The Top 10 Stocks for 2012


 



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Stock #1 has raised dividends 463% since 2004 and bought back more than $15 billion in shares in the past two years. The company still has $8.5 billion allocated to share buybacks (and at one point Warren Buffett's Berkshire Hathaway owned more than 7.5 million shares).

Stock #2 is the equivalent to owning your own oil derricks. This security owns a stake in 160 oil and gas wells in a rich field in northern Oklahoma... and is paying a dividend yield of 11.5%.

Stock #3 operates one of the most stable business I've found -- it owns pipelines that ship and store petroleum, gasoline, and ammonium around the country. In the past five years net income is up 114%... each share pays $3.36 in dividends per year... and including dividends, the shares have returned 17 times more than the S&P in the past five years.

Plus 7 additional picks..

My staff and I firmly believe that these 10 stocks, which I'll tell you about in a moment, will beat the stock market in 2012... and beyond.

Some of the names within this select group of stocks you've likely heard about before. But there are others that I'd be surprised if even 1 in 20 investors know about.

Of course, they all have one common thread: We think they have the potential to beat the Dow... the Nasdaq... and the S&P 500 in the coming year.

There aren't any guarantees, but when you see statistics like this, it's easy to see why we're excited about this exclusive group of 10 investments... and why we already own many of these stocks personally.

For example... 

  Stock #4 is a rare find that gives you a stake in dozens of infrastructure monopolies across the entire world.

It owns electric grids in Chile. It owns railroads in Australia... ports all over Europe... coal facilities in Australia... toll roads in South America... and timberland in the United States and Canada.

In total, roughly 80% of the partnership's revenues are under contracts or are regulated. Those revenues are practically guaranteed. Right now the stock pays $0.375 per unit each quarter. That dividend has increased 21% in just one year and gives the units a yield of 5.0%.

Stock #7 has posted three consecutive years of rising revenues, helping it to amass an enormous cash pile. At last count, this company held more than $48 billion in cash on its books. That amounts to $9.00 per share... yet the stock trades for less than $17.

But that's not all. To attract investors the company initiated its first-ever dividend in 2011. And while that payment is modest right now, the amount of cash this company holds (and a recent 33% dividend increase) suggests these payments could rise quickly.

Stock # 10 is one of the most important oil companies in the world, but unless you're an energy guru, I doubt you've heard of this stock. This company has found vast oil and gas deposits off the coast of Brazil... enough to potentially double its production volume over the next decade, according to Morningstar.

The "why" behind this investment is simple. The world -- especially emerging markets like Brazil -- have an insatiable thirst for more oil, and this company can provide it.

That's just a taste of what we like about these stocks...

Keep reading and I'll tell you more about this select group of just 10 stocks -- including several names and ticker symbols.

And if history is any guide, learning everything you can about our Top 10 Stocks for 2012 is worth your time...

Without a doubt, this report is our most popular piece of annual research (more about who we are in just a moment). In fact, we've published this annual list since 2003. And over the years, literally tens of thousands of investors have read -- and profited -- from this advice.

And there's a good reason why this research is so popular year-in and year-out...

In our inaugural edition in 2003 our top picks beat the S&P by 12 percentage points over the course of the year. And then came 2004... 2005... 2006... 2007... 2009... and 2010 -- our Top 10 Stocks trounced the overall market in those years as well.

Along the way, we've racked up some phenomenal gains for our readers. In 2008 -- a year marked by one of the worst market sell-offs in history -- we obviously saw some losses, but also made 45.8% with shares of Panera Bread (Nasdaq: PNRA)

And then in 2009 there was the 72.1% we earned on shares of CPFL Energia (NYSE: CPL), the Brazilian utility company that soared as the markets rebounded.

And in 2010 -- a year in which the S&P 500 gained a modest 6.7%, we selected not one but two stocks that gained more than 100% on the year -- Skyworks Solutions (Nasdaq: SWKS), up 101.8%, and Silver Wheaton (NYSE: SLW), up 159.9%.

Here's a sample of some of the big winners we've seen over the years...

2003

Symbol

Return

CPG +72.7%
GS +46.3%
CARS +43.2%

2004

Symbol

Return

EV +44.4%
TTWO +20.7%

2005

Symbol

Return

WFM +63.7%
TEVA +45.2%
CEDC +35.9%

2006

Symbol

Return

KMX +93.8%
FXI +83.2%
IGT +52.1%

2007

Symbol

Return

CME +35.4%
BRK-B +29.2%

2008

Symbol

Return

PNRA +45.8%

2009

Symbol

Return

CPL +72.1%
DEM +58.1%

2010

Symbol

Return

SLW +159.9%
SWKS +101.8%

Now, I can't guarantee every stock we cover will be a winner. There's no doubt we've recommended a few stocks over the years that haven't beaten the market. And although we've trounced the S&P in 7 of the past 9 calendar years, we haven't beaten it every single year.

