Investment University 2005: The Roving Reporter
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Investment University 2005 Just $149 + $4.95 S/H |
Do You Have The Sold Out Blues?
We Have The Solution…
As You Read This, 24 Market-Beating Investment Experts Are
Heading To A Posh Resort In Delray Beach, Florida…
Dear Investment U Reader,
When the market seems confused, what is an investor to do? The S&P is just shuffling along. The NASDAQ can’t decide if it wants to give optimistic or pessimistic signals. It appears on paper like the market could be sold out…and there are just no good opportunities for turning a decent profit…or even keeping your money safe.
But we know 24 investment experts who aren’t the least bit confused. The experts we’re gathering for this year’s Seventh Annual Investment University (March 9 – 12) have beaten the market since March 2000. And beaten it soundly. In fact, many of the asset classes they recommended showed double – and triple – digit gains. Like gold stocks: up 46%, real estate stocks: up 172%, timberland: up 14%, commodities: up 36%, or gold coins: up 27%.
And they are all on their way to a posh resort in Delray Beach for this year’s Investment U conference. If you’ve already registered for the conference, you’re probably packing your bags, too.
Unfortunately, you might have wanted to come down, only to discover that Investment U is sold out. For the second year in a row, we just couldn’t accommodate everyone who wanted to join this cast of money-making experts who are ready to lead the way through today’s flat, uninspiring market environment.
But we’re prepared to do something about it.
We’ve asked Monica Day – a financial writer and reporter – to be your eyes and ears on the ground for the duration of the conference. Better yet, we’ve asked her to make sure that she sends you a daily email that will include a few choice morsels from each day’s sessions – stock tips, trends, opportunities that are whispered in the hallways.
Right alongside the on-site participants, you’ll:
- Discover the hidden asset classes that have been making double and triple-digit gains while the NASDAQ has lost more than half its value in the last five years…
- Use the one investment tool that can make you money in any market, and a strategy for using this tool that has a 75%-plus success rate (but only requires a 10% capital investment)…
- Hear about the insider buying trends that can lead you right to huge profits that could exceed 100% within the next few weeks…
- Find out which three ways you could profit handsomely on a commodity you may have only scoffed at before now…
- Position yourself to profit with foreign-currency-driven investments that can turn the weakening U.S. dollar to your advantage…
- If you didn’t think you could still buy income-producing property with as little as $12 for raw land in Florida, Southern California or Hawaii for as little as $2 an acre…you’ll find out why you’re wrong…
- Learn the best way to minimize your income taxes and completely eliminate estate taxes without buying life insurance…
- Find out how you could profit this year from offshore opportunities – diamonds, gold, currency, metals, foreign bonds, timber…you name an investment opportunity abroad and there will be an expert on-hand with personal experience and insight into gaining maximum profits…
- Plus, catch at least a few of the 56 money-making recommendations that will be revealed live in Delray in just a few short days.
Hopefully, sending you daily reports that let you in on some of the inside scoop will be some consolation. I’d send you some sand and ocean breeze, too, if I could. How about this instead…
The Next Best Thing To Being Here
Last year, when faced with another sell-out event, we were able to share the highlights from the conference in a four-hour audio CD or DVD program – and we’re almost sold out of those, too.
So once again, we’ll make sure that the timely recommendations make it to you even though you couldn’t join us. You’ll hear the highlights of the live presentations from our heavy-hitting faculty. This will include not only the highlights of the main presentations, but the individual reports from this year’s all new series of Special Briefings – short bonus sessions designed to focus your attention on a handful of critical opportunities to grow your portfolio and protect your wealth this year and into the future.
We’ll focus on such issues as –
- The 12 Timeless Rules of Investing to Build Real Wealth…
- How You Can Gain from Online Banking…
- Resource Value Stocks Poised to Produce Surprising Profits in 2005…
- The One Simple Secret That Will Ensure a Million Dollar Future for Your Children
Plus the fundamental skill of balancing risk and diversity within your own portfolio. Most investors never get this right… and they never get rich. But you can, even if you can’t make it down in person for this year’s conference.
You’ll even get all the handouts and in-class materials from our recorded speakers, an invaluable back-up to the convenient audio program.
Plus the $50 gift certificate that conference attendees will receive as part of their welcome package will be included. You can use it towards our Investment U Course – reducing the cost to you from $79 to $29.
But here’s the real value of getting the audio highlights of the conference… the rewind button.
