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The Public "WGB Retirement Fund" That's Turned $55,000 into $123,200 in Only Three Years
of just 12 stocks has beaten the market for years, nearly tripling the S&P in the process...
Now you have the chance to buy into these 12 stocks, just as many of America's largest pension funds already have...
I doubt you've ever heard of the "WGB Retirement
Fund." However, my research tells me it could be the only investment you'll
need to beat the market for years to come.
Over the past decade, this "fund" made of just 12 stocks has done something remarkable...
In the most volatile period since the Great Depression, these stocks have seemingly ignored every "hiccup" the market has been through.
In the past year, the stocks within the "WGB Retirement Fund" have gained an average of 29.4%... compared to just 5.4% for the S&P.
In the last five years this "fund" has returned 68.4% while the overall market has languished. The S&P is up just 1.1% (dividends included).
Investors have used this fund to grow their wealth steadily during a time when many have completely given up on stocks.
In the past 10 years, it's returned 181.2%... nearly triple the S&P's 68.1% return.
It's no wonder that some of America's biggest investors -- including many of the country's largest pension funds -- have billions invested in the 12 stocks of the "WGB Retirement Fund."
The New York State Common Retirement Fund
owns $130 million worth of one of these stocks. And the New York State Teachers
Retirement Fund -- which manages the pensions for nearly half
a million members -- owns another $95 million worth.
But America's richest
institutions aren't the only ones investing in these stocks.
Thousands of people just like you have captured healthy returns from these
12 stocks as well.
And they've done so while sidestepping many of the market's volatile ups and downs... the kind that keep most investors up at night. Recently I surveyed a few hundred investors to see what they had to say about the stocks held in the "WGB Retirement Fund."
Here's what they told me...
Rick H. from Tennessee bought one of these stocks back in 2008. He told me he is already up 176%. Then, he bought another one in 2009 and it is up 101%.
Why did Rick invest in companies that make up the "WGB Retirement Fund"? He told me, "I bought them because of their position in their industry, their strong balance sheets, their growth in earnings and their history of growing their dividends."
Another investor, Peter B. from California, told me he bought one of these companies just a couple of years ago, investing $44,481. Today he says that investment is worth $70,634 -- a nearly 60% gain.
And Kirk C. from Indiana told me he bought 310 shares of one of these stocks about three years ago. In that time, he's made "about $6,000 of unrealized gains plus about $2,400 in dividends."
To the investors that have trusted their money to the stocks within "WGB Retirement Fund," these returns are a godsend.
And best of all, unlike most pension funds, this investment is open to anyone -- no matter their age or profession.
And unlike traditional IRAs or 401(k)s, there are no
income or contribution limits. Any investor can put as much as they'd
like into this opportunity whenever they want and can withdraw their
money from the
fund at any time.
Meanwhile, this investment doesn't charge annual expenses... front-end loads... or any other complicated or hidden fees that so many mutual funds do. It is extremely cheap to buy and sell.
Now, you might be wondering how an investment like this has been able to fly under the radar for so long...
That's why I've written this letter.
I'm going to tell you everything you need to know about the "WGB Retirement Fund"... and I'm going to show you exactly why it has beaten the market for so many years.
In the pages that follow, I'll show you why its performance could continue... and most importantly, how you can buy this investment right now...
The World's Largest Pension Funds Have Already Invested Billions Into These Stocks
Before I get into all the details, let me introduce myself.
My name is Paul Tracy. I'm the co-founder of
StreetAuthority, one of the country's fastest-growing financial research
I started StreetAuthority more than a decade ago. Over the years, our business has grown like a weed.
Today, we publish our research to over 2 million readers in 175 countries.
StreetAuthority sounds familiar, you might have already read our
analysis before. Our articles have appeared on dozens of America's
websites, including MarketWatch, Nasdaq, and Yahoo Finance.
Meanwhile, wild swings in the stock market have wiped
out trillions in wealth -- I even know many who refuse to invest anymore.
And that's to say nothing of the fact that the cost of living seems go up by the day. A 65-year-old couple retiring today would need $240,000 to cover medical costs in retirement, according to Fidelity. That figure is up 50% since 2002. And it represents just medical costs. Today's retirees still need to pay for housing, food, utilities... you name it. And those costs keep heading higher year-in and year-out.
