same principles have also helped me identify several dozen other 1,000% winners over my investment career. Of course, on my own, I can’t apply these screens to every stock in the market and dig up every single potential 10X winner. I’m only human.
However, now that we’ve computerized them in Apogee, I can do exactly that… every single day.
And here’s the best thing:
These sorts of 1,000% winners are safer than most people think.
That’s because my system is built to wait. It lets fear do its work, lets the numbers start improving, and only then starts to act.
We’re talking about firms like Humana, BayerAG (BAYRY), and Adidas AG (ADDYY) – established names you can feel comfortable sizing like a real investment, not the $50 microcap lotto tickets people brag about at the golf course.
That’s what makes Apogee so different.
Most days, Apogee does nothing. And that’s by design. Great deals don’t arrive on command, and forcing trades only creates bloated portfolios filled with mediocre bets.
Nor does the system try to own every rally or predict every twist. After all, the goal of investment is to make money, not to be busy.
And it’s certainly not buying up speculative bets like companies that keep selling new shares at your expense, penny stock promises, or the latest investment fad. Sure, some of those can jump 1,000% in the short term, but I know almost no one who got wealthy through consistently buying speculative bets.
Instead, Apogee concentrates on being right when it matters.
An Important Announcement
Apogee has recently flagged five different “Buys” across my universe of 14,000 stocks. These companies look much like Humana in 2000 – they’re all trading at incredible discounts and have simultaneously entered a “sweet spot” that looks ready for a 1,000% breakout.
This almost never happens.
That’s why I’m unveiling my system for the first time ever at my 10X Breakthrough broadcast on September 10, at 10 a.m. Eastern.
During that broadcast, I’ll show how I use those 10X Factors to spot potential big long-term winners in advance. And I’ll show you how the system and I work together – man + machine – to make my final stock picks.
Most importantly, I’m going to give you these five “official” recommendations and tell you why they’re set to rise 1,000% or more in the coming years.
That’s why I urge you to reserve your spot for that September 10 free event now.
I’ll see you there.
Eric Fry
