Last month, I gave Smart Money readers three keys that I believe can lead investors to money-making success. I also said that it is time to tiptoe back into the market as it recovers from a dismal 2022.
The signs that point to profits are there – but there are a few caveats and rules to consider as you start – or continue – to build wealth.
Today I’m sharing a brand-new, exclusive report from InvestorPlace CEO Brian Hunt, in which he reveals the three most critical, wealth-building factors you should keep at the top of your mind… and one devastating mistake many investors make. Consider Brian’s and my insights to avoid common investing mistakes.
How to Play Hydrogen’s 400X-Boom
Morgan Stanley sees a $11 trillion hydrogen industry in the coming years… The Guardian predicts hydrogen “will make oil companies obsolete”… And Yahoo Finance says, “[it] could mint new billionaires”. Eric Fry has the full hydrogen story… and he’s giving away his #1 stock recommendation for free!
Have a “Balanced Diet” of Stocks
Having a plan and the ability to say “no” when a stock is just too risky is easier said than done. The Enron folks saw all that potential, all those dollar signs… and neglected to do their homework to ensure that it was a solid buy.
“Intelligent asset allocation means you DON’T bet the farm on a single stock or even a single asset class,” Brian says.
I agree. If you devote a huge portion of your wealth to a single asset class — whether it’s stocks, bonds, oil, gold, real estate or whatever — you are financially fragile. You expose yourself to serious harm.
Build a Solid Foundation
In the report – The Three Foundations of Wealth – Brian says, “When it comes to wealth and investing, your portfolio needs to be built on a solid, sturdy foundation.”
He shares a series of essays in which he explains the three keys to building and maintaining a strong financial foundation.
These are by far the most important factors in your success as an investor, Brian says.
He says:
Take building a house.
You can have the best finishes and the finest furnishings in your dream house, but if the house is built on an unstable foundation, you’ve got a crappy, dangerous house.
You’ve got a disaster in waiting.
Those beautiful finishes and furnishings will end up in a heap.
A strong foundation is critically important in just about everything we do in life… including investing.
That’s what this is about.
It’s about making sure you understand, master, and implement the things that really matter to your success as an investor.
Planning Makes (Almost) Perfect
Disciplined investors understand that investing is optional and that they must be selective.
But many traders go into investing without a plan, or worse – a plan that doesn’t allow for the “what if” situations.
Brian sets up some of those scenarios:
If you buy a stock you believe has the potential to triple in value but instead it sinks 22% in value, what will you do?
If you buy a stock that soars 50% right after you buy it but then declines back to your purchase price, what will you do?
If you buy stock in a company with a highly respected CEO at the helm and that CEO steps down, will you sell the stock?
If you buy a stock that rises 100%, what kind of plan do you have to preserve that solid gain?
These are the questions successful veteran investors ask before entering any investment. This is the kind of planning skilled investors and traders do as part of their process. And they ultimately give exit planning at lot of thought at the outset of the investment, not when conditions change.
Bottom Line: Building and maintaining a strong financial foundation is how you’ll find success in the market.
To do so, become a master at our three Foundations of Wealth:
- Asset allocation…
- Position sizing…
- And position management.
Read about all three strategies in Brian Hunt’s special report – The Three Foundations of Wealth.
And once you’ve mastered these basics, you’ll be ready to take advantage of the next big wealth opportunity. Regular readers know the next megatrend on my radar is green hydrogen — a radically new version of hydrogen made from nothing but water and electricity from renewable energy sources.
Private enterprise, Big Oil, and the U.S. and many European governments are investing heavily in the green hydrogen megatrend.
That kind of investment tsunami doesn’t happen every day, especially not on such a massive scale. In fact, it almost never happens. You can position yourself for the windfall of a lifetime if you… simply follow the money.
I believe this is the most powerful investment you can make today, and I’m ready to show you how to take advantage of it. Just click here to get started.
