The 9 Best Stocks to
for the Next Decade
investors like Warren Buffett and Bill Gates
have been loading up on these stocks for years.
Buffett recently invested $2.5 billion...
Gates invested $4.0 billion... and the richest man in the world,
Carlos Slim, invested $14.5 billion.
In fact, almost ALL of the world's richest
people are piling money into these consistent winners.
Read below to find the names and
ticker symbols of
dozens of these unusual companies -- or
Here at StreetAuthority we like to keep tabs on
where the richest people in the world are putting their money...
After all, billionaires like Warren Buffett and Bill
Gates are some of the smartest investors on the planet.
In fact, Buffett has been beating the market for so
long that it defies belief.
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 $432 million -- after
all fees and expenses.
Buffett's long-term investing performance has been
nothing short of phenomenal. Of course, billionaires like Buffett and
Gates have advantages the rest of us don't: entire staffs of MBAs
working for them... Wall Street CEOs who give them sweetheart deals in
order to get their business... and friends at the highest levels of
government and society who can steer them toward the next big thing.
An entire mini-industry has arisen following Warren
Buffett. And Buffett-followers are usually happy they played copy cat.
For example, back in 1988 Buffett began accumulating shares of Coca Cola
(NYSE: KO). Since Buffett's initial purchase the stock has been one of
the market's best performers, delivering total gains of more than
But there are plenty of other billionaire investors
besides Warren Buffett. And with the economic boom in India, China,
Latin America and Eastern Europe creating a whole new breed of
mega-rich... many of them are unfamiliar to U.S. investors.
These modern-day Rockefellers run the gamut...
The richest man in the world is Mexican telecom
magnate Carlos Slim, who still drives himself to work.
The sixth-richest is Lakshmi Mittal, an Indian
who lives in the most expensive house in England and threw a $55 million
wedding for his daughter. He chartered 10 Boeing jets and rented the
Palace of Versailles for the party.
#8 is Eike Batista, a superstitious Brazilian worth $30
billion who puts the letter "X" in all his companies' names for good
luck. He owns a $26 million business jet, a $19 million yacht and a $1.7
million speedboat whose engines have to be replaced after each race. He
parks his $500,000 Mercedes-Benz in the living room of his Rio mansion.
The 11th richest is Li Ka-shing, who fled China for
Hong Kong in 1940 to escape Japanese bombing raids. Forced to quit
school and work as a clerk in a watch shop after his father died, he is
now a major real estate developer and the world's largest operator of
container shipping terminals. In spite of his $26 billion fortune, Li
leads a no-frills lifestyle and wears a cheap Seiko wristwatch.
#14 is Vladimir Lisin, the richest man in Russia... an
ex-steelworker who became a metals trader and eventually won control of
Russia's steel and aluminum industry. He's now worth $24 billion and
likes to shoot clay pigeons in his spare time.
Sharing the spot at #18 are brothers Charles and David
Koch, who control the second-largest privately owned company in the
United States, with revenues of $100 billion a year. The secretive
siblings employ 70,000 people working in petroleum, asphalt, natural
gas, minerals, fertilizers and timber. Each man is worth $22 billion.
#32 is Mikhail Prokhorov, a Russian with an $18 billion
fortune. He recently purchased the New Jersey Nets basketball team.
Aliko Dangote is the richest man in Africa, with more
money than Facebook's Mark Zuckerberg, not to mention many other
billionaires. Forbes puts his net worth at $13.8 billion, ranking
him 51st in the world. His cement, flour, sugar and salt companies
account for 35% of the market cap of the Nigerian Stock Exchange.
Dangote just bought himself a $45 million Bombardier aircraft for his
birthday, so he can shuttle back and forth to London in style.
As you can see, the rich are extremely varied in their
But when we looked at all these rich people... we
discovered one way in which they are very much alike. In recent years,
most of them have been pouring their wealth into one particular type of
It's not glamorous. It's been around forever. It
rarely makes the cover of BusinessWeek.
It comes in many forms... but it always has one
essential trait: it always involves a scarce natural resource.
I'm talking about oil, gold, natural gas, metals... the
basic building blocks of economic growth that you dig, drill or pump out
of the ground.
Take Warren Buffett. He owns 29.1 million shares of oil
powerhouse ConocoPhillips (NYSE: COP). Thanks to a solid dividend yield,
steady demand for its products, and enormous share buybacks, COP is a
stock you can buy and file away for a very long time. Maybe forever.
ConocoPhillips is the #3 oil producer in the U.S. What
makes it stand out from the crowd is that it is also a play on the
largest oil producer in the world: Russia.
Conoco owns 20% of Lukoil, Russia's #1 oil firm. The Kremlin gives
Lukoil preferential access to Russia's vast oil fields. So Conoco has a
leg-up on its American and European rivals doing business in Russia.
It's also a generous dividend payer... at times
yielding above 5%. Right now it's paying Warren Buffett almost $77
million a year. The dividend has grown 12.7% annually over the past
five years, which means it has almost doubled.
That's a big reason it has made so much money for its
holders. Over the past 10 years COP has returned 228%, absolutely
crushing the 29% return of the S&P 500.
Knowing this, it's easy to see why Warren Buffett chose to invest about
$2 billion in ConocoPhillips.
And it's not just Buffett. Many of the world's richest
investors are loading up on oil stocks. I'll bring you the names and
ticker symbols of more of these later in this report... including an oil
stock that Bill Gates likes so much that he has piled $570 million into
But oil isn't the only resource attracting the
Carlos Slim (the richest man in the world) has invested
$7.1 billion in a mining company called Minera Frisco. It's his
second-biggest stock position after his own telecommunications empire.
