My Three-Pronged Approach to Beating the Market
Editor's note: To make money in the markets, you must find what works and stick with it...
It can be overwhelming to sort through all the available financial information. But according to True Wealth Systems editor Steve Sjuggerud, being a successful investor isn't about memorizing every number... It's about knowing what matters for your investing system.
Everything else is simply noise.
In today's Masters Series, adapted from the second part of the August 5 Digest, Steve shares his three simple investing criteria... and details how they led him to hefty profits after the last financial crisis...
My Three-Pronged Approach to Beating the Market
By Steve Sjuggerud, editor, True Wealth Systems
The key to successful investing isn't what you'd expect...
You don't need to understand everything. You don't have to look at every number. And you can certainly know too much – which often leads to your ego getting in the way of common sense.
Instead, the key is finding the right things to study.
You simply need to figure out what really matters... what works... and then forget the rest. Everything else is just noise. And focusing on the noise will distract you from what's important.
I've spent thousands of hours researching what works in investing. And I've come up with a simple concept that has proven to be an incredibly successful way to make money.
I built it into a simple system of my own. It can do what my finance professors always said was impossible: consistently beat the market.
Today, I'll share it with you...
If you're familiar with my work, then my investing system might sound familiar. I buy things that are...
- Cheap
- Hated, and
- In an uptrend.
That might seem simple. But finding