There’s simply so much information jam-packed into each and every session that having the convenience and capability to review the sections you’re most interested in as often as you’d like could be worth…well, a fortune considering the money-making potential of each and every tip that will be generously handed out during the conference.
Now, the only things I can’t send you are the cocktails and handshakes, the exhibit hall where you get to ask your questions, or the personal interactions. So you’ll get a tremendous savings instead…
Act Now For The Lowest Rate
For many of our readers, this annual infusion of investment insight and information sets the tone for their entire year. Plans and strategies that will substantially grow your fortune will be hatched in Delray in just a few days.
If you wanted to join us but just couldn’t fit it into your schedule – I want to offer you an opportunity for considerable savings. If you pre-order your set of conference highlights (in either CD or DVD) while the conference is happening, you can save as much as $50 off the regular price of $149. And the faster you act, the more you’ll save…
Here’s how it works…
If you order now, you’ll only pay $99. This price expires at 5:00 pm Eastern Standard Time on March 9th. Then, every daily report that you get from our on-site reporter while the conference is in session will include the new offer – at a slightly higher rate.
If you wait until the conference is over, you’ll still be able to order the package at the regular price of $149 – but I think you can see the value of acting now.
The truth is, the sooner we know how many packages we need to make, the sooner we can have them duplicated, assembled, and sent out. When you act fast, we can too – and together, we’ll make sure you get the best of the Investment U conference delivered to your doorstep as soon as possible after it ends.
Don’t Forget To Stop Back For Your Daily Dose
Be sure to check your e-mail every day during the conference for an update from Monica, a few tips and insights, and any insider information we can possibly get to you.
And before you sign off, I hope you’ll take a moment to grab that $50 savings and order your Investment U conference highlights right now, before the price goes up…(I might add, this is rather a good exercise for budding traders…don’t you think?)
Sincerely,
Wayne Ellis
Managing Director
Investment U
Live from Investment University 2005
Extraordinary Value Has Few Friends
Dear Investment U Reader,
Money is in the air here in Delray Beach. And I’m not talking about the Porsches and Hummers that regularly drive the main drag through town.
“Money flows to wherever it is treated the best,” says Dr. Steve Sjuggerud.
And the investment opportunities, trading expertise, and insider information on the ground here on the opening day of the Seventh Annual Investment U Conference treats money – your money to be specific – very, very well.
I’m Monica Day, and for the next four days, I’ll be your conference insider. I’m here in the room – alongside the likes of Dr. Steve Sjuggerud, D.R. Barton, Van Tharp, Michael Masterson – masters in their field of expertise. I’ll do my best to capture the highlights of their sessions and workshops – plus the whispered advice in the hallway when I can – to share with you the remarkable opportunities for profits when and where they happen.
The Right Trade is the Hard Trade
Two hundred-plus attendees of Investment U are ignoring the siren song of the ocean just a few feet away (granted, today’s rain is making that task a bit easier…).
Instead, we are learning about the hidden asset classes that everyone else is ignoring… information you’d never find in mainstream media, even if you scoured every headline of every financial newspaper every day.
Dr. Steve kicked off the day by proclaiming “the right trade is the hard trade.” Following your friends into the most popular investments because there’s a lot of can’t-lose buzz and hype might feel good…but in the end it’s not likely to make you rich.
Steve told attendees the hard truth, by the time an investment vehicle gets popular, it’s too late. The profit window has likely closed.
I can’t help but be instantly impressed by Dr. Steve. A down-to-earth guy in casual conversation in the hallways, he doesn’t put on airs. But in front of the room, that “Dr.” part of him really shines. When he gives his views about the investment environment of today, he backs up every single one of his assertions with a historical chart, facts and figures. He doesn’t just tell us that his analysis is right…he shows it.
Steve talked about finding investments that have what he calls “extraordinary value.” An 8-bedroom, plush, beautifully furnished apartment flashes up on the screen at the front of the room. In New York City you would pay $10 million for such a fine property. But it’s not $10 million, how about 1/20th of that at only $500,000 – and it’s not in New York…it’s in Buenos Aires. “That’s an extraordinary value,” says Steve. Finding this kind of deal in places where no one else is looking…yet.
Where are his other hidden asset classes?
How about a gold coin that you can get for $450 in Europe…and sell for $4,500 in this country? Are you surprised to learn that as an asset class, gold coins are performing third best behind just oil and gold?
