Anthony Speciale Stock Market Analyst

Better Way to

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Need a strategy that will carry you into the rare air of legendary investors?

Speaker 1 (00:00):
Hey guys, I’m Tim Melvin, and this is a better way to, well, thanks for watching today. I’m just going to say I’m feeling unusually generous today. We’re, you know, we’re all getting to know each other better. So to move that process along, what I’m going to do today is I’m going to give you, and this is nothing I have to call it a gift folks. I’m going to give you something for free. I’m only going to give it to you. There’s a one time. You’re never going to see where I’m going to talk about today for free again. You’ll see it again, but the, for free part, never going to happen again. What I’m going to do is give you an investment strategy. It takes you up into the rare air of legendary investors. Earning returns. This high for this long is the Bally wick of investors like Marty’s wife, Julian Julie’s Roberts and Joel Greenblatt, Peter Lynch, Stanley Druckenmiller Paul Tudor Jones. Notice Warren, Buffett’s not on the list. He does not actually earn a return as high as this. He did back in the 1950s and sixties. And you know why he was using the strategy a lot, like the one I’m gonna give you today. So, anyway, let me just kind of go over the numbers on this. This is a micro-cap strategy

Speaker 2 (01:14):
And it

Speaker 1 (01:14):
Used invest in smaller stocks. Why smaller stocks when we’re talking small, we’re buying stocks between 25 million and $250 million in total market value. Okay. That’s small that isn’t at risk here. They told me my whole life, small cap stocks are riskier. No, they’re not. That’s a myth. Every stock is as risky as its balance sheet and income statement. It’s all based on fundamentals. Guys. If you buy small stocks at good prices that have really attractive fundamentals, strong credit profiles, it is not riskier. In fact, it’s, as I’m going to show you far more profitable than buying the larger stocks that are in the index, best news of all, you’re really not competing with large institutions. It’s they’re too big. They can’t play in this space. So it’s really the value of individual investors. We can be very careful. We can be very selective and that gives us a chance to shine in ways that are not possible for larger investors.

Speaker 1 (02:16):
Anyway, what I’m going to outline for you today is incredibly similar to the strategy to a buffet and Munger. And some others used to are, they’re very high profits during their peak earnings period now, and I’m going to get asked this because every time I give ideas away, I said, why, why would you give this idea away? You know, if this is really good, people will pay you for it. And that’s true. But most of you are not going to use it. You’re going to go back to draw lines on charts and, you know, looking for ways to make a fortune by this time tomorrow name I prefer to think of of a little longer-term strategy. However, I will tell you that this strategy can be used to basically triple your money in about every 10, five years. So anyway, let’s just get right into the numbers behind this thing.

Speaker 3 (03:07):
Okay. Twenty-five to $250 million in sales.

Speaker 1 (03:11):
That’s your, that’s your universe of companies that you’re going to be working with. Then we’re going to get by those companies that have a low price to sales ratio. Now, Jim O’Shaughnessy I stole this from him back as 1997, when the first edition of what works on wall street came out. He found it to be one of the most powerful value indicators. So we’re going to buy these small companies at a low price to sales. Then we’re only going to buy the 25 stocks with the highest Piotrowski F scores. Okay? Once we have that universally by those 25 stocks in equal balances, and the numbers have been stunning, the returns annually have been over 25% a year, 20 years. Now let me just by the way, they are very consistent. The returns across the five-year the 10 year and the 20 year timeframe. So this works it’s worked for a long time. It has not been arbitraged away because it can’t be, the stocks are too small, but the small cap strategy can get you into the rare air of well, north of 20%. And even over the 25% annualized return, low level, yes, it’s volatile, but it can also make you extraordinarily rich. So I’m Tim, Melvin, this has been a better way to wealth. Be sure to come back tomorrow because I’m going to give you my five favorite out of the current 25 stock portfolio. We’ll see you tomorrow.