By Dan Ferris in the S&A Digest:
It occurred to me this morning how many investors today are merely speculating on the success of the Fed's ability to get results by printing money. With both Goldman Sachs and JPMorganChase making trading profits every single day in the first quarter, I understand why investors believe in the government's power to "fix" things. But it isn't fixing anything for you and me. It's going to tax us into penury to fund its social agenda. And it's going to print more money than it's ever printed. Oh, wait, that's already happened...
I have to wonder (and worry) about the majority of publicly traded common stocks... They're so expensive. Without more liquidity provided by the Fed, is there such a thing as investment in most common stocks these days? Aren't they all just speculations on the government's ability to fix things by printing money?
I'm not saying such speculation can't succeed or even that it's a bad idea. I just think it's beneficial to know what's going on and say it out loud. You don't want to fool yourself when it comes to investing. And if you think lending money to a bankrupt government for 30 years at a little more than 4% interest is normal economic behavior, there's a good chance you're fooling yourself.
There's one type of investment you never have to wonder or worry about: World Dominator stocks. When you get them at the right price, they're the only sure thing in the stock market.
World Dominator stocks are big, safe blue-chip businesses that dominate their markets. They have vast financial resources their competitors don't have. They have pricing power their competitors can't imitate.
For example, who do you think gets the lowest prices from its suppliers? Wal-Mart or The Kroger Co grocery chain? That kind of advantage is why Wal-Mart has been one of the greatest income investments in history, gushing cash rewards to shareholders by raising its dividend every year since it went public.
... In this type of a market, your best bet is to focus the core of your stock portfolio on World Dominators. I don't know anyone else covering these stocks. I've been covering them for four years. I can tell you better than anyone, they're the most consistently profitable businesses you'll read about anywhere.
Most investors don't understand why World Dominators are worth 20, 25, or even 30 times earnings. But Extreme Value readers know this cold. They've heard my simple explanation more than once.
Most people think you can't make big money on big blue-chip stocks. My readers have made 53% in seven months, 48% in 17 months, and 53% in 13 months, while owning the safest stocks in the market during the worst financial crisis in history. One of my World Dominator picks was among a handful of stocks that actually rose in 2008.
Crux Note: In the next issue of
Extreme Value due out this week, Dan will reveal a brand new World Dominator pick. It's the No. 1 company in the world that produces a commodity that's been coveted for more than 5,000 years. This unusual company dominates the market for this commodity, yet it's only trading for half of what it's worth. Dan thinks the stock could safely double your money in three years or less. To be among the first to learn details, click
here.
More from Dan Ferris:
Dan Ferris: "One of the best investment ideas out there today"
Dan Ferris: These are the world's greatest income investments
Dan Ferris: What no one else will tell you about Thursday's crash