Maybe that's why David Wise, a Harvard economist, found that 46% of Americans die with less than $10,000 in assets and "rely almost entirely on Social Security benefits for support."
That's why the "fund" I'm telling you about is so important. I think it is the lynchpin that could help thousands... even millions of Americans live a more comfortable retirement.
And evidently, many pension funds seem to agree...
As I showed you, pension funds from California to New York to Texas are already investing in these stocks. But that's just the tip of the iceberg.
Take the Wisconsin Investment Board. This group was created in the 1950s to manage the money within the Wisconsin Retirement System, as well as the State Investment Fund. In total, the board manages about $85 billion in assets.
The Wisconsin Investment Board alone holds $192 million in a single one of these 12 stocks. And it holds $203 million worth of another one.
Then there's the Florida State Board of Administrators, which manages the $129 billion Florida Retirement System Pension Plan. When I look though their holdings, I see nine of the stocks within the "WGB Retirement Fund."
That includes $262 million invested in one... $266 million in another... and a staggering $413 million in another.
Now, before I go too far, I want to clear up one thing...
I call this opportunity the "WGB Retirement Fund," but the truth is, it's not a traditional fund at all.
This fund doesn't trade on a stock exchange. And if you call your broker, they won't be able to find the shares.
Instead, the "WGB Retirement Fund" is a group of 12 stocks that, when bought together -- just like a fund would -- offer a way to potentially beat the market without the need to worry about things like inflation or deflation... bear markets or recessions... flash-crashes or rising interest rates.
In fact, you can buy all 12 of these stocks today and put them to work for your retirement portfolio right now.
So what's so special about these 12 stocks?
Put simply, I call them the World's Greatest Businesses --or "WGB" for short...
The Key to Creating Wealth in the Stock Market
When it comes to investing, my philosophy is a bit different than
most people you see on CNBC or most financial websites.
Sadly, most investors are consumed with trading in and out of
stocks -- treating them as lottery tickets, instead of investments.
I've been investing actively for two decades, and during that time I've learned a lot of valuable lessons.
Most important is this: You make the most money in the stock market by investing in great businesses. (I'll tell you exactly what makes a great business in just a moment.)
It's simple. But you'd be surprised at how many investors don't follow this advice. And I know exactly why they don't.
Investing in great businesses
-- like the 12 companies I've included in the "WGB Retirement Fund" --
isn't "exciting" to most people. You don't get rich overnight.
Great businesses take time to reach their full potential. The key is letting their returns compound, building wealth over a period of many years.
Unfortunately, I'm convinced that too many investors now see the stock market as a glorified casino.
They think they need to invest in volatile, unproven companies in order to get rich. They want to "go where the action is."
This strategy is suicidal. It just doesn't work for most small investors. And in the process, I'm convinced that the overwhelming majority of investors lose a ton of money in the stock market.
Don't believe me? Look through your own investing history or start asking your friends and family members. Ask them about the worst stock investment they've ever made.
I'm almost certain it will be an unproven stock that seemingly had big "potential." It likely didn't pay a cent in dividends... or buy back stock... or even trade at a low valuation. Heck... like hundreds of other companies on Wall Street, it probably didn't even generate a profit.
I say "no thanks" to these types of risky investments. And if you want to enjoy a worry-free retirement, I think you should too.
The key to creating wealth in the stock market -- and growing that wealth -- is to simply buy great businesses and let these stocks grow year after year.
Let me give you an example, using one of the best-known stocks I've included in my "WGB Retirement Fund" (certainly, not all of the 12 stocks I've selected are as widely-known as this one)...
This company has been around for more than a century. It sells a product at a premium price that's loved the world over. And it returns billions of dollars to its investors in the form of rising dividends and share buybacks.
The company is none other than Coca-Cola (NYSE: KO).
When most investors think of a company like Coca-Cola, they think there is no money to be made. After all, it's a large company, it has been around for more than 120 years, and its best days of growth are seemingly behind it.
But the facts tell a different story...
During the past decade, Coke's
dividends have increased 155%. Its per-share earnings are up 149%. And most
importantly, the stock has nearly doubled its investors' money during one of
the most turbulent periods in market history. Not bad for a company whose
"glory days" were supposed to be long gone.
But you might be thinking, "10 years? Isn't there a faster way to make money instead of waiting a decade?"
