The Controversial Investing Strategy Billionaires Swear By
Anthony Summers|October 5, 2023
A Note From Amanda: Today’s the day! Superstar trader Robert Ross is going live with his Breakout Fortunes Summit at 2 p.m. ET. He’ll tell you about his favorite Smart Risk play… a controversial group of stocks that all have one key trait in common. These kinds of stocks have led to rare gains of as much as 10,000% in five years! And that’s without leverage, options or anything complicated.
Plus, he’ll reveal details on the three new “10K stocks” he’s convinced are ready to move now.
It’s not too late to reserve your spot… Simply click here.
We’ll see you this afternoon!
In my early 20s, I became interested in value investing after reading Benjamin Graham’s The Intelligent Investor.
Graham’s investing philosophy was straightforward. If you bought stocks in good companies that were priced below their real worth, over time, you could outperform the market.
But his ideas weren’t without controversy. Graham’s method went against two common beliefs in the financial world – both of which are still widely held today.
The first idea is that market prices always reflect the true values of stocks.
Since the market is assumed to be efficient, many investors believe that all relevant and available information about a stock must be priced in at any given moment. To many, it seems absurd to suggest that a stock could trade below its true value.
The other idea is that broad portfolio diversification is the best way to maximize long-term returns, not individual stock selection.
Graham’s approach bucked both ideas. And the success of generations of value investors – such as Warren Buffett, Seth Klarman, Joel Greenblatt and Michael Burry – has proved that the mainstream groupthink was off the mark.
But if value investing works so well, why doesn’t everyone do it?
One reason is that it requires patience, which many folks in today’s fast-paced world lack. When Graham’s book came out, the average holding time for a stock was measured in years.
Today… it’s measured in months.
The internet has played a role in this change. With easy access to financial data and online trading, people buy and sell stocks more quickly than ever before.
In fact, most folks would struggle to follow Graham’s advice in The Intelligent Investor, to “invest only if you would be comfortable owning a stock even if you had no way of knowing its daily share price.”
And many investors are quick to buy or sell a stock based on the company’s expected earnings in the next quarter, rather than its potential value over the next decade.
So… does this mean value investing is outdated?
Not at all.
Value investing works because markets aren’t perfectly efficient and don’t always price everything correctly. It’s often sentiment that drives short-term price changes in a stock, not changes to the company’s intrinsic value.
If you really want to succeed as a value investor, focus on markets where most investors aren’t paying attention… and information is scarce.
For example, smaller companies usually receive little to no analyst coverage and have much less financial information available. This creates constant opportunities for market mispricing.
Meanwhile, companies in highly specialized fields, like the biotechnology and pharmaceutical sectors, require more time to understand than most are willing to commit… offering more diligent investors a better chance to profit.
Investors can turn to markets like these to search for undervalued stocks that can generate far greater long-term returns than benchmark stock indexes.
Even better… today at 2 p.m. ET, Manward’s own superstar trader Robert Ross will share his #1 strategy for finding stocks that have the potential to produce rare 10,000% gains in as little as five years.
These stocks all have one thing in common… and it’s NOT something you’ll hear about from any Wall Street professional. Many people will find it controversial, to say the least. But it’s the #1 reason a select few stocks FAR outperform everything else in the market.
Click here to sign to sign up for Robert’s FREE online event before it’s too late.
Anthony Summers
Anthony Summers is the Director of Strategic Trading for Manward Press and is a contributor to Manward Financial Digest, Manward Trading Tactics and Manward Letter. He is a former senior analyst for The Oxford Club, where he closely worked with some of our nation’s sharpest financial minds for nearly a decade. Anthony is a self-styled “conservatively aggressive trader” and has earned a reputation for developing unique trading strategies that focus on low-risk, high-return opportunities in both stock and options markets.