And then there’s Steve’s latest bullish secret: timber. That’s right: timber. Wouldn’t you jump to get into an investment that has only lost money in three out of the last 45 years? Well, that’s the case with timber, and practically no one knows it. When you look at the historic trends and returns, there’s no denying that it is an extraordinary unrealized opportunity.
Steve and some of the other experts will be giving more insights into these hot asset classes over the next four days…and maybe even a recommendation or two. I’ll make sure I get it down and send it your way…
“Deep down inside, we’re all traders”
Are you a trader or an investor?
That’s the question that was posed to us mid-morning. About a third of the room considered themselves traders and the rest were in the investor camp (I might add that the traders sat in the front and the investors in the back – maybe it’s only a mindset and a few chairs that separates us?)
The next two presenters reminded us that from the first day that a boy trades a baseball card and a girl swaps Barbie’s with her friends, we become traders. And we share more common ground with one another – and lessons to learn from one another – than we might like to admit.
Legendary trading coach Van Tharp – yet another Ph.D. – has transformed many beginning traders into very wealthy masters of the market. In the crash of 1987, none of his clients lost money.
This morning, he did what any good teacher and coach does when he wants to make a point – he had us play a trading game. The market was a bag of marbles, the money was just a few zeros on paper, and the prize was a copy of his book, Safe Strategies for Financial Freedom. But even though we weren’t trading for lasting wealth, the point was made.
Everyone started with the same $100,000 on their “account” – and instructions to focus on three critical elements:
C = Cash or total risk for position
R = Risk per unit
P = Position
The results? Very interesting. Some folks went flat broke. A guy next to me – a fairly accomplished financial advisor himself – ended up with $196,000 and was happy to have pulled down close to 100% return. The winner – and entrepreneur – ended up with a $1.27 million fortune.
The lesson: it’s all about managing risk. To both earn and protect wealth, you have to keep your eye on both the trade-by-trade risk, and the risk incurred by your overall portfolio.
Whether you are an investor or a trader is beside the point when you’re broke. Manage your risk, focus on letting your winners run and cutting your losses, and you can call yourself anything you want. Except bankrupt.
When Wealth Meets Wisdom: Enjoying
The Natural Knowledge That Comes With Age
There’s a benefit to being among like-minded people and gathering to share ideas that is perhaps a bit lost when put into a letter like this. It is simply the benefit of being here. But I want to try to do justice to today’s presentation by businessman and author Michael Masterson.
Each of us spends a significant part of our time and energy planning – and even worrying about – our wealth status. But how much time do you spend thinking about why you do it? What are we really trying to achieve – wealth for wealth’s sake? For most of us, the answer to that would be no…
What we want is what wealth confers – the ability to enjoy life to the fullest, with as little constraint as possible.
So when Michael Masterson – a relatively young man who had made three times as much money as he thought he’d ever need well before his 50th birthday – started talking about retirement, the room got very quiet and attentive.
We all know that our ideas and feelings about retirement are changing. The idea of retirement that we’ve been sold from corporate America and the government – in the form of pensions and Social Security – is not what most of us want, it turns out. (Which is good, because most of us aren’t going to get it, either…but I digress).
This notion that you should willingly give up your best years of highest earning power in exchange for an underwritten life of relaxation and leisure in your later years is ultimately not a meaningful experience for most of us.
Most of us want to be engaged, vital, and to share the true wealth of our age and experience – in the form of wisdom that we pass down to our families and protégées. We derive real pleasure from focusing on something we care about – even if it is technically considered ‘work.’ We don’t relish the idea of being put out to pasture like some farm animal who is past his prime.
Michael refers to this as the difference between an Institutional vs. Natural Retirement. We’ve been sold on not only a system that doesn’t work – like Social Security and pension funds – but on a concept that robs our later years of the meaning, joy, and satisfaction of contribution that is ultimately more fulfilling than endless rounds of golf.
Is this contrarian? Too radical? Maybe for some. But in the midst of the hard-hitting economic information, investment advice, and trading prowess, to beg the question of why are we really here – and why does it matter so much that we leverage this conference to expand our wealth and status is the fresh perspective that many of us need.
The Astute Advice In This Room Today Can Soon Be In Your Hands
As much as I typed away during today’s sessions, I’m only able to send you a fraction of what we heard. But you can get your own CD or DVD – plus the handouts and materials from each of the highlighted speakers – delivered to your doorstep not too long after the conference ends.