Bill Gates also recently bought 5.8 million shares
the largest cement company in the world, CEMEX (NYSE: CX). Cement is
made from limestone, clay and sand... plus small amounts of aluminum and
iron. It's a true melting pot of natural resources.
John Paulson, the hedge fund operator who shot to fame
after making $3.7 billion in 2007 betting against subprime mortgages, is
also into natural resources in a big way.
Paulson runs a $29 billion hedge fund and four of his top five holdings
are commodity stocks. #1 is $4.6 billion of gold bullion that he owns
via SPDR Gold Shares (NYSE: GLD).
His next biggest bet is 40 million shares of AngloGold
Ashanti (NYSE: AU), worth $1.7 billion.
Paulson's fourth-biggest position is Anadarko Petroleum
(NYSE: APC), worth $1.3 billion, closely followed by oil and gas driller
Transocean (NYSE: RIG), worth $1.2 billion.
The truly rich obviously feel that natural resources
are a good place for their money -- no matter how they made it in the
But our research turned up another interesting fact: a
good number these billionaires actually made their fortunes
in natural resources.
Just look at this list. It shows 29 of the richest
people in the world. Even the poorest of this lot is still in the
world's top 100. And they all made their money in natural resources.
Nearly a Third of the World's 100
Made Their Fortunes in Natural Resources
Mining & Oil
Oil & Gas
Energy & Minerals
Energy & Minerals
Iris Fontbona & family
Steel & Telecom
Steel & Coal Mines
G. Larrea Mota Velasco
Oil, Banking, & Telecom
Sugar, Flour, Cement
Savitri Jindal & family
Oil & Metals
Mohammed Al Amoudi
Mining & Metals
Oil, Gas, &
Oil, Banking, & Telecom
This group of 29 billionaires is by far the largest
group in the top 100, when you break them all down by the source of
their wealth. More mega-fortunes were made in natural resources than in
technology or real estate, or any other business -- no matter how much
you hear about Google and Donald Trump.
And many more billionaires who made their money in
other areas are storing their wealth in natural resources. In fact,
they're loading up on some of our favorite natural resource stocks right
Here you can see exactly where a wide range of
billionaires are voting with their money. This is current data, so it
shows you what is happening right now.
From a native-born software genius like Bill Gates to a
couple of WWII refugees (George Soros and Li Ka-shing), a remarkably
wide range of affluent people are piling into natural resource stocks.
Some of these billionaires own so many natural resource
stocks that we don't have room to list them all. I imagine there is
something appealing about the reliability of investing in energy,
metals, agriculture and similar companies... something reassuring about
the fact that the world needs them to function.
In some cases, these billionaires are putting a huge
amount of their net worth into these stocks. Hedge fund kingpin John
Paulson is worth $16 billion... and most of his money is in the hedge
fund he runs. At least 40% of that money is in natural resource stocks,
so he's making a huge personal bet on this sector.
Where Some of the Richest People Are
Putting Their Money
(Richest person in the world)
|Impulsora de Desarrollo
|Bill Gates (#2nd in the world)
Oil & Gas
Oil & Gas
Deere & Co.
|Warren Buffett (#3 in the world)
Oil & Gas
Oil & Gas
|Lakshmi Mittal (#6 in the world)
|Eike Batista (#8 in
||Oil & Gas
|Li Ka-shing (#11 in the world)
Oil & Gas
|John Paulson (#39 in the world)
|SPDR Gold Trust
|TOTAL (includes 12 stocks not
George Soros (#46 in the world)
|Great Basin Gold
|23 more gold positions
|29 more oil and gas
Another popular pick not listed here is BHP Billiton
(NYSE: BHP), the $230 billion Australian natural resources conglomerate
that's involved in everything from oil and gas to copper, lead, coal,
iron, titanium, uranium, silver, diamonds and gold.
Kenneth Fisher, the well-known San Francisco money
manager with $38 billion under management, has 6.2 million shares of BHP
in his various portfolios. That single position is worth $527 million.
BHP has been digging riches out of the earth since
1885... and now pulls in more revenue than any other mining company in
the world. I imagine Fisher is happy he owns it -- especially if he's
held onto it for a while. Over the past 10 years, this stock is up
1,121% while the S&P 500 is up just 31%.
BHP is one of the picks in our new research report...
The 9 Best Stocks to Own for the Next Decade.
I'll explain how you can get a copy of this free report
in a minute.
It won't cost you anything and it's full of companies
that the world's most prominent billionaires are loading up on right
now. We think these stocks will continue to create huge wealth over the
How Most of the World's Greatest Fortunes Were
There's nothing new about
getting rich on natural resources.
When you look back in history, you find that natural
resources have created most of the great family fortunes of lore.
Some of these historical fortunes make today's
billionaires look like pikers.
Oil tycoon John D. Rockefeller was not only the richest
man in history... he had more money than Warren Buffett, Bill Gates, Sam
Walton and Carlos Slim combined.
None of these poor guys can hold a candle to the $336
billion fortune (adjusted for inflation) amassed by Rockefeller.
| When he was young, Rockefeller said that his two
greatest ambitions were to make $100,000 and live to be 100. He died
just before his 98th birthday, but he sure made good on the first goal.
Rockefeller started out as a wholesale grocer and went
on to found Standard Oil, which grew to be a gargantuan monopoly. At its
peak, Standard Oil had about 90% of the market for kerosene in the
United States. (In the early days, gasoline was dumped in rivers because
it was considered useless.)
Rockefeller made his fortune on the quintessential
commodity of modern times: oil.
But guess what? The second-richest man of all
time also made his fortune in a commodity business.
Andrew Carnegie emigrated as a child from Scotland to
Pittsburgh and began working as a bobbin boy in a textile mill. He
changed spools of thread for 12 hours a day, for $2 a week.
