The Perfect Strategy for Triple-Digit Gains… While Limiting Your Risk

Bullish? Bearish? Undecided?

It doesn’t much matter — at least to Game-Changing Stocks’ Andy Obermueller and his readers.

Andy’s mission is to find companies that “move the needle,” regardless of market conditions and despite where the economy stands at any given time.

Twice each month in Game-Changing Stocks, Andy identifies innovators whose goods and services are in demand in good times and bad. Companies that, as he explained in his latest issue, “… are laser-focused on the better mousetraps they are perfecting, which will bring the world to their doorsteps — with its wallet open.” #-ad_banner-#

He calls them “game-changers.”

In August 2011, for example, Andy wrote that tiny AuthenTec (Nasdaq: AUTH) was “in the catbird seat” to dominate a growing consumer market in so-called biometric readers — fingerprint scanners on personal electronic devices.

This past week AuthenTec established a new 52-week high of $8.83 a share, up more than 250% from when Andy made the recommendation less than a year earlier.

But that’s not all…

On Friday, July 27, the shares were up a staggering 66% after Apple (Nasdaq: AAPL) reportedly agreed to buy the company.

In total, from the time Andy featured the stock though Friday’s close, the shares are up 232%…


And it’s a similar story with shares of CalAmp (Nasdaq: CAMP), a maker of wireless communications hardware. The stock more than doubled in a little over a year after Andy wrote about the company. In early July, CalAmp went on to establish a 52-week high of $8.55 per share. That’s up 172% from when Andy recommended the company…

And in January 2011 Andy told his readers about a handful of biotech companies. One of these stocks, Starpharma Holdings (OTC: SPHRY), a maker of innovative treatments for sexually transmitted diseases, rose 145% to a high of $19.37 a share in late April of this year. The shares have since pulled back… but are still more than 104% higher from when Andy covered the stock.

Of course, not every company with a nifty product and a business plan is going to deliver returns like those, or, in some instances, any returns at all. Investing in small companies can mean big potential profits, but they do involve more risk than shares of Coca-Cola (NYSE: KO), for example.

This is one reason why Andy advocates his 90/10 rule. It says you put 90% of your portfolio in rock-solid investments — or an index fund. The other 10% is dedicated to game-changers.

Now, chances are you will not be familiar with most of the innovators that Andy writes about. And that’s precisely the point.

The idea behind Game-Changing Stocks is to alert readers to promising companies before you read about them in Forbes — before the crowd rushes in, and before valuations go sky high.

And as you can see from the charts above, investing in the right company before it becomes a household name can be very profitable.

Risks to Consider: Andy says 10% is the magic number. And he doesn’t sugarcoat it. These stocks carry risk. That means you have to balance the upside potential with the commensurate risk. It allows for the best of both worlds — a growth-oriented portfolio with protected return potential. And the safer the other 90% of your assets, the greater the truth of that statement.

Action to Take –> It only takes one game-changer to move the needle on an entire portfolio. If you had 10% of your assets in Apple in 2005 (well after the iPod was a hit), your butler would be reading this to you right now, and you wouldn’t really give a hoot what happened to the other 90% of your assets.

[Note: Andy Obermueller, editor of StreetAuthority’s Game-Changing Stocks newsletter, has made a series of shocking predictions that could affect your portfolio for the rest of 2012 — and beyond. To see all of his predictions — and learn which stocks could protect you from the coming storm — read this special report.]