Dear Reader, A few weeks ago, I set one of the most important financial goals of my life. What led me to this decision is a phenomenon I’ve noticed in my newsletter portfolio: The wealth-producing effects of compounding. After seeing the compounding effects in stocks such as Exelon – UP 214% and Akamai – UP 219% (as of Jan. 2007), I’m convinced that the returns produced by purchasing one great business per year are impossible to beat. The ideal investment plan is to make one relatively large, long-term investment each year for the next 10 years. I believe doing so will provide enough diversification and capital appreciation to serve as a financial “lifeboat” for you and your family. Twenty years from now, ideally, these savings should be enough to last you for the rest of your life and provide you with enough income to live on. The hard thing about long-term investing, though, is making sure you’ve picked the right business and paid the right price. In this letter, I’m going to tell you about a classic American business that satisfies both categories. If I could, I would buy a huge amount of this stock myself. But our company’s policy is clear: Analysts cannot own the stocks they recommend. A pity... because this business is exactly the type of investment Warren Buffett looks for – a solid, “iconic” money-machine that can compound your returns MANY, many times over, if you hold it long enough. In my opinion, it’s the best stock to own for the next 10 years. Let me explain... in the stock market Just before Christmas, I got a wonderful card and a brilliant book from Mohnish Pabrai. Mohnish is one of the truly great young investors in America. He is the sole investment manager of The Pabrai Funds, which have averaged 28% a year since inception (1999). Mohnish is a Buffett disciple... of sorts. His approach differs a bit today, but their mindsets both spring from the same ancestral waters. The book Mohnish sent me for Christmas, The Essays of Warren Buffett, was collected and edited by Lawrence A. Cunningham, a professor of law at Yeshiva University in New York City. It is the only major compendium of Buffett’s own words. Most helpfully, it gives away Buffett’s greatest secret to getting rich... The secret – capital efficiency – is this:
That’s been the secret engine of Buffett’s Berkshire Hathaway – which, as you’ve probably heard, has beaten the S&P 500 36 out of 41 years, earning a total return of 305,134%. And that’s why Warren Buffett’s worth an estimated $46 BILLION today. In short, he finds great businesses and holds them forever. The problem is – very few businesses could continue to earn billions in profits each year without investing in new assets. Perhaps even fewer companies have good management teams who make sure shareholders receive the benefits of such success. But I’ve recently found a classic American company that’s one of the best long-term investments available on the stock market today. This is a quintessential “Buffett” opportunity. Let me explain... pay for your retirement The company I’ve found is as American as apple pie. It owns an iconic brand in a business that’s been almost totally unchanged in 100 years. It dominates the business, with almost 50% of the market, and has been the market-share leader every year for the last 18 years. Its nearest competitor has a puny and shrinking market share of only 16%. Its customers are fiercely loyal – some sources have estimated their repeat business rate to be as high as 75%. It’s fair to say that this company’s customers nearly worship its product. This company is an efficient producer of profit. It’s the kind of firm that’s likely to do well in times of crisis... and to make the most in times of plenty. But most importantly, because it can make huge profits with little new investment – it can afford to reward shareholders richly with dividends.
Based on its current stats, you could make a fortune in the next few years – just by buying this one stock, holding onto it, and collecting dividends. To make these kinds of long-term, focused bets, you have to know that a company’s economic advantage will be long lasting. The way to do that is to find great companies, with simple businesses... Companies that make huge profits year after year without investing much new money into the business. And that’s exactly the kind of company I’ve found. I believe you could realistically make 7 times your money in the next 10 years... And that’s in addition to all the dividends you’ll collect along the way. If you’d like to take advantage of this investment right away, I’d like to give you immediate access to my most recent research called Buffett’s Secret, published on January 5, 2007. Let me show you how to get your copy... Why I quit my job and hired the best My name is Porter Stansberry. I’ve been in the investment research business for 11 years now. I launched my own research firm, called Stansberry & Associates Investment Research, in 1999. Since then, I have paid a fortune to hire the best analysts in the business... For example, one of my analysts has a Ph.D. in finance – he’s worked for two hedge funds and run a $50 million mutual fund. Another guy on my staff is a Certified Financial Analyst – he’s taught MBA programs and run a brokerage firm for 20 years, where he managed money for some of California’s wealthiest families. One of my health analysts has a Ph.D. in biochemistry. Another has dual degrees from the best health school in the world (Johns Hopkins). Yet another has spent a decade on Wall Street, before going to medical school and working at Duke University. I’ve got men and women on my staff who’ve worked at the biggest banks and insurance companies in America. They’ve lived and worked all over the world, from Ireland to Australia to Argentina. And most importantly, they get as excited as I do about finding great investment ideas. In just the last six years, we’ve built what is probably the most successful independent investment research firm in America. Stansberry & Associates now has more than 200,000 subscribers, in more than 130 countries. Please keep this in mind: We aren’t