But here's what I can tell you -- thanks to our research team's expertise and our track record of beating the market, I'm confident enough in these picks to put my reputation -- and my own money -- on the line...

My name is Paul Tracy. I'm the co-founder of StreetAuthority, one of the nation's fastest-growing financial research firms. As I said, without a doubt our most anticipated piece of research each year is our annual "Top 10 Stocks" list...

But what I don't think many understand is the risk we take in publishing this report year after year.

Let me explain...

Our entire livelihood is centered around finding profitable stocks for individual investors like you. If we make bad calls, we know investors will remember it. That means when we go out on a limb with these picks and publish them for everyone to see, we're taking a BIG financial risk. After all, there are no "do-overs" with this report. Once it's published, we're locked in for the year.

Thankfully, so far that risk has paid off well. Here's what a few of our readers have had to say about some of the stocks we've recommended in the past...

"Across about 50 client portfolios, we have about $700,000 invested in the position [you recommended]. We've made about $150,000 so far.
-- Jim P., Forest Grove, Oregon

"I like that you are not on Wall Street and I am impressed by your thorough but brief assessment of why your recommendation is a valid one to consider."
-- John O., Panama City, Florida

"The information [you] provide almost eliminates any research I may have to do myself. That type of info is hard to find out for people like me that have a full time job and are busy with other stuff. [You] find crucial investment information all investors should know about!
-- Tony P., Toronto, Canada

But it's not just our company's reputation on the line. We have skin in the game too.

You see, unlike many investment research organizations, our company has nearly $1,000,000 in actual cash behind our calls in the form of "real-money" portfolios across our numerous advisories.

Yes, we put actual cash behind our investment ideas.

In fact, of the investments we've tagged as our Top 10 Stocks for 2012, we already own many of them in our various real-money portfolios. (That includes the two stocks I'll tell you about in a moment -- including names and ticker symbols -- that are paying dividends like crazy.)

That "skin in the game" has certainly helped get our research noticed.
 

My business partner, Lou Betancourt, and I started StreetAuthority a decade ago. We literally started the business from our kitchen tables. It's funny to think about now, but I can tell you back then we tried to keep our humble start a secret.

But then a funny thing happened...

People began to see StreetAuthority knew what we were talking about. We were making investors money.

Gradually more investors learned about us. Then our analysis started to appear on AOL, Forbes, Nasdaq, and Yahoo Finance. That brought more readers.

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.

But as I said, despite publishing thousands of investment articles each year, StreetAuthority's most anticipated piece of research is our annual "Top 10 Stocks" list.

Of course, this report's popularity certainly begs the question... how is it possible to beat the market with only a handful of stocks? After all, if only a couple stumble, doesn't that drag down returns?

Well, as you'll soon see, it's not only possible to beat the market with only a handful of stocks, but some of the world's greatest investors -- including Warren Buffett -- swear by this strategy.

It's a pretty bold statement.

It goes against what literally thousands of retirement planners tell millions of investors. In fact, it goes against one of the oldest axioms of investing.

I think diversification is a mistake.

Let me rephrase that. I think diversification is a mistake if you want to beat the market.

If you want to simply follow what the market does, then by all means, buy a simple index fund and you'll be done. Nothing is simpler.

I don't know about you, but my goal is to beat the market... not simply float alongside it.

And it's impossible to beat the market when your portfolio IS the market. But what may surprise you is that I'm not alone in thinking this way...

Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) holds just 34 publicly-traded U.S. stocks. That's a lot for an individual investor, but for a company with billions at its disposal, it's surprisingly few. On top of that, Berkshire's top five holdings make up 74% of its portfolio.

Buffett believes investors should focus exclusively on their best picks ...
 

"Once you're in the business of evaluating businesses, then I think diversification is a terrible mistake.

"If you really know businesses, then you probably shouldn't own more than six of them. I can tell you that going into a seventh [business] instead of putting more money into your first one is a terrible mistake. Very few people have gotten rich on their seventh-best idea, but a lot of people have gotten rich on their best idea."

- Warren Buffett

To be fair, Buffett does say his strategy isn't for everyone. It takes experience to be able to identify which businesses make good investments... and which to avoid. And that's why I'm here. It's my job to track down the companies that I think can make investors money.

And when you start digging, it's pretty easy to see why Buffett -- and a growing number of investors -- are putting their money almost exclusively in their top few picks.