By the time he was 30, he owned iron works, railroads
and oil wells. But his real money came from steel. By the late 1880s,
Carnegie's steel empire was the world's largest maker of steel rails and
His peak wealth, measured in today's dollars, was $318
In 1901, at the age of 66, Carnegie retired and sold
his company to John Pierpont Morgan, who paid him in gold bonds. When
the bonds were delivered, he had to build a special vault to store them.
But you shouldn't get the idea that natural resource
billionaires are just historical footnotes. As we showed earlier, the
largest group of today's billionaires all made their recent fortunes in
Why are natural resources so popular among the
The answer is simple -- natural resource stocks have
been the best performers in the stock market over the past decade. And
for reasons we'll get to in a minute, we think the next decade will
bring more of the same. That's why every single stock in our
newest research report -- The 9 Best Stocks to Own for the Next
Decade -- is involved in the natural resources sector.
We're not the only ones who believe natural resource
stocks will deliver many of the biggest gains for investors in the years
ahead. Just take a look at what some of the nation's top investment
minds and media outlets are saying...
The Barron's piece
goes on to say that the commodities boom is a long-term trend built into
the very fabric of today's global economy... driven by demand from
today's growth engines in China, India and Brazil. This is a market
driven by forces that could be in place for many years.
Robert Toole, who runs the Crestreet Energy
Opportunities Fund, says "the bull market in the commodity complex
that's been underway over the last decade will continue during the next
decade ahead." Toole's fund was up 52% last year and 81% the year before
And the super-rich aren't the only folks making good
money in natural resource stocks. Small investors are also pocketing
huge gains. For example...
Maylon H., a subscriber from Shreveport,
Louisiana, bought and sold seven mining stocks in the past five years.
He's made money on all seven... for a combined gain of $34,381.
Jerry S. of Bend, Oregon told us "I started my
stock purchases by getting 25,000 shares of Silver Wheaton at $3 a
share. Now it is at $33.50." By my calculations, Jerry had a whopping
unrealized gain of about $750,000 at that point, less commissions and
Please pay attention, because the research and
investing ideas I'm going to bring you in today's presentation might
affect how you invest for a long time to come. I've compiled the
essential "take-away" of this research into a single report, called The
9 Best Stocks to Own for the Next Decade. It's free to any
investor, and I'll explain how you can get a copy in a minute.
But first I want to clear up a common misconception...
one that you might even hold yourself.
Too many investors think that natural resource stocks
are the "slow and steady" type. Consistent, but not flashy... tortoises,
Well that's not exactly true...
What do you think the top gaining stock of the past 10
years was? Apple (Nasdaq: AAPL)… Google (Nasdaq: GOOG)... some other
cutting-edge "glamour" stock?
The biggest gainer of all was a company that 99 of 100
investors have never heard of: Fortescue Metals (ASX: FMG). The gains
this Australian mining outfit made its investors are hard to believe.
$10,000 invested 10 years ago is now worth more than $5 million.
Fortescue wasn't mining gold, silver or some other
high-priced precious metal. It made its fortune in iron... about as dull
a business as you can get.
The firm's tremendous growth has been powered by
insatiable demand for steel from China. Fortescue has at least 10
Chinese steel mill contracts lasting for around 10 years.
It's amazing that an old-school mining company would
return better than Google or any other flashy "new economy" stock. We
wondered if it was a fluke. So we went digging further.
It turns out that HALF of the 20 best-performing stocks
of the past decade were involved in the same thing -- natural resources.
See for yourself. Here are the 20 top gainers in the
world over the past 10 years. The top four are all involved in
And these aren't penny stocks that no one has ever
heard of before. We only included companies with market caps above $3
billion in this list of top gainers. And as you can see, basic
meat-and-potatoes natural resource stocks like miners, iron and steel,
copper, and others dominated the returns.
Half of the World's Best-Performing
the Past Decade Are Natural Resource Companies
*Highlighted rows represent natural
Mines Iron Ore
|Osisko Mining (CN:
|NMDC Ltd (IN:
Explores for Iron,
|Jindal Steel &
Power (IN: JSP)
Makes Iron & Steel
|NetEase.com (US: NTES)
|Sesa Goa Ltd
Mines Iron Ore
Sociedad Minera Cerro Verde (PE: CVERDEC1)
|Hansen Natural (US: HANS)
|Shriram Transport Finance (IN: SHTF)
Buys and Sells Silver
Explores for Gold,
|Titan Industries Ltd. (IN: TITAN)
|Kotak Mahindra Bank (IN: KMB)
|Calloway Real Estate (CN: CWT-U)
|United Tractors (IJ: UNTR)
|Sberbank (RM: SBER03)
|Kumho Petrochem (KS: 011780)
Makes Resins & Chemicals
|Grupo Televisa (MM: TLEVICPO)
Hindustan Zinc (IN: HZ)
|Samsung Engineering (KS: 028050)
Why Have Natural Resource Stocks Done So Well?
One word: scarcity.
Once you burn a barrel of oil or a ton of coal, it's
gone forever. Demand keeps going up, and supplies keep shrinking,
leading to steady price increases for these expiring resources.
Many of the best-performing stocks in history have all
benefited from scarcity.
When demand is infinite and supply isn't... you don't
need a visionary leader or a breakthrough gizmo. And you don't need a
one-in-a-million marketing genius like Steve Jobs at the helm.
No one else can come along and make more of these
commodities. They can try to find more, but that usually takes
billions of dollars. And this high cost of entry tends to keep out new
For example, BHP Billiton has already spent $1.2
billion developing a single potash mine in Canada... and it's not even
operational yet. Before it is fully on line, it will cost the company
about $12 billion.