brokers, or investment bankers. We’re completely independent from the investments we cover. I believe that’s how the investment business should work – no hidden interests or secret agendas. The only income we receive comes from subscribers who pay for our research. So the only way for us to grow is to reliably give our readers great investment ideas they don’t find anywhere else. Our flagship research service is the monthly investment letter I write, called Porter Stansberry’s Investment Advisory. When you take a trial subscription to my advisory, I’ll send you a copy of my most recent research I mentioned earlier, called Buffett’s Secret. Is my research for you? Here’s how to find out... “No Risk” portfolio Every month, I focus on two kinds of investment opportunities. The first type of opportunity I look at is for my “No Risk” portfolio. What is this, exactly? Let me show you an example of what I mean... A few years ago, I uncovered a unique situation in Hawaii – a company called Alexander & Baldwin (A&B). At first glance, A&B looks like any regular business – they have large shipping and sugar operations, and are quite profitable. But here’s what’s so remarkable: With a little digging, I found that this company also owns some extremely valuable real estate (which it bought 100 years ago). I sent one of my top researchers to Hawaii to sift through the property and tax records at the Maui County Real Property Assessment Division. We found that the value of A&B’s land was worth double the price of the entire company on the stock market. The value of this land made owning the stock so safe. Even if the company closed down, shareholders could still make a nice profit if the company sold off its land holdings. Of course, nothing in the investment world is entirely risk-free – but this is as good as it gets in terms of safety and money-making potential. You see, a business with this much in assets is rare. And it has little chance of losing money, even if business slows way, way down. That’s why it makes for a super-safe and profitable investment. We recommended Alexander & Baldwin back in 2002. It’s up 128% (as of Dec. 2006) – and subscribers who took our advice were able to make a nice profit.
The smallest gain has been 7%. The largest gain has been 206%. The average gains is 57%. Remember: These are what I consider the SAFEST STOCKS IN THE MARKET. Remember, I said there are two types of investment opportunities I look for every month. The first are the “No Risk” portfolio opportunities. What’s the second? Well, I look for the most profitable stocks in the world. Let me explain... The most profitable health trend of 2007 The second type of opportunity I look for every month is a little more speculative. I call this type of investment: “The Next Big Boom.” What I’ve found is that if you do your homework, and have the right contacts, you can learn about a new technology before the mainstream catches on. You can invest early, and make a killing. For example, there’s a huge new development going on in the medical world right now. It’s an industry secret doctors and scientists are aware of, yet investors still don’t have a clue. Here’s what I mean... As you probably know, there’s a lot of money in making vaccines. For example, Wyeth Pharmaceuticals’ new Prevnar Vaccine for children (which prevents infections such as meningitis) had $700 million in U.S. sales within its first 15 months, and sold about $1.5 billion worldwide in 2005. The industry publication Pharmaceutical Executive detailed recently how the prices of vaccines for children have gone up 40-fold in the past 20 years, and how “the vaccine market is expected to more than double between 2004 and 2009.” What most people don’t know about vaccines, however, is that we are still using a manufacturing technology developed 50 years ago. For example, did you know that to make the flu vaccine each year, scientists use about 100 million chicken eggs? It’s true. They bore a hole into each egg with a tiny drill, inject the virus, and then remove it months later to make the vaccine. It’s a complicated, fragile, and tedious process that takes about 9 months, start to finish. Now you know why we often run out of flu shots. The good news is that a small technology company has developed a brand-new way to produce vaccines, which is making the process faster, safer, and more effective. This isn’t a technology that “might” work. It’s actually being used right now by the biggest names in medicine:
The point is, this is not a new drug. It’s a completely new way of developing vaccines. The market is huge, and growing. The company responsible for this development is tiny, and still almost completely unheard of. The stock has already begun its move – up about 60% in the past 22 months. Believe me, it has a long, long way to go. This is one of those opportunities most investors will hear about only after it’s too late. Right now this company is still small – but it’s growing quickly. This is probably the best way to double your money in the market right now. I expect that you could make 300% gains from this situation, easily. When you take a trial subscription to my monthly investment research service, I’ll send you my full report on the situation, called: The Next Boom in Medicine – A New Way to Make Vaccines. I believe with my help you can get in on the “Next Big Boom” in medicine, long before it becomes mainstream. Why do I say that? Because I’ve been finding exactly these types of opportunities for my readers for years...
A subscriber named John Bellington, from Chicago, for example, wrote to tell us recently that he made 916% on Elan. A subscriber named Bob Kennedy, from Hermosa Beach, California, wrote recently to tell us he made 512% on Elan and that it was “the best trade I ever made.” Another subscriber named Jackie Marks, from Pittsburgh, wrote to tell us that she made about 340% on this stock, and she added: “I suppose... a house in Hilton Head may still be in the cards for me.” Each year, we continue to pick out a few new technologies that we believe should at least double your money in less than a year’s time.