Take the bear market that lasted from October 9, 2007 until March 9, 2009. During that time, the S&P dropped from a peak of 1,565 to a closing low of 676. That's a nauseating -56.8% drop.

But you couldn't avoid that drop, right? After all, the S&P dropped that much... and it's an average of 500 of America's best companies. Everyone lost -56%... or did they?

I looked up some statistics during that sell-off. In total, more than 50 stocks with market caps of greater than $1 billion actually came away from the bear market with positive returns -- despite one of the biggest sell-offs in market history.

DeVry (NYSE: DV), the education company, gained 24% during that time -- beating the S&P 500 by 80 percentage points. AutoZone (NYSE: AZO) gained 23%... Royal Gold (Nasdaq: RGLD) was up 16%... even Walmart (NYSE: WMT) returned 7%.

With this in mind, is it any wonder why I think it's smart to focus on your best ideas rather than simply following along with the entire market?

Of course, simply telling investors to put their money in their best investments makes it sound simple.

The truth is, hunting out those picks best poised to beat the market is difficult... especially in a market that moves sharply in one direction one day... only to swing back harder the next day.

So why am I so confident in my select group of 10 stocks?

Frankly, we at StreetAuthority are of the opinion that investing doesn't have to be hard... or stressful... or akin to gambling.

And after years of research, I've found that more often than not, companies with a few basic characteristics are the ones that can make you money long-term (more on these characteristics in a moment).

But let's face it -- investors like Warren Buffett are few and far between.

And we aren't Wall Street "insiders." While StreetAuthority does spend a small fortune (over $1 million annually) on a research team and tools to find some of the best stocks on the market, we don't have access to information that any other experienced, well-researched and well-funded investor wouldn't. And we don't use some complex formula to derive our picks.

So what's our secret then?

Well, for years we've noticed that investing has seemingly become more complicated. Options strategies, complex derivatives, high-frequency trading, and dozens of other investing methods that only a PhD could understand have been used to help people "trade" (a.k.a. -- gamble) in stocks.

But I don't use any of those techniques... and I doubt you do either.

In fact, I don't recommend these strategies to the vast majority of investors. Unless you're an experienced professional, the majority of them are ineffective.

So what do I recommend? I simply like to focus on companies with the following characteristics...
 

Companies that enjoy huge (and lasting) advantages over the competition.

Companies that produce goods or services necessary for everyday life.

Companies that pay investors each and every year by dishing out growing dividends or buying back massive amounts of their own stock.

After years of research, I've found that more often than not, companies that fit within these three simple categories are the ones that make you the most money long-term.

It makes sense -- strong companies that take care of their shareholders tend to do better over the long-run. It doesn't take a PhD to understand that.

Of course, with investing there's never a surefire thing. Even the seemingly strongest companies aren't guaranteed to deliver a positive return.

But that said, if you invest in companies with one or more of these three simple traits, then I think it gives you the best chance of making money. After all, I don't know a better strategy than focusing on dominant, shareholder-friendly companies. It's easy, it's simple, but better yet... it works.

With that in mind, these are the types of companies whose stocks fill my list of the top stocks for 2012.

And you'll find all the details of every one of these companies in a brand-new report I'd like to share with you, entitled StreetAuthority's Top 10 Stocks for 2012.

To claim your copy, with full details and profiles of all 10 stocks, I only ask that you try a risk-free trial to my monthly advisory -- Top 10 Stocks.

But before you decide, let me tell you a bit more about the select group of companies we chose for this year's report...

I told you a little about Stock #1 at the start of today's presentation.

The company has raised dividends 463% since 2004 and bought back more than $15 billion in shares in the past two years. The company still has $8.5 billion allocated to share buybacks (and at one point Warren Buffett's Berkshire Hathaway owned more than 7.5 million shares). Meanwhile, every $100 invested in this company in 1972 would be worth $195,000 today.

I call it my biggest "no-brainer" investment for 2012. When it comes to the three characteristics I look for in the "perfect" stock -- enormous competitive advantages, a product vital to everyday life, and strong dividends alongside massive share buybacks -- Intel (Nasdaq: INTC) is second to none.

You likely know Intel already. It's a major blue-chip company and the world's largest PC semiconductor maker. The computer you're reading this on is likely powered by an Intel chip.

Some people may see the stock as "boring" and say that it hasn't gone anywhere for years. But I see something different -- Intel's shares are becoming more valuable quarter after quarter, and the share price isn't rising... yet. Like a coiled spring, I think the pressure behind this stock's price is building.

Let me explain...

