Tags: spetrino | hulbert

If You Want Investing Advice, Ask a Real Investor

By    |   Thursday, 03 May 2012 08:30 PM

Since my last article three weeks ago, where I mentioned it was a great time to buy stocks, the Dow Jones Industrial Average has increased almost every day. Every stock in our conservative portfolio is positive.

While the doomsayers were 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: Inside the World’s Greatest Retirement Lie
Find Out the Truth, See the Details.
 
In the past 38 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 S&P has gone from a low of around 680 to 1395 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 needed 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?

Folks, 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?

Editor's Note: Inside the World’s Greatest Retirement Lie
Find Out the Truth, See the Details.
 
Mark Hulbert has been writing and publishing The Hulbert Financial Digest for over 30 years, tracking the advice of over 180 newsletters since 1980.

In April 2002, the HFD became a service of www.Marketwatch.com, which is a Dow Jones-owned property; since then, he has been a senior columnist for that website.

Constructing hypothetical, model portfolios according to the advice contained in those advisories, the HFD has provided the first objective means with which to compare the worth of investment newsletters. It quickly became the standard source for comparative performance data and now has more than 30 years of research into the performance of financial newsletters.

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

No one else in the world can make that claim.

I prefer knowing what John Paulson, Wilbur Ross, Bill Ackman, Bruce Berkowitz or Warren Buffett think. They are real investors, who among them have made about $300 billion allocating capital for them and their investors.

What’s ironic is that my Dividend Machine subscribers have bought the same stocks as these great investors — but at a cheaper price.

Imagine being able to be partners with the greatest investors in the world but getting an even better deal than they did.

Combining compounded interest with the reinvestment of dividends has helped me build a dividend stream that covers all my family’s annual living expenses.

For less than the cost of a weekly latte at Starbucks, you can get a newsletter that over the past year has performed the best when performance and risk are taken into consideration.

Ignore all the hype, nonsense and noise, and listen to a real investor.

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.

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2012-30-03
Thursday, 03 May 2012 08:30 PM
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