Every single one of the sessions this morning were captured on tape – very professionally done, I might add, judging from the equipment I’ve witnessed at the back of the room.
Plus, for the first time, even some of the afternoon workshops are being captured on CD or DVD for you. The nitty-gritty investment insights, and often the hotter tips, get revealed and explained more fully in the smaller, more intimate settings of the workshops.
If you didn’t order yet, don’t hesitate. You might remember that we’re extending quite the bargain to you during the conference. Today’s special rate of $119 is in effect until 5:00 pm EST on Thursday. Up a little from the pre-conference offer, but still a savings of $30 off the regular price of $149.
Take a minute to order now…and don’t forget to check here tomorrow for another report. Tomorrow’s line-up includes Karim Rahemtulla on Options, David Nunes on timber, and Eric Roseman on a secret bull market in full swing that you might not know even about.
Until Then,
Monica Day
Investment U Roving Reporter
P.S. I’ll do my absolute best to enjoy the dinner and cocktails on your behalf as well…especially since I can’t very well pack those up and send them to you. The murmurings over dinner are often richer than dessert. In the meantime, I hope you won’t delay in getting your set of conference tapes – the price goes up again tomorrow…
Live from Investment University 2005
Demystified!
The Best Way To Reduce Risk And Earn More Is…
Dear Investment U Reader,
I think many of us who consider ourselves typical investors think that we are more risk averse than the pros. When you listen to Karim Rahemtulla, you know immediately that it’s not true.
“I hate risk,” states Karim outright.
Of course, what many of us found so interesting is that this was coming from a guy talking about options. Talk to any Wall Street suit and 9 times out of 10 they’ll tell you to stay away from options. Too risky, they mumble.
Well today, Karim turned that notion on its head. He shared with us a parallel investment universe – nothing extraterrestrial, but one where investors use options for risk reduction.
In fact, he walked us through a number of scenarios that showed just how effective options can be for reducing risk. While the scenarios themselves were a little complicated for this quick read, the bottom line was crystal clear:
“Would you rather have $1 million at risk in the market, or $26,000 at risk for almost the exact same return?”
It sounds like a trick question, doesn’t it? It’s not. And Karim clearly illustrated how to severely curtail your risk by using a LEAP (Long-term Equity Anticipation Play) option within a portion of your investment portfolio.
Reporter’s Time-out: I’m going to pause here for a moment and tell you something. You know how I’ve been encouraging you to get your own copy of the recorded highlights from the conference? Well, after listening to Karim, I’ve decided to pick up a set for myself even though I’m right here in the room! Let me tell you why…
Karim has a commanding presence that is only partly due to his height (he must be about 6′4″ or so). It’s more that he is so at ease with numbers – to say he knows his stuff is a bit of an understatement. But to truly understand how thorough Karim’s mastery of options investing is (and how effective options can be at reducing risk), you need to write down what he’s saying. And then work through the math at your own pace.
Here’s an example. Karim laid out three possible gold investment scenarios – I’ll let you pick the one you’d prefer:
#1 You can risk $44,000 to earn $6,000
#2 You can risk $38,000 to earn $22,000
#3 Or you can risk $2,500 to earn $17,500
If you picked scenario #3 – and it’s probably fair to assume that most of us would, then you definitely need to hear Karim’s presentation – as well as Dean Albrecht’s. Dean went into even greater detail about options, sharing specifics on the use of quantitative analysis along with options. Yet the magic of both Karim and Dean’s talks is that they have a way of helping averages Joes and Janes like me to grasp these seemingly high-minded concepts.
Around The World in 80 Minutes
After our “light” morning of options and quantitative analysis, we went on a whirlwind tour of investing opportunities worldwide: China, India, Canada, Eastern Europe, the new and improved Baltic States, Russia…
The assets? Timber, nickel, oil, palladium, natural gas, aluminum… the unique investment opportunities that are underpinned by commodities.
We all know about commodities – at least the ones we use every day. We fill our tank with gas, we watch the wood framing go up in new housing developments near where we live. Not to mention the news we hear every day about the growth of China and India and the impact that growth is having on world markets.
Still, there were a lot of surprises this morning, too. For example, did you know:
- In the U.S. the average timber usage is one 100 ft. tree per person per year? As other countries become wealthier and more developed, they will come closer to this rate of use as well…
- That Harvard University has just announced that it’s putting 10% of the college’s endowment into timber assets?
