The Pragmatic Investor Ebook

The Pragmatic Investor

Don't Just Dream of Building a Safe, Effective Portfolio. Make it Real...

"Finally! Here At Last Are the Secrets
to Outperforming the Stock Market
by at Least 14% Annually With Less Risk"

Your Portfolio doesn't have to get a black eye when the market takes a beating

Did you know...

(i) that smart investors get richer whether the stock market goes up, down or sideways.

(ii) that Wall Street has set up the system so that average investors get average returns. These investors lose money when the market goes down, and make just enough when it goes up to keep them interested and "in the game," but they never become truly wealthy.

(iii) that the majority of mutual funds are a sucker's game, where the only consistent winners are Wall Street banks and the mutual fund companies.

(iv) that according to an independent study by John Bogle, the legendary founder of Vanguard, over 80% of actively managed mutual funds underperform the major indexes? And investors pay high fees even when their portfolios LOSE money.

(v) that according to Bogle, there's a "profound conflict of interest between the managers who run the funds and the shareholders who own them." Time and time again, "investors have paid a staggering cost for the excessive expenses and excessive marketing focus of the mutual fund industry..."

(vi) that Charlie Munger, Warren Buffett's long-time co-chairman at Berkshire Hathaway, says that the money management industry as a whole "gives no value added" to its customers. Yet they charge enormous fees and take "profits out of the system" - which begs the question...

How can You bypass this money sucking industry and outperform not only the "mutual fund managers,"
but the markets themselves?

The answer is of vital importance to all serious investors who want their money to work most efficiently for THEM, not for the middleman who "gives no value added"...

... because if you could discover a proven and tested system that beats the markets, you could replicate its performance and make more money, pay less fees and never have to worry about what action to take when the markets are turbulent - so I'm sure you'd love to know if there is such a system, wouldn't you?...

In a nutshell, not only does this system exist, it's also very easy to understand and use.
It's based on a solid value investing strategy combined with a unique and powerful trading algorithm that intensifies returns by ensuring that short-term volatility works for you, not against you. It also effectively shields your portfolio from the risks inherent in today's volatile markets.

In essence, the strategy allows you to select only the safest, best-valued stocks that have a built-in margin of safety and then manages them with a proven trading technique in order to maximize returns and minimize risks.

Extensive backtests have shown that this system more than doubled the market's annualized returns while reducing risk!

In a moment I'll explain precisely how the system works, and I'll show you how it achieved 14% to 20% higher annual returns than the S&P 500 (with LESS risk)... but just before I do, you may be asking yourself...

"Does a higher percentage really
make that much difference?"

Let me give you an example of why maximizing your returns can make a massive difference to how much money you make, and how much sooner you can retire or achieve your other goals...

Please pay close attention here, because I'm going to show you something truly remarkable...

Let's say your annualized return investing in the S&P 500 over 20 years is about 13% (which it would have been if you had invested from January 3, 1989 to January 3, 2009). That means $10,000 invested in January 1989 would be worth $115,230.88 in January 2009...

Let's also say that by selecting solid, undervalued stocks, using the methods I'll talk about later, you can outperform that return by 5% (i.e. 18% annualized)...

Your total return for a $10,000 investment would then be $273,930.35. That's a difference of $158,699.47.

Are you with me so far? Good. Now, watch this...

Let's say you could "magically" increase your annualized return to 27% a year. Your annualized returns doubled in this example, but would your portfolio value double? No, it would do much better than that!...

Your $10,000 would turn into $1,191,446.15 over the SAME period of time. That's a difference of over ONE MILLION dollars directly in your pocket.

In other words, your annualized return has done slightly better than double (from 13% to 27%) but your portfolio value has increased over TEN TIMES, from $115,230.88 to $1,191,446.15!
That's the power of compounding!

Now, these figures are for example purposes only, but the point is, all other things being equal, just increasing your annualized return from 13% to 18% more than doubles your portfolio value... and going from 13% to 27% results in a staggering 10 times more money (from $115,230.88 to $1,191,446.15) over 20 years...

In other words, even a small increase in your annual returns can have a much bigger impact on your portfolio's value over time - and bigger increases can make you millions!

So then, how can you increase your returns? Well, I've tested over 150 different investing and trading strategies since 1989, but let me share with you what has had the biggest impact on my personal investment portfolio, and how this can have a massive impact on your investments too...

My first experience investing in the
stock market was a real eye-opener...

I first started investing in stocks back in 1989 using a technique many people still use today: acting on a hot tip from an acquaintance.