I hold many
of these 12 stocks personally. Some have seen gains of 20-30% in just a few
months. One has even returned more than 80% in less than a year.
And I'm not alone.
Peter B. is an investor in Roseville, California. He told me he invested $37,678 into just one of the World's Greatest Businesses within the "WGB Retirement Fund" just over one year ago. When I last heard from him, those shares were already worth $65,015 -- 73% higher.
So while these stocks are designed to make money year after year... some still deliver spectacular gains quickly.
I'm going to share more about these 12 companies in just a moment.
Before I do that, you need to know the traits that make a great business because I want you to understand exactly why I've selected these companies...
The 11 Traits of the World's Great Businesses
Over the course of my two decades of investing, I've put together a
list of 11 important things you need to look for when searching for great businesses.
Don't worry about writing these down -- in a moment I'll give you an opportunity to receive a printer-friendly version of this list directly in your email inbox.
Remember, these are the exact traits that led me to the 12 stocks within the "WGB Retirement Fund," which has beaten the market year after year...
Greatest Businesses sell their products at premium prices.
This all comes down to brand loyalty. Coca-Cola (NYSE: KO) is a
great example. Although cheaper alternatives exist, every day
roughly a billion people pay premium prices for one of
Now, it's rare that any company will
have all the characteristics I just listed.
For example, cigarette companies sell addictive, high-margin products. As a result, companies like Altria (NYSE: MO) and Philip Morris International (NYSE: PM) have been some of the stock market's best performers... delivering gains of hundreds of percent over the years. On the other hand, both companies face stiff regulation.
Meanwhile, a fast-food restaurant like McDonald's (NYSE: MCD) has a scalable business, but
it doesn't sell its products at premium prices.
That doesn't mean it isn't a great business... or a great investment. McDonald's stock is up more than 300% in the past decade.
(Note: Although McDonald's and Altria are great businesses, they didn't make the cut for my "WGB Retirement Fund.")
Only a few companies will meet all 11 of my stringent criteria. But the more of these characteristics a company has... the more likely it will not only beat the market, but will continue earning you money year after year without the gut-wrenching ups and downs associated with most stocks.
But all of this begs the question... why do these 11 simple traits help the stocks within the "WGB Retirement Fund" beat the market year after year?
Why These 11 Traits Are So
It may sound simple, but each of the
traits I just mentioned translates into consistently high profits.
And it's a company's profitability that ultimately drives its share price.
That's why investing in the World's Greatest Businesses is one of the greatest low-risk ways to make money in the stock market.
There are no guarantees, but I see it time and time again...
Take the first trait listed above -- the power to sell a product at a premium price.
Which do you think is more profitable -- an airline that faces cutthroat competition and can't raise prices without losing passengers... or a company like Apple (Nasdaq: AAPL) that can name its price for any product it makes?
It's a silly question, I know. But it proves my point exactly.
That's why it is little surprise a $10,000 investment in Southwest Airlines (NYSE: LUV) five years ago -- even though it is considered one of the most successful airlines in the world -- has dwindled to just $6,240 today. That's a nearly 38% loss.
But the same amount invested in Apple would be worth $47,853.
And it's the same story with the rest of the traits of the World's Greatest Businesses that I've used to build the "WGB Retirement Fund."
Take the importance of selling a product used in day-to-day life.
A great example is Kimberly-Clark (NYSE: KMB). The company makes Cottonelle toilet paper, Huggies diapers, and Kleenex tissues. Millions of consumers across the globe use these products every day.
(Note: Although Apple and Kimberly-Clark are great businesses, they didn't make the cut for my "WGB Retirement Fund.")
In the past five years, KMB's stock is up 53%. Moreover, the company has paid dividends for nearly 80 years and has increased its dividend payments for 40 straight years.
That's the sort of company I want to own for the long term... letting it pay me year-in and year-out.
By contrast, compare
this company with something that falls on the opposite end of the spectrum
-- a company that sells a luxury... something not needed day-to-day. Think of Carnival Cruises (NYSE: CCL).
I don't think anyone would argue that a cruise is a daily necessity. That's why when oil prices soar... unemployment shoots through the roof... and consumers worry themselves with what is coming next, companies like Carnival see their business suffer.
