Warren Buffett has a keen sense of
where the best opportunities lie. His intuitions are almost
never wrong. Right now he's buying depressed value stocks with
both fists.
It's what every investor wants to know:
What is the richest man in the
world -- and the most successful investor of all time -- buying now?
Don't bother asking him.
Warren Buffett doesn't give stock tips. He owns stakes in
40 publicly
traded companies but doesn't even mention 21 of them in his famous annual report.
You can't blame Buffett for
keeping his cards close to his vest. Why should he tip off his
competitors to the gems he's finding?
Peeking at Buffett's Cards
Fortunately for a small group
of serious value investors, they can peek at Buffett's cards whenever they
want.
All they have to do is glance at the Buffett Tracker
on their Half-Priced Stocks website.
My name is Nathan Slaughter. I run the show at
Half-Priced Stocks. Finally having this quick and easy way to track what
Warren Buffett is buying and selling is a dream come true for a value
investor like me.
This new tool takes Buffett watching to a new level.
Not only does our Buffett Tracker show you every
share of the entire Berkshire Hathaway portfolio, along with prices and
values... it follows Buffett's every move in detail... tells you exactly what
he's buying and selling... and goes into depth on his 10 most recent trades.
Spend a few minutes with the Buffett Tracker
yourself and you'll see that it's like an instant x-ray into Buffett's
market outlook. It shows you how each individual piece of the Berkshire
empire is faring and how important each position is to Buffett's overall
success.
Don't have time to check a website every day? No
problem. Every time Buffett makes a move -- whether it's buying a new stock,
adding to an existing one... or dumping an entire position, you'll get an
emailed bulletin detailing his decision.
One more thing. It's important: When you spend as much time
looking at Buffett's buys and sells as I do, you may come to the same
conclusion I did:
Forget About Berkshire Hathaway -- Here's a Better Way
to Make Money With
Buffett
Buffett has made
thousands of Americans into millionaires with Berkshire Hathaway. But if you
buy in now you'll be getting a lot of dead wood.
His $135 billion behemoth is dominated by decent, but
unexciting slow-growth stocks like Procter & Gamble, Coca-Cola and The
Washington Post.
Buffett himself admits that these companies aren't
going to catch fire. He tells his shareholders that these stocks won't
return more than 6% to 8% a year.
That's a pittance compared to the scorching returns
that made so many Berkshire Hathaway shareholders rich.
But there is still a way to capture that old-time
Buffett magic for yourself: Buy his newer picks. That's where the
upside lies. They're not even mentioned in his annual report, but they
are in our Buffett Tracker. After examining all his
holdings -- not just the ones he makes public -- I've picked eight recent Buffett buys you need to know about today...
1)
General Electric Co. (NYSE: GE) -- In an unexpected move, Buffett bought $3 billion worth of
GE preferred shares. These shares will provide Buffett with an annual
dividend yield of 10%. The legendary investor bought into this blue-chip company on very
favorable terms in a deal The Wall Street Journal "vintage Buffett."
2) Goldman Sachs Group (NYSE: GS) -- Berkshire Hathaway just bought $5 billion in perpetual
preferred shares of Goldman and received warrants to buy $5 billion more at
$115 each any time during the next five years. (A warrant allows its holder
the right to buy shares during a certain time for a set price.) Goldman has
taken only $4.9 billion in subprime writedowns so far, a tiny fraction of
the $29.1 billion recorded by Merrill Lynch (NYSE: MER) or the $37.7 billion
incurred by UBS (NYSE: UBS). It also hasn't posted a quarterly loss since
its IPO in 1999.
3) Burlington
Northern Santa Fe (NYSE: BNI) -- Burlington Northern boasts monopoly
control over some of the most valuable railroad lines in the U.S.
Buffett has already invested over $5 billion in BNI, and he's buying even
more shares, bringing his total stake in the company up to over 20%.
4) POSCO (NYSE:
PKX)-- It's easy to see why Buffett might admire a company like
POSCO, the world's third-largest steelmaker. This undervalued market
leader has a dominant stranglehold on the South Korean steel market, and it's
also fueling the economic boom in China. In mid-2007, we learned that
Berkshire had shelled out $572 million to acquire a 4% stake in PKX. On
February 28, 2009, Buffett upped his stake.
