The Easiest 4 Bagger Ever?
Plus, a system for finding new stock ideas in a 10 minutes per day
Some of my best ideas have been what I call “instant ideas” – you are at a conference and an executive is extolling the virtues of his or her company and you think: “B***sh*t”, that’s a short.” The beauty is that they are by necessity very simple and those are often the most effective ideas.
That’s all very well if you are a highly-paid professional analyst or fund manager – all you need do is rock up to some broker conference, hopefully at a flash hotel in a pleasant location to get some ideas. One Canadian bank used to host a mining conference in Fort Lauderdale – it was at half-term in February and families came along for some sun. I liked that one.
Broker conferences rarely deliver buy ideas in this fashion, although I did find one (albeit out of thousands of company presentations I have attended over the years).
At Hardman & Co, a corporate research firm in which I have an interest, we started The Hardman Forum, an opportunity for companies to present to private clients. At the inaugural event, I was staggered by one presentation. The then Chief Financial Officer of PPHE Hotel Group, a hotel developer and operator, explained the business’s development programme – and it was clear that the stock was trading at a 50% discount to the real value of its assets. I could see the value as we held the event in one of their hotels! The stock went on to be a 4-bagger.
PPHE Share Price
Source: Behind the Balance Sheet from Sentieo Data
More recently, like most hotel groups, it was badly hit by Covid – as you can see in the chart – but it has started to recover.
This type of event can be a good way for a private investor to make contact with the management of a small company, and such events and conferences can be a useful source of ideas. You do need to be careful that you are not seduced by a sharp-talking CEO who is a good salesman of his stock. But these events are not that common, especially if you live outside the main financial centres.
In my book and in my training courses, I explain several methods of finding ideas. This is important even if you are happy with your portfolio – keeping on top of market trends is essential to ensure that you own the right stocks. And few portfolios cannot benefit from the elimination of a stale idea and the introduction of something better.
But many retail investors struggle to find new ideas. Which is why a system for finding high potential stock ideas can be so helpful. Without one, you can waste hours of your life on stock screeners without finding anything. Or even worse, you can be tempted into taking hot tips from Twitter or a friend down the pub that rarely turn out profitably.
If you want to build a better investing process, you need a better way of sourcing stock ideas. Which is why I’m inviting you to join my 3 Day Stock Idea Challenge.
In just 10 minutes a day, you’ll learn three of my favourite methods for finding new ideas. I’ve used a number of sources to find ideas for over 20 years as a professional investor. Not just in my own portfolio, but for the billion-dollar hedge funds where I worked.
Take the challenge and you’ll discover:
How to uncover massive stockmarket winners hiding in plain sight (Day 1)
A simple yet powerful way to find under-priced stocks in multiple industries and countries (Day 2)
How to use the experience, skills and a network of legendary investors to your advantage (Day 3)
What’s more, you’ll use these methods to come up with six high potential ideas of your own.
I am charging a token £9/$11 for this course, not to make money but to ensure people entering complete the tasks and get the full benefit. As a subscriber to my newsletter, you will get 50% off with the code “NEWS”.
Paying subscribers get the course for free – your coupon code is below.