WEDNESDAY WEALTH RECAP
- Although no one knows where stocks are headed tomorrow, Alexander Green is certain that nothing outperforms a diversified portfolio of common stocks.
- Yet another cult leader of the crypto universe saw their currency collapse in just a few days. Nicholas Vardy warns of the repercussions that follow crypto investing.
- A recent study shows that a basic level of financial understanding can lead to better health. Marc Lichtenfeld reveals several strategies to help lower your healthcare costs AND grow your income.
People admire history’s greatest innovators: Benjamin Franklin, Leonardo da Vinci, Thomas Edison, the Wright brothers, Steve Jobs.
Few of us are great innovators ourselves, however.
So it doesn’t make a lot of sense to try to create a novel investment system – or some entirely new method of securities analysis.
It’s far more lucrative – and much less trouble – to shamelessly clone the best ideas of others.
Let me give you a few examples…
In my previous life as a portfolio manager, I regularly studied the top investment holdings of the nation’s top equity fund managers. (They are required to report them each quarter in their 13F filings.)
I would search for ideas that overlapped and then work backward to see what made these companies so exceptional that the best managers in the country were avidly buying them.
I picked up a ton of big winners this way.
But I wasn’t the first to closely monitor insider buying.
I just followed the ideas of savvy investors, tested them exhaustively, and kept tweaking them to obtain better and better results.
This happens all the time in the world of business.
Walmart founder Sam Walton invented absolutely nothing. But he copied everything that everyone else in retail was doing that was smart.
In the process, he created the world’s largest chain of retail stores – and became one of the nation’s richest men.
Steelmaker Andrew Carnegie wasted no time trying to reap great wealth from radical innovations in metallurgy. “Pioneering don’t pay,” he said.
Berkshire Hathaway Chairman Warren Buffett cloned his mentor Benjamin Graham’s approach.
And plenty of others – including me – have cloned parts of Buffett’s approach.
Why don’t more people do this in business… in investing… and in life?
Some folks seem to prefer learning things the hard way. I’ve never understood why.
Unless you really are a Jonas Salk or an Alexander Graham Bell, it’s hubris to start from square one and try to create something entirely new.
It’s also time-consuming, frustrating and expensive.
Yet people seem to have something in their DNA that prevents them from adopting good ideas easily.
That’s unfortunate.
If you watch what the smartest people are doing, you can apply their best ideas to your own life, your own business and your own portfolio.
And this strategy works particularly well with a particular type of stock…
A Huge Advantage Over Wall Street
Indeed, I’ve found that insider buying is the single greatest indicator that a microcap is about to take off – because when an insider buys, they do it for one reason: They think the price will rise.
To make identifying the next microcaps on the rise – preferably those with big insider buying – easy, I invite you to sign up for my VIP Trading Research Service Oxford Microcap Trader.
This service is completely focused on tiny stocks.
I scan the markets for opportunities that match my criteria: growing revenue and a low share price.
But most importantly… I want to see insiders loading up.
Here’s the full rundown on my process.
Good investing,
Alex
