If you invest in stocks, I’d like to show you an idea that could dramatically improve your results
It may make you uncomfortable. But when you look at the facts, there’s no reason it should…
In short, you’re probably not taking big enough swings in the markets – some of the things you’ve been taught are “prudent” are really costing you money.
The next few years in particular may be the greatest opportunity in any of our lifetimes for outsized market gains… gains that could see you through an entire, very comfortable retirement.
I’ll be sharing one of my best recommendations on camera – an idea with a $2.5 trillion potential market. If it succeeds in capturing even a fraction of that, it could be a 10-bagger, 20-bagger, or more.
And I’ll be talking about another idea I’m incredibly excited about today. The risk is significant. But I think it’s very possible it delivers a 25-to-1 return (and over time, potentially as much as a 100-to-1 return).
I want you to see these details the moment they’re released.
So… stocks with 25x potential… even 100x potential.
That strikes some people as crazy. A way to lose your shirt in the markets.
But really, it’s what you should be targeting every time.
Maybe you’ve heard of the Pareto Principle…
It was a discovery by a 19th-century Italian scientist who happened to grow pea plants in his garden. He noticed that the majority of the healthy peas came from just a small number of pea pods. Specifically, around 80% of the yield came from just 20% of the plants.
It turns out that this distribution appears everywhere.
20% of the landowners in Italy held 80% of the land. 20% of criminals account for 80% of the crimes. Businesses report that 80% of their profits come from the best 20% of customers.
Your brokerage account may look the same way, too. A relatively few runaway winners account for the majority of the gains.
The most successful investing strategy of the past quarter century works exactly this way.
I’m talking about venture capital.
In a 25-year study, it was the single best performing asset class, delivering roughly double the S&P 500 Index’s annual return – and five times higher returns over the full period.
Venture-capital investments – involving very early-stage companies and technologies – follow an extreme version of the Pareto Principle.
Most of the investments fail, or only barely break even. Around a quarter of the ideas provided “solid” returns of 1x to 5x. And a very small number are “home runs” – 10x… 50x… even 100x.
Those “home runs” pay for all the losses and more. They make the entire strategy wildly successful. They’re pretty much all that matters.
One study covering hundreds of VC funds since 1985 found that just 6% of their investments – and 4.5% of invested dollars – accounted for 60% of the total returns.
My own brokerage account shows a similar distribution.
I believe investing becomes a lot more profitable – and more fun – when you understand this. Losses are part of the game. I had them on Wall Street. And we’ll have some in the ultra-elite new research I’ll be introducing next week.
What matters is the frequency and magnitude of your home runs.
Same thing with that supposedly “bad” word: Volatility.
Making thousands of percent is a form of volatility.
So how do you invest like a venture capitalist… without any of the regulatory hurdles of private investing?
That’s exactly what I’ll be showing you on Wednesday, October 29, at 1 p.m. Eastern time.
(You’ll also get instant access to a good bit of free material about my strategy and market outlook today.)
You don’t have to do anything radical, like abandoning a “balanced” portfolio you spent years building.
Even allocating a fraction of your investing dollars – say 5% – to this kind of approach could change everything for you in the next few years.
When you see the real results of investing this way, you may want to do more.
You don’t have to take any of this on faith.
Next Wednesday, I’ll show you my track record as an investor and analyst… and pitch one of my best ideas to a panel of investing luminaries – folks I’m sure you know.
You have received this e-mail as part of your subscription to Stansberry Digest. If you no longer wish to receive special offers from Stansberry Digest, click here.
You’re receiving this e-mail at peter.hovis@gmail.com. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberryresearch.com. Please note: The law prohibits us from giving personalized financial advice.