The Big Myth About Beating The Market
Two weeks ago, I made a major announcement about StreetAuthority’s premium newsletter lineup.
In short, two of our leading analysts — Amy Calistri and Jimmy Butts — have teamed up to create a new premium newsletter. As I mentioned back then, the goal of this newsletter will be to feature the absolute best stock picks for investors to hold in their core portfolio. I also mentioned that two of our former publications, Stock of the Month and Top 10 Stocks, would fold into this exciting new letter.
#-ad_banner-#Today, I’m happy to pass along word Amy and Jimmy’s first Top Stock Advisor issue is out and available to current subscribers. Those readers can find it here.
Now, rather than share their first pick with you (which wouldn’t be fair to current subscribers), I’d like to touch on an important point they made in their inaugural issue that I think is far, far more valuable than any one single stock pick.
You see, Amy and Jimmy are of the same opinion I am when it comes to successful investing. It doesn’t take a genius-level IQ or any sort of “inside” information. In fact, to prove this, Amy and Jimmy pointed out in their inaugural issue the dirty little secret the so-called hedge fund superstar managers don’t want you to know about: they own many of the same high-quality “boring” stocks you do.
|According to Insider Monkey, a website that tracks hedge fund ownership, more than 40 hedge funds held Costco shares at the end of 2015. Warren Buffett’s Berkshire Hathaway owned 4.3 million shares while Ken Griffin’s Citadel Investment Group held more than a million shares. |
Alphabet (Nasdaq: GOOGL), formally Google, isn’t a closely held secret — it’s one of the best-known technology companies in the world. But more than 200 hedge fund managers don’t want you to think that profiting is as easy as owning GOOGL shares — as they do. Andreas Halvorsen’s Viking Global owns nearly 3 million shares. David Tepper of Appaloosa Management owns more than a half million shares. And you can see why.
I doubt many hedge fund managers do much work around the house. I guess they make up for it by owning shares in the home improvement retail chain Home Depot (NYSE: HD). Ken Fisher’s Fisher Asset Management owns over 8 million shares of HD. AQR Capital, led by the brilliant and bombastic Cliff Asness, owns more than 2.4 million shares.
Amy and Jimmy went on to mention that while past performance is no guarantee of future returns, it would be foolish to ignore stocks that consistently outperform. And that’s really what this new advisory is all about — to find high-quality stocks that you can always count on.
As Amy and Jimmy said, “As investors, we’ve been conned into believing that in order to be profitable, stock-picking has to be sophisticated. But that’s a myth even the hedge fund managers don’t believe.”
Bottom line, if you want to go for a home-run with every single stock you buy, then Top Stock Advisor is not for you. Of course, I fully expect Amy and Jimmy to deliver more than their fair share of winning picks, but the mission of this premium service will be to deliver a stable core of high-quality stocks for every investor’s portfolio.
If you’d like to learn more about Amy and Jimmy’s new premium newsletter, you can go here. If you sign up to give their service a risk-free trial, I’m confident that by the time you finish reading their analysis, a good many of you will agree with my opinion that if you could only subscribe to only one of our many premium newsletters, Top Stock Advisor should be it.
If you join Amy and Jimmy, you’ll get the name and ticker symbol of their very first pick — one of the world’s premium beer and liquor companies that has gained 543% from 2011-2015 (compared with the S&P 500’s 62.52%). And according to their analysis, this company is far from the end of its run. To join, simply follow this link.