I told you yesterday, that Apple will beat earnings and they did. I told you Apple would put their cash to work buy increasing their dividend and increasing their stock buyback they did. I told you the stock would get an initial pop, it did 6%. I told you not to buy the stock unless it went up 10% or more which it hasn’t yet. I told you not to buy the options, because if you did you would have lost all your money, because the options were too expensive and the stock did not move enough to move the options.
Now I am going to make you even more money by telling you to only buy Apple if the stock closes above $446, again do not buy Apple until the stock closes above $446. At a close above $446 we will know that the downward trend in Apple has been broken, and then only then is is safe to dip your toes in the water.
Next I want to tell you a couple of secrets that will make you a millionaire and heck possibly a Billionaire if your patient enough. so here they are get a pen and paper and jot these down I am only going to say these once:
1) You will never ever get rich investing in mutual funds, I promise you the only people who get rich in the mutual fund business are the people who run the funds, Fidelity, American Century, Pimco etc. Why because they don”t care about performance, all they care about is raising as much money as possible for their fund and collecting fees. If you don’t believe me just go to Morningstar.com or any other mutual fund website and look at the long term performance of the average mutual fund heck even the the top performing mutual funds they all stink… Over the last 15 years the average mutual fund has returned 5% a year. yes that’s right a paltry 5% a year.. You want to a free tip you can make 5% a year risk free by investing in treasury bonds, and you can sleep at night never having to worry about the stock market.. Also at 5% a year it would take you over 100 years for you to be able to retire as a millionaire. So please be wary of mutual funds, its probably the oldest and biggest pyramid scheme going.
2) To become a millionaire you must be invested in stocks for the long term. Warren Buffett and Carl Icahn two of the richest men in the world with net worth’s over $20 and $50 billion put almost their entire nest egg into stocks, and both men are well over 75 years old, these men are already extremely wealthy and should be playing it safe but they don’t they invest in stocks only. A good lesson right there.
3) To become a millionaire you want to mimic people who have already made millions or billions. and that’s exactly what we do in the Billionaires Portfolio we follow the world’s richest hedge funds and their stock picks. Did you broker or mutual fund buy Blackberry, RIMM, at $8 or better?, no but we did. Do you ever think your crowd following broker or mutual fund would ever have the guts to buy a stock near its 52 week low, that wall street had forgotten about? Of course not, but we did. As an old hedge fund friend of mine a man who is in his 60’s and worth over a $100 million dollars, all self made, once told me there is no greater scam put upon the public then the Mutual Fund Industry or the Brokerage industry. Its the only business where you get paid even if you lose your customer money, think about, I bet your broker and mutual fund took their full fees and commissions in 2008 when you lost half your retirement account, didn’t they!!!
Editor of the Billionaires Portfolio