5) The Surprise
(See Buffett Tracker)--
This pick puzzled me at first, because it has few of the financial strengths Buffett usually looks for. It has a low return on equity and modest earnings
growth. Its margins are tiny. And its "moat" -- Buffettspeak for competitive
advantage, is pretty narrow. Yet even with all those marks against it,
Buffett bought big.
What's going on here? Buffett is a sucker for a strong brand. And this
packaged-foods maker boasts 63 of the world's best-known labels. More kids
can sing its jingles than can identify the president of the United States.
Buffett digs this. And so should any investor: Strong brands denote stable
businesses that build value inexorably over time.
Buffett's
Ringing
Endorsement for Stocks
On October 17, 2008
after the Dow was down 2,170 points in three
weeks, Buffett came out strongly in support of
stocks: "If prices keep looking attractive, my
non-Berkshire net worth will soon be 100% in
United States equities."
Even for a man never known to mince words, this
is a pretty bold comment. Buffett has a keen
sense of where the world's best value
opportunities lie.
A few years ago, he pocketed billions by betting
against the dollar and piling into foreign
markets like China and South Korea. So his
bullish call on American stocks is a huge vote
of confidence. And he's backed up his talk with
heavy buying using Berkshire Hathaway's enormous
cash stockpile.
Time to Be
Greedy
Remember that
Buffett credits his success to being fearful
when others are greedy... and greedy when others
are fearful. So I'm not surprised that the
"Oracle of Omaha" is turning greedy at a time
when Wall Street is clogged with panicked
investors running for the exits.
The hysterical market plunge we've seen has
opened up an unprecedented opportunity for
deep-value investors.
Investors are scared to death of holding stocks
during hard times, so they unload them cheap.
It's hard to believe, but I'm finding profitable
companies with sustainable competitive
advantages trading at just two or three times
earnings. If you agree with me that we're closer
to a bottom than a top, we're looking at a rare
opportunity to make big money. Buffett certainly
thinks so, and his intuitions are almost never
wrong. -- Nathan Slaughter
If you need a little nudge, the dividend is a respectable 4.1%. With the 138
million shares Buffett has bought, it will cut Berkshire a check for $160
million this year.
6) Pharmaceutical Powerhouse Yielding
5.3% (See Buffett Tracker) -- Buffett recently upped his stake
by approximately $150 million or 5 million shares (+22%) in this French pharmaceutical giant and now holds
22 million shares.
This one has everything Buffett loves: fundamentals, stability,
a simple business plan... plus something he likes infinitely more:
a ton of cash. Perhaps that's why it bumped up this year's
dividend 32% over last year's. If it keeps growing its payout at
that rate, Buffett's dividends will have paid for his stock in
less than seven years.
7) The Industrial
Conglomerate Selling for Less Than Two Times Earnings
(See Buffett Tracker)
--
That's no typo. This $12 billion maker of climate-control
systems, industrial equipment and security technology is trading
at 1.7 times earnings!
At that price, you might think that it had one foot in the
grave. But its prospects look fine. It has a billion-dollar
order backlog, and it's doing half its business overseas, which
magnifies its bottom line in dollars. Business can't be too bad,
because it's taking over one of its leading competitors.
If you thought that last stock was cheap, this one is virtually
free. It has book value of $30 a share ($17.14 of which
is cash). And shareholder equity is growing fast.
Sometimes the market is irrational, just as Buffett likes
to remind us so often. This is one of those classic
opportunities to buy a good business at a crazy rock-bottom
price.
8) Wholesale Power Generation Company
(See Buffett Tracker) --
This company is a newer addition to the Berkshire
Hathaway portfolio. Buffett started by picking up a little more than 3.2 million shares
of the wholesale power generation company, and has been adding shares to his
holdings since then. At last count, Buffett's stake in this energy company was up to 5
million shares. While this is the only utility in
the portfolio, Berkshire itself became one of the largest utility companies
in the U.S after it acquired MidAmerican Energy and PacifiCorp.
Like Warren Buffett
Whispering
In Your Ear
So you see, Buffett does
give stock tips. You just have to work for them a little. But what a payoff!
These eight picks, gleaned straight from our Buffett Tracker, are as
close as you'll ever get to the Oracle of Omaha whispering in your ear.
Investing along with Buffett this way is like taking
private golf lessons from Tiger Woods. Better, actually. Tiger could give me
private lessons for a year and I still wouldn't swing the club like him.
Luckily for you and me, investing is different. It's a
heck of a lot easier to play on par with a master when all you have to do is
click "buy" on your computer.
