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A building or room used for social amusements. Specifically: one used for gambling. Thatâs Merriam-Websterâs definition of âcasinoâ... And âcasinoâ is Warren Buffettâs emerging definition of the stock market. I agree. And this should scare the pants off investors. Weâd be crazy to ignore one of the most successful investors who ever lived... Who just happens to be worth $135 billion. His investment company, Berkshire Hathaway, owns a lot of well-known private companies like Geico, Duracell, Fruit of the Loom, and more. (Talk about diversification.) It also owns big chunks of huge companies like Bank of America (BAC), Apple (AAPL), and Coca-Cola (KO). Berkshire Hathaway A Shares (BRK.A) are the highest-priced in the world â more than $600,000 per share. You could buy a house (or two) for that price. If you want to invest alongside Buffett, you can buy âBâ shares (BRK.B) that trade for just over $400 â and rate a buy in my system with a 74.1 [Quantum Score](.
We should all heed Buffettâs observation about the market in his latest letter to shareholders, which was just released a week ago today: Though the stock market is massively larger than it was in our early years [Buffett took control of Berkshire in 1965], todayâs active participants are neither more emotionally stable nor better taught than when I was in school. For whatever reasons, markets now exhibit far more casino-like behavior than they did when I was young. The casino now resides in many homes and daily tempts the occupants. Whether investors engage in this âcasino-like behaviorâ knowingly or unknowingly, the result is the same: Itâs a path to failure. The house always wins in the end. You donât have to go down that path. Instead of the odds stacked against you, you can flip them in your favor â and heavily in your favor â to beat the house, the market, your neighbor, and most other investors. Donât Rely on Lady Luck
As you probably know, the odds are against you from the moment you walk into a casino, or even place an online sports bet the way you can nowadays. That doesnât mean youâll never come out a big winner. But if you do, itâs because Lady Luck was on your side... and Lady Luck never sticks around for long. (And donât expect a warm welcome from the casino next time you show up.) Casinos are in business to make money, of course. They wouldnât exist otherwise. The only way they can make money is if the house wins more than it loses... which means the rest of us lose more than we win. If youâre itching to play casino games, Blackjack offers the best chance of success, according to data from the American Gaming Association. You can expect to win 48.5% of the time... but that means you can expect to lose 51.5% of that time.
Donât even think about keno, where odds are youâll lose 80% of the time. If you want the gory details, you can [check out the odds of various casino games here at the American Gaming Association](. But notice that one game is not on the list: Texas Hold âEm. Thatâs because Texas Hold âEm is actually a game of skill. You can master strategies that shift the odds in your favor. This is how professional poker players make big money. Bryn Kenney, the all-time money leader in live poker tournaments, hasnât earned more than $65 million because heâs luckier than the rest of us. To win at poker or investing, you need an edge to exploit over and over that gives you house-like odds to come out ahead â way ahead â much more often than not. My preferred edge is data... and it works. How do 70% odds of success sound? RECOMMENDED LINK [Your Financial Advisor Doesnât Even Realize This Could Happen](
The bad news is your financial advisor is leaving your portfolio vulnerable to a big bubble popping. The good news is that there are 3 simple steps you can take to protect your portfolio and profit in the next six months. Jason has called crashes like this before and he is unveiling a 3-step plan for surviving this crash and potentially profiting big when the pop does happen. All is revealed inside this free video.
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For most investors, investing starts with those unfavorable casino-like odds. Actually, your chances of outperforming government bonds are even lower than most casino odds, according to renowned Professor Hendrik Bessembinder. He analyzed all 26,000 stocks ever listed in the history of the stock market and found that only 4% of them generated all of the marketâs returns above Treasury bills. In other words, investors have a 96% chance of failing to beat government bonds. Why not just invest in government bonds then? Well, itâs nearly impossible to achieve financial freedom earning 4% a year, which is the 10-year U.S. Treasury bondâs current yield. But for the last decade, that yield has been lower â mostly below 3%. At that rate, you would need 24 years to double your money.
To make a real difference, you must be in those select few stocks responsible for the outperformance. But how, when only four out of every 100 stocks give you that? Data. By analyzing the right factors the right way, you can massively increase your odds of success. That requires screening millions of data points, which is where quantitative analysis and artificial intelligence come in. My [Quantum Edge system]( performs an in-depth analysis of more than 6,000 stocks every single trading day â more 120 fundamental and technical variables per stock. And those arenât random variables. Theyâre proven to be the reliable predictors of future profits. Many of these variables â especially what Big Money is buying and selling â would be discoverable only by the handful of people who manage the largest order flow information in the world. I was privileged to do that for 14 years earlier in my career, and it led directly to my whole quant stock-picking system and its successes. Institutions account for 70% to 90% of trading volume each day. This is the Big Money that moves stocks. I know, because I was the middleman on precisely these kinds of orders. Itâs essential information to putting the odds in your favor. Through years of use and back testing, I can count on my system identifying winning investments 70% of the time. Fortunately, thereâs no one single âhouseâ when it comes to investing, or we would put it out of business. I will forever respect and admire Warren Buffett as the legendary investor and likable man that he is. And heâs absolutely right about how many investors trade. Most end up spinning their wheels or enjoying fleeting success, only to see those odds catch up to them and their profits evaporate. Save the gambling for recreation. Your hard-earned money and financial future are too important to invest against the odds. [Quantitative analytics]( helps you tip them heavily in our favor. You can take that to the bank. Talk soon, [Jason Bodner]Jason Bodner
Editor, Jason Bodner's Power Trends P.S. Weâre seeing the fruits of predictive data and quantitative analysis with not just a 70% win rate in [TradeSmith Investment Report]( but a 100% win rate. I know it wonât last, but it shows you how you get ahead. [All 17 stocks currently in the portfolio]( are making money, with an average return of 32%. They all have strong fundamentals and technicals to go with Big Money inflows. And I have my eyes on a new opportunity I expect to release next week. [Click here to learn how you can access our complete portfolio]( and put yourself on the path to success with the odds firmly in your favor. Get Instant Access
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