Until you hear bullets whizzing by your ears and mortars
exploding over your head, they say war is incredibly,
Investing is the same way - if you're doing it right. 99% of
the time, it should be boring. You should be waiting patiently -
sitting on your hands and waiting for the firefight to begin.
And those thrilling moments should make you significantly
richer - not poorer.
The real trick is to know when to wait - and when to take
I consider it my specialty to know the difference.
I've achieved a 87% "win-ratio" in my model portfolio. That
means well over half the time, I know when to do nothing - and
when to pull the trigger.
I've closed out 20 of my last 23 recommendations with
I've done so with a simple strategy that has everything to do
with knowing the difference between a good opportunity and a bad
I call my investing strategy
. And I firmly believe it could help you achieve superior returns
and amazing profits. Let me explain…
A catalyst is an event that has a very sudden and dramatic
impact on the future of a company and it's stock price. Catalysts
can completely change a company's growth profile and cause a rush
of investors into the stock, considerably driving up the share
price in a short period of time.
Sometimes the climb is gradual, as was the case with
Market Leader (
announced its acquisition. We made 44% with LEDR in just four
Other times a stock surges almost overnight - this was the
Africa Oil (
hit pay dirt in Kenya last year.
Catalysts come in all shapes and sizes and they affect all
types of companies. But one thing is constant … and that is the
potential for investors to reap significant capital gains using
catalyst-based investing strategies.
The trick is to make sure the events that you anticipate are
significant, positive and have a measurable impact on the company
in terms of important metrics - such as sales, earnings, product
distribution and market share.
You're also likely to have more success if you focus on a few
types of catalysts to begin with. Over time, broaden your
One of my favorite catalysts to look out for is a massive new
discovery by an oil or mineral explorer, like Africa Oil.
You can track these relatively easily because companies will
publish their upcoming drilling targets to tell the market about
their activities. That means you have the ability to
forecast when they might happen. In fact, I'm tracking several
drilling events right now for a company I believe could be the
next Africa Oil (you can learn more about this company
I also look in recovering industries for stock-moving
catalysts. The housing market recovery is a great example right
now since many stocks with significant exposure to homebuilding
and renovation markets are enjoying revenue and earnings
And of course blockbuster product introductions can also be
huge positive catalysts for stocks. The best example here is the
iPhone, which completely overwhelmed the handheld phone market
and led to huge sales growth for the company.
These are just a few examples of common catalysts. There are
literally dozens more, and with a little practice I'm confident
you can put the strategy to work and create a winning track
record and solid portfolio performance.
Remember to focus on catalysts that have a significant,
positive impact on sales and earnings.
If you can't link the catalyst to these types of metrics, they
are likely just normal events, and are too small to justify an
investment in the company.
If you'd like a little more information on how to implement
catalyst-based investing strategies, feel free to check out a
special report I've recently written on the subject by clicking
. This report explains all you need to know.
If I can get you to read, understand and even follow the
advice in this report even once, then I've succeeded. And if you
stick by the advice over time I firmly believe you'll have more
success with your investments.
After all, that's why you're here, isn't it?