But if you want to keep up with Buffett this way you
need to know what he's most likely to do next.
That's where Half-Priced Stocks comes in. Our
readers get a constant stream of Buffett-style deep-value investing ideas.
Of course Warren doesn't pick up the phone and tip me
off before he makes his next move. But when you've followed Buffett as
closely and for as long as we have, you develop a sixth sense for what he's
likely to do in particular market conditions.
You just saw eight stocks he loaded up on recently.
There is no telling when -- or what -- he will buy next. But using my own
proprietary tool I can narrow down the field of likely targets. And when you subscribe to
Half-Priced Stocks, my predictions, along with his most recent buys, will come straight to your inbox.
What if
You Could Turn Back the Clock and Buy
into Berkshire Hathaway 40 Years Ago?
The Buffett saga is
truly astonishing. Anyone with the good judgment to invest $10,000 in
Buffett's partnership at its inception in 1956 (and to transfer into
Buffett's Berkshire Hathaway at the partnership's termination) would today
be sitting on an astonishing $344 million -- after all fees and expenses.
Scores of early believers in Warren Buffett have
seen their trust pay off in immense riches. In Omaha alone there are at
least 30 families with over $100 million in Berkshire stock.
In 1957, Dr. Carol Angle, a young Omaha pediatrician,
gave $30,000 to Buffett to invest. Dr. Angle still practices medicine, but
she doesn't need the money. Her family's holdings in Buffett's Berkshire
Hathaway have grown into a $300 million fortune.
When Mildred and Donald Othmer died a few years back,
they left an estate almost entirely in Berkshire Hathaway stock worth close
to $800 million.
Ernest Williams read an article by Buffett and, in
1978, began buying as many shares as he could get. Today, he and his family
own more than 4,000 shares, worth some $360 million.
When Robert Sullivan was a 19-year-old college student
in the early 1970s he began buying Berkshire at $380 a share. I don't know
how many shares he bought. But each share is now worth $88,000, he didn't
have to buy many to be a very rich man today.
Do Miracles Happen Twice?
Of course, the Berkshire
miracle can't possibly come along more than once in a lifetime.
Or can it?
I've found one stock that looks strikingly similar to Buffett's Berkshire Hathaway in the mid-'60s. I'm calling this stock
"Son of
Berkshire".
In 1965, you could have bought 100 shares of Berkshire
Hathaway for $1,800. Today, those hundred shares would be worth $8.8
million -- enough to put you and your children on easy street for life.
Talk About
Value! This Entire Industry Is Selling for
Pennies on the Dollar
Of all the
industries hurt by the credit crunch, none has
been more viciously mauled than the shippers.
You'd think that global trade had come to a
complete halt judging by the price action of
shipping stocks. Not even basket case financial
stocks have suffered as much as the -93% plunge
in the Baltic Dry Index, a proxy for shipping
stocks.
Just this past May 20th, 2008, the index, which
tracks daily cargo rates around the world, hit a
bubbly all-time high of 11,793. Since then, a
perfect storm of downward pressure has hit
shipping prices. The worldwide credit crunch
that made it harder to borrow money also made it
harder for cargos to get loaded onto ships. As
banks scrambled to retain capital, letters of
credit, the lifeblood of trade, were harder to
come by. Commodities began to pile up at the
ports.
Large ships that leased out for $230,000 a day
in late May were fetching just $7,340 a day by
November. This barely covers the cost of running
the ship and paying the crew. It can't go much
lower before owners decide to simply dry-dock
their vessels.
Meanwhile, the Baltic Dry Index has plunged to
775.
Buffett has made billions by being greedy when
others are scared. This is one sector where
people are flat-out terrified. To me, that's a
buy signal.
I think that prices have overshot on the way
down just as they did on the way up. As the
credit freeze thaws many short-term pressures
weighing on shipping prices are already letting
up.
Bank-to-bank lending rates -- which skyrocketed
as credit worries simmered -- have fallen back
closer to normal levels. Governments around the
globe have infused hundreds of billions of
dollars into the world's banking system... and
letters of credit appear to be navigating their
way through the system again.
I'm finding companies with decades of experience
whose stocks are trading for two or three times
earnings. Unless the world falls into a
depression, trade will pick back up, and
normalcy will return to this critical industry.
And when it does, my money is on a monster
rebound in these stocks.