Intel has posted soaring revenue for the past three years. For example, last year's total revenue was 54% than just two years prior. Today the company has sales approaching $60 billion every year... and gross profit margins in excess of 60%. That puts Intel's margins in the same neighborhood as some of the tech industry's most profitable companies, including Google (Nasdaq: GOOG) and Microsoft (Nasdaq: MSFT). And it's significantly higher than Apple's (Nasdaq: AAPL) 44% gross margin.

It's considered a bellwether -- one of the tech industry's most prominent corporations. It ranks number 51 on the Fortune 500 list of America's largest companies. It's even a component of the Dow Jones Industrial Average. In other words, we're talking about a massive company with a history of solid earnings.

But don't let that fool you into thinking that Intel is some stodgy company that isn't seeing any growth.

In fact, 2011 saw record revenues of more than $53 billion dollars. That translated to $13 billion in earnings -- more than 190% growth over 2009.

Meanwhile, this company carries more than $13.5 billion in cash on its books, amounting to $2.73 per share.

And yet, the shares have barely budged.

Right now, Intel's shares trade at the same level they did back at the end of 2008, when earnings were just $1.11 per share in the previous 12 months. But today, earnings over the last year total $2.52 per share -- more than 125% higher.

That's led to an incredibly cheap entry point for new investors. In fact, I think Intel's shares are the most attractive I've seen since the overall stock market bottomed out in early 2009.

Meanwhile, Intel's management team is continually making every single share of its stock more valuable -- even if the company's overall earnings don't grow a cent.

That's because the company is buying back massive amounts of stock. Since the start of 2011 through the first quarter of 2012 the company has bought back 699 million shares -- worth $15.6 billion. Management has allocated another $8.6 billion to future buybacks. At recent prices, that adds up to about 330 million shares.

But there's one more factor that I think is going to draw the most attention from investors...

Intel's dividend.

Intel pays a solid dividend of $0.225 per share every quarter. That provides a yield of 3.5%. I don't normally get too excited about a 3.5% yield... but this one is different.

You see, Intel not only pays a 3.5% dividend now, but it also boasts one of the most impressive dividend growth track records I've ever seen.

Dividends per share have increased 99% in the past five years... and 42% in the past two.

But this isn't some recent phenomenon. Intel has shown dedication to paying its investors more cash for years. Back in 2004, it paid a $0.04 per share quarterly dividend. Since then, that payment has increased a remarkable 463%.

Even so, Intel paid out just 40% of its earnings in the form of dividends during the latest quarter -- leaving plenty of room for growth.

In fact, the company has raised its dividend payment at a 15% annual pace during the past five years. If that pace continues -- and right now there is little reason to think it won't -- just five years from now Intel would pay $0.46 per share every quarter, giving today's investors a future yield of 7%-plus based on today's purchase price.

Intel's impressive dividend record certainly attracted me to the stock, and I think it will help attract others as well. Meanwhile, with billions in share buybacks and steadily increasing revenues and earnings, I think Intel makes a "no-brainer" addition to my Top 10 Stocks for 2012 report.

But it's not the only opportunity my team and I have found...

There simply aren't many opportunities like this one. It's an energy investment, but it's a far cry from the oil "majors" like ExxonMobil (NYSE: XOM) or Chevron (NYSE: CVX).

In fact, this is one of those investments I'd guess only 1 in 20 investors know about.

Let me explain...

Most energy investments you find on the New York Stock Exchange are actually pretty complex. They are companies that own land, wells, derricks, and trucks. They have employees. They have to deal with spills, lawsuits, and cleanups. That's a lot to handle and still pump out a profit.

Take Chevron, for example.

In a recent quarter, it generated $61 billion in revenue... but $49 billion of that went toward employee salaries, marketing campaigns, administrative overhead and other operating expenses.

And then Uncle Sam took $5.6 billion in corporate taxes.

That still left a respectable $6.5 billion in pure profit. But Chevron pumped the vast majority of that right back into the business to find and develop new sources of oil.

Chevron is a complex oil giant, but the company I'm going to tell you about in a moment is the exact opposite. This stock couldn't be any simpler... or more lucrative.

This stock -- SandRidge Mississippian Trust (NYSE: SDT) -- simply takes in royalties and then pays them out to investors.

As a royalty trust, SDT owns a stake in dozens of wells run by its parent company, SandRidge Energy (NYSE: SD). SandRidge Energy takes care of the drilling, production, marketing, and selling of the oil and gas produced.

The royalty trust -- SDT -- is passive in the relationship. It doesn't have to do a thing. In return for the initial investment when it went public, its investors get a cut of all the oil and natural gas sold from the wells between now and when the trust is scheduled to dissolve in December 2030.

To create SDT, SandRidge Energy packaged a 90% interest in 37 of its oil and natural gas wells in Oklahoma. In other words, for every dollar in oil or gas pumped by these more than three dozen wells, owners of the royalty trust are now entitled to 90 cents in royalties.

