The investment tip that NEVER fails
Dear Reader,
Today, I'll share with you the single most valuable "secret" of the investing world.
I have often failed to follow the "secret" and I have always lived to regret it.
Firstly, let me explain the background to how I came about this "secret"...
I don't just invest in collectibles.
Like most investors, I am in the stock market. I have read dozens of books unveiling investment strategies on how to beat the stock market. I have applied in practice some of these strategies and this is what I've found...
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Most strategies SOMETIMES work
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Some strategies NEVER work (unless by luck)
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One strategy ALWAYS works
Now, this is just my own personal experience and I don't claim to be an expert. I only started investing in 2004. My stock market returns compared to the FTSE100 since I started are as follows:
| Year |
My Portfolio |
FTSE100 |
| 2004 |
104.2% |
7.5% |
| 2005 |
3.9% |
16.7% |
| 2006 |
71.9% |
10.7% |
| 2007 |
6.6% |
3.8% |
2004 was probably beginners luck...
2005 was the year I tried a number of different strategies, which, only sometimes work.
I now stick to the one strategy, which has NEVER failed me.
Now here it is:
"If an investment opportunity looks like an obvious way to make money, then it probably is an obvious way to make money"
Hardly revolutionary - but it does work and there is a very good reason why most investors fail to adopt this obvious strategy.
Like most investment books, we think making money must require great intellect and being able to find hidden opportunities that others have missed.
We therefore miss the obvious money making opportunities because we think:
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If it is that obvious there must be something I'm missing OR
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If it is that obvious everyone else will have already spotted it and I am too late
The prices in any market are however not governed by the product of great intellect. The natural human impulses of "greed" and "fear" control the value of any investment.
In August last year when the first news broke on the "credit crunch", it was obvious what to do - take a short position on all major banks...
But, how many of you actually did this and raked in huge profits?
The beauty of this is that you didn't even need to be smart enough to see it coming, just react in the obvious way once the news broke.
This is only one example of many I could cite but illustrates my point. I'm not here to give investment strategies in the stock market...
"Rare stamps and autographs have provided average annual compound returns in excess of 10% per annum over the past 50 years"
The obvious reasons why you should invest in rare stamps and autographs:
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The supply of rare stamps and autographs inherently must diminish over time and demand is increasing as a consequence of an ageing population and new collectors from emerging economies entering the market
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Rare stamps and autographs provide the opportunity to protect your capital from uncertain global economic conditions by diversifying your wealth in a proven asset class unaffected by global economic events
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Rare stamps and autographs have a low correlation to traditional asset classes such as equities or property. This is because the collectibles market is driven by passion rather than by fear or greed
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The Fraser's100 and GB30 indices indicate the prices of rare stamps and historical signatures have not dipped in any 5 year period in the past 50 years, further proof of the benefits of a diversified investment in this fascinating area.
It doesn't get much more obvious than this yet still few invest in rare stamps and autographs as part of a sensible well balanced and diversified investment portfolio.
The Beauty of Compound Returns
The GB30 Rarities Index showed an average annual compound return of 13.2% per annum over the past 10 years.
Assuming similar returns for the next 10 years, an investment today of £100,000 will be worth almost £350,000 in 10 years - a return of 250%.
But what if rare stamp prices do not continue to rise at the levels they have in the past 50 years?
The 10 Year Guaranteed Minimum Return Contract
That is the best part of the deal we are offering. Even if stamp prices don't go up in the next 10 years, you'll still make money, thanks to our minimum guarantee...
Minimum Guaranteed Return of 7% per annum
On a 10 year contract, we normally guarantee a minimum return of 6% per annum.
Because of my confidence in the rare stamp and autograph market at this time, I am willing to offer a special rate of 7% per annum on our 10 year contract for a limited time only.
Provided you sign up to a 10 year contract no later than 20th June 2008 you can benefit from my special rate of 7% per annum. After this date, the annual rate offered will revert back to 6% per annum.
So to clarify...
Your worst case scenario is a 70% return in 10 years time. Our prediction is you will beat this return by a considerable margin.
To subscribe to our 10 year guaranteed return investment contract please contact our Investment Director, Adrian Roose today on:
+44 (0) 1481 708 277
email aroose@stanleygibbons.co.uk
TOLL FREE from the USA 1 866 644 6146
This is a genuine offer which strictly ends at midnight on the 20th of June 2008.
I strongly recommend you do the obvious thing and protect your capital now from uncertain global economic events, before its too late...
Sincerely,
Mike Hall
Chief Executive
The Stanley Gibbons Group
PS. We are still taking subscriptions for our 5 year contracts offering a minimum return of 5% per annum although the subscription limit is fast approaching so you will need to act fast if you want to get into a contract with a shorter commitment period.