Long story short: I lost all of my money in a very speculative stock that was supposed to go through the roof.

However, I did learn a very valuable lesson, which was simply this: do your own due diligence!

Since then I have had the good fortune (if you can call it that) to invest in all types of markets. Markets that went nowhere, hyper-Bull markets (remember the Internet bubble) and now, the worst Bear market since the Great Depression.

And I've learned quite a bit during those times. Not just theory, but real, time-tested strategies that made me real money in even the worst conditions.

In fact, I've used the same principles and strategies revealed in the Pragmatic Investor digital book to increase my portfolio value by over 32% from September 2008 to March 2009 (this was at a time when many lost 40 or 50% or more during that same period).

Everything I've learned in 20 years of investing and developing investment software, software currently used by thousands of people around the world, is now distilled and explained in plain, straight-forward English.

Do you know why I invest my own money
using these strategies?

...because they work. And I've backtested them over so many different time periods and market conditions that it would make your head spin. Now testing correctly is very important, but did you know that most investing systems aren't properly tested?

That's why my 20 years of research and experience was worth the effort.

During that time I have discovered what I believe to be a robust, properly tested system that uses the Internet's ability to deliver accurate financial data to create an easy-to-use investing system that anyone, from beginners to experienced investors, can learn in just a few hours.

But that's not all. I took my testing one step further and used an advanced method called...

Walk Forward Testing...

Once I had established the basic tests, I used 5 year windows of observation and tested the system by moving the evaluation period ahead by one year at a time and testing for a period 5 years forward from that new point.

I repeated this process until I arrived at the current date. Furthermore, I used walk-forward-testing to test all one-year windows over long periods of time.

I also tested the system on different groups of stocks using the walk forward technique.

The reason for going to these extreme lengths is very simple. When you or I decide that we are going to invest using a new system, it might be this month, later this year or two years from now.

Most investors will have a different starting point and will feel most comfortable investing in different kinds of stocks.

Therefore we need to establish that the results achieved are not based upon fixed starting points or only work with stocks in certain industries, but that the investing system will be near equally profitable no matter when implemented and on which sectors and industries.

This type of exhaustive testing is rare because it immediately uncovers the flaws of a poorly designed strategy.

That's why almost nobody does it.

But that's exactly why you should not invest your money using a system that doesn't pass this kind of rigorous testing.

So how does the system work?

It's simple really (and it's based on strategies that were developed and used by some of the brightest investment minds to ever walk the planet). I simply found the best of the best, put them together, added a few of my own discoveries and tested the daylights out of them.

Here is what it does...

• Finds solid stocks that have the greatest potential to increase in price because they are currently undervalued. You'll always know precisely what you should be buying and what you should be selling.
• Minimizes the risk of each individual security by ensuring it is of the highest quality and contains a built-in margin of safety. You can lock in huge profit potential buying in when these stocks temporarily sag.
• Further minimizes risk and increases returns at the portfolio level by effectively using concentrated diversification and rebalancing techniques based on statistically proven low-correlation research. Remember, amateurs look only at profits while successful investors look at both risk and profits.
• Actively manages your portfolio using a proven trading algorithm designed to take advantage of the market's short-term volatility. You won't get caught wondering what to do when the markets are turbulent.

"Is beating the market by
14% annually really possible?"

As I'll show you in the book, truly astounding returns can easily be possible, but only when you understand all of the components of investing. Most "investors" look at only one or two of these components and some don't look at any!

And that's exactly what you may be doing if your returns aren't where you would like them to be...

So in this easy-to-read digital book, I'll show you...