In fact, since the recession hit in 2007 through today, Carnival's annual net profit has fallen 41%. It's little surprise that anyone who invested in the stock five years ago has lost 21%.
Truth is, I could go through every single one of the 11 traits of the World's Greatest Businesses and prove to you over and over again that the companies that fit these traits consistently deliver big gains.
But instead, I think it makes more sense just to show you what the 12 stocks included in my "WGB Retirement Fund" have done for investors.
As I mentioned earlier, this group of just a dozen investments has beaten the market during the past 1-year, 3-year, 5-year, and 10-year periods.
Below I've charted their annual performance through 2011, assuming you had invested $100,000 at the start of 2002...
As you can see, when it comes to beating the market, there's nothing quite like investing in this "fund."
That's why I've put together a new report titled
Fund" -- The
World's 12 Greatest Businesses.
This report covers all 12 of the stocks I've identified, including their
names, ticker symbols, and full profiles.
I want to give you unrestricted access to this report. Keep reading to learn how to claim your copy...
"WGB Retirement Fund" --
The World's 12 Greatest Businesses
As I told you earlier, my name is Paul
I founded my independent financial research company -- StreetAuthority -- more than a decade ago.
Today, our research is read by more than 2 million people throughout the world. Our subscribers include employees from some of Wall Street's biggest investment houses, including Merrill Lynch, JPMorgan, Credit Suisse, and Morgan Stanley.
That's in addition to readers at Harvard, Yale, MIT, and the University of Michigan.
But StreetAuthority is very different from most investment research firms that you're familiar with. That's because we focus on small investors.
Frankly, the market's biggest players have the bankroll and the contacts to research just about anything they want to.
Unfortunately, retail investors don't have that luxury. That's where we can help.
Today, I pay salaries of several million dollars per year to employ some of the smartest investment minds in the country.
Our staff includes a former IBM engineer with a degree from Columbia. Another one of our analysts is a Ph.D who used to run her own corporate communications firm and is now one of the most-widely-followed income-investing experts in North America.
One of our analysts is an energy expert with a home base in the middle of the booming Haynesville Shale. And another is a business journalist who joined our staff after researching and reporting for some of the nation's largest newspapers.
My background includes a degree from the University of Virginia, working with Robert W. Baird & Co.'s full-service brokerage operations, and economic research work funded by the National Bureau of Economic Research. I've also been a featured speaker at investment conferences across the United States.
Now I'm the Chief Investment Strategist behind one of StreetAuthority's most popular advisories -- Top 10 Stocks.
The philosophy behind Top 10 Stocks is simple -- find the world's most lucrative businesses, buy their shares, and let your returns compound year after year.
After two decades of investing and studying the markets, I'm convinced this is the single best way to make money in the stock market.
That's why I put together this new report -- "WGB Retirement Fund" -- The World's 12 Greatest Businesses.
To claim your copy, with full details and profiles of all 12 stocks, I only ask that you try a trial subscription to my monthly advisory -- Top 10 Stocks -- at absolutely no risk to you.
But before you decide, let me tell you more about a couple of these ideas -- including names and ticker symbols...
World's Greatest Business
#1: Increasing Dividends
21% AND Beating the Market 4-to-1
What's most surprising about my list of
the World's 12 Greatest Businesses?
I think it's how many of them have flown under the radar. Despite year after year of beating the market, the average investor has probably never heard of some of these investments...
Take a unique fund I've found. It owns stakes in dozens of infrastructure monopolies throughout the world.
It owns electric grids in Chile... railroads and coal facilities in Australia... toll roads in South America... and timberland in the United States and Canada.
In total, about 80% of the partnership's revenues are under contracts or are regulated. Meanwhile, those practically guaranteed revenues are coming from one of the most compelling portfolios I've ever seen.
Individually, each of these holdings would be a great business to own. But this fund lets you own dozens of these money-making monopolies.
Are ports, electric grids, and roads something that people can't live without?
Absolutely. But that's just one aspect that makes this fund so compelling. Its infrastructure assets are located all over the world... and there is almost zero threat of competition. After all, a competitor can't simply come along and put in a new electrical grid right next to this company's existing infrastructure.
And yet, I'd be willing to bet that less than one in 10 investors knows about this investment, Brookfield Infrastructure Partners (NYSE: BIP).
Like any great business, Brookfield generates enormous cash flow and returns a hefty portion of that cash to its investors.