But that's just the start...

You see, most trusts simply package up some of their reliable reserves and wells, sell them to the public as a trust, and that's the end of the story. Those interests in the wells pay out steady dividends and not much changes.

But SDT is a different breed of trust. That's because in addition to the 37 wells it owned at its inception, the trust also gets a bonus. Between its inception in December 2010 and December 2015, parent company SandRidge must drill an additional 123 wells, of which SDT will own a 50% stake.

In other words, over the next several years each unit of this trust will have a stake in an increasing number of wells... meaning increased royalties and distributions. So far, about 70 of the additional wells have already been drilled.

While the trust is so new, it is already building a reputation for its distributions and high yield. The past three payments have averaged $0.80 per quarter, giving a yield of 11.5% at recent prices.

But the trust has a built in "safety net" that I think makes them especially attractive...

As is common practice, parent company SandRidge Energy (NYSE: SD) retained ownership of over 10 million of the 28 million outstanding units of SDT. But most of those (7 million units) are subordinated shares.

These subordinated shares don't receive dividends unless regular common unitholders get a targeted minimum payment each quarter. If the distribution falls below that threshold, the payments to the subordinated shares will be reduced to make up the difference to the regular units.

That means our shares have a built-in buffer to ensure we see strong distributions going forward.

I have more details about SandRidge Mississippian Trust in my Top 10 Stocks for 2012 report.

In fact, I spell out everything you need to know about SDT, as well as all 10 of our "2012" stocks...


 

 

Top 10 Stock #3  operates one of the most stable business I've found -- it owns pipelines that ship and store petroleum, gasoline, and ammonium around the country. In the past five years net income is up 114%.

That's great news for its investors, because this company returns every penny it can to shareholders. Since going public in 2001, this company has raised its dividends 220%... and now pays $3.36 per share in dividends every year. Meanwhile, over the past five years, the shares have delivered total returns that are 17 times more than the S&P.

Top 10 Stock #4 is one of Brazil's largest electricity generators... but you don't have to go to Brazil to buy the shares. They trade right here in the U.S.

I think of this stock as the "safe" way to play Brazil. The country is seeing massive growth... and that can lead to volatility. But by investing in one of the nation's biggest electric providers, we have a way to participate in the upside of a growing country without the swings seen in many emerging market investments. Of course, the fact that the stock pays a dividend yield of 9.5% only adds to the shine of this company's appeal.

Top 10 Stock #5 gives you a stake in dozens of infrastructure monopolies across the entire world.

It owns electric grids in Chile. It holds railroads in Australia... ports all over Europe... coal facilities in Australia... toll roads in South America... and timberland in the United States and Canada.

In total, roughly 80% of the partnership's revenues are under contracts or are regulated. Those revenues are practically guaranteed. Right now the stock pays $0.375 per unit each quarter. That dividend has increased 21% just one year and gives the units a yield of 5.0%.

Top 10 Stock #6 is a fund whose job is simple -- invest in the most stable utility stocks on the earth and pay investors a fat dividend yield.

It owns telecoms in Israel, electric companies in Brazil, and water utilities in the United States.

It's returned more than 11% per year since its inception in 2004... and it has boosted its dividend 28.9% along the way. In total, the fund has paid more than 90 consecutive dividends and currently yields 6.0%.

But don't expect to have heard of this one... it trades only 60,000 shares a day -- about what Apple trades in two minutes.

Top 10 Stock #7 is a tech powerhouse, but in recent years investors have given it the cold shoulder. I don't think that will last much longer...

The company has posted three consecutive years of rising revenues, helping it to amass an enormous cash pile. At last count, this company held more than $48 billion in cash on its books. That amounts to $9.00 per share... yet the stock trades for less than $17.

But that's not all. To attract investors the company initiated its first-ever dividend in 2011. And while that payment is modest right now, the amount of cash this company holds (and a recent 33% dividend increase) suggests these payments could rise quickly.

Top 10 Stock #8 owns energy pipelines in nearly 20 states. You simply don't find many investments with the mixture of high yield and growth seen by this company.

Not only does it pay a yield of 5% and has never cut its dividend -- going all the way back to 1994 -- but it is also expanding rapidly to take advantage of the boom in shale gas in the United States. In total, it plans to spend up to $5.6 billion for expansion projects between 2011 and 2015 (about 45% of its current market cap).

That growth is one reason why the company recently announced that it expects distributions to grow 15-20% in 2013 and 2014.

Top 10 Stock #9 makes one of the basic building blocks for feeding the world -- fertilizer. Record-high food prices show no signs of abating... and that is sending demand for this company's product through the roof. In the second half of 2011, revenue rose nearly 20% over the first half of the year, while net income grew 41%.