I especially like a well-established dry bulk
shipper specializing in the grain trade. It has
a history of strong cash flows and the stock
is now trading at a P/E of just six. If it
climbs back to even half its high of less
than a year ago, current buyers are looking at a
+252% gain. You'll get full details as soon as
you sign up for Half-Priced Stocks.
-- Nathan Slaughter
This could be your own chance at a Buffett-style
investment miracle.
Many people don't realize that when Buffett first
bought Berkshire Hathaway in 1962, it was just a textile mill -- a bit player
in a dying industry. By 1970 the mill was almost dead and netting just
$45,000 per year.
But in those eight years Buffett had transformed
Berkshire Hathaway into a completely different type of business that was
netting $4.7 million a year... over 100 times as much as the mill.
What was this other business that launched the greatest
stock market miracle of our time
Insurance. A boring
"white-bread" company. GEICO, to be exact.
Buffett funneled the cash flow from insurance
premiums into a war chest of investment capital. Then he used that cash to
snap up shares of companies with prospects that other investors overlooked.
He bought The Washington Post, Coca-Cola, American
Express and Gillette. With perfect contrarian instincts, Buffett swooped in
when the stocks were deeply out of favor.
That's the strategy that built Berkshire into the $135
billion behemoth it is today. And this "Son of Berkshire" that I'm going to
tell you about now is doing it all over again, using the same techniques
Buffett pioneered decades ago.
A Growing War Chest of Cash
This company doesn't waste time cozying up to Wall
Street. It runs its operations from a drab building in the suburbs of a
sleepy Southern city -- about as far from the Wall Street hype machine as you
can get.
All it cares about is piling up cold cash and putting
it into other investments with even more hidden assets it can use to grow
the bottom line.
In other words, it just keeps making its shareholders
money -- doggedly snowballing its assets the same way Buffett did with
Berkshire.
Just like Buffett this company is amassing a growing
pile of cash: $913 million at last count. It uses this war chest when the
time is right to snap up other companies on the cheap. Like right now. Its
shopping list has grown a mile long in this down market when so many assets
are on half-price sale.
And I firmly believe it's just getting started. To show
you what I mean, I'd like to send you a report with all the details on this
Berkshire-style growth machine.
I call it Son of Berkshire: The Closest Thing to Investing With Warren
Buffett 40 Years Ago -- and you'll get a free copy with a trial
subscription to Half-Priced Stocks. (I discovered this stock so
recently that not even my own subscribers know about it yet.)
It's one of two deep-value investing reports that I
send to new subscribers. To claim your free copies, just
follow this link now.
Why I'll Always Be a Value Investor
I am a value investor because it works. Momentum investors come and go, but
value investors have shown incredible staying power over the decades. No
other approach has proven to be more effective over the long haul. If
there's a better way to grow rich in the market, I haven't found it yet.
5 Keys to
Finding GOOD Undervalued Stocks
Here are five key hurdles every stock we look at
must clear before we even consider adding it to our
portfolios.
(1) Discount pricing -- the stock must be
selling at a 20% to 50% (or greater) discount to the
company's fair market value. . . and we also want to see
a stock selling substantially below its 52-week high.
(2) Free cash flow -- the companies that we
recommend in Half-Priced Stocks generate
truckloads of cash. Their future cash flow to sales
ratios are typically far above sector norms.
(3) Return on invested capital (ROIC) -- ROIC
should exceed the company's cost of capital to ensure
that shareholder value is being created and not
destroyed.
(4) Return on equity
(ROE) -- A high ROE
indicates that management allocates its capital
efficiently and does not spend recklessly to obtain
growth.
(5) Wide economic moat -- An "economic moat" is
a market factor that helps defend the business from its
competitors -- for instance, a pharmaceutical company
with key patents on a particular class of drugs.
It seems crazy, but there are times when you can buy
every single share of a company -- paying its full market capitalization -- and
you're still paying far less than the company's assets are actually worth.
This is exactly how Buffett and his followers became
filthy rich -- by buying and holding companies selling below their "fair
business value."
I know what you're wondering: How do I know what a
stock's "fair business value" is?
It all starts with the same time-tested
technique that Warren Buffett inherited from Benjamin Graham before him:
"Discounted Cash Flow Modeling."
To determine a fair price for a company, my staff and I
first project the amount of operating cash that the firm is likely to
produce in the years ahead. From there, we determine how much that future
cash is worth in today's dollars. This gives us a pretty accurate idea of
each firm's true, risk-adjusted value.
