Share Trading Tips

Tuesday, April 5, 2011

8 Stocks For Your 10-Yr Portfolio

Dear Reader:

These 8 stocks that we are referring to are no ordinary stocks...

In fact they are special...

So special that we believe even the world's greatest investor could want to own them as he starts investing in India.

So, what stocks are on this list? How can you access them for free?

Just read on for full details...

Warm regards,

Rahul Goel
CEO, Equitymaster.com


Imagine Multiplying Your Wealth
4-6 Times. . . Or More. . .
Literally Without Any Effort!

Sounds unbelievable?

One investor grew his wealth a whopping 4,905 times
using the strategy we're going to discuss below

And now, Equitymaster will shortlist a set of stocks
to invest in using the exact same strategy

So like I said, you get to grow your money
without any effort. And the best part -
8 stocks have already been revealed!


Dear Reader,

Imagine:

No fear of picking the wrong stock.

No need to monitor a stock continuously fearing it might turn bad.

No reading and reviewing quarterly and annual reports.

No constantly tracking the market trends.

No wondering if the things you hear on the TV and in the papers are all true or false.

NOTHING! No worries of any kind.

Each day you can do what exactly you want to do with your time, while Equitymaster takes care of everything.

All you will have to do is invest in the stocks we tell you, as and when we tell you to.

And if you can do just that much, you'll have a portfolio of 12-15 stocks capable of growing your wealth 4-6 times (or maybe even more too) over the next 5-10 years.

In fact, since November 2009 we have already identified and recommended 8 such valuable stocks to our subscribers.

Despite the recent market crash, two of these have already made 106% and 35%... and the portfolio on the whole is up by around 15%.

Plus, we are confident that all of them would multiply 4-6 times over the next 5-10 years.

Sounds really interesting, doesn't it?

Here's more about this unique service
and how it all started . . .

Alright, listen...

Before I tell you more on this, I'd like to give you a bit of background info first...

You see, over the last 5 years, in my capacity as the CEO of Equitymaster and as an investor myself, I've met and exchanged views with quite a lot of people.

And I found two things to be common in most of these cases:
  • A majority of investors get interested in stocks only when everybody else is interested in stocks. Plus, they also look to buy the same stocks that everybody else is buying

  • A majority of investors rely heavily on the advice of their broker to decide which stocks to invest in
First problem -- you CANNOT invest in well-performing stocks and become rich because most of the growth potential that these companies possess has already been exhausted by this point.

And second - we know that most brokers are actually more concerned about meeting their own commission targets, rather than finding and recommending what's best for you.

So what's the solution to both these problems?

Surely, there must be a tried and tested way, to amass life-changing riches from the stock market.

A method where there's significantly less chance of getting duped by selfish elements.

Yes, there is...

Follow the Master Himself!
Of course, I'm talking about Warren Buffett

One rarely comes across an investor who doesn't know or hasn't heard of Warren Buffett.

Buffett is the most revered and cherished of all investors, and there's no one better than him at what he does.

His company, Berkshire Hathaway has seen its book value grow at 20.2% annually over the period 1965-2010, as compared to the S&P 500 which grew at just 9.4% annually.

In other words, he has turned every US$ 1,000 invested in Berkshire into a whopping US$ 3,941,858... in stark contrast to the S&P 500, which has turned every US$ 1,000 into just US$ 56,987 during this 45 year period.

So how did he manage to make such HUGE gains?

Did he somehow get lucky every time? Of course not!

Did he manage to uncover some deeply hidden, magic stocks that nobody else knew?

No, that wasn't the case either.

Then how did Buffett make such BIG gains so consistently?
Let me just illustrate with an example . . .

Buffett acquired a stake in Coca Cola in 1988 when the company was experiencing some temporary problems that led to the stock becoming highly undervalued and underpriced.

But Buffett believed that Coca Cola possessed a huge competitive advantage due to its strong brand and the way people related to the brand.

In addition, he fell in love with the economics of the business and the sustainability of its profit-making capacity... and hence bought a huge stake in the company by investing a large part of Berkshire Hathaway's funds in it.

And guess what happened?

After 23 years, the market value of Buffett's holding in Coca Cola is 19 times what it cost him to acquire those shares.

Every 100 dollars he invested in 1988 now stands at nearly 1,900 dollars!

Coca-Cola
Data Source: Yahoo Finance

And this wasn't a one-off case either...

Washington Post, the newspaper company that he started buying into in 1973, has till date multiplied his money a thumping 76 times!

And this too was chosen primarily because it was a good business selling for less than its real worth.

Since Buffett first bought Wasington Post...
Data Source: Yahoo Finance

So what can you learn from the above examples?

You see, most investors today think small.

They just want to get in, make a profit quickly, and get out.