The huge mining trucks you need in mines like that cost
$3 million each... and new tires run $100,000 apiece. In effect,
companies like BHP have a huge moat around their business, fending off
If you look again at our table of the biggest stock
market gainers of past 10 years, a huge number have the scarcity angle
working for them. It makes sense if you think about it. It's so much
easier to profit when you're selling something the world needs... and
there's not enough to go around.
Industries are desperate for these products... and
supplies are running out. It's as simple as that.
We've all heard about dwindling oil supplies. That's
old news. Oil production in the U.S. peaked in 1971. But it's not just
"peak oil" anymore.
It's also peak nickel, peak silver, peak uranium and so
We are already consuming more than we are finding of
all of these metals.
How long will these critical resources last? It
According to the U.S. Geological Survey, we have
already run out of cryolite, a mineral used in making aluminum. The last
active cryolite mine, located in Greenland, closed in the 1980s.
Meanwhile, the European Commission says that at the
current level of consumption, known uranium resources will run out in 32
Indium, a vital component of every laptop computer and
LCD television set, might be the next resource to go. Extraction of
indium has rocketed in recent years, but it's estimated the entire
Earth's supply will be used up within 10 years.
Gallium is used to make super-efficient solar cells.
But according to studies done by the University of Augsburg in Germany,
we may only be able to generate 1% of future solar energy this way
because gallium supplies are so limited.
Believe it or not, we might even run out of silver in
our lifetimes. At the current rate of usage, all known silver reserves
will be mined out in 27 years. And if new technologies now on the
drawing board come to pass, we will run out in about 15 years. Scarier
yet, if the rest of the world starts using silver at just half the rate
we do in the U.S., it will be gone in seven years.
That puts silver's huge run up of the past few years
There's a lot more to the silver story than old coins
and jewelry. Because of its strength, conductivity and reflectivity,
silver is absolutely critical in electronics. It is also important in
batteries... bearings... catalysts... solar energy... and water
Silver is just as vital to the world economy as copper
or zinc... but relative to its rate of consumption, silver has the
lowest in-ground reserves of any major metal.
Few people realize that we have about five times more
gold than silver in above-ground inventories. That's because 80%-90% of
all the silver ever mined has been used up for industrial purposes. But
80%-90% of the gold is still around.
And then there are the rare earth metals -- a
collection of 17 freakishly useful chemical elements clustered at the
bottom of the periodic table.
Without rare earth metals, you can say goodbye to the
modern way of life.
No more flat screens... no more computer hard drives...
no fiber-optic cables... no digital cameras... no MRI machines. No more
satellites... no more GPS.
Considering how vital they are to our national security
and way of life, you'd think the United States would have a deep
strategic reserve of these metals.
You'd be wrong. We barely produce any at all.
China controls 97% of the world's production.
And Beijing is getting stingy about sharing with the
rest of the world. It recently cut exports of rare-earth metals to
Japan, Europe and the United States.
What's more, China's Ministry of Commerce claims that
its rare earth metals will last just 15-20 years at the current rate of
production. Others say that China's supply will run out even sooner.
Prices of these rare earth metals are doing just what
you'd expect when supplies shrink. Neodymium makes the strongest magnets
in the world. It's in every iPod Apple makes. Neodymium now fetches $105
per kilogram, twice what it did last year... and five times its price in
Cerium is used in catalytic converters to lower CO2
emissions. It is also vital for flat screen televisions, PCs and smart
phones. Its price has tripled since last year.
The list goes on and on... the opportunities in rare
earths are extraordinary. But you don't need to take my word for it.
Here's what SmartMoney magazine had to say about recent
price trends in the rare earth market...
If the combination of
tight supplies and booming demand intrigues you, you should take a few
minutes to familiarize yourself with two of the world's most promising
rare earth stocks. We've put them both into a report called The Most
Promising Rare Earth Metals for Investors.
It's another report that I've prepared for natural
resource investors, and it's also free. I'll tell you how to get your
copy of this report in a moment.
But first, I want to be clear that exotic rare earth
metals aren't the only ones that are jumping strongly. Take a look at
how these "household name" metals have moved since the start of 2000…
These Metals Have Been On the Move
Return Since 2000
The list goes on and on…
Metal prices are so high that thieves are plundering
copper from railways to sell in the black market.
British police called metal theft the "biggest threat
to the railways after terrorism." Repeated thefts of copper wiring in
signaling systems cause frequent train delays.
Metal theft is Britain's fastest-growing crime. 400,000
aluminum beer kegs were stolen last year. Cast iron manhole covers are
going missing, along with catalytic converters from cars for their
In both Germany and Russia whole bridges have been
stolen. And last year traffic ground to a halt in Melbourne after all
railway crossings closed automatically due to theft of wiring.
But you don't need to break the law to make money in
this field. You can just buy a few stocks. I've never seen a more
investor-friendly playing field than the one you get in natural resource
That's exactly what we're seeing with our own
One of our readers told us "I have purchased a number
of gold, silver, palladium, uranium and lithium stocks. I bought
Silvercorp Metals (NYSE: SVM) for $3.60 and sold at $11.55. I bought the
iPath coffee ETF (NYSE: JO) at $45.19, sold at $69.90 and made $12,400.
Another subscriber said he bought Petro One Energy at
$0.62 and sold at $1.47 for a profit of $18,000.
Before I go on, let me introduce myself. My name is
I'm not famous. I'm not a Wall Street big shot. I'm
just an independent investment analyst working out of Shreveport,
Louisiana... but I'll put up my track record against anyone's in the
If you do know me it's probably as the editor of
StreetAuthority's flagship Market Advisor service. This letter's "Top
Growth Picks" Portfolio has more than tripled the S&P 500 since it
started in 2003.
