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[TradeSmith logo] August 12, 2024 You’ve been selected… Dear Reader, I’m writing with exciting news for you today. You’ve been hand-selected to receive an exclusive sneak peek into one of my top-performing services – for free - starting tomorrow. You’ll get three months of access to my premium advisory, TradeSmith Investment Report, with no strings attached and no credit card needed. That includes access to the complete portfolio, with our current stocks up 20.9% on average. We have more than twice as many winners as losers, and our winners are much bigger – up 30.6% on average versus down just 6.6%. My most recent recommendation just came out a few days ago. My team and I have spent years developing the proprietary stock-picking algorithm that powers the TradeSmith Investment Report to such success. It’s based on the computerized system I started building during my time at Cantor Fitzgerald, a billion-dollar trading firm where I worked for more than a decade. I eventually left there to devote my full time and attention to the system, developing it into the essential and highly successful tool that it is today. Regular folks simply cannot compete anymore. We’re human. We take vacations. We forget to check the financial news. We take days or even weeks to read the latest earnings reports for our favorite stocks – if we have time to read them at all. So if your investment returns seem less than satisfying, it’s probably not your fault. You just need to start investing alongside the Big Money algorithms – instead of against them. That’s what your exclusive sneak peek TradeSmith Investment Report subscription will allow you to do. You’ll receive a follow-up email tomorrow with a special link. Simply click that link and you’ll be able to gain full access to TradeSmith Investment Report’s online portal. That’s where you’ll find the latest issue of my newsletter (I’ve shared a portion below to give you an idea of what to expect). You’ll be able to access our complete model portfolio, too. Check out a preview of my latest issue below, and watch your inbox tomorrow to gain full access to the service, including my newest recommendation and our whole portfolio. Warren Buffett + My Quant Analysis = This Stock If it weren’t for my wife and dog, I might have gone crazy. It was 2008, and my professional world was in shambles with markets everywhere imploding. That was the miserable year of the Great Recession, financial crisis, housing bubble, and the worst bear market ever for the S&P 500. Our entire financial system was on the brink of collapse, and prominent financial firms were melting down. Bear Stearns had two internal hedge funds go belly up. And Lehman Brothers – the fourth-largest investment bank in the U.S. – shocked the world and the markets when it filed for bankruptcy. Lehman was my client on a Friday and insolvent on Monday. There had been rumblings of the firm’s issues, but it was still disorienting. With financial ruin all around me, I threw myself into unraveling the mysteries of the stock market. The thought of educating myself was empowering. “The best weapon is knowledge,” I would tell myself. I couldn’t have told you what the weapon was for at the time, but I knew it was right to learn. The “weapon” that ultimately emerged is my Quantum Edge system, which we’ve used to make money here in TradeSmith Investment Report all these 16 years later. In pursuit of my quest, I read all the time. Fortunately for me, one book that came out in 2008 was The Snowball: Warren Buffett and the Business of Life. It’s not by Buffett himself but was written by Alice Schroeder, who had worked for him as an insurance analyst and was asked by him to write the book. I was immediately drawn to it. In a world of chaos, The Snowball was about a man as calming as you could ask for. He was safe, steady, cool-headed, and relaxed. And he knew his stuff. Early in the book, I had one of those huge “aha” moments. It came on pages 134-138 as Schroeder recounts how Buffett went to GEICO to research the insurance business. After asking nearly every conceivable question under the sun, he left with ample knowledge and a newfound passion for one of the all-time best business models on planet Earth. He then did something he would probably say today that he shouldn’t have. He dumped three-quarters of his portfolio into GEICO, buying 350 shares at $42. But it worked. Buffett has maintained a lifelong passion for insurance companies and their extraordinarily lucrative business model. What did this investing genius and legend see in such a boring industry? We talked about this in the June issue, but I wanted to show you the actual page – 137 to be exact. It says (bold added for emphasis): “He grasped that because GEICO sold insurance at the cheapest price, the only way it could make money would be to have the lowest possible costs. He also learned that insurance companies take their customers’ premiums and invest them long before the claims are paid. That sounded to him like getting to use somebody else’s money for free, just the kind of idea that appealed to him.” This is Warren Buffett’s hidden-in-plain-sight secret to his success. To continually invest, you always need cash. And no business provides a steady cash flow like the policy premium payments flowing endlessly into a good insurance business. Buffett is clearly a great stock picker, but it was getting his hands on those insurance cash flows that allowed him to invest in those great stocks and become the legend he is… and a billionaire 134 times over. And he’s still at it today. Buffett just made a huge splash with the stock we’re adding today to our TradeSmith Investment Report portfolio. Just three months ago, Buffett’s holding company, Berkshire Hathaway, disclosed in required SEC filings that it bought 25.9 million shares of another insurance behemoth for a cool $6.72 billion. Wouldn’t it be awesome to combine the Oracle of Omaha’s legendary acumen with our quantitative analysis system? That’s what I did, and the results show that the stock Buffett just bought meets all of our criteria, as well. I’ll be back in touch tomorrow with detail on how to access TradeSmith Investment Report – free for the next three months. Happy investing, [Jason Bodner signature]
[Jason Bodner signature] Jason Bodner
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