But if you want to get REALLY wealthy investing in stocks, you have to pick reliable investments selling for less than their real worth... and stay invested in them for a VERY LONG time.

Like, almost forever!

And it doesn't matter what category these companies belong to.

I mean they could be blue-chips, or midcaps, or something else. That's not how they're chosen.

Buffett simply believes that shares of companies with strong franchises and good long-term prospects are likely to rise CONSIDERABLY over a long period -- regardless of how the market on the whole does during this time.

Understanding this little thing is what rewarded Buffett richly almost every single time.

And now...

Here's how you too can use Buffett's Method
and amass huge riches for yourself . . .

The fact is, anybody can invest the way Buffett does and get rich.

But you'll have to get your facts absolutely right.

Some of the attributes that are absolutely essential for Buffett while choosing the right company are:
  • Strong fundamentals: The company should have a simple and easily understandable business, a consistent operating history and favourable long-term prospects

  • A management that is honest and competent: The management team must be able, rational, frank with shareholders and resisting the compulsion to act just to prove a point

  • Sound allocation of capital by the company: Less capital requirements on an incremental basis, low or nil debt on the books, stability in profit margins and return on equity, sustained growth in earnings are some of the technical aspects that Buffett always look at

  • A unique competitive advantage: The company's product or service should have a large and sustainable competitive advantage that gives it an edge over competitors
And if a company satisfies all the above criteria first, Buffett then waits for the right moment... or rather, the right price to buy it.

However, the stock price doesn't have to be at rock bottom to buy it. It just has to be selling for less than the real value of the business.

While all this may sound very simple...

This is where it actually gets more complex for you . . .
  • How will you know what the real worth of a company is?

  • How will you know if its management is competent or not?

  • How will you know if those problems that the company is facing are indeed temporary ones, or something that might pull the company down altogether?
All these are questions that require hours and hours of painstaking research and a thorough understanding of market and company fundamentals.

In order to find the answers, you'll have to go over numerous charts, analyze company performance, study the market scenario and do so much more.

And in addition, you'll also need to keep tracking the company continuously so that you're able to take advantage the moment a stock becomes an attractive buy.

Can you do all this on your own?

Do you have the time and resources to do all this yourself?

From my experience, I can tell you a lot of people prefer that:
1. Someone instead did all the research for them,
2. Ascertained which stock has enormous potential,
3. And even told them exactly when to invest in it
If you're one of those people, then I've got great news for you...

Revealing "ValuePro":
Our Portfolio Recommendation Service Based on
Warren Buffett's Investing Strategy

We know that there are a lot of investors who would like to invest like Buffett.

But sadly, there's no other service that offers this kind of information right now for Indian stocks... and that's the reason we decided to launch a service like ValuePro.

So what exactly does this service do?

Simply put, ValuePro will help you build a portfolio of 12 to 15 stocks based on the investing principles of Warren Buffett, which could go on to make 4-6 times your money over the next 5-10 years.

All of these stocks would be companies that are doing simple businesses that can be easily understood, have consistent earnings history and sustainable growth path, are managed by honest and competent people, and whose stocks are available at attractive prices with an adequate margin of safety.

You see, there's a huge amount of credible literature from over the years which document how Buffett goes about picking his stocks.

We will now use all that data to select the right stocks for you.

And the good thing for you is that you'll be getting a final selection of stocks, as opposed to numerous recommendations.

Yes, we have already recommended 8 such stocks to our subscribers since November 2009.

Sign up for this service right away, and you can get access to these stocks instantly!

In addition, we will also identify 4-7 new stocks for you in the coming months as a part of this existing portfolio. And after that, we'll develop a new Buffett-style portfolio comprising exclusively of stocks from the midcap space.

In addition to these 4-7 stocks, we will also cover other stocks which would be attractive investment opportunities once their stock prices hit the desired levels.

And you can be rest assured that only the
best stocks will be suggested to you always . . .

Again, you might ask, "What's the guarantee that these stocks will turn multibaggers?"

Well, there is no guarantee but, our confidence comes from the fact that the stocks will be picked based on the criteria outlined by the world's best stock picker, Warren Buffett.

In fact we are so confident that we have invested and will keep investing Rs one lac in each and every stock that's recommended under this service.

While recommending stocks for the ValuePro portfolio, we will wait till we find stocks that completely meet the selection criteria, and let you know only when the price is absolutely right to buy them.

And then, the only thing you'll have to do is heed our call and invest in them right away.

This means:
  • There won't be any 'HOLDS'. Only 'very strong buys' - if we don't find such 'very strong buys', we'll keep looking.

  • It is highly likely that stocks could be released in a 'bunch' - at a time when markets become excessively pessimistic.
For this reason, there will be lesser number of recommendations, and the stocks that we recommend will be pre-designed to build a portfolio for you.