Best of all, this company is barely known by investors. It just went public in mid-2011. And thanks to its profitable business model, it is already showering investors with enormous dividends. The shares pay dividends of between $0.52 and $0.59 per quarter, giving the stock a yield of nearly 10% based on the past four quarterly dividend payments.

Top 10 Stock #10 is one of the world's most important oil companies... but I doubt many investors have ever heard of it before.

You may not realize it, but Brazil has made several major oil discoveries over the past few years. And as Brazil's resident oil company, this business has first shot at those fields.

How big is the opportunity? Reports from The Economist state the success rate of wells in these new finds is 87% -- compared to 25% for the industry as a whole. Meanwhile, estimates are that the fields this company will access have 50 billion barrels of oil -- a little less than everything in the North Sea. Best of all, this oil is off the coast of just one country... and this single company will be the driving force in exploring and developing these oil rich fields.

As I said earlier, I think one of the best ways to make money in the market is to focus your portfolio on those stocks you think will perform best.

And from my research, I think the 10 stocks I've included in my Top 10 Stocks for 2012 report offer the best potential to beat the broader market in the coming year.

I've already provided you with a couple of names and profiles of stocks that made our Top 10 Stocks for 2012 list. For the remainder of the stocks in my list, I've put together a 15-page online report for readers of my monthly Top 10 Stocks advisory.

This newsletter offers one of the simplest guides to the market that you'll find anywhere. Each month I share my single favorite pick from across all of StreetAuthority's research advisories.

So far, the readers following my work seem to have enjoyed it...

"The investment suggestions are thoroughly researched. The background information shared and rational for inclusion in a portfolio is concise but informative."
-- Marilyn W., Green Valley, Arizona

"I like the concentrated portfolio and not being inundated with too many "great" ideas, just the ONE best per month and the overall 10 best to be kept in a portfolio."
-- Haviva G., Atlanta, Georgia

"I invested $10,000 each in two of your recommendations. I'm up $2,200 on one and up $1,000 on another."
-- Jim M., Hobe Sound, Florida

"Don't change anything, you may break it. I think you are the best."
-- Bahij M., Newton, Pennsylvania

"The amount of dividend payouts and gains pays for [Top 10 Stocks] very quickly. Totally worth it."
- Christopher P., League City, Texas


Now, there's no guarantee Top 10 Stocks will be the right publication for you. So here's what I'd like to do.

Try Top 10 Stocks for the next 30 days risk-free, read my newest report -- Top 10 Stocks for 2012, which is included for free with your subscription, and then decide if my research is what you're looking for.

Start your 30 days now, and you'll receive the following with a one-year order:

Report #1: Top 10 Stocks for 2012 -- You'll have full access to the names and profiles of the 10 stocks my research team and I have identified as having the best potential to beat the market in the coming year. You'll receive the names, ticker symbols, and a full write-up on each company.

Report #2: Two Stocks with 10%-Plus Dividend Yields -- If your idea of investing heaven is a double-digit yield, then you'll love this report. The yields here start at 10.0% and go up from there.

Once a month you'll also receive my latest issue of Top 10 Stocks, featuring an in-depth profile of my top pick of the month -- the single most promising profit play from across all of StreetAuthority's premium investment advisories.

Keep in mind that I actually purchase every one of my monthly ideas in my Top 10 Stocks $100,000 real-money portfolio, so you can rest easy knowing that our interests are perfectly aligned.

And I'll always give you 48 hours advance notice before I buy or sell any security for my real-money portfolio, giving you time to beat me to the punch.

If you decide to join me for two years (with the same 30-day money-back guarantee), then you'll also receive several additional reports...

Report #3: The Most Undervalued Stocks in America -- These two stocks are major market players... but they are some of the most undervalued investments I've seen. Meanwhile, these companies are buying back billions of their own stock and increasing dividends like crazy  -- doing everything they can to make their investors rich.


Report #4: Two Stocks with 500% Growth Potential -- These stocks are for those investors looking to "move the needle" on their portfolio. We've identified the two picks that we think have the most potential to soar several hundred percent in the months and years ahead. 


For the next 30 days you can take the time you need to decide if my Top 10 Stocks research is what you're looking for. If not, simply contact our customer service team for a 100% refund.

I'll tell you how to get started and gain immediate access to my Top 10 Stocks for 2012 report in a moment... but first I want to tell you about one more bit of research I've been working on...

Around our research office in Austin, Texas, we just call them our "Forever" stocks. Everyone here knows exactly what we're talking about.