- That Canada has a trade balance sheet that would put the U.S. to shame? Over 42% of Canadian exports are natural resources – every conceivable resource comes out of Canada: coal, timber, nickel, palladium…
- Commodities – across all asset classes – have been in a bull market since 2001. But even as the bull runs, you can make money shorting oil…
Eric Roseman is a born and bred Canadian, but in all his years of presenting at conferences like this, he tells us that he’s never done a session just on his home country – until now. Why? Because our Northern neighbor is hot and heavy into a bull market that is based mostly in the growing demand for commodities – and the resulting price fluctuation that’s making investors very happy.
(I’m definitely heading to Eric’s afternoon workshop where he promises more specific stock recommendations. Can he beat his rec. last year on Fording Canadian Coal Trust? He got his readers in at the mid-$20’s and it’s now up in the early $100’s. My neighbor (who got into Fording early and made a bundle) leaned over and whispered, “Do it again, Eric!”)
Shirtsleeves to Shirtsleeves in Three Generations
Robert Meier made it crystal clear today – wealth preservation is about more than where you park your cash and manage your assets. Largely, it will be in the hands of your family – known more fondly to individuals of high net worth as your “heirs.”
A sobering fact: most families will go from shirtsleeves to shirtsleeves in just three generations. The first generation earns it, the next plays with it, and the third burns through it completely. Robert stressed that being born into wealth does not absolve anyone from the need to be gainfully “employed” – or to be somehow engaged in purposeful activities.
“If you don’t know why your feet hit the floor in the morning,” Bob said, “you are among the walking dead.”
There were literally audible groans and sighs in the room at this statement. Is it possible that in our efforts to provide for our families, we are robbing them of something much more important – the chance to have a full and satisfying life?
Perish the thought. Bob gave out 10 tangible ways to save your children from your wealth – and to rescue your wealth from your children – that anyone who plans to leave a fortune behind needs to hear.
Catch the Energy Train Before It Pulls Out Of The Station
Newsflash from the afternoon sessions (the highlights of which are included on the CD/DVD set for the first time this year): You’re not too late to cash in on energy.
Did you know that you can get a substantial tax benefits from an investment in natural gas? Would you like to beat those nasty taxes on your mandatory withdrawals from your IRA? Don Hosmer from Royale Energy has a way to help you out with that…
Think you’re too late to get in on any oil trades, as it keeps breaking the price ceiling? Maybe you haven’t heard of oil sands…I know I hadn’t.
This is one of my favorites from Eric Roseman’s afternoon session. In the remote (and cold!) northern parts of Canada, there’s oil. Mixed in with sand! It’s a bear to process, and expensive. But for as long as oil is at $50 or higher – it actually pays to do it.
Eric’s been recommending a Canadian oil sands producer to his readers called UTS Energy. He started getting folks in at $.69 (per share – you read that right. I double-checked after I picked my jaw up off the ground). It’s around $2.30 now. Eric says it’s got a ways to go – and may get as high as $5.00 in the next year. And voila – you’re in oil. At a fraction of what the rest of the world is paying now.
Speaking of Not Too Late…
I hope you’ve had a chance to pick up a set of these CD’s or DVD’s for yourself by now. If not, you can still save if you order today. Today’s price is $129 – a $20 savings off the regular price of $149. The minute the conference ends, it’s up to full price, and a limited supply, too.
You see, we’ll produce just a few more over the orders we’ve gotten during the conference when we rush into production. We want to deliver them to you in a timely fashion – which means no waiting around for the laggards. Sorry! But the bonus savings for ordering fast ought to make up for the rush. I know you’ll be glad you did. And of course, our usual 30-day money-back guarantee applies. So there’s no real risk to you anyway.
So click below to order…
And be sure to stop back tomorrow. Porter Stansberry is going to tell us how to completely eliminate the downside of investing in stocks (this I’ve got to hear…). Alex Green is going to tell us how to stiff arm the IRS. And more on how to cash in on energy and emerging markets from Frank Holmes.
For now, the rain has stopped, the sun is shining, and there’s no longer a need to resist. Isn’t temptation grand?
Sincerely,
Monica Day
Investment U Roving Reporter
P.S. – When you get the CDs or DVDs from the conference, make sure you take some time to learn about the other B.S. – I’m talking about a Bull Spread, of course. We are prohibited by our legal department to share some of the results of past trades that used this strategy. But if you listen carefully and run the numbers for yourself, you’ll be able to see the power of this strategy – and if my calculator was right, you’ll be more than impressed. You could be rich.