But wait, don't stock brokers
do the same thing too?

No! Like I said, stock brokers often have a vested interest in recommending various stocks to you.

After all, they get a commission on every share you buy through them... and so they sometimes push stocks that will make more money for THEM.

In contrast, we are not stock brokers and we don't get anything even if you buy the stocks we recommend.

So for us, the only reason to recommend a "Buffett stock" is that it has passed all the "Buffett criteria".

Our philosophy has always been to recommend only those stocks which pass the strict evaluation tests practiced by the best investors in the world.

This is what helped our subscribers make:
    ü 48 times in Titan Industries over a period of 7.6 years
    ü 28 times in Voltas in almost 7 years
    ü 26 times in M&M over a period of 6.5 years
    ü 18 times in Thermax over a period of 7.7 years
    ü 11 times in Tata Power in 8 years
I think this is enough to show that this approach really works.

And that Equitymaster too has been really successful at putting it to good use for the benefit of its subscribers.

So here's exactly what you get from ValuePro . . .

Our aim through ValuePro is simple - to help you build a portfolio of 12-15 Buffett-like stocks that could multiply your money 4-6 times in the next 5-10 years.

On the first Monday of every month, you'll receive a monthly ValuePro Report from us containing details of a profitable stock.

Apart from covering an attractive stock, the report will also provide valuable info on:
  • How to identify the right kind of businesses to invest in

  • How to keep you protected from the most severe of bear markets and economic slowdowns

  • When to sell your investment

  • Exciting investment ideas we will be pursuing

  • Excerpts of our interaction with companies' managements, suppliers, competitors, and customers

  • ...and much more
So since the launch of Valuepro in November 2009, there have been 8 "Buy" recommendations in all… and 9 other stocks have been covered, which may be attractive once their price reaches the levels we expect.

As soon as you subscribe to ValuePro, you can get an immediate access to all these reports!

And now, the big thing...

To show you how confident we are about our research,
we too will be investing alongside you
in each of our ValuePro recommendations!

That's right! We will be investing Rs 100,000 in every stock we recommend through ValuePro.

Yes, we have invested money in each of the 8 stocks recommended so far. And we'll invest in each of the future ValuePro recommendations also.

This is to prove that we're not somebody who merely dishes out BUY calls and watches from a safe distance.

No, we're willing to put our money where our mouth is.

So you see, we are on the same side as you.

But you will always have the first go at the stocks, because we won't be buying them until 10 trading sessions AFTER we recommend them to you.

Here's what one of our ValuePro subscribers has to say:

"First of all I would like to appreciate the stock selection mechanism of Equitymaster. I am a subscriber of Equitymaster since 2009. Also enjoying handsome returns since then. I made this decision of joining Equitymaster in one of the tough phases in my life and fully got paid for the right decision. I am happy investor and proud to be associated with Equitymaster. I encourage the large community of retail investors to join such an advisory services to be active participants in Indian Stock Markets and NOT to run after quick money."

                                -- Pankaj Deshkar, a subscriber since 2009


And how much is this going to cost you?

Before we get to that, there's something I'd like to make clear once again...

If you're currently subscribed to any of our other services, you know that we send out weekly, bi-weekly or monthly recommendations for those.

However in this case, good companies don't go through unusual circumstances every week or every month... and till than happens we have no option but to wait.

That's why we are taking 2 years time to build this portfolio.

We have already been at it since November 2009... and aim to complete this portfolio by the end of the year.

Now coming back to the price again

The normal subscription fee for this service is Rs 15,000 per year.

But because we know a lot of people will benefit from this service... and because we really don't want the price to be an obstacle...

For a limited time, you can get your ValuePro subscription for Rs 9,950 only.

Rs 9,950 for a year comes to about Rs 829 per month or Rs 28 per day.

For a complete portfolio of stocks that could go on to multiply your wealth 4-6 times, I think this price is a real steal.

And don't forget - we are talking about a holding period of around 10 years here.

When you grab companies with potential for less, and hold them for 10 years, there's actually no limit to how much you could end up making.

Both you and I know that there are companies that have attained iconic status in a period of 10 years.

In addition, when you sign up for ValuePro
you also receive FREE:


1. Common Stocks and Uncommon Profits Book

Since we wanted to make it even more special for you, we have also decided to give this well-known book FREE of cost to those who sign up for ValuePro now.

One of the classic investment texts written for the lay person, this book has been a piece of marvel from Philip A. Fisher.

Common Stocks and Uncommon Profits
Buffett has been one of the best-known followers of Fisher. In fact, he's noted as saying on some occasions that he is '85% Graham and 15% Fisher'. Buffett has credited Fisher with inspiring him to look at good businesses.

