Truly Rich Club founder Bo Sanchez talks about why the investing strategy of the club is one of the greatest in the world. Why did he said so? Because the club investment principle is to invest in giant companies that has steady growth. He also mentioned in the Truly Rich Club March 2015 Stocks Update the strategy of Warren Buffet and George Soros.
You’re Taking a Masters Degree on the Greatest Investing Strategy in the World
If you’ve been a part of the TrulyRichClub for some years now, without knowing it, you’re taking a Masters Course in the Greatest Investing Strategy in the World.
It’s a Masters Degree not because it’s complicated. (It’s so insanely simple. But sadly, what is simple isn’t usually received well because we like to look for sophisticated solutions.)
It’s a Masters Degree because it takes a few years for people to finally “get it” and say, “Ah, it’s really this simple to grow your money in the stock market.”
One of the bedrock truths of The Greatest Strategy of Investing is that you must invest in a boring way. Specifically, you must buy into boring behemoth companies.
Just take a look at the giant companies we recommend in our SAM Table. They’re absolutely boring.
This, my friends, is one of the great secrets of successful long-term investing: We don’t get hot over hot companies with hot products. Like mining companies that report that they’ve discovered a huge mountain of gold somewhere in Mindanao. Or a small agri-business that will shoot up like a rocket anytime soon because it has a wonder formula. Or some unknown company that is “poised to breakthrough” because of an invention. They expect their money to grow by 50 percent in a few months, possibly weeks, probably even a few days.
This isn’t investing. This is gambling. And gambling is a loser’s game. If you don’t believe me, next time you enter a casino, ask yourself this one question: “Where do they get all the money to build their amazingly beautiful building?” Answer: “From the gambler’s pocket.”
When you buy these more exciting stocks, it’s true that some will actually shoot up. But what’s the probability that it will also crash and take all your money with you?
Remember that for every success story like Starbucks, how many thousands of coffee shops have fizzled out? For every success story like Facebook, how many thousands of social-media websites have vanished from the face of the earth?
For every success story like Apple, how many thousands of tech companies have flopped? But what’s the probability that your grandchild will still be going to an ***and an ***?
Our boring companies are so boring because they’ll be there for the next 50 years or 100 years or more.
Here’s what’s so wonderful about our recommended boring companies: They enjoy steady cashflow. People just keep buying from them.
Just look at Warren Buffett. Why is he the most successful investor in the planet? He’s been investing for the past 40 years, and he hasn’t changed—he’s still using “The Greatest Investment Strategy in the World.”
The stocks he chooses are so boring: Procter & Gamble (making soap, pampers), Coke (making… uh, Coke), See’s (candies), Wrigley (chewing gum), and Wal-Mart (the SM of America).
George Soros, another super billionaire like Warren Buffett, said, “If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”
Aren’t you happy you’re part of the TrulyRichClub? Continue your Masters Course on The Greatest Investment Strategy in the World.
May your dreams come true