Longtime readers know I’m a numbers guy. When it comes to finding stock picks, I typically take a “bottom up” approach. Simply put, I focus on individual stocks, not sectors.
I dive into the numbers, focusing on eight key factors:
- Sales growth
- Operating margin growth
- Earnings growth
- Earnings momentum
- Earnings surprises
- Analyst earnings revisions
- Cash flow
- Return on equity (ROE)
This investing approach, along with my proprietary market-beating algorithm, helps me find companies with excellent fundamentals that attract strong institutional buying pressure.
Forbes once called me the “King of Quants” because I’ve outperformed even Warren Buffett over a 15-year time span. We did so by analyzing the markets with the algorithm I created before even the first home computer entered the market.
My system helped me recommend Home Depot at 73 cents and Nike at 33 cents. I was also the first analyst to recommend Google. It’s also how I knew to recommend…
- Santarus for a 613% gain
- Holly Corp. for a 457% gain
- Hansen Natural Corp. for a 1,125% gain
Today, I want to introduce you to an investment analyst friend of mine who also has a fantastic track record: Whitney Tilson.
Whitney graduated with honors from Harvard University and Harvard Business School, where he earned an MBA and was named a Baker Scholar. He spent nearly 20 years on Wall Street, during which time he founded and ran Kase Capital Management, growing assets under management from $1 million at inception to a peak of $200 million. While there, he nearly tripled his investors’ money.
He bought Apple at 35 cents, Amazon at $48, and Netflix at $7.78.
Since then, he’s founded and led an investment advisory publishing company that focuses on cheap, high-quality stock ideas.
Whitney is friends with almost every multibillion-dollar-hedge fund manager out there. In fact, he counts five billionaires as subscribers:
- Bill Ackman
- David Einhorn
- Seth Klarman
- Joel Greenblatt
- Leon Cooperman
Here’s how Whitney describes what he does:
I am not a journalist, though much of what I do is similar to what any good reporter does: I read a lot, talk to/e-mail with many people, and try to deeply understand complex companies and issues…
I am, first and foremost, an investor… This means that, unlike a journalist, my goal is, first, to develop a strong opinion about the future of a company or industry – ideally one that is out of consensus, and therefore not reflected in the stock price(s).
Then, I write up my analysis and resulting conclusion… and share it with my readers…
In addition, I look, a few times a year, to make a big, bold call. I only do so when I’m extremely confident I’ll be proven right. People pay attention because I have a two-decade track record to back me up.
Whitney’s right. He has accurately predicted so many market moves that CNBC once him “The Prophet.” Here are just a few of his predictions that came true…
- The dot-com crash
- The bottom of the 2008 crash
- The 2017 bitcoin collapse to the day
- The top of marijuana stocks to the very hour on Yahoo Finance in 2018
Whitney and I got together last July to explain why the nightmare of March 23, 2020, was about to repeat… in a bizarre new way that could create millionaires on just a single investment.
And now, we’re teaming up again for a 2 Legends Predict 2023 event on Tuesday, May 23, because we see another major market shift about to occur. (You can click here to sign up now.) We have another prediction to make.
We believe a historic unveiling scheduled for August 7 in Las Vegas, Nevada, will set in motion the biggest investment opportunity in three generations.
Years from now, you’ll look back and remember exactly what you were doing on August 7, because on that day, a massive trend we’ve been following for 40 years could take a turn that will forever define who saw it coming… who had their money there FIRST… and who missed it completely.
Whitney and I will share the details of our big prediction – and how you can profit from it – during our 2 Legends Predict 2023 event next Tuesday. Click here to sign up now so we can send you the event link as soon as it’s available.
I’ll be back in touch tomorrow with a special essay from Whitney in which he tells us how he finds so many cheap, high-quality stocks – and how that method could help you find the next Apple, Microsoft, or Netflix.
So keep an eye on your inbox! And don’t forget to register for our 2 Legends Predict 2023 event.
Editor, Market 360