Why Building A ‘Legacy’ Portfolio Pays Off

Since the inception of my premium newsletter, Top Stock Advisor, our goal has been to provide subscribers with a portfolio of some of the world’s greatest, most capital-efficient companies. 

The result: A legacy portfolio that could be passed down from generation to generation… One that doesn’t expose you to unnecessary risk, yet still outperforms the market… A portfolio that can stand the test of time, weather unpredictable events, and mitigate the risk of uncertain economic futures.

The presidential election gave us a taste of an unpredictable event — a stress test if you will. So how did the portfolio do?

11 of 19. That’s the number of stocks that are positive since the day before the election. Of those 11 stocks, all but one of them has outpaced the broader market, as measured by the S&P 500. Overall, the portfolio increased roughly 1.5%, which is all the more remarkable considering that nearly 40% is in cash.


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The action of the portfolio confirms one of the main principles of long-term investing: diversification. Rarely does it happen that every sector is moving in the same direction. That’s why investors should have exposure to many sectors in order to not only reduce volatility but benefit from many, not just some, of the market trends. 

Again, the purpose of Top Stock Advisor is to provide readers with a portfolio of some of the best companies on the planet. Sure, many of these stocks may not be a “sexy” story that you’ll recite at a holiday party, but I guarantee you that the person claiming he hit it out of the park with some no-name biotech firm isn’t telling you how much money he’s lost playing that very same game.

You don’t have to take enormous amounts of risk to be a successful investor. In fact, according to a study published earlier this year in the Financial Analysts Journal by global investment management firm AQR, a strategy of buying elite, low-volatility stocks can beat the market by a wide margin. And there are plenty of real-life examples we can pull from to support this theory.

Take Warren Buffett, for example. Buffett built nearly his entire fortune by focusing on the least risky businesses to own. Companies like American Express (NYSE: AXP), Coca-Cola (NYSE: KO) and GEICO. Buffett’s strategy worked, primarily, because he avoided taking risks.

#-ad_banner-#My Top Stock Advisor portfolio is another example. We hold some of the best companies in the world, stocks that any ordinary Joe with no investing experience has likely heard of. And it’s paid off in spades — of the 10 stocks we’ve held since the beginning of the year, seven of them have outpaced the S&P 500 — with six returning double digits. And overall, the portfolio is up 9.9% so far this year.

The point is that investing doesn’t have to be difficult. Many investors, despite them saying otherwise, have a hard time stomaching volatility. Many conservative “buy and hold” investors ended up being “buy and fold” when things got messy in the 2008 financial crisis. 

The good news is you don’t have to take on extra risk to do well. 

Having an “All-Weather” portfolio will not only help you sleep better at night, but it can help you build generational wealth. That’s the goal we have at Top Stock Advisor — to help you create a legacy of wealth. It should be your goal, too.

If you’d like to learn more about Top Stock Advisor and get the names and ticker symbols of all our picks, go here.

P.S. My team and I just released an updated version of our report “The Top 10 Stocks To Buy Now.” In it, you’ll learn about a unique group of stocks that are uniquely positioned to outperform the market and help bullet-proof your portfolio — no matter what happens in the market. Our previous picks have delivered 53%, 101% — even 159% gains in a single year. To access this report, follow this link