In this week’s article, our resident Stock Expert, Marcus de Maria, discusses a short-cut to investing success:
Every year, just before Christmas, I spend 7 days in a wonderful place called Phuket, Thailand. On the plane last year I was reading an interview with Mark Slater, co-founder, chairman and chief investment office of Slater Investment, one of the UKs top fund managers. He has an impressive track record. Especially when you consider that he is in the fund management game. In other words, he makes a living from choosing stocks that have to go UP in order for his clients to make money. If you have been reading any of my articles, you will know that there are three market movements – up, down and sideways. So for a fund manager to successfully make money in only one of the three movements is quite some achievement. Most fund managers cannot outperform the market. So this guy makes money when most fund managers are losing your money. Impressive.
He talks about PEG Ratios, a spin on P/E ratios, and other Ratios and Metrics in order to find undervalued companies which have the most potential to grow their share price (we will be discussing all these in the next two month’s Wealth Watch and how you can find your own companies in the New Year in a two part article, so make sure you don’t miss them). Target investments he says are typically ‘profitable, growing and cash – generative today’. The article then continued to list the companies Slater is looking to invest in.
As I was looking down the list of companies he had generated for his readers and the reasons why he is looking to invest in them, it suddenly dawned on me that most beginners are wasting their time trying to search for their own companies out of the 8000 or so possible public companies out there. What total beginners could do is to find out what people like Slater, with more financial intelligence, time and focus, are investing in. Then we simply wait for a fall in price (as you know I like a -20% fall from a recent high) and an entry point using one of the strategies I have been writing / talking about throughout 2013 in Wealth Watch. Please note, if you have missed out on the strategies you can find them in my book here:
If you are like most people you wonder which stocks to get into … and even if you have found a stock the question is WHEN do you enter? After a recent run up or after a recent fall? Scared of making a mistake? Welcome to the family – that is every investor’s dilemma. With the following methodology you can invest with additional confidence. Why? Because we are not entering straight away but wait until we see weakness in the market and then have the patience to either wait or add to the position. We are looking to make up to 15 – 25%+ year timing the market a little. So we don’t need the BEST stocks in the world, we just need solid ones that won’t fall.
1. Either do some fundamental analysis to find the best companies you can (more on that in next month’s Wealth Watch and the one after too) or subscribe to something like the Motley Fool, who have one of the best track records in finding winning long term stock investments.
Please note that I am not advocating simply purchasing any Tip service or whatever the newspapers have decided to print that day. I am talking about the best of the best publications with a proven track record. If this makes you feel uncomfortable, we will discuss how to find these companies ourselves in next month’s Wealth Watch.
2. Using one of my strategies, time the market before you simply get in. Wait for a minimum of -20% drop from the recent high so you ensure you are not getting in anywhere near the top
3. Start building a position in these stocks (either monthly or quarterly) so that your average price is low enough and you have enough money invested. Personally I like to time these, so I am not blindly getting in every month but only when there is some support or it is starting to move up. This is called, POSITION INVESTING, which consists of adding to your position at lower price points, and it is a very clever thing to learn to do, so make sure you download my book to learn how to do just that
4. Keep going, fight the emotions and trust in your strategy. When the upswing comes, you will be grateful you did.
In these times it is a MUST for you to learn more about what trading and investing in stocks, commodities and precious metals has to offer. We are having a series of 1 day events where we go through the strategies so you can take control of your own finances. But first, why not go ahead and download your FREE 100+ page BOOK:
Until next time,
Client Case Study
OTIS KLOEBER up 120% in 30 months, now one of our European trainers
“As the conductor of the European Philharmonic Orchestra, I have to be a master of my art. I therefore assumed that to earn money I need to give my money to someone who masters theirs. So I gave money to the professionals, it was quite a large sum, well diversified, and after 1 year it started to lose money. After 2 years it was down by 25%. Clearly I had to do something so I decided that I could do better myself.
I had seen Marcus at some seminars and was impressed by him and the results that his graduates were achieving, but still a little sceptical because of my previous experience. The more I listened the more it just made sense however. So I put into practise what Marcus taught us and realised it really isn’t that difficult.
I have been trading for 6 months and I can show you my account, and as you can see I started with $25,000 and it is now $34,643 so that is $9,643 and 38.5% in 6 months or just under 80% a year. Where else can you find gains like that in just 10 minutes a day? And by the way this includes all my mistakes as well at the beginning. Remember that I was a total beginner. For example, once I got in at the wrong time, and another time I forgot to get out. And that is the great thing about the way that Marcus teaches this – after the workshop you are very motivated but still he wants you to first make all your ‘Rookie’ mistakes on a virtual trader, so there is no risk at all.
I go on the weekly calls, I can ask others questions on the forum, and each day that I decide to go on the Portal, I can learn more, I am never left alone, this keeps the motivation up.
In my full time role as a Conductor I don’t have the time to be trading 5+ hours a day, so I spend either 10 minutes in the morning or 10 minutes in the evening. I risk only 1% – that is one of Marcus’ golden rules – but I can have a 45% gain as well, which I have had as well.
Thank you Marcus and Investment Mastery.”