I happen to live in Desoto Parish in northwest
Louisiana. Back in March, my backyard became the nation’s top-producing
natural gas field. So I've had a grounds-eye view of the transformation
that has turned sleepy rural areas into bustling hives of drilling
activity. Leasing bonuses and royalty payments are flooding in.
There has been no housing crash and no recession here
at all. It's booming. The only complaint I have is how often I get stuck
behind trucks hauling drilling equipment around town.
Nathan Slaughter lives in
the middle of the nation's
natural gas field.
So I'm not new to natural resource stocks. I've been
putting my subscribers into them for years…
Last year we booked a 106.4% profit in Silver Wheaton
(NYSE: SLW)... 86.6% in Kinder Morgan (NYSE: KMP)... 119.4% in Magellan
Midstream (NYSE: MMP)... 107.4% in PetroChina (NYSE: PTR)... and
in MV Gold Miners (NYSE: GDX).
Before I joined StreetAuthority I spent several years
at AXA/Equitable Advisors, one of the world's largest financial planning
firms. I later honed my research skills at Morgan Keegan, where I
managed millions in portfolio assets.
But my best credential is my track record here at
StreetAuthority is one of
the nation's largest financial research outfits. We've been in business
for over a decade, and our analysis has appeared on Nasdaq, Forbes,
Yahoo, AOL, and many other well-known financial media outlets.
Over the years, our business has grown like a weed. We
now have two offices -- one in Gaithersburg, Maryland and
another in Austin, Texas.
We employ dozens of people, and we have analysts and
researchers all over the U.S. and Canada.
Today, we publish our research to over 2 million
readers in 175 countries.
Working at StreetAuthority as part of a
larger team, I'm fortunate enough to have some high-powered research
tools at my disposal. One of the databases I use costs $23,000 per year.
In fact, StreetAuthority spends over $1 million a year
on research and analysis, and I have full access to all of it.
I've taken advantage of this intelligence pool to
deliver plenty of gains in natural resource stocks. I'll let my
subscribers tell you themselves...
Mark is talking about Petrohawk. I bought this natural
gas play on January 27 of this year. The company operates right in my
neighborhood and I drive by its wells every day. On July 14, BHP
Billiton announced it would buy Petrohawk out for $38.75 a share in cash
-- 103% higher than the price we paid less than six months earlier.
If Petrohawk hadn't been bought out by a major company
that wanted in on the red-hot shale natural gas business, I might have
put the stock in my new research report.
With positions in three of the most popular shale
formations in the United States, Petrohawk is the sort of long-term
locked-in winner that I'm focusing on in The 9 Best Stocks to Own for
the Next Decade.
But I do have another pick in the report that's a lot
like Petrohawk. This aggressive natural gas player is the most active
driller of new wells in the United States. It focuses on unconventional
fields and owns leading positions in the Barnett, Haynesville and
Marcellus shale gas plays.
I'll give you the name and ticker symbol of this
unusual opportunity in my new report.
In the meantime, considering their profits, it's no
wonder that so many natural resource companies grow huge. Because of the
constant demand for their products, natural resource stocks have become
some of the biggest publicly-traded corporations on earth. In fact,
three of the four most valuable stocks on the planet are natural
The Four Most Valuable Stocks on the
*Highlighted rows represent natural
Business (in billions)
|Exxon Mobil (XOM)
||Oil & Gas
||Oil & Gas
|BHP Billiton (BHP)
With market caps reaching
$359 billion, these companies are larger than the GDPs of Portugal,
Egypt or Chile.
Exxon Mobil is not only the largest oil company in the
world, but it's also the largest publicly-traded company, period.
Exxon's biggest competitive advantage lies in its extraordinarily low
cost of production -- the company is finding and developing oil for
under $20 per barrel. That's about the lowest cost in the world.
Exxon Mobil is the stock I mentioned earlier that Bill
Gates is into in a big way. He owns 7.6 million shares worth about $570
Ken Fisher, the West Coast money manager I mentioned
earlier, is right behind him with 7.1 million shares. His stake is worth
And take a look at the third-largest company in the
world, PetroChina. This oil and gas giant has ballooned in size as it
has grown to meet China's insatiable energy needs. It has also been on a
spending spree, snapping up energy fields on virtually every continent.
#4 in the world is BHP Billiton. This is the Australian
conglomerate I mentioned earlier that mines just about every mineral you
can name. The is the same one that took over Petrohawk and that money
manager Ken Fisher owns $527 million of.
BHP's exposure to a wide range of commodities helped
this stock jump 150% in 2010.
Because economies of scale are so important to their
business models, natural resource companies have a way of growing into
billion-dollar multinational empires.
In fact, I'm convinced that the first trillion-dollar
stock will also be a natural resource play. But it won't be Exxon
This Could Be the First $1 Trillion Stock
It's a big number to
swallow, but it's going to happen someday.
A couple companies have come close to hitting the
trillion-dollar mark before, but they've all fallen short.
Microsoft (MSFT) posted an eye-popping market cap of
almost $600 billion as the tech bubble raged back in 1999.
Meanwhile, PetroChina's (PTR) market cap topped $700
billion in 2007.
But neither company managed to hit the $1 trillion
mark, and I doubt that either will reach that level anytime soon.
Instead, I'm convinced that the first trillion-dollar
stock will be Brazilian energy giant Petroleo Brasileiro (NYSE: PBR).
It's already the 13th-biggest firm in the world. Its
current market capitalization is $178 billion, so it needs to grow
six-fold to get to $1 trillion. But I think it can get there.
That's because "ambitious" is an understatement for
Petrobras' growth plans. It plans to invest an astounding $224 billion
in the next four years on exploration and production.
All told, Petrobras estimates that its oil production
could ramp up from less than 2.5 million barrels a day in 2008 to close
to 6 million barrels a day by 2020. That's one of the fastest growth
rates of any energy firm in the world.