Live from Investment University 2005
How To Keep Clear Of The Bursting Bubble…
And Other Realities
Dear Reader,
If the mark of great presenters is that they can relate complex material in simple, easy-to-understand ways, then today’s presenters are clearly masters. Each of today’s speakers managed to make very dense, highly intelligent material accessible – and even fun.
Columbia professor Mark Skousen actually spent $100 to make one of his main points. He threw a hundred dollar bill on the ground and proceeded to tell us an analogy. His story was not only entertaining – it also became clear that the $100 bill was up for grabs. The many people who politely ignored the bill or waited were trumped by the man who walked over three tables to pick it up and take it.
Now, he’s $100 richer. The point? There’s a lot of money out there, but you can’t wait for it to come to you. You have to be willing to get up out of your chair and claim it for yourself. He then proceeded to make learning about behavioral economics, macroeconomics, and historical market perspectives a riveting experience through clever analogies and personal anecdotes.
Larry Grossman was another master at presenting his topic without making our eyes glaze over. He used a simple metaphor about two cows to show us the many variations of capitalism around the world (the complete metaphor was explained by the handouts – and if Larry’s story makes the final highlight package, you’ll hear us practically rolling in the aisles when you get the at-home CD/DVD set).
Then, Larry got serious when he told us why asset allocation is the backbone of profitable investing – and how many people in the financial industry are misapplying modern portfolio theory. Getting asset allocation wrong is the surest way to getting caught in a bubble when it bursts.
Frank Holmes, CEO of U.S. Global Investor, taught us how to say hello and thank you in Mandarin – and urged us to learn those two phrases at least because we’re going to need them. Both he and Horacio Marquez, an Oxford Club advisor who is about to launch a new service called World Trend Trader, went on to paint detailed pictures of world trends that today’s investor needs to know.
Hidden Crash Course Value Revealed
What is the value of these crash courses on topics as weighty as macroeconomics, analysis of historical performance of asset classes, the finer points of quantitative and fundamental analysis, and behavioral economics?
I asked the same thing…of Larry Grossman during a break today. When Larry explained it to me, I realized how simply the practical application of that information was. The best way to put that information to use, is…
“To make an informed decision about who you want to help you manage your portfolio,” said Larry.
Of course, was right. Who wants a stock broker or financial advisor who doesn’t have a grasp of the material we covered today. More important, you want someone who knows how to put this information to use on your behalf.
We’re not exactly a crowd of budding economists gathered here. But anyone who has made the effort to come – or to study this material from home at your own pace – is going to be a more discerning and better informed client.
But I think there’s another element at play – inspiring investor confidence. Too many money managers, advisors, and gurus make it their business to keep you in the dark. They want you to trust them – blindly in some cases – to work their magic on your portfolio.
Any financial guru who isn’t willing to show you their sleight of hand should inspire doubt, not confidence. Perhaps the most impressive thing about all of the speakers and presenters here is that they’re not merely hawking their wares. They are passionate about their area of expertise, and they want to make sure that you understand what they do, how they do it, and what kind of results they get.
About To Tour The Intercoastal
Today was one of those days when there was too much information and too little time in between to get it all down. Everyone here is grabbing jackets and sweaters for a cruise along the canal – some cocktails and conversation with a sunset backdrop. Tough, I know.
But tomorrow, I have a little report in store for you that I think you’ll like. We’ve been hearing from many of the editors whose names you might know even if you don’t get their newsletters – Porter Stansberry and Alex Green today, with Lynn Carpenter, Dan Denning, Dan Ferris, Rick Rule and more coming up tomorrow.
They lay out their philosophies, the lessons they’ve learned along the way, along with a few recommendations, of course. So make sure to stop back tomorrow.
And before you sign off, don’t forget to secure your own copy of the conference highlights. I’ve only been able to skim the surface…there’s so much more being said in each session that I know you’ll want to hear and see for yourself.
We’re still offering special conference pricing. Today’s price remains at $129 and offers you a savings of $20 off the regular price of $149. Click below to place your order now…
Sincerely,
Monica Day
Roving Reporter, Investment U
P.S. – Since we’re headed into the weekend, I just touched base on the price with conference director Wayne Ellis, and he agreed to extend the $129 rate for the CD/DVD set until Monday at 5pm. But that’s it – the window to get the special pricing will close. So be sure to get yours now – or sometime before Monday – and take advantage of the savings.