Put simply, this is the set of stocks you can buy today and hold for the rest of your life. When you own them, you may no longer need to worry about things like inflation or deflation... bear markets or recessions... flash-crashes or rising interest rates.

For example...
 

One of these is a special "toll" company with more than 975 million users around the world... and more than $3 trillion in transactions per year.

Since it's gone public, the stock is up 857% thanks to its seemingly unstoppable growth. Maybe that's what attracted the world's greatest investor -- Warren Buffett -- and his investment team. His giant investment firm, Berkshire Hathaway (NYSE: BRK-B), bought a 216,000 share stake in this "Forever" stock just over a year ago. And then Berkshire "doubled down" -- buying 189,000 more shares the next quarter.

Another "Forever" stock has raised its dividend 67.4% since 2008... and buys back billions of dollars worth of its shares. In 2011 alone the company repurchased $5.4 BILLION of its own stock. Since being spun-off from its parent company in 2008, this company has bought back nearly 20% of the outstanding shares, which helps support the share price in just about any market.

 

One of our favorite "Forever" stocks is also owned by a staggering 21 members of Congress. James Sensenbrenner Jr. (R-WI) reports that via his wife, he has a stake of up to $500,000 of the stock. And in 2010 (the last year data was available), that stake earned at least $15,000 in dividends from the shares.

You can see for yourself in his latest financial disclosure I had our research team dig up on the Representative, courtesy of OpenSecrets.org:

Here's the funny thing. When you find a stock that a herd of Congressmen love... you usually find that some of the richest people in the world also invest in it. It's almost like there is a direct link between the two...

In fact, Representative Sensenbrenner and his wife could shake hands with the world's richest man -- Mexican telecom magnate Carlos Slim -- at this company's annual meeting. That's because along with a couple dozen members of Congress, Mr. Slim also has a stake in this world-dominating company... owning more than 14,800 shares worth $1.2 million.

It's the same story with another "Forever" stock we found. It's owned by dozens of the market's biggest players. Legendary investment firm Fidelity owns more than 12,800,000 shares worth more than $8 billion. Goldman Sachs owns another 2,300,000 shares.

But let me be clear -- these "Forever" stocks ARE NOT solely reserved for Congressmen, billionaires, or the elite.

In fact, individual investors just like you have been making money from these types of stocks for decades. That's because when you find the right stocks and hold the shares "Forever," great things can happen.

Put simply, the market's greatest stocks -- not the extremely risky plays that skyrocket and crash seemingly overnight -- take years to reach their full potential.

In the meantime, investors who hold these stocks are able to steadily compound their gains year in and year out.

Take a well-known case -- shares of Apple (Nasdaq: AAPL). Apple has been one of the market's best performers for years. But even in the stock's best one-year period, investors made 289%.

I wouldn't sneeze at a 289% gain, but anyone who bought for a year... or an even shorter time... sold themselves short.

You can see from my chart that Apple wasn't done after six months or a year...

Since 2003, Apple has gained 7,507%. That's an average annual gain of 59% and enough to turn every $100 invested into more than $7,600.

Investing for a short period in a stock like Apple is like ordering a 7-course meal and only sticking around for the appetizer. Sure you get a taste... but wouldn't you rather have the whole meal?

But I'd bet you already knew holding for the long-term is smart. Many of the market's brightest minds -- including Warren Buffett -- have heralded the powers of long-term investing.

The simple fact is it can be tough to hold for long periods. After all, there are bear markets, recessions, flash crashes... it can be enough to make your head spin.

Even if you want to hold for the long term, don't you have to have nerves of steel?

The answer is no. Absolutely not. IF you're invested in the right stocks, you can beat the market with less volatility than you ever thought.

Hear me out...

I've run the numbers on my 10 "Forever" stocks during the nasty bear market that lasted from October 9, 2007 until March 9, 2009.

Only 1 stock of the 10 fell more than the S&P 500 during the bear market. And in the 18 months after the bull market returned, this stock came back with a vengeance... more than doubling the S&P.

As for the other 9 picks? Well one of them wasn't listed until after the bear market, so I left it out of our calculations to be fair. Of the rest, they fell an average of 30% less than the broader market.

And the vast majority of these picks beat the S&P 500 on the way back up. So not only did this select group of stocks hold up better in a down market... they also whipped the S&P 500 in the bull market.

See for yourself...

It's like having your cake and eating it too.

Now, I'll be honest. There's a major caveat. You can't just buy any stock, hold it forever, and expect to come out ahead. The market is littered with Enrons, Worldcoms, even General Motors. Holding forever didn't matter a lick with them.

That's why my staff and I have put so much time, effort, and money into completing our list of 10 "Forever" stocks.