We then add in cash and other liquid assets and
subtract its debt to come up with a fair business value. That's the rational
price it would take to buy the entire company as a going concern.
All that's left is to compare that intrinsic value with
the current trading price. In extreme market conditions when panic rules the
day, share prices sometimes drop below the company's per-share cash on hand.
In cases like that, you're actually getting paid to buy the business!
The Biggest Discounts I've Ever Seen
With the wholesale drop
in prices on Wall Street, I'm finding companies trading at the largest
discounts to their fair business value I've ever seen. Which means they're
offering huge upside to anyone with the guts to buy right now.
You'll find no fewer than 8 of these beaten-down stocks in my "Deep
Discount Portfolio" right now. Here they are below. In fairness to my paying
subscribers, I can't reveal their full identities here, but they'll be
emailed to you within minutes of your own decision to subscribe.
Company
Price
Fair Value
Expected Appreciation
Trash hauler
$25.05
$57
+128%
Info management systems
$34.12
$69
+102%
Nuclear plant supplier
$3.86
$9
+133%
Gaming machines
$20.76
$42
+102%
Dry bulk shipper
$4.54
$15
+230%
Integrated oil co.
$37.60
$87
+131%
Recreational boat maker
$3.10
$14
+352%
Beverage distributor
$9.76
$27
+177%
The most expensive
stock in this portfolio is selling for 30% below its fair value. The
cheapest is trading for a whopping 78% less than where its free cash flows
should put it.
See what I mean when I say that the hysterical market plunge has opened up a
huge opportunity for deep-value investors? We're looking at a rare
opportunity to make big money.
It's hard to believe, but I'm finding profitable
companies with sustainable competitive advantages trading at just two or
three times earnings. I feel like a kid in a candy store... and the candy's on
sale!
Right now, many of the country's strongest companies
are trading at depressed prices that in no way reflect their true value.
Blue-chip stocks like Johnson & Johnson may be struggling at the moment, but
do you really think Band-Aids and Tylenol won't be around in five or 10
years?
Six "Yield Doublers" To Buy
Right Now
In the
four weeks that followed the February 2009 launch of my "Yield Doublers"
portfolio, each of my
high-yield value picks were up double-digits, while the Dow
dropped another -3%.
Again, to be fair to my paying customers, I can't reveal
the name of the six picks in this portfolio. If these were closed
positions, then I'd be happy to. But as you'll see in a second, these
six picks have PLENTY of upside left in them... which means you should
pounce on them as quickly as possible.
Company/Industry
Add
Date
Stock
Price
Yield*
Total
Rtn*
Fair
Value
Expected Appreciation
Beverage Company
02/20/09
$47.24
5.3%
+30.8%
$103
+118%
Telecom Operator
02/20/09
$8.15
9.6%
+57.3%
$33
+305%
Retail REIT
02/20/09
$11.33
21.1%
+24.4%
$41
+262%
Oil & Gas Refiner
02/20/09
$22.71
8.4%
+22.0%
$44
+94%
Energy Distributor
03/10/09
$17.98
7.9%
+13.8%
$44
+145%
Integrated Energy Co.
03/18/09
$42.36
5.0%
+13.5%
$87
+105%
* Yields listed are as of time of purchase. Overall
performance
includes returns from current trades including dividends
paid since the portfolio's inception in February 2009.
Numbers as of 4/03/09.
If you're missing out on the profits above, the good news is that
these six "yield-doublers" still have a LOT of upside
potential left before reaching their fair value prices.
For example...
The beverage company that's
gained +30.8% in six weeks is expected to appreciate
another +118%
The telecom operator that is way
up at +57.3% in six weeks should skyrocket another
+305%
The retail REIT that's gained
+24.4% has another +262% to go
The oil & gas refiner that
generated +22.0% returns in six weeks should
appreciate another +94%
The energy distributor that
jumped +13.8% is poised to jump another
+145 before it reaches its fair value
The integrated energy company that
soared +13.5% in less than 3 weeks is poised to gain another
+105% before it reaches its fair value
So you see, you haven't quite missed the boat on
these "yield-doublers" -- you still have time to get in. You just need
to make sure that you act fast so you can capture the biggest amount of
profits.
What Will You Be Saying 10 Years From Now?
How Long Do You
Have to Wait for these Stocks to Rebound?
