It’s Always a Stock Picker's Market

Friday, 04 Jan 2013 07:41 AM

By Bill Spetrino

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In this supposed “lost century,” where the Dow Jones Industrial Average is about the same as it was 13 years ago, my personal stock portfolio has compounded at almost 20 percent annually. How could that be when most stocks in that span are either lower or even?

Simple, I don’t own every stock. But by combining the power of compound interest and reinvested dividends on quality companies at excellent entry points, one gets a powerful Dividend Machine.

After studying Warren Buffett, Charlie Munger, Philip Fisher, Sir John Templeton and John Paulson, I decided on 18 filters and formulas to help me enter low-risk, high-reward common stocks near or around their 52-week lows.

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

My selection process combines growth, safety and income spiced with a slight dosage of leverage.

Don’t want to use any leverage? Your returns will still exceed double digits if you can get in at the proper entry points.

What’s ironic is that people think it’s totally normal to borrow money to buy a depreciating asset like an automobile, but that it’s somehow risky to pay 4 interest to buy a stock with a 7 percent dividend.

Many market gurus will try and predict what’s going to happen in 2013 to the overall market.

I don't know what will happen … and neither to do they.

Each stock is its own market.

Some will be irrationally drawn down, like many banks I bought in the past years but that have risen sharply.

What I do know is that many quality stocks will at some point reach the proper entry point.

Since inception my Dividend Machine subscribers are up well over 125 percent. And one of my top five stock picks for 2012 went up well over 100 percent, while none of them went down

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


I tell you this not to boast, but to prove that it is always a stock picker's market.

If you want to gain an above-average return, become a stock picker yourself or follow someone else who has made a career of beating the market.

Trust me: It’s always a stock picker's market.

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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