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NMX*Dividend Machine – The Story of Bill Spetrino's Investing Success

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My name is Bill Spetrino. 

The truth is, I'm not a financial genius. I didn't go to Harvard, work on Wall Street, or start a hedge fund. I did get a degree in accounting, and my first real job was as a professor at a community college.

I taught for a full decade and after years of saving and pinching pennies, my wife and I were finally able to muster $10,000 to invest in the stock market.

However, unlike most people, I didn't hand my cash over to a financial adviser, cross my fingers, and hope for the best.

Instead, I harnessed a simple, forgotten strategy that has allowed investors to amass millions using the NMX*Dividend Machine.

Now, I didn't adapt this unique strategy from Warren Buffett, Donald Trump, or the latest investment gimmick promoted on CNBC.

And it's not a strategy that takes a lot of my time.

It is actually the same strategy that I starting implementing when I was in first grade.
Not in stocks, but in baseball cards. And at that age, I didn't know I was investing. I just knew I was making money.

See, my parents bought me a pack of baseball cards for five cents. Inside this pack was a Sam McDowell card, the pitcher for the Cleveland Indians. I lucked out, I guess, because he was the rage of the day. Everyone loved him.

Now, my father was a huge sports fanatic and he had taught me the difference between "value players" and those who were "here today and gone tomorrow."

Sam McDowell fell into that "here today and gone tomorrow" category so I knew the long-term value of the card would eventually diminish.

However, there was a certain kid in my class who just loved Sam McDowell. Would you believe he was willing to pay 35 cents for the card? I sold instantly, and that 35 cents enabled me to buy seven more packs of cards.

And then boom. I landed another "here today and gone tomorrow" player. Again, I sold that card for more than the entire pack cost me.

Read More: Discover How You Can Become “Rich By Friday” with The NMX*Dividend Machine

About a month later, my father came into my room and saw six shoe boxes full of baseball cards. He was livid. "How did you get all these cards?" He thought I blew all my allowance money on them. I told him my strategy and then showed him the $36 I had saved from my little side business.

He was impressed.

And here is the key to my little card business. The entire time, I kept the great players . . . those who had long-term value. In fact, I still have many of those cards today.

Thus began the origins of the NMX*Dividend Machine strategy that has given me absolute financial security.

If you think about it, how is investing in stocks really any different?

Most investors today buy stocks like my elementary-school friends bought baseball cards. And in doing so, they are making three major mistakes . . .

3 Major Mistakes Most Investors Make:

  • People trade with their heart, not their mind. They let their emotions make their decisions.

Think about it. As the market plunged in 2008, did you sell stocks? If so, you missed out on the massive rally back. Sure, it was a scary time. We saw stocks like Coca-Cola drop to $20 per share, but now Coke has rallied back up to above $35. If you sold, you sold because of fear, when in fact, you should have been buying.

And have you ever paid too much for a darling stock? Or perhaps for a house? If you did, you likely did out of emotion. Perhaps greed, or perhaps out of fear that if you didn't get in now, you never would get the chance.

So, before you buy your next stock, make sure you are not doing it because you just love that company, or fear missing out on a huge opportunity, but because the stock has strong fundamentals. And the same with selling; don't sell out of fear.

  • They ignore inflation.

I learned this in first grade as well. You see, certain baseball cards were way overprinted. I paid close attention to this. Some of my classmates didn't. I used that to my advantage. Clearly, cards would have to be "rare" in order to hold their long-term value. Meaning, there are only a few in print. So I kept those cards. But, I would sell off the cards that were overprinted.

And overprinting is exactly what our federal government is doing with our dollar through QE1, QE2, Operation Twist, QE3, and the host of other technical terms for . . . printing money. It's simple: The more they print the dollar, the less the value. And I don't want to get into "why" our government is doing this. Just know that they are doing it because they are convinced it will help our economy, and it is not going to stop.

Don't ignore this simple truth: The dollar is losing intrinsic value. In fact, it has lost 50% of its value since 1985.

  • They trust the wrong people.

Investors are blindly trusting their stock brokers and so-called experts. Look, not all brokers are bad. But think about it . . . most don't have your best interest at heart. Henry Blodget was the Merrill Lynch analyst who routinely hyped stocks to investors, despite knowing they were worthless. One famous example: On the day Merrill Lynch gave the company "Excite" the second highest rating, Blodget sent an internal company email saying the stock was "such a piece of crap."

Read More: Discover How You Can Become “Rich By Friday” with The NMX*Dividend Machine

Or take Jack Grubman, an "analyst" for Salomon Smith Barney. In 2002, he upgraded AT&T. Why? Because doing so got his kid into an "Ivy League" preschool. "Played him like a fiddle" is how Grubman described the move.

Think of how many innocent investors lost money as a result of their selfishness! And these are not isolated incidents. Take Goldman Sachs. Their managing directors famously refer to clients as "Muppets."

Here is something else I think is startling: Independent market studies have found that 94% of stocks have a "buy" or "hold" rating. Just think about that for a moment: 94% of the companies out there are given either a buy or hold rating . . . so just 6% of stocks are rated "sell."

I don't even give 6% of the companies out there a hold rating. I might give 1% a buy rating. This extremely selectivity in building my NMX*Dividend Machine portfolio has allowed me to achieve superior results compared to the S&P 500. Since the inception in March 2009, the Dividend Machine conservative portfolio has returned 18.2% per year compared to just 14.1% for the S&P 500.

For more information about joining The NMX*Dividend Machine, click here.

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My name is Bill Spetrino. The truth is, I'm not a financial genius. I didn't go to Harvard, work on Wall Street, or start a hedge fund. I did get a degree in accounting, and my first real job was as a professor at a community college. I taught for a full decade and after...
Monday, 28 July 2014 03:20 PM
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