Live From Investment University 2005
Personalities Make the Conference… Wisdom Makes You Rich
Dear Reader,
The old adage that those who can, do and those who can’t, teach – does not apply here. This is a very successful crowd. For many of them, the newsletters they edit or the writing they do is a secondary gig to other businesses and investments. They also do nicely for themselves, thank you very much.
I’m not saying it’s obvious in ostentatious ways, and I never once heard anyone brag. But the friendly competition to pick up the check, the hallway chatter and off-handed remarks about a second home here or a new car there made it clear. This is a sophisticated, savvy, and let’s say, comfortable crowd. I share this with you so you know that this group of experts and advisors does more than just teach others something that they have read about in a book – they teach from experience. I don’t know about you, but I find that comforting.
So for my last report to you, I thought I’d focus mostly on the editor’s presentations. If you subscribe to any of the numerous publications that our speakers put out, you know that having some confidence in the recommendations is critical. So listening to the editor of your favorite publication – or one that you’re considering – is invaluable.
The Market Beat It Out Of Him
Yesterday, attendees got to hear Porter Stansberry talk about how his investment outlook and philosophy has changed since he first started in this business.
“I got tired of getting my ass beat in the stock market,” he told us honestly.
Porter has a somewhat brash but fun and energetic presence both onstage and off. At first, you think this guy must be a swashbuckling speculator – out for the big plays and monster gains wherever he can make them. But you quickly hear that he has made the transition to someone who knows how to play it both safe and smart – and that he’s in it to build fortunes over the long haul.
When talking about the love affair that many people have with growth stocks, he says, “The urge to gamble is human, the urge to invest is not.” He outlined plainly the approach he recommends if you want to build an enduring, low maintenance fortune:
- Save $60,000 a year (how you make it is on you, he adds…)
- Find 4-6 stocks each year that have a high ROE (return on equity), low prices, and operate using sound business models. Do this and you should average between 20-30% every year
- Take all the money you make on dividends from your stock portfolio and put it into gold (preferably uncirculated sovereign bullion coins) as insurance against your holdings in the market
That’s a pretty simple 1-2-3 strategy for people who don’t want to their life to be a roller coaster of speculation, growth stocks that go south, and watching stock charts as a hobby and pastime.
The Hidden Real Estate Market
This morning, we got another dose of wisdom from Porter’s colleague, Dan Ferris, who edits the Extreme Value newsletter. He told us about a new publication that just rolled out a couple of months ago.
“I know the best place to find the cheapest real estate,” he told us in a conspiratorial tone. And after a long pause, he delivered the surprising answer. “The NYSE, NASDAQ, AMEX… In other words, there are so many ways to get to real estate through the stock market there’s no need to do it any other way…”
Especially if you live in an area where the real estate market is in a bubble, this is an angle you need to hear. You can still profit from the very hot real estate market, without getting caught when the bubble bursts. The new publication is called Real Estate Shareholders, by the way. They use the same approach that Porter discussed earlier – and which is responsible for the success of Extreme Value – and apply it strictly to real estate stocks.
The Ultimate Contrarian
You might have noticed that this is far from being a one-note conference. As much as these experts learn from one another and discuss their ideas amongst themselves – they are not all banging the same drum. There are definite camps.
Rick Rule may well be the ultimate contrarian. So much so, he has a motto – “You’re either going to be a contrarian or you’re going to be a victim.” And further, “If you can’t be a contrarian, don’t go in the resource business.”
That’s Rick’s business – investing in resources, in many cases, while they are still considered ugly, scary, even undesirable.
Like when he was urging people to buy uranium when it was selling for just $7 – $8 a pound. Today it’s at $22, and the odds that it will see $35 are good. Or last year’s recommendation to get into a coal port called West Shore Terminals -it was at $3.75/share then. It’s up to $11/share now. (By the way, if you took Rick’s advice and got into this last year, Rick suggests you put a trailing stop on it, or sell. It’s at the top now.)
What’s on Rick’s radar this year – and actually for the next decade? Water. Something that people in many parts of the country – like right here in South Florida – take for granted. But in the Western U.S. you can drive for hundreds of miles without seeing a drop of the stuff. Considering that California has 12 million more people than they did in 1977, it’s not going to be a cheap resource for very much longer. It’s clearly bound to be tomorrow’s oil.
