Imitation Is the Best Form of Flattery

Friday, 22 Feb 2013 07:39 AM

By Bill Spetrino

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While doomsayers have been hiding under their beds waiting for the future to be clear, those of you have joined The Dividend Machine have profited greatly from the low prices all this fear has caused.

Folks, I will let you in a on a secret: The future is never clear.

Anyone who tells you otherwise is either fooling himself or trying to fool you.

Editor's Note:
Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

In the past 47 months, the media has been full of pundits and Internet clowns who have predicted great doom and gloom for those who invest in equities.

In that time frame the Standard & Poor’s 500 has gone from a low of around 680 to over 1,500 today as I write this.

What’s ironic is that most of these people have jobs “teaching” or talking about investing. Many of these media pundits have jobs such as college professor or investment writer — or they have their own blogs, where they sell fear.

I don’t look down on folks who have these jobs. However, let’s examine this situation a little closer.

If you need a heart transplant, would you go to the best cardiologist in your town or a medical-school professor who has never done a transplant in his life?

How about the difference between the local business writer and a professional investor?

More than 90 percent of all financial journalists in the world have never earned the lion's share of their yearly earnings from investing. I have made more than 95 percent of my annual income from allocating capital — not by talking about it.

If these financial writers could actually allocate capital, they would raise large sums of money and make their living as professional investors.

There are tens of thousands of financial pundits and preachers worldwide.

How do you know whom you can trust?

Mark Hulbert has been writing and publishing The Hulbert Financial Digest for over 30 years, tracking the advice of over 180 newsletters since 1980.

As of the January 2012 issue, of all portfolios that are also low risk (which is volatility at least 40 percent less than the Wilshire 5000 over the same period) in a one-year time span, my newsletter, The Dividend Machine, was No. 1 in performance of 19.7 percent, which was top-rated in this risk category.

Now last week, all the large investors in the world had to reveal what they bought during the fourth quarter of 2012.

I am proud and flattered to say that George Soros, Carl Icahn and Ray Dalio all followed me into a stock, while David Tepper and Daniel Loeb followed me into two stocks.

Editor's Note:
Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

And many of them added to positions that my subscribers and I have already bought.

The men listed above are all billionaires through investing and are all men I have studied extensively.

My point is that each stock is its own market. And those of us who pick stocks for a living and have proven track records should be emulated, while those who don't should be ignored.

About the Author: Bill Spetrino

Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of the Dividend Machine. Discover more by Clicking Here Now.

© 2014 Moneynews. All rights reserved.

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