Not a subscriber? Click here to learn
more.
|
| Home | About Us | Resources | Archive | Free Reports | Market Window |
The NEXT 'Fat Pitch' Opportunity Is Here... Don't Miss ItBy
Tuesday, September 13, 2016
I don't invest like most folks.
In short, I sit on a lot of cash until the next great buying opportunity arrives.
Most experts tell you to always be invested... But that's not what I do. Instead, I wait for the "fat pitch"...
I've only swung at three pitches in the last 10 years. All of them turned out to be home runs, as I'll show. (Importantly, I think our fourth fat pitch in the last 10 years is arriving right now. More on that below.)
I can't take credit for this principle... The idea comes from Warren Buffett, the greatest investor of all time. As he says...
In the 2008-2009 financial crisis, I saw the first fat pitch... in stocks. I bought stocks with all the investable money I had – and then some. For the first and only time in my life, I took a home equity line on my house to buy stocks. It was the right pitch to swing at, as you know. Then in 2011, after the great real estate bust, we had our second fat pitch... in real estate. I started buying Florida real estate. Again, it turned out to be the right move.
At the end of 2015, I saw the third fat pitch... in tiny gold stocks. I loaded up. I've already taken a couple of hundred percent in profits.
Today, I'm back to holding lots of cash. But I'm OK with that...
If there is no fat pitch out there, then I don't have to swing. I don't have to be "all in" if there's nothing to be won.
For most people, investing by a traditional formula might be a good way to go. It keeps their money working for them.
But if you understand investing – if you understand the principles of bubbles and values – then you know that there are times to break free from the formulas and swing at the fat pitch.
My "fat pitch" approach might not work for you. It's a bit extreme, but I'm comfortable with it.
Use common sense... A mix of the classic formulas and the fat-pitch strategy will let you stay invested and potentially crush the market's performance.
Good investing,
Steve
P.S. I believe our fourth swing at the "fat pitch" is finally here. I'm so bullish on this idea that I've organized a huge live announcement tomorrow evening at 8 p.m. Eastern time. I'll discuss this opportunity – which I believe could lead to 500% to 1,000% gains over the next few years – live on the air with Porter Stansberry and senior analyst Brett Eversole. Click here to RSVP for this free event.
Further Reading:
In March, Steve introduced DailyWealth readers to the idea of "fat pitch" investing. Read more about it here: Exactly What I Do With My Own Money.
"Since 1962, a total of 1,700 stocks (not including the tiny ones) have tripled in a 12-month period," Steve writes. Find out how to spot those opportunities here: Where to Find Stocks That Triple in a Year.
Market NotesANOTHER COLLAPSE IN SOLAR STOCKS Today, a reminder why we repeatedly warn investors to avoid "clean energy" stocks. We're looking at the recent collapse in First Solar (FSLR).
Over the past couple of years, we've shown you why going long solar, wind, and various other companies in this sector continues to be a losing game. Regular readers know we like to call clean-energy businesses "perfectly hedged"... meaning they can lose money in both good and bad economic times. Their share prices are able to sink in both bull and bear markets.
We typically point to the constantly terrible performance of the big "clean-energy fund" (PBW) to illustrate our point. But today, we look at the market action of First Solar... a stock that was once the poster child of clean energy. It's a stock that Porter Stansberry has long labeled a "disaster in waiting."
As you can see below, First Solar has seen its share price collapse (again) this year, down nearly 50% since March... and just hit its lowest level in more than two years. The message is clear: "Clean energy" is still a risky bet...
 |
Recent Articles
|