But Petrobras' ace in the hole is that it is 100%
backed by the Brazilian government. A partner with basically unlimited
capital is a huge bonus.
It means Petrobras basically operates a monopoly in
Brazil. Last year it accounted for almost 99% of oil and natural gas
production in the country.
Petrobras could become the Rockefeller story of this
century. Most people know Rockefeller became rich via Standard Oil. But
when you look closer at why Rockefeller got rich, you realize Standard
Oil didn't turn Rockefeller into a billionaire simply because it was in
the oil business.
No. Standard Oil made Rockefeller the richest man in
history because the company held a monopoly in its market.
And that's exactly what we have here. The Brazilian
government has granted Petrobras full access to drill and explore in
Brazilian waters and coastal regions. Management calls this "privileged
access," which it certainly is.
Very few government-controlled oil firms are also
open to private investors like you and me.
Petrobras will soon begin extracting some of the
largest oil finds in history. Sales and earnings have expanded at a 26%
average annual clip in the past five years. They should keep pace in the
coming five years as the company ramps up production from its massive
With all of this in mind, I think Petrobras' market cap
will soar to $1 trillion within a decade.
Petrobras is a great example of a huge company that is
nimble and aggressive enough to keep going for years. We're finding a
lot of those in the natural resource sector.
But size isn't their only attraction. Many of them are
paying huge dividends, too...
Some of the Highest Yields on Earth
For example, Cheniere
Energy Partners (AMEX: CQP), which is a key player in liquid natural
gas, yields 10.8%.
Legacy Reserves (NDQ: LGCY), an oil and gas limited
partnership, yields 8.1%...
Enterprise Product Partners (NYSE: EPD), a gas transporter, yields 6.1%.
MV Oil Trust (NYSE: MVO), a royalty trust, yields a
mouthwatering 10.6%... Transmontaigne Partners (NYSE: TLP), which
transports liquid petroleum products, yields 7.4%.
Even ConocoPhillips -- the diversified energy giant
that Warren Buffett owns $2 billion of -- yields around 4%.
But Buffett isn't the only investor who is cashing huge
dividend checks from natural resource stocks. Millions of small
investors across the country are also profiting from these
high-yielders. Take a look...
Gerald C. of Oakland, California inherited 400 shares
of Chevron (NYSE: CVX) in 1978. After splitting three times, it became
3,200 shares. He tells us he sold a few hundred shares along the way,
but still owns about 3,000 shares. I looked up the history of this
stock. His Chevron shares were worth about $15,000 when he inherited
them and about $300,000 today. And Lord knows how many thousands of
dollars in dividends he got along the way.
Robert R. of The Villages, Florida says he bought 1,000
shares of Exxon in 1973. Today he owns 16,000 shares. "Not bad!" he
says. Considering his stock is now worth $1.2 million, we agree. The
more than $30,000 a year he gets in dividends isn't bad either.
Exxon Mobil has paid dividends to shareholders every
year since 1882. And it has increased its dividend for the past 29 years
and counting. I have no doubt that they'll pay even more next year.
Exxon Mobil yields 2.6%, but that's nothing compared to
a few of the stocks in my new report -- The 9 Best Stocks to Own for the
One of our picks brings you an unusual collection of
some of the market's biggest dividend payers. They've also crushed the
market as far as total returns go.
These unusual vehicles are heavily into energy... are
almost 100% tax-free… and have gained 17% a year for the past decade. No
other asset class has come close to this record.
Any investor disgusted by 2% CD yields will want to
know more about this one. It's just one more feather in the cap for
natural resource stocks. You'll have to read my full report to get the
name and ticker symbol of this stock.
It's Time for You to Start Making Money
Natural Resource Stocks
Over the years, I've
bought and sold plenty of stocks. And I've made my biggest profits by
riding long-term bullish trends -- exactly what we have today with
It's these big picture investments that add the most to
your long-term wealth. That's why I put together The 9 Best Stocks to
Own for the Next Decade.
It's free for all interested investors. All I ask is
that you sample my monthly natural resources newsletter -- Scarcity &
I think you'll like the simplicity of my approach to
making money in today's tricky market.
In a world of crooked politicians, paper money and
ballooning government debt, Scarcity & Real Wealth brings you
investments with real, tangible value. This monthly newsletter focuses
exclusively on the rarest and most valuable assets on the planet --
commodities, energy, gold, and other natural resources. These critical
inputs are in short supply, yet worldwide demand is exploding.
As you'll see when you get your first issue, investing
in the path of growing scarcity is one of the surest bets in investing.
So far, the readers following my work seem to have
Laurent R. of Webster, New York says that the stocks he
bought based on my analysis "have been very productive and a boon to my
increasing net worth."
Now, there's no guarantee Scarcity & Real Wealth will
be the right publication for you. So here's what I'd like to do.
Try Scarcity & Real Wealth for the next 30 days
risk-free... look over The 9 Best Stocks to Own for the Next Decade,
which is included for free with your subscription, and then decide then
if my research is what you're looking for.
Start your 30 days now and you'll have full access to
the names and profiles of the best natural resource plays we've found
worldwide. I actually buy my favorite ideas in a real portfolio funded
You can also get up to four additional reports detailing our
top picks in more narrow niches of the natural resource bull market.
For the next 30 days, you can take the time you need to
decide if my Scarcity & Real Wealth research is what you're looking for.
If not, simply contact our customer service team for a 100% refund.
Like I said, it's risk-free to see if my research is
right for you.
You'll also get the names of all of the stocks I've been talking about
today -- along with ticker symbols -- in my latest special report --
9 Best Stocks to Own for the Next Decade.
A few of these scarcity plays are household names, but
I don't think one investor in 100 has heard of half of them.