As you can see, we’ve done extremely well with our “Next Big Boom” technology picks every year. And we’ve got another good opportunity right now with a business that’s perfected a new way to make vaccines. How can you get started with this research right away? Here are the details... If you sign up for one year of my investment research you’ll receive:
As I’ve explained, my strategy is pretty simple. I recommend you keep most of your investment dollars in safe stocks that offer great dividends. Then, put a tiny sliver (5% or less) of your assets into something that has a good chance of being a homerun. I’ll tell you about the “Next Big Booms” that give you opportunities to make big gains with small investments.
You’ll have the next six (6) months to have a closer look at my research. That way you can take your time deciding whether or not it’s right for you. If not, just let us know within six months of receiving your first package from us in the mail. If you cancel your subscription any time within your first six months, you’ll receive a full refund. Why do we make an offer like this? Because we only want to do business with you if you enjoy and benefit from our work. So you’ll have six full months to make that decision. My work has been quoted in the best financial papers in the country, like Barron’s and The Wall Street Journal. I’ve appeared on dozens of investment talk shows, and have spoken at several dozen investment conferences around the world. But I’m most proud of how my work has helped my readers. For example:
How much does my research cost, and how can you begin receiving it so that you can take advantage of the situations I’ve outlined? Before I give you all the details, let me tell you about one more thing I’d like you to have access to free of charge, simply for taking a look at my work... As I mentioned earlier, I look for two kinds of opportunities in the stock market:
Well, once in a while – but very rarely – you have the opportunity to take advantage of both situations at the exact same time. You find a company that is super-safe... which is also implementing a new technology that will change the way the business world works. I’ve seen this opportunity only once in my career – and it’s happening right now. As the technology journal Tech Web recently reported, “The world’s largest technological upgrade is on deck.” And it’s why Forbes calls The Next Generation Internet a “$10 trillion industry over the next decade.” Essentially, this will make Internet connections faster, more secure, and will allow more users at one time. As the tech firm Nortel says: “The Next Generation Internet is 100-times faster than the current Internet.” That’s why every Fortune 500 company in America is upgrading... and why this new, much faster Internet will soon be available in your home (it’s already available in many parts of New York and California). What’s amazing about this opportunity is that while there are dozens of companies making the equipment for the Next Generation Internet... there’s basically only one company laying the new fiber optic cables directly to businesses and homes. This company is now undertaking what is easily the biggest Internet project in history. As Business Week said, it “might reasonably be compared with the construction of the Roman aqueducts.” That’s why this company is going to dominate the Internet market for the next decade and beyond. There will be NO competition. If ever there was a perfect stock to include in the “No Risk” portfolio, this is it. This company is creating a way for businesses and regular people like you and me to send and receive information over the Internet about 100 times faster than we ever have before. And it is wiring this new development to tens of millions of homes and business right now, perhaps in your neighborhood. This development will change education, health care, financial services, and essential government services, just for starters. How can a single company afford such a project? Well, as Business Week stated, this “is one of the great cash machines of Corporate America... generating $22 billion a year.” In short, it’s a huge project that’s already underway. In 3 years we will look back and see what a great and obvious investment opportunity this was. Smart investors will make a killing. But for now, the story is hardly being covered at all in the mainstream press. That’s why, this is the single best opportunity in the stock market today, in terms of safety and profit potential. Plus, it pays you a huge dividend 4 times a year. If you are interested in this opportunity, I’ll send you the full details, free of charge, in my recent research report: The Dominant Internet Company for the Next 20 Years. As I mentioned earlier, when you accept a trial subscription to my investment newsletter – Porter Stansberry’s Investment Advisory – this report, and the other I told you about earlier, are yours free. So how much does my research cost? I think our research is one of the best bargains in the entire financial world. Many of our readers agree:
You can get a full year of my research reports, for about $8 a month (that’s about what it costs to make ONE stock trade at TD Ameritrade or E*Trade). My research costs just $99 for a whole year. When you compare this price to other research services, you begin to see what a bargain it is. It would cost you more than $99 to get just one hour with a financial planner – yet for that price you can get my best research for an entire year. Why is it so cheap? The truth is, between acquiring new customers, travel and research expenses, overhead, and salaries, we barely break even by charging $99 a year for our work. The only way we stay in business is by providing you with research that is good for you to want to continue your subscription with us, year after year. But we realize, of course, that you’ve got to try our research first, to see for yourself how it works. That’s why we offer our work at such a low price – to make it easy and affordable for you to try, risk free. The point is, I believe our work is better than any research outfit in the business. We’ve quickly grown to become the biggest research group of our kind in America because our customers stick with us after giving us a try. You’ll have to decide for yourself after you give our work a look. I encourage you to do so right away. There are several incredible investment opportunities out there right now – and they won’t be around for long. Subscribe Now to get started right away. Sincerely,
Porter Stansberry P.S. One more thing. When you take a trial subscription to my monthly advisory, I’ll also send you another recent research report called The World’s Best Mutual Fund. Most mutual funds are a complete waste of your money, but I’m going to tell you about one fund that is unquestionably the best in the world right now. It’s super-safe – yet has averaged nearly 15% per year since inception. This rate doubles your money in less than five years. This fund is unlike any other in the world I’ve seen... and you can buy and hold it for the next decade or more. |