BIP pays $0.375 per unit each quarter. That's a 21% increase over just the past year and gives the units a yield of 5.0%.
But I think that distribution is going to rise in the years ahead. Brookfield explicitly states its aim is to raise distributions 3-7% a year, while also returning 60-70% of its income to investors in the form of distributions.
How many other investments tell you that it's their explicit goal to continue increasing distributions... and at a rate that outpaces inflation?
And as you might expect, Brookfield has topped the market for years. The company first went public in early 2008. The stock has soundly beaten the market ever since.
Even Forbes has chimed in on this investment, saying a few months ago, "With rising estimates, strong growth projections, a fat 5% dividend yield and reasonable valuation, Brookfield Infrastructure offers a lot to like."
It's little wonder why I like Brookfield. In fact, I currently hold the stock in my Top 10 Stocks portfolio.
But Brookfield is just one of 12 great businesses I'm eager to tell you about...
World's Greatest Business #2: 60 Million Customers a Week, but it Could DOUBLE in Size
I don't think this company needs an
introduction. It's the most dominant player in its industry... and without a
doubt one of the World's Greatest Businesses.
Each week this company serves more than 60 million customers. It sells its products at premium prices. The company dominates its competition. It doesn't worry about government regulation, even though it sells an addictive product.
The company also sells a product that's loved in countries around the world, including the United States, China, Japan, Germany, England, and more.
But that's just the start.
Because it sells a product loved around the world, there is tremendous opportunity for growth. Even with more than 17,000 locations, this retailer still has plenty of room to DOUBLE its store count in the coming years.
In fact, when I start to run down the list of the 11 traits of the World's Greatest Businesses, there isn't a single characteristic that this company lacks.
That's extremely rare.
Of course, that doesn't mean the stock is guaranteed to make investors money... but it's little surprise that the shares have done just that. Take a look...
So what is this company?
It's coffee retailer Starbucks (Nasdaq: SBUX).
Surprised? You shouldn't be. As I just said, the company fits all of my 11 characteristics for the World's Greatest Businesses.
And that leads to tremendous profitability. Consider this: For a $4.00 latte, Starbucks rakes in a gross profit of nearly $2.25. That's a better gross margin than Apple, which is known for its high-priced products and feverish brand loyalty. It's also head and shoulders above McDonald's -- one of the most efficient companies in the restaurant industry.
But with more than 17,000 locations and 60 million customers per week, I wouldn't blame you for thinking that Starbucks' growth is already over. But if you think that, then you'd be dead wrong.
World's Greatest Businesses
have unlimited growth potential. I want to own stocks that will continue to
increase their revenues and earnings for years to come.
While 17,000 is certainly a lot of locations, it's nowhere near what it could be. McDonald's has more than 33,000 locations. Subway has more than 37,000 locations. Based on those figures alone, Starbucks could easily double its store count. So there's still plenty of growth ahead for the franchise.
In the past two quarters alone Starbucks has added more than 400 locations.
And while Starbucks' continued expansion around the world is impressive, it's actually not what's most attractive about the stock.
Most people view Starbucks as a coffee shop. But I want you to view Starbucks as two businesses in one. Yes, it's a coffee shop, but it is also transforming itself into a major consumer beverage and packaged goods brand.
You've likely already seen the first evidence of this growth. Bottled Starbucks drinks are already available at many grocery stores in the U.S., as are single-serve coffee packets and instant coffee.
In the first half of the year Starbucks' revenue from its packaged goods business soared 95% year-over-year... but it still sits at just $500 million. By comparison, Starbucks' stores delivered revenue of nearly $6 billion -- 12 times as much -- during the same period.
Just imagine what that growth is likely to do for the company's earnings.
And as you would expect of any great business, Starbucks is rewarding shareholders with both dividends and buybacks.
The company has authorized approximately 20 million shares in buybacks (worth roughly $1 billion at current prices). Starbucks bought back more than $550 million in shares last year.
And Starbucks paid its first dividend two years ago. Since that time, its payments have jumped 70%.
I expect that upward trend to continue for years to come. After all, even at current levels, the company pays out just 40% of earnings in the form of dividends. And as you've seen, its earnings look poised to rise for years to come.