For example, one of our picks brings you a collection
of mostly-ignored resource stocks that pay their profits directly to
investors. They have to, by law. Only they pay much bigger dividends,
because they pay no tax to the government.
As an added bonus, your personal taxes are so low that
you'll think the IRS has made a mistake.
One StreetAuthority subscriber, Fred S. of Baltimore,
has had a very happy experience in this market. He tells us he invested
less than $25,000 in 1992... and his stash is now worth almost $300,000.
As far as we're concerned, these securities are the
best natural resource investment that nobody talks about.
The only reason they don't get more publicity is
because they're designed for the small investor, not the big boys. With
their low level of institutional ownership, Wall Street's hordes of
salesmen have little reason to pay attention.
Well, we're not part of the Wall Street machine. And we
think they are too important to ignore -- especially for any resource
investor who likes a nice yield. So we've included a simple way to
participate in the best of them in The 9 Best Stocks to Own for the Next
I can't go into details on all these picks or I'd be
here all day. Instead, why not just send for a free copy of this new
All I ask is that you try a risk-free trial of my
monthly advisory -- Scarcity & Real Wealth.
Scarcity & Real Wealth gives you a way to hitch your
wagon to a locked-in trend.
With so many forces converging to drive commodities
higher, this is an almost effortless way to invest.
You don't need a PhD to grasp why this is working so
well. Every year 80 million new people are born who need to be fed,
clothed, and sheltered. Meanwhile, supplies of virtually every natural
resource the world needs are shrinking.
The world is getting hungrier for all types of critical
resources, from energy to metals to agricultural products. But there's
not enough in the cupboard to feed everybody -- which is why prices
continue to rise.
People are demanding more of ALL the planet's
resources, not just the headline grabbers. So don't be lulled into
thinking all you need is oil and gold. There are plenty of other
less-followed hard assets riding the scarcity wave and posting huge
Take palladium, for example. This precious metal is
used in everything from automobiles to fax machines. Rarely does
palladium make front page news over silver and gold... but last year it
outperformed both. Just look at my chart.
Surging demand and limited supply are good news for
palladium miners like North American Palladium (AMEX: PAL). As the
world's largest supplier of palladium, no other company is better
positioned to profit from higher prices.
Palladium Outperformed Both Gold
and Silver in 2010
Right now, the world is demanding more of everything,
making scarcity an odds-on bet to drive financial markets for years to
come. This is great news for the investors in the companies that supply
Just take a look at some of the profits that everyday
small investors across America have been making in natural resource
Retired Foreign Service Officer Tom M. tells
There are just so many ways you can profit in this hard
Vince B. of Honolulu, Hawaii, says he's "up over 500%
in silver rounds & ingots."
But my favorite story is from Edwin C. of San Diego. I'll let him tell
Keep in mind that not every natural resource stock will
increase in value. And, of course, commodity prices will fluctuate --
nothing ever goes straight up. But by and large, I believe high -- and
rising -- commodity prices are here to stay.
That's why I'm convinced that investing in the right
natural resource stocks will make you more money in the coming decade
that you'll make anywhere else.
That's the simple premise behind every recommendation
in Scarcity & Real Wealth.
If you agree with anything I've said so far, then let me give you access
to all the research we've done in this field -- including our newest
research reports. These reports reveal the best ways we've found to
profit from the ongoing pressure under natural resources. They're free,
so you might as well take a look and see for yourself.
All I ask is that you accept a no-risk trial
subscription to my monthly newsletter -- Scarcity & Real Wealth.
A full year of Scarcity & Real Wealth costs only
$39.95. And it's 100% guaranteed. If it's not for you, just let us know
within 30 days and we'll give you all your money back. No hard feelings.
I'll tell you how to get started with Scarcity & Real
Wealth in a moment. But first I want to tell you about one final bit of
research I've been working on...
The Best Commodity Play for 2012 and
Beyond... and It's NOT Gold or Oil
Demand for lithium (shown above)
is soaring due to its use in electric batteries.
| See this?
You're looking at one of the most unusual minerals in
the world. Some people call it "the oil of the 21st century."
It may not look like much, but no other metal in the
world can do what this one does. It's light enough to float on water and
soft enough to be cut with a knife.
Businesses are willing to pay hundreds of millions a
year for these eccentricities... because it is a key ingredient in
everything from pharmaceuticals to rocket fuel.
It's a lubricant, a propellant, and a nuclear reactor coolant. It's also
crucial for fireworks, airplanes, glass cookware and even medicine
But its real magic is that, pound for pound, this
featherweight metal can store more electric energy than just about any
other material. That has made lithium the battery maker's best friend.
Rechargeable lithium-ion batteries have twice the
energy density of yesterday's outdated nickel-cadmium technology. So
they are becoming mandatory in everyday products from digital cameras to
portable video game consoles.
You've probably got some lithium within reach right
now. If you own an iPad or iPhone, you definitely do.
But electronic gadgets aren't why I'm so excited by
The real action is in cars -- electric cars, to be
President Obama wants to put one million electric cars
on the road by 2015, and 10 times that amount by 2018. The government is
bankrolling the transition with some heavy incentive dollars.
GM is going electric with the Volt. Ford is planning a
battery-powered car based on the Focus. And of course Toyota has the
Prius... Honda the Insight... and Nissan the Leaf.
But car makers won't be the biggest winners from the
craze for electric vehicles. Instead, I think there's another way to
make even more money from the transition to battery-power.
The epicenter of this profit play is nearly 5,000 miles
from Detroit in a windswept desert in Chile. It holds the world's
largest deposits of lithium... and six pounds of it are needed in every
new electric car rolling off the assembly line. It's the Saudi Arabia of
There is no direct play on lithium itself. There are no
lithium trading pits, no futures contracts, and no way to take physical
possession. The metal is so volatile that it's stored under a protective
coating of petroleum jelly.