Every stock is different. But we usually see our
profits within a year.
*
We doubled our
money in seven months with DryShips.
(Over the next seven months, it kept
rising for a +1,113.8% gain.)
*
First Solar
made us +101.9% in less than five
months.
*
We made +77.9% in
less than eight months with
semiconductor manufacturer Cree Inc.
Sometimes we have
to wait a bit longer:
*
Aluminum
Corporation of China made us +379.1%
in less than two years.
*
We made +97.7% in
UPS in 15 months.
Value stocks always lead the way out of a bear
market. And they usually come out charging.
In any case, I don't think the market is going
to drag us down much longer. The average bear
market lasts about 10 months. So this one is
already getting old.
And don't forget that stocks almost always surge
before we get good economic news. In the past
eight recessions, stocks began to climb 17 weeks
before the economy turned around. In that short
time, stocks rose an average of +22%.
Bottom line: Good things come to those who wait.
I'm not looking to hop in and out of a stock to
make a point or two. That's market timing, not
investing. I am willing to wait for the rest of
the market to see the obvious and drive up our
picks by +100% or +200% or more.
Some people thought the sky
was falling in October 1987 too. But we recovered quickly from that scare.
A lot of people wish they had dumped more money in the
market back then when the Dow was trading below 2,000. Ten years from now we
might all look back and say the same thing with the Dow below 9,000. So grab
some good stocks while they're cheap. It won't last forever.
But don't wait too long. Remember that stocks almost
always surge before we hear any good news on the economy.
Over the past eight recessions, stocks hit bottom and
began to climb 17 weeks before the economy turned around. In that short
time, investors were treated to an average gain of +22%.
Will we get the same treat this time, too? I can't
promise you that, but we've seen a once-in-a-generation meltdown of equity
prices, so we could well see a once-in-a-generation rebound.
Does Buying Discounted
Stocks Work in Real
Life?
You bet it does. In
June 2006, I noted that DryShips was trading at $10.79, almost a 50%
discount to its fair value of $21. I told my readers to buy with both hands.
Sure enough, DryShips' share price rose to $21 within
eight months, hitting its fair value in March 2007.
But, like the Energizer Bunny, DryShips kept going and
going -- all the way up to $130.97 a share by October 2007 -- for a +1,113.8%
gain.
Had you bought a thousand shares of DryShips when I
first recommended, your original $10,790 would have ballooned into $130,970
within 16 months.
With your $120,180 in profits, you could have indulged
yourself in a new Mercedes (or two!)... or paid for a college education.
Time and
again, buying the cheap stuff the market hates has paid off
for us at Half-Priced Stocks...
Our screens indicated eBay was undervalued,
with strong price appreciation potential. Readers who followed my
lead on this one made +60.4%.
When I saw a lot of opportunity in the
shipping business, I picked Genco Shipping as a good place to start. This
one made our subscribers a +293.2% profit.
Shipping continued to be the industry to
watch, and on Excel Maritime Carriers, we made a hefty
+554.4%
gain -- buying low at $10.35 and watching the stock rocket to $67.72.
Looking for a safe way to play China's
construction boom, I recommended Aluminum Corporation of China.
Readers who followed my advice were up
+379.1% in less than two
years.
And again...
I singled out alternative energy play First
Solar at $68.04. The firm's share price soared to $137.35 for a
+101.9% gain -- doubling our money in less than five months.
Fairfax Financial Holdings was selling at a
deep discount to fair value, and sure enough, gave us a gain of
+102.7% -- once again doubling our money.
We bought data storage giant EMC at $13.61
with a target appreciation price of $19. When the stock reached
$20.66, I said sell and locked in a
+52.9% profit.
On Activision, I spotted another
opportunity for solid appreciation, and traded the stock for a
+69.2% return.
And again...
On Expedia, the Internet company, we made a
+71.5% profit as the market began to realize this online travel
leader's true value.
In February 2007, we bought UPS at $31.62.
By July of the next year, we sold out at $59.83. Adding in our
dividends of $2.68, we posted a total return of
+97.7%.
Another winner in the maritime sector,
Diana Shipping, gave us a triple as its share price rose
+205.1%.
Semiconductor manufacturer Cree Inc. made
us +77.9% in less than eight months... proving that you can even find
undervalued stocks in the often-overvalued technology sector.