• How psychological biases rob you of millions (Chapter 2)...
• Three dirty little secrets most mutual fund companies hope you never find out (this alone is worth substantially more than the price of the Pragmatic Investor digital book. Discover why in Chapter 9)...
• Two crucial things you must do before you purchase even one share of stock, yet almost nobody does them correctly (Chapter 6)...
• The best investment resource you have available to you right now - bar none (see what it is in Chapter 7)...
• Why listening to the "experts" can actually hurt your investment returns (discover why in Chapter 9)...
• How to use your computer to instantly remove emotions from your investment decisions...
• What to do if you want to spend just 20 minutes a YEAR managing your investments but still safely make lots of money (Chapter 5)...
• How to set up your portfolio to best take advantage of market volatility (Chapter 11)...
• A little-known way to diversify more than just your stocks (you'll learn about it in Chapter 11)...
• An almost unknown way to increase the number of shares you own...without adding extra money to your portfolio or reinvesting dividends! (Chapter 11)...
• How to find solid, undervalued stocks (explained in easy-to-follow detail in Chapter 10)...
• A secret trick (even a novice investor can use) to almost instantly create the correct asset allocations (it's spelled out for you in Chapter 11)...
• How Warren Buffett evaluates a company before he invests in it (Chapter 10)...
• Why money is not the #1 resource you need to invest successfully (discover what is #1 in Chapter 7)...
• Why you should never invest in most Mutual Funds (Chapter 9)...
• 7 deadly investing mistakes most people make and how to avoid them (read about them in Chapter 13)...
• What you need to do right now to drastically reduce your risk and stop losing money (Chapter 11)...
• How to overcome the single most difficult aspect of investing successfully (you'll find it in Chapter 5)...
• How to get more returns with less risk! (You'll be amazed when you learn this in Chapter 11)...
• Advice many financial planners give you that is absolutely wrong! (You'll find out what it is in Chapter 9)...
• How to decrease your risk in the market by investing in riskier stocks (Chapter 11)...
• Why your broker is not on your side and what to do about it (Chapter 9)...
• The single best investment you can make, it's not what you think (Chapter 7)...

And what's more...

... here are just a few of the other things you'll discover in the Pragmatic Investor
digital book:

• Why the majority of mutual funds will under-perform the market this year (will yours be one of them? Find out in Chapter 9)...
• Why Mutual Funds choose bad stocks (Chapter 9)...
• How to get an "investing edge" most financial advisors won't tell you about (it's all explained in Chapter 4)...

How Wall Street is ripping you off right under your nose! (Chapters 4 and 9).

... and much more. So then...

"Who should read this digital book?"

Anyone who wants to beat the actively managed mutual funds - or wants to beat the major market indexes - should read this book:

• It's for the novice investor who wants to start out investing the right way.
• It's for the experienced investor who is tired of not knowing what to do when the markets are volatile.
• And it's for anyone who wants to increase their returns and minimize their risk in the stock market using proven, tried-and-true, tested strategies developed by some of the greatest investment minds in the world.

However, you might still be thinking...

"Why do I need to read this book?"

I'll admit, many of the strategies in this book are available on the Internet and in investment books at your local bookstore. So if you'd rather spend years finding, combining and testing these strategies to discover which ones are best and which ones work synergistically together, that's fine - although you will probably spend hundreds of dollars on books and potentially lose hundreds of thousands (or millions) in lost returns over time.

Or you could just buy this digital book, save yourself years of time and lots of money, learn the same techniques, and also discover how to apply them in a straight-forward manner directly to your investments - it's up to you.

Plus, there are things in the book that I developed myself and still other things that are not yet widely known in the investment world.

You see, many people attempt to invest using certain "strategies" without actually understanding how and why they work - and so they become ineffective, or actually have the opposite effect - resulting in lower annual returns.

However, with 20 years of investing experience under my belt and after speaking directly with scores of customers who purchased my investment software (and reading through literally thousands of emails), I have seen pretty much every investing and trading system out there.

And most of them are completely useless or don't work consistently and only sell because they appeal to people's greed with hollow promises of overnight riches.

Here's what I can tell you with certainty: you can get very rich in the stock market, but it takes time. You cannot get very rich overnight using any sound investment strategy (let's face it, trying to get rich quickly means taking enormous risks which almost guarantee you will lose your shirt. It also delays the success you can achieve by investing correctly).

So not only will I share with you the most powerful and best investment techniques and reveal how to apply them to your investments, but I'll also show you how and why they work, so you can use them with a full understanding of what you are doing.

Warning: Don't read this book if...
This digital book is not for everyone.

Do not read it if you're looking for a "silver bullet" you can use to get rich overnight. No such bullet exists.

I know lots of people succumb to marketing hype and greed and end up buying products with extraordinary claims that almost inevitably turn out to be full of hot air.

So let me be honest with you - neither myself nor this book can guarantee you specific results or annual returns. When you apply the system I'm about to share with you, your results and returns will naturally vary.

On the other hand, the strategies I'll show you have made many people lots of money and is a system that can show you what you need to know in order to invest successfully. It gives you the the main elements and techniques that go into creating a truly spectacular portfolio that, given time, can significantly outperform mutual funds and the market indexes.

So if you're looking to get rich quickly in the stock market, then you're out of luck here...

... but if you want someone to give you an honest, straightfoward "How To" guide to creating a truly powerful investment portfolio for you and your family, then this digital book is definitely for you.

More...