So we suggest simply buying the world's #1 miner of the
stuff. Its stock is up 429% in the past five years. But since the
electric car revolution is still in its infancy, I think this stock's
winning streak will continue.
There's a lot more I'd like to tell you about this
great company. Rather than go on and on right now, I've put everything
you need to know in a separate special report, The Best Commodity Play
for 2012 and Beyond… And it's Not Gold or Oil.
This report gives you my overview of the lithium
industry... why I think lithium prices will continue to soar... and the
name and ticker symbol of my top pick in this arena.
You'll also see an easy way to invest in lithium with a
single stock that owns 22 lithium plays... some of which you can't even
buy here in the States. It's truly a remarkable collection of
investments that you won't find anywhere else.
Even better, this report is free as a "get-started"
gift to new readers of my Scarcity & Real Wealth advisory. It's a great
sample of the sort of hard-asset investments you'll find every month in
A Discount of 80% Off the Masthead Price
The masthead price for
Scarcity & Real Wealth is $198 per year. We put an enormous
amount of time,
money, and effort into our company's research... and we have to recoup
But today we're trying something different. Sign up
through this offer and you can start your 30-day test of Scarcity & Real
Wealth for 80% off.
You'll have the next month to take a look at the
research reports I've just described, plus the current (and next) issue
of my Scarcity & Real Wealth newsletter... plus all my back issues as
If you decide for any reason my work is not right for
you, just let us know and we'll send you a full refund. And you'll keep
everything you received from us -- all of our research reports and
newsletters -- free of charge.
To recap, you'll pay just $39.95 for one year of my
monthly advisory. This includes...
||12 Issues of Scarcity & Real Wealth -- Each issue includes an in-depth
feature on my top pick of the month and is loaded with fresh new
investing ideas as well as updated advice on my previous picks.
||Instant Access to My Entire $100,000
Real-Money Portfolio -- To track
our results I actually buy and sell my picks in a real brokerage
account. This way you'll see exactly how my picks are doing --
with zero BS. I also give you 48 hours advance notice before I
buy or sell any security -- giving you time to beat me to the
also receive several in-depth research reports. Here's a quick look
at the reports you'll get with a one-year subscription:
||Report #1: -- The 9 Best Stocks
to Own for the Next Decade -- You'll have full access to
the names and profiles of our 9 favorite natural resource stocks
we believe are the surest bets to keep rolling ahead thanks to
desperate and growing demand for their products.
||Report #2: -- The Most Promising Rare Earth Metals for
Investors -- China controls 97% of the world's production of these
strategic metals, but it recently cut exports, sending prices soaring.
This report reveals two companies that could benefit the most from a
price war for rare earth metals.
yet, take a two-year subscription to
Scarcity & Real Wealth for just $79.90 and you'll receive
three additional reports:
||Report #3: -- The Best Commodity Play for 2012 and
Beyond... and It's Not Gold or Oil -- This is all about how to profit
from the amazing mineral that people are calling "the oil of the 21st
century." Businesses are willing to pay hundreds of millions a year for
it... because it's a key ingredient in everything from electronics to
rocket fuel. The two picks in this report are the most direct way you'll
find to profit from this metal -- because there is no way to invest in
the metal itself.
||Report #4: -- The 3 Best Energy Stocks to Hold Forever
-- If you want to hold onto a stock for a long time and let your profits
compound, here are three great choices. The first two are sitting on
massive oil and gas reserves in politically stable areas that
will ensure a steady flow of revenue for decades. The third has
the world's largest deepwater drilling fleet and its rigs rent
for up to $1 million per day. It should be plenty busy for years
working in the Black Sea and extracting the 80 billion barrels
of oil discovered off the shores of Brazil. It yields 6%, it has
a $24.6 billion contract backlog, and in the next five years
earnings should grow by 22% a year.
||Report #5: -- The 3 Best Stocks
to Own if Oil Hits $150 Again -- Oil is the blood supply
of every economy in the world, and it's a product people must
buy -- virtually without regard to price. Oil prices spiked to
nearly $150 per barrel a few years back, and prices could easily
exceed those levels going forward thanks to booming demand from
developing nations like China and India. And as oil prices
climb, these three stocks give you a great chance to profit. One
of them has boosted production by 50%, helping propel the stock
to 300% gains since 2009. Another is a former Canadian trust
that's paying a huge 6.2% dividend.
Keep in mind this is the lowest price we've ever
offered for Scarcity & Real Wealth. I can't say for certain how long
we'll be able to offer this deal.
The great thing about this offer is that you can give
my research a look and receive everything I've mentioned here at no risk
You'll have the next 30 days to make up your mind. In
other words, you are only agreeing to try my work to see if you like it.
If you don't, no problem. Simply call our dedicated
customer service team before 30 days is up and we'll send you a 100%
refund. You can keep the reports and your first two newsletters free of
To get started, simply click on the link below, which
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All the best,
& Real Wealth
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Copyright 2001 - 2011. StreetAuthority, LLC All Rights Reserved.
Figures shown in the preceding page represent returns for individual stocks
only. All investments can be volatile, and all returns will be
reduced by fees and expenses. Below are the returns for Nathan
Slaughter's premium newsletters.
2011 YTD Returns*
Scarcity & Real Wealth
Average Returns of
Current Portfolio Holdings*
Current Holdings Showing Gains
Current Holdings Showing Losses
Scarcity & Real Wealth
* as of September 23, 2011
Nathan Slaughter owns shares of BHP, COP, PAL, and SLW.
StreetAuthority owns shares of BHP, COP, EPD, PAL, RIG and SLW as
part of various real-money portfolios.