A Monthly Rundown on the
Cheapest Stocks in the World
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I think you'll
like our newly revamped service. In a stock market littered with wounded
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We're not bulls... and we're not bears. Vultures
is more like it.
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Everything we own has already crashed. Before we buy it.
Your Three Advantages Over
Regular Investors
Invest with us and you'll enjoy three advantages over ordinary investors:
1)
Every stock we buy will be selling at
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3)
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So if you want to make your profits without
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You Get With
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Our New Buffett Tracker
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Half-Priced Stocks Newsletter -- Each monthly issue is loaded
with fresh new value investing ideas as well as updated advice on
stocks we've profiled in previous issues. You also get feature
articles, in-depth industry profiles, and a variety of other
material steering you toward the cheapest stocks on the market.
Half-Priced Stock of the
Month -- My in-depth profile of a deeply discounted security that
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shares +100% higher in a year.
Subscribers-Only Web Site
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subscription comes with complete access to our Half-Priced Stocks
web site, including easy access to current and past issues, news
flashes, portfolios, and a host of invaluable educational materials.
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Mid-Month Updates -- In the
middle of each month I tell you if anything important has happened
to any of our stocks. I also pass the best value opportunities I
find between issues.
Instant Alerts when Breaking
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Son of Berkshire: The Closest Thing to Investing With Warren
Buffett 40 Years Ago The Berkshire miracle can't possibly come along more than
once in a lifetime. Or can it?
We've found a stock that looks strikingly similar to Buffett's
Berkshire Hathaway in the mid-'60s. Its CEO even sounds like
Buffett when he talks to shareholders.
Just as Buffett used the insurance premiums to build a war chest of
investment capital to snap up companies on the cheap... building
Berkshire into a $135 billion behemoth... this "Son of Berkshire" is
doing it all over again, using the same techniques Buffett pioneered
decades ago. This could be your own chance at a Buffett-style
investment miracle.
3 Stocks Warren Buffett Wishes He Could Buy -- But Can't We've found three stocks that are perfect for Buffett,
except for one thing -- he can't buy them!
He runs a portfolio that clocks in at some $135 billion. These three
companies have a combined market cap of less than one percent of
Buffett's portfolio. Even if he bought every single share... and the
stocks tripled... they would barely make a dent on his total
returns. But they could make a small fortune for you.
But if Buffett could buy smaller fast-growing companies we
think he'd find the three stocks in this report irresistible. These
are precisely the kind of bargains that Buffett loves. Unfortunately
for him, they are off limits because it's simply not big enough. But
you can grab as many shares as you want.
My Personal Guarantee: ZERO RISK for 30 Days! If you're not completely satisfied for any reason,
simply cancel on our website or by clicking on the easy cancel
link located at the bottom of each and every issue -- for a
full 100% refund. The issues and research reports you
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days you'll receive a refund on all remaining issues. You have
absolutely nothing to lose
and you can cancel at any time.
We typically charge $794 a year for a subscription to Half-Priced Stocks
and our Buffett Tracker. But if you join today, you can lock in a low
rate of only $39.95 a month!
Plus, you'll also get the two reports profiled above as an
added bonus.
If you decide that Half-Priced Stocks is not for
you we'll return every penny you paid. Simply notify us within the first 30 days.
You can keep your research
reports as my thank-you gift for trying out our service.
Please let me hear from you today. As soon as I do,
I'll rush you my Son of Berkshire report on the stock that's like investing
with Warren Buffett 40 years ago... plus the current issue of Half-Priced
Stocks with the 15 most undervalued stocks on the market today... and give
you access to our members-only web site.
Welcome to an investing world where everything is on
sale every day!
Sincerely,
Nathan Slaughter
Editor, Half-Priced Stocks
P.S. The easiest money-back guarantee in the business: We don't make you
jump through hoops if you want a refund. Just click on the unsubscribe
button at the bottom of every issue within 30 days... and we'll return whatever you paid.
Keep your research reports as a thank-you gift just for trying out Half-Priced Stocks. (The
only reason we can afford to make an offer this
generous is because so few people take us up on it!)
I call it Son of Berkshire: The Closest Thing to Investing With Warren
Buffett 40 Years Ago -- and you'll get a free copy with a trial
subscription to Half-Priced Stocks. (I discovered this stock so
recently that not even my own subscribers know about it yet.)
See what I mean when I say that the hysterical market plunge has opened up a
huge opportunity for deep-value investors? We're looking at a rare
opportunity to make big money.
