Longtime readers know I’m a numbers man. In terms of discovering inventory picks, I usually take a “backside up” strategy. Merely put, I deal with particular person shares, not sectors.
I dive into the numbers, specializing in eight key components:
- Gross sales progress
- Working margin progress
- Earnings progress
- Earnings momentum
- Earnings surprises
- Analyst earnings revisions
- Money move
- Return on fairness (ROE)
This investing strategy, together with my proprietary market-beating algorithm, helps me discover corporations with glorious fundamentals that appeal to sturdy institutional shopping for stress.
Forbes as soon as referred to as me the “King of Quants” as a result of I’ve outperformed even Warren Buffett over a 15-year time span. We did so by analyzing the markets with the algorithm I created earlier than even the primary dwelling laptop entered the market.
My system helped me suggest House Depot at 73 cents and Nike at 33 cents. I used to be additionally the primary analyst to suggest Google. It’s additionally how I knew to suggest…
- Santarus for a 613% acquire
- Holly Corp. for a 457% acquire
- Hansen Pure Corp. for a 1,125% acquire
In the present day, I need to introduce you to an funding analyst buddy of mine who additionally has a unbelievable observe document: Whitney Tilson.
Whitney graduated with honors from Harvard College and Harvard Enterprise Faculty, the place he earned an MBA and was named a Baker Scholar. He spent practically 20 years on Wall Road, throughout which era he based and ran Kase Capital Administration, rising property below administration from $1 million at inception to a peak of $200 million. Whereas there, he practically tripled his traders’ cash.
He purchased Apple at 35 cents, Amazon at $48, and Netflix at $7.78.
Since then, he’s based and led an funding advisory publishing firm that focuses on low cost, high-quality inventory concepts.
Whitney is buddies with virtually each multibillion-dollar-hedge fund supervisor on the market. In truth, he counts 5 billionaires as subscribers:
- Invoice Ackman
- David Einhorn
- Seth Klarman
- Joel Greenblatt
- Leon Cooperman
Right here’s how Whitney describes what he does:
I’m not a journalist, although a lot of what I do is much like what any good reporter does: I learn so much, speak to/e-mail with many individuals, and attempt to deeply perceive advanced corporations and points…
I’m, before everything, an investor… Which means that, in contrast to a journalist, my purpose is, first, to develop a robust opinion about the way forward for an organization or trade – ideally one that’s out of consensus, and due to this fact not mirrored within the inventory value(s).
Then, I write up my evaluation and ensuing conclusion… and share it with my readers…
As well as, I look, a couple of occasions a 12 months, to make a giant, daring name. I solely achieve this after I’m extraordinarily assured I’ll be confirmed proper. Folks listen as a result of I’ve a two-decade observe document to again me up.
Whitney’s proper. He has precisely predicted so many market strikes that CNBC as soon as him “The Prophet.” Listed here are just some of his predictions that got here true…
- The dot-com crash
- The underside of the 2008 crash
- The 2017 bitcoin collapse to the day
- The highest of marijuana shares to the very hour on Yahoo Finance in 2018
Whitney and I obtained collectively final July to elucidate why the nightmare of March 23, 2020, was about to repeat… in a weird new approach that would create millionaires on only a single funding.
And now, we’re teaming up once more for a 2 Legends Predict 2023 occasion on Tuesday, Could 23, as a result of we see one other main market shift about to happen. (You possibly can click on right here to enroll now.) We’ve got one other prediction to make.
We consider a historic unveiling scheduled for August 7 in Las Vegas, Nevada, will set in movement the largest funding alternative in three generations.
Years from now, you’ll look again and keep in mind precisely what you had been doing on August 7, as a result of on that day, an enormous pattern we’ve been following for 40 years may take a flip that may ceaselessly outline who noticed it coming… who had their cash there FIRST… and who missed it fully.
Whitney and I’ll share the small print of our massive prediction – and how one can revenue from it – throughout our 2 Legends Predict 2023 occasion subsequent Tuesday. Click on right here to enroll now so we are able to ship you the occasion hyperlink as quickly because it’s out there.
I’ll be again in contact tomorrow with a particular essay from Whitney by which he tells us how he finds so many low cost, high-quality shares – and the way that technique may enable you discover the subsequent Apple, Microsoft, or Netflix.
So control your inbox! And don’t neglect to register for our 2 Legends Predict 2023 occasion.
Sincerely,
Louis Navellier
Editor, Market 360