But Brookfield Infrastructure (NYSE: BIP) and Starbucks (Nasdaq: SBUX) are just the tip of the iceberg. My latest research report, "WGB Retirement Fund" -- The World's 12 Greatest Businesses, includes an in-depth look at 10 additional stocks...
is a special "toll" company
with nearly a billion users around the world... and $2.5 trillion in transactions per year.
annual net income of $6.5 billion, this company is more
profitable than such well-known success stories as AT&T,
American Express, and Bank of America... just to name a few.
And at last count, this company held more than $48 billion in
cash on its books. That amounts to over $9.00 per share... yet the
stock trades for less than $20.
Again, I've included full company profiles for all 12 of these stocks -- including names, ticker symbols, analysis, and exact "buy" and "sell" prices -- in my newest research report -- "WGB Retirement Fund" -- The World's 12 Greatest Businesses.
Start Focusing ONLY on Your Best Ideas
I put together this report because I
believe small investors should focus ONLY on the
best companies money can buy.
In fact, that's the entire mission behind my Top 10 Stocks advisory.
This newsletter offers one of the simplest guides to the market. Each month I focus on just one great investment from across all of StreetAuthority's advisories that I believe could deliver big gains in the months ahead -- my favorite pick from out team of dozens of market experts.
So far, the readers following my work seem to have enjoyed it...
One professional investor -- Jim P. from Oregon -- told us "Across about 50 client portfolios, we have about $700,000 invested in the position [that Top 10 Stocks recommended]. We've made about $150,000 so far."
But professionals aren't the only ones making
money from the advisory...
Dow F. from Ohio told us that he "realized $2,200 in gains so far. Very happy overall."
Fred S. of Maryland said simply, "The selections are excellent -- bought a few and they are up considerably."
And Ricardo O. from Portugal told me, "I have been (and still am) a subscriber to other advisories and you are clearly the best. Simple, honest, clear and with a long-term focus, which is so badly needed these days."
In fact, when I started asking subscribers what they thought about Top 10 Stocks, the answer was clear...
"I like that you are going with quality
stocks and you keep it simple."
-- Ernie F., Arkansas
"Top 10 Stocks is a great service. Because of bad recommendations from other services I have subscribed to I had not invested in all of your recommendations, but after seeing the results 9 months later, I wish I had."
-- Stephen S., New Mexico
"I like the common sense approach Top 10 Stocks takes toward making sensible investments. Also, the stock suggestions are well researched and well written so that novices, like me, can understand the information."
-- Judy M., New Hampshire
I'd like to extend a special offer to you. I want you to try
Top 10 Stocks advisory for the next 30 days, read my latest
"WGB Retirement Fund" --
The World's 12 Greatest Businesses, 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 receive:
Research Report: "WGB Retirement Fund" -- The World's 12 Greatest Businesses -- This report covers all 12 of the stocks I've labeled with the exclusive "World's Greatest Business" tag, including names, ticker symbols, and full analysis. I also provide recommended "buy" and "sell" prices so you'll have everything you need to start profiting from these stocks today.
And on the first of each month, you'll also receive my latest issue of Top 10 Stocks. This advisory is focused on just one investment each month -- the single best idea from across all of StreetAuthority's 10 premium advisories. I'll email my latest issue immediately after you register.
You should also know that for my Top 10 Stocks advisory, I actually purchase every one of my monthly ideas in my Top 10 Stocks' $100,000 real-money portfolio. That means you'll easily be able to see how I'm doing. And you'll also know that my interests are aligned right alongside yours -- just like a company executive buying shares of his or her own stock.
And better yet, I'll also 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.
One more thing -- once you become a StreetAuthority subscriber, you'll also receive The StreetAuthority Insider for free. This weekly advisory brings you the opportunities and investments that our top researchers at StreetAuthority are analyzing right now... before the public ever hears about them.
For the next 30 days, 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. You'll keep all of the reports and issues I sent you free of charge as a thank-you for trying out the service.
I'll tell you how to get started and gain immediate access to my Top 10 Stocks advisory and my newest report -- The World's 12 Greatest Businesses in a moment. But first I want to tell you about one more bit of research I've been working on...
The 10 Best Stocks to Hold Forever
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.
One of my favorite "Forever" stocks has outperformed "regular" stocks by more than 100 percentage points since its inception... along with dividend growth during that time of 28.9%. In total, investors have received more than 90 consecutive dividends from this investment.