The performance of these stocks since the start of the bear market isn't some fluke. It's one of the main reasons why we selected these 10 stocks in the first place.

But the best news is this handful of stocks show signs they could make investors wealthy for years to come.

I've put all 10 stocks -- including names, ticker symbols, and full profiles -- into a special research report: The 10 Best Stocks to Hold Forever.

I've decided to include this report at no extra charge with your two-year subscription to my monthly Top 10 Stocks advisory.

Keep reading to see how to sign up and lock in a major discount...

The masthead price for Top 10 Stocks is $199 per year. That's because we put an enormous of time, money, and effort into our company's research. We have to recoup our costs.

But today we're trying something different. Sign up through this offer and you can start your 30-day test of Top 10 Stocks for 80% off.

You'll pay just $39.95 for one year of my monthly advisory. This includes...

12 Issues of Top 10 Stocks -- Each issue includes an in-depth profile of my top pick of the month -- the single most promising profit play from across all of StreetAuthority's premium investment advisories.

Instant Access to my Entire $100,000 Real-Money Portfolio -- To track our true results I actually buy and sell my picks in a real brokerage account. And I also give you 48 hours advance notice before I buy or sell any security -- giving you time to beat me to the punch.

Report #1:
Top 10 Stocks for 2012 -- You'll have full access to the names and profiles of the 10 stocks my research team and I have identified as having the best potential to beat the market in the coming year. You'll receive the names, ticker symbols, and a full write-up on each company.

Report #2: Two Stocks with 10%-Plus Dividend Yields - -If your idea of investing heaven is a double-digit yield, then you'll love this report. The yields here start at 10.5% and go up from there.

If you decide to join Top 10 Stocks for two years (with the same 30-day money-back guarantee), then you'll also receive these additional reports...

Report #3: The 10 Best Stocks to Hold Forever -- You'll have full access to the names and profiles of the 10 stocks we've designated with the exclusive "Forever" tag. Buy these stocks, forget about them, and never sell them.

Report #4: The Most Undervalued Stocks in America -- These two stocks are major market players... but they are some of the most undervalued investments I've seen. Meanwhile, these companies are buying back billions of their own stock and increasing dividends like crazy  -- doing everything they can to make their investors rich.

Report #5: Two Stocks with 500% Growth Potential -- These stocks are for those investors looking to "move the needle" on their portfolio. We've identified the two picks that we think have the most potential to soar several hundred percent in the months and years ahead. 


And remember, you'll have the next 30 days to decide if you like my research or not.

If you don't like it, I won't get my feelings hurt. Simply call our dedicated customer service team before 30 days is up and we'll send you a 100% refund. You'll be able to keep the reports, free of charge.

To get instant access, subscribe now.

All the best,


Paul Tracy
Chief Strategist, StreetAuthority's Top 10 Stocks
Co-Founder,  StreetAuthority

P.S. --  The only way to get the names of my Top 10 Stocks for 2012, my favorite stocks from across all of StreetAuthority's advisories, and The 10 Best Stocks to Hold Forever is to subscribe today at zero risk to you.


Disclosure:  Editor Paul Tracy owns shares of CPL, DEM, SDT, INTC, and GOOG. StreetAuthority owns shares of CPL, SLW, DEM, XOM, SDT, INTC, GOOG, and MSFT as part of the company's various "real money" portfolios. In accordance with company policies, StreetAuthority always provides readers with at least 48 hours advance notice before buying or selling any securities in any "real money" model portfolio.

(C) Copyright 2011 StreetAuthority, LLC. LEGAL DISCLAIMER: Please note that we are not a registered investment firm or broker/dealer. Readers are advised that the material contained herein should be used solely for informational purposes.

We urge you to always conduct your own research and due diligence and obtain professional advice before making any investment decision. StreetAuthority will not be liable for any loss or damage caused by a reader's reliance on information obtained on our web site. Our readers are solely responsible for their own investment decisions.

Figures shown in the preceding webcast represent returns for individual stocks only. All investments can be volatile, and all returns will be reduced by fees and expenses.
 
Newsletters
(Real-Money Portfolios)
2011 Returns Current Holdings Showing Gains* Current Holdings Showing Losses*
Top 10 Stocks +8.0% 10 5
* as of November 2, 2012.
Annual Top 10 Reports Return
(S&P 500 Return)
   
2003: 38.4% (28.7%) 2004: 16.8% (10.9%) 2005: 11.5% (4.9%)
2006: 30.8% (15.8%) 2007: 6.9% (5.5%) 2008: -46.4% (-37.0%)
2009: 37.0% (26.5%) 2010: 38.7% (15.1%) 2011: -37.7% (2.1%)
Performance for calendar year.