The investing trick thatâs beating the markets⦠[Outsider Club Header]
Aug 14, 2023 By Alex Boulden for the Outsider Club How We Made 137%⦠So Far "Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1." â Warren Buffett --------------------------------------------------------------- Dear Outsider, If youâve been actively investing these last couple of years, you know that it isnât all sunshine and rainbows. Irrational behavior can and will take over in a flash, causing volatile market conditions and outlandish selling pressure. Itâs hard not to jump on board when everyone else is selling â after all, as Warren Buffett said, the point of investing is to never lose money. Thatâs why Iâve developed what I call the "blueprint to successful investing" that helps me maintain focus and hopefully come out on top. Iâll show you a recent real-world example as well. The Blueprint to Successful Investing Within the successful investing blueprint, you have three tasks. If you complete these three tasks, chances are youâll be on the right track. First, identify an industry thatâs rife for disruption. This has proven time and again to be one the best ways to create massive returns. For example, Amazon disrupted book selling, which eventually led it to becoming the worldâs biggest and most successful online retailer. Amazon's disruption of the book-selling industry serves as a case study of how a company can leverage technology, innovation, and a deep understanding of customer needs to fundamentally change the way an industry operates. Netflix disrupted the movie rental business model. Netflix's disruption of the movie rental industry revolutionized the way people consume visual content. Its subscription model, technological innovations, and focus on user convenience paved the way for the rise of streaming services as a dominant force in the entertainment landscape. [$34,200 Retirement Handout Starts on AUGUST 20th.]( There isnât much time to waste... You could boost your retirement income by up to $34,200 a year simply by staking a claim on a new income stream hidden in the recent Inflation Reduction Act. Itâs 100% legal, but youâll need to move fast. The first payment is due on AUGUST 20th. [Discover the full details of this retirement income opportunity by clicking here.]( And Apple disrupted the computer industry by creating its own ecosystem. Apple's impact on the computer industry is a result of its innovative technologies, design-centric approach, and commitment to providing an integrated and user-friendly ecosystem. Through these strategies, Apple transformed computers from tools for experts into accessible devices that appeal to a broad range of users. Identifying these types of companies seems like a simple task, but if it were so simple, everyone would have become a millionaire by investing in Amazon, Netflix, and Apple when they were tiny companies. But all you have to do is look around you. A lot of the time, itâs right in front of your face. You just have to think outside the box. The second task in the blueprint to successful investing is to find a strategy. One proven strategy is having a contrarian mindset, which involves going against prevailing market trends and sentiment. Contrarian investors believe that the market often overreacts to news, events, and emotions, causing stock prices to move irrationally. They seek opportunities by identifying and investing in assets that are currently out of favor or undervalued by the market. You try to buy assets when they are out of favor or undervalued and sell them when the market sentiment becomes excessively positive and prices are overvalued. Contrarian investors are essentially trying to take advantage of market inefficiencies by capitalizing on the behavior of other investors who might be swayed by emotions like fear and greed. However, this involves having a strong conviction and the ability to withstand short-term market fluctuations, which can be challenging. Going against the crowd can be uncomfortable, and there's always a risk that the market sentiment is correct. I like to harness that contrarian mindset and apply it to sectors that are just starting to get investments from the rich, like company insiders. Now, one strategy I like to use is actually following the stock purchases of these company insiders. Itâs an overlooked strategy that can really give you sense of what the smart money is doing. While you might think this sounds like the illegal form of insider trading, it's completely legal, because the insiders must disclose their stock trades with the Securities and Exchange Commission (SEC). Just sleuth out the SEC form and you've picked up the golden ticket. I like using this strategy to see if there may be an announcement or deal coming up that the public doesn't know about. Finally, stick to your investing philosophy. My rule of thumb is to never invest more than youâre willing to lose and use a 25% trailing stop so you limit your losses. [QUIZ] 46 BILLION Barrels of Oil?! A massive $5.9 trillion oil boom is about to take place. Three tiny companies just acquired the rights to mine an untapped patch holding 46 billion barrels of oil in a mystery location... And it even has the potential to reach $9 trillion in value if prices reach $200 per barrel! So which country do you think will lead this upcoming oil surge? - Venezuela
- Saudi Arabia
- Canada
- Russia Think you know the answer? [See if youâre right!]( 137% Gains... So Far For now, I want to leave you with a real-world example of following the investing blueprint that I just layed out. In fact, this all went down just two weeks ago. For step No. 1, I identified an industry thatâs rife for disruption â that being the airline industry. The pandemic really highlighted the inefficiencies involved with current air travel. Pilot shortages, expensive fuel, and cancellations made me wonder if there was an alternative way to fly. Thatâs when I looked into electric airplanes and, more specifically, electric vertical takeoff and landing (eVTOL) vehicles. The advantage of this type of aircraft is they don't need as much infrastructure, as they take off and land vertically; run on electricity, not jet fuel; and provide an exclusive experience. A few companies are working in the space, but Archer Aviation (NYSE: ACHR) stood out to me. I really liked the design and look of its Midnight eVTOL, pictured below. [achr] Itâs billed as an âair taxiâ that will shuttle people to and from the airport, but I think it has a lot more potential than that â more on that in a second. Next, I moved on to step No. 2 and identified insider buying. You can see here that the CEO, the CFO, and two directors bought shares at the beginning of January for around $2.50. [achr] Finally, because I was so confident in the company, we waited, even when the stock took a hit because of irrational market behavior. But sure enough, the company started coming out with announcements that propelled the stock higher. It recently announced a deal with the U.S. Air Force. Now the Marines are showing some interest... Not to mention the company just settled out of a lawsuit with Boeing. Tiny Stock Has 264 Patents on Groundbreaking AI Tech A little-known AI tech is becoming critical to the operations of 94% of corporations... Itâs projected to be in nine out of every 10 cars by 2028... And is already essential to the workflow of 80% of hospitals. Which is the real reason why Bill Gates bet an enormous $20 billion on this AI niche... double what he invested in ChatGPT. Yet one tiny company already holds 264 ironclad patents on this tech. And it's lined up to hand savvy investors like you 5,300% profits. [Click here for the full story.]( Now, the beauty of this investing blueprint is that you don't have to know all this information ahead of time. You just have to follow the people who presumably do... the insiders. My subscribers who've joined me on a good old-fashioned stakeout of the insiders have successfully traded Archer Aviation three times now, all for sizable gains. Year to date, Archer's up a whopping 200%. [achr] So far, weâre sitting on 137% cumulative gains by inadvertently swing trading it. And Iâve got a whole portfolio of insider stocks just waiting for you to see. [Learn more here.]( Stay frosty, Alexander Boulden
Editor, Outsider Club After Alexanderâs passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing. [Check out his editor's page here](. Want to hear more from Alexander? [Sign up to receive emails directly from him]( ranging from market commentaries to opportunities that he has his eye on. Follow the Outsiders [Twitter]( | [Facebook]( | [LinkedIn]( | [YouTube]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Outsider Club, Copyright © Outsider Club LLC, 3 E Read Street Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info [here]( including our privacy policy and information on how to manage your subscription. If you are interested in our other publications, please call our customer service team at [1-855-496-0830](tel:/18554960830).