HOT TIP: Want to put your toe into the water? Check out Pico Holdings (PICO) – Rick says to nibble at $25 – gobble if it falls to $20.
Value Is Not Dead – not Even Close
Lynn Carpenter is the founder and former editor of Fleet Street. She struck out on her own and has a new publication called Rising Tide. I loved her opening line…
“Have you ever noticed that there’s one word that you never hear at these kinds of conferences? Money. When we talk about investments and assets and gains and losses – we’re talking about your money! I never forget that. Which is why I’m so committed to identifying value.”
Lynn is a committed value investor. Bull markets always end, she warns, but investing in value is insurance against losing when it does. You can always find a good value in any kind of market – and it will tend to remain a value despite the overall market conditions.
“Value means value,” she states. Which, she adds, doesn’t mean she’s looking for cheap stocks – a common misperception of value as only being low cost. To assess value, she starts by looking at the big four:
- Price to earnings
- Price to sales
- Price to cash flow
- Price to book value
But she doesn’t stop there. She also looks at historical ranges, industry trends, future forces that could affect price down the road, and the quality of the numbers the company is reporting.
Diamonds Are More Than A Girl’s Best Friend
Some investments capture the imagination along with the intellect. You can analyze companies and study world trends, charts and historical market facts. But a blue chip – or even a phenomenal growth stock – is missing just one thing.
The gasp factor.
Diamonds, gold, fine art, rare cars – what’s known as luxury or trophy assets -present investors with esthetic quality as well as extreme value in many cases.
Of course, assessing the value of these kinds of investments is both an art and a science – and not something you want to try without expert advice. But I can tell you one thing: our speaker from Pastor-Geneve certainly made a good case for the coloured diamond market. Take as an example, natural pink diamonds from the Argyle mines in Australia. Since they entered the market in 1985 – 2/3rds of a carat goes for as much as $50,000. A four-carat beauty that flashed on the screen would go for around $1.8 million – give or take.
Why are these diamonds so prized?
Because the Argyle mine is nearing the end of production. Some reports claim it could close as early as 2007. If you are someone who loves the kind of lasting value that luxury assets provide – you might want to make pink your color this year.
The Most Important Question An Investor Can Ask (and the Answer)
Although every speaker and presenter had great information, and in many cases, a great presentation style as well, it’s hard to beat the relaxed wisdom of Alex Green, Investment Director of the Oxford Club. A self-professed conservative investor, Alex can’t help but play the part of the wise sage – 16 years of Wall Street experience backing up every assertion.
What does Alex think is the most important question? Do you know when you don’t know what you’re doing?
With a refreshing and disarming humility, Alex tells us that if the most brilliant economists of our time can’t accurately predict the markets – he doesn’t think it particularly wise to try. Rather, he advocates sticking with a solid, sensible approach to investing. Which is exactly his approach to the Oxford Club.
Forget about forecasting the markets. Instead, beat the market through superior security selection. When you select stocks, think like a businessman not an economist.
“Embrace the magic of thinking small,” says Alex. If you focus on the specifics of each company you’re buying, rather than the macroeconomics in force at the moment, you’ll make a smart choice. Then, be sure to use asset allocation, trailing stops, and other tools to protect yourself during those inevitable times of price fluctuation.
Don’t Miss Your Last Chance To Save
We wrap up tonight with one more elegant dinner, one more late night hot tub run, one last chat over martinis. Then, we all run home tomorrow to plot our investment plan for the coming year.
Join those of us who were lucky enough to be here, and pick up your set of conference highlights CD or DVD. The low price of $129 (a $20 savings) will stay in effect until 5pm EST on Monday. Then, that’s it – it’s back up to $149.
Remember, you’ll also get all of the handouts from the speakers whose presentations you’ll see and hear. Plus a $50 gift certificate towards the Investment U course. Sessions taped included all of the general sessions, plus as many of the afternoon sessions as they could manage.
(I might add that attendees paid about $695 plus their travel and hotel costs to be here. Granted, missing out on the handshakes, cocktails, and sunsets has a value that we can’t send home to you. But you’ll certainly get the essence – and much of the information that we did for only $129. That’s what I call extreme value…)
I hope you enjoyed these reports as much as I enjoyed sending them to you. Don’t forget to order your CD or DVD set now, before we part. Just click here.
Best Regards,
Monica Day
Roving Reporter, Investment U
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