Even Charlie Munger, Buffett's partner, has praised Fisher. He once said, "Phil Fisher believed in concentrating in about 10 good investments and was happy with a limited number. That is very much in our playbook. And he believed in knowing a lot about the things he did invest in. And that's in our playbook, too. And the reason why it's in our playbook is that to some extent, we learned it from him."

In this book, Fisher explains the qualitative side to value investing, just as Graham explains the quantitative side.

This gem of a book usually costs Rs 750. But if you subscribe to ValuePro through this offer, you can grab it absolutely FREE!

And this book too, like the price discount, will be available to the subscribers of this offer only.

Note: The book - "Common Stocks & Uncommon Profits" will be delivered to addresses in India only. So if you reside outside India, you can have the book delivered to a friend or relative's address in India, and then relayed to you from there.

And furthermore, the book will be dispatched after the completion of the 30-day trial period... as we want it to be a gift for genuine ValuePro subscribers only.

2. Equitymaster Portfolio Tracker

During your subscription period, while ValuePro will help you identify Buffett-style stocks, you can also use our Portfolio Tracker for free to manage the portfolio so created.

Portfolio Tracker is an online utility to help you track your stock (and even mutual fund) investments!

It's online, and will be available to you 24 hours a day.

It's always updated with the latest stock prices...and you can also create a number of customised reports to understand your portfolio better.

The Portfolio Tracker usually costs Rs 330/- for a year. But by subscribing to ValuePro, you will get it FREE

And all this at ZERO risk . . .

When you sign up to ValuePro, you'll have 30 days to test-drive this service and decide whether it's for you or not.

So you can sign up now, download and read the 8 recommendation reports that are already there, and then take a decision.

If you don't like ValuePro for some reason... or if you decide that you want to research and choose your stocks yourself... just let us know before the 31st day and we'll refund your FULL fee. No questions asked.

And, you'll have found out what 8 Buffett stocks we recommended, and be free to invest in them in you like.

But I'd personally like you to stay on, because ValuePro is one service that helps you build a portfolio suitable for all market conditions.

The proof of this is the fact that while the S&P 500 multiplied by around 63 times between 1964-2010, Buffett's company Berkshire Hathaway's book value multiplied a whopping 4,905 times!

With ValuePro on your side, you will get plenty of peaceful sleep because you'll no longer need to worry about the ups and downs in the markets everyday.

We'll be monitoring the recommended portfolio every step of the way. So you can feel confident that your wealth is safe, relax and enjoy your life.

To summarize, by signing up for ValuePro now, you get...
  • A one year ValuePro subscription for Rs 9,950 only (Usual price = Rs 15,000)

  • A monthly ValuePro newsletter on the first Monday of every month

  • Instant access to our all our existing ValuePro recommendations

  • A copy of "Common Stocks and Uncommon Profits" by Philip A. Fisher costing Rs 750 Free

  • Free access to our Intelligent Portfolio Tracker (Normal price: Rs 330)


8 stocks are already out.
What are you still waiting for?

Okay, you have everything right in front of you now.

Like I said earlier, we have already identified and recommended 8 stocks until now through ValuePro.

We'll be releasing 4-7 more before the end of the year to complete the current portfolio. And then, we will move on to building an entirely new portfolio.

So if you're someone who wants to become really wealthy investing in stocks... but without the ordeal of picking and monitoring the individual stocks, then I suggest you sign up for ValuePro right away.

With our 30-day, 100% money back guarantee, you've got absolutely nothing to lose.

This offer closes on 8th April 2011.

Act now!

[Click here to subscribe]
 

To your wealth always,

Rahul Goel
Chief Executive Officer
Equitymaster.com

P.S.: ValuePro comes with a 30-day, 100% money back guarantee, so if you don't like it for some reason, we'll gladly refund every rupee you paid. But please note that this being a unique service, we open it up to new subscribers only once in a while... and if you don't get in now, you might not be able to get in for a long time again.

P.P.S.: Even if you cancel your subscription, you can still keep the earlier ValuePro reports as a thank-you just for trying out ValuePro. And since we've already released the details of 8 stocks, this will be like getting more than half the portfolio free, just for trying ValuePro.

P.P.P.S.: If you have any queries, please do not hesitate to contact us at +91-22-61434055 or Write in to us. We will be delighted to assist you!

Subscribe Now!


*Returns have been calculated as on 14th February 2011 or on the date of Sell recommendation, whichever is applicable.
**Returns for ValuePro Portfolio calculated as on 30th March 2011
***Delivery of the 'Common Stocks and Uncommon Profits' will be made to an Indian address only


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Equitymaster Agora Research Private Limited
103, Regent Chambers,
Above Status Restaurant,
Nariman Point, Mumbai - 400 021. India.
Telephone: 91-22-6143 4055



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