I hate cocktail parties.
It usually starts with small talk. Sometimes about the weather, the music, or whether the Mets will ever overtake the Nationals for first.
Inevitably, the inane chatter comes back to Wall Street.
And trust me, once people know you pick stocks — successfully — the jig is up.
Their resolve is thrown out the window, and they start prodding for a tip or two.
Most of the time, I politely try and change the subject from the stock market to asking them about their job, kids, or dog.
A few days ago, however, I just couldn’t shake this one guy from pestering me for some free advice.
Don’t get me wrong — I’m not a rude guy or anything. If people really want to know what I’m buying or selling, I immediately direct them to my newsletter.
Most of these advice-seeking partygoers end up signing up, and everyone makes money.
But this guy — this one guy — was relentless, wanting to know what I thought about this stock in which he had just invested.
Upon further interrogation, he let it slip that he put more than $250,000 into some tech stock, boasting that it “was going to be a big player” in self-driving cars.
“Charles,” he said with a slight hint of smugness, “you read annual reports and financial statements for a living. I’m about to double my position and would really appreciate your take on the company.”
I’ll admit, it’s not often that someone asks for me for my opinion on a stock they own.
I caved, asking him to give me a breakdown on this tech company… just the basics. You know: revenue, net profit margins, and free cash flow. Who are their competitors, how big is the market… and elementary stuff like that.
He looked bewildered, like a deer caught in the headlights.
“I don’t know anything about that,” he shrugged, “all I know about this company came from an article in Forbes about the technology and that this company is going to be killer.”
Now, I really started to feel bad for the guy.
Just Answer the Question!
Imagine investing $250,000 in a company you know nothing about — all because you read a puff piece in a financial magazine!
I took my out my iPhone so I could put him out of his misery.
“What’s the ticker?” I asked.
After few seconds of research, I found out all I needed to know about his illustrious tech stock — it was dog poop.
But what freaked him out even more was how I was able to make a decision on the stock in less than one minute.
I couldn’t help but smile.
“Look, even though it only took me one minute to look up your stock, it took me more than 30 years to know what to look for.”
Here was this guy’s problem…
He — like most investors today — thought you need to dig through a mountain of financial data to make a smart investing decision.
The more information, the better… right?
I’ll tell you a little secret that successful traders on Wall Street live by: overanalyzing a stock usually deters you from investing in a great stock.
Let me show precisely what I mean…
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Invest like Wall Street Insiders
For the past seven years, I’ve been picking stocks in my advisory service, Inevitable Wealth Portfolio.
And my readers and I have, without question, knocked the ball out of the park.
We’ve closed more than 140 recommendations so far and have turned a tidy profit on three out of every four trades we made.
But our growing investment community at Inevitable Wealth Portfolio is more than simply showing you what stocks I pick. I want you to know exactly why these companies are a steal.
Look, there are two questions I ask before buying ANY stock. If I can’t answer “yes” to both questions, I won’t recommend the stock… That’s right — it’s that simple.
And that, dear reader, is why I was able to take one glance at this guy’s stock and give him the bad news.
Unfortunately, I learned later on that he disregarded my opinion on his soon-to-be tech giant and opted to dump another $250,000 into it.
In fact, I looked kind of stupid when the stock climbed 20% higher a short time later, but I knew it was only a matter of time.
Soon after that small bump higher, the company went into a tailspin. The stock price plummeted, and the would-be tech savior went belly-up.
Now, you and I both know that the investment herd is a bunch of finicky, emotion-driven traders that get taken to the cleaners every time by Wall Street, chasing dreams and rumors.
What separates us from the pack is knowing how those Wall Street insiders do what they do and, more importantly, how they think. I should know… I spent many years doing it myself.
Let me show you how to beat them at their own game. And you can access every last detail — absolutely free — by clicking here.
The choice is yours.
All my best,
Charles Mizrahi
Twitter: @IWPeditor
Charles cut his chops on the trading floor of the New York Futures Exchange before moving on to become a wildly successful money manager on Wall Street.
And with more than 35 years of recommending stocks under his belt, Charles has knocked the cover off the ball, compiling an amazing record of success and posting gain after gain for his loyal readers. He is the editor of Park Avenue Investment Club and the Insider Alert newsletters.
Charles is also the author of the highly acclaimed book, Getting Started in Value Investing.