Another "Forever" stock has raised its dividend 67.4% since 2008... and it's now buying 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 its outstanding shares, which helps support the share price in just about any market.
Some of the world's wealthiest and most successful
investors, politicians and businessmen are pouring money into these
For example, one of my favorites is 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.
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 nearly 13 million shares worth more than $8 billion. Goldman Sachs owns another 2.3 million 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.
George A. from Weatherford, Oklahoma
told us recently that
he's held shares of General Electric for 45 years. During that time,
his holdings have turned from
$27,000 to $108,000...
while also paying him "tons" of dividends.
Arthur R. of Sandy Springs, Georgia told us he invested in 200 shares of Automatic Data Processing at just $8.00 per share. After holding about five years, he sold at $59.90. His profit? Through splits, his original $1,600 investment turned into $106,000.
Tony R. of Reading, Massachusetts bought $2,000 of Esso -- Exxon's predecessor -- more than 50 years ago. "I never purchased any more, I just reinvested dividends. For years it was the only stock I owned."
Tony says that stake topped out at more
Now, I'm not here to tell you about General Electric or Exxon. They've done well by long-term investors, but I don't want to hold them forever now. But these stocks prove just how big a difference "Forever" stocks can make to your overall wealth.
As I've said before, 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 more than 8,050%. That's an average annual gain of 59% and enough to turn every $100 invested into more than $8,000.
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 long 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. These stocks fell an average of 30% less than the broader market during that period.
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 isn't some fluke. It's one of the main reasons why we selected these 10 stocks in the first place.
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 subscription to my monthly Top 10 Stocks advisory.
Keep reading to see how to sign up and lock in a major discount...
A Discount of 60% Off the Masthead Price
The masthead price for Top 10 Stocks
is $99 per year.
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
You'll pay just $39.95 for one year of my monthly advisory. This includes...
12 Issues of Top 10 Stocks -- This advisory is focused on just one investment each month -- the single best investment idea from across all of StreetAuthority's advisories. I'll send my latest issue immediately after you register.
Instant Access to my Entire $100,000 Real-Money Portfolio -- To track my true results, I actually buy and sell my top 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: "WGB Retirement Fund" -- The World's 12 Greatest Businesses -- This report covers all 12 of the stocks I mentioned earlier, including names, ticker symbols, and full analysis. I'll also provide my recommended "buy" and "sell" prices, giving you everything you need to start profiting from these stocks today.
Report #2: 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.
Weekly Issues of The StreetAuthority Insider -- This weekly advisory brings you the opportunities and investments that our top researchers at StreetAuthority are analyzing right now... before the public ever hears about them. This service is included in your subscription at no extra cost.
If you decide to join Top 10 Stocks for two years (with the same 30-day money-back guarantee), then you'll also receive three additional reports...
Report #3: 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.
Report #4: The Most Undervalued Stocks in America -- These two stocks are extremely profitable, and both of them dominate their respective industries. And due to short-term market fluctuations, they now rank as two of the most undervalued stocks I've ever seen.
Report #5: Two Stocks with 500% Growth Potential --
These are the sort of "game-changing" stocks that can make you a
millionaire while you're still young enough to enjoy the money. I'm
talking about ground-floor opportunities that every investor dreams of.
Like buying McDonald's at the start of the fast-food era. Or Microsoft
at the start of the PC craze. Thousands of ordinary people became millionaires thanks to
these stocks. Here's your chance to follow suit. To get instant access,
subscribe now, All the best,
And remember, you'll have the next 30 days to decide if you like my research or not. And you can feel comfortable placing your order knowing that you're working with a company that has earned an "A+" rating from the Better Business Bureau.
If you don't like Top 10 Stocks, 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 keep all of the reports and issues I sent you, free of charge.
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All the best,
Chief Strategist, StreetAuthority's Top 10 Stocks
P.S. -- The only way to get the names of my World's 12 Greatest Businesses report, 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 PM,
BIP and SBUX. StreetAuthority owns shares of PM, BIP,
SBUX, BRK-B, and XOM as part of the company's
"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 2012 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. Below are the returns for StreetAuthority's premium newsletters.
Current Holdings Showing
Current Holdings Showing
Top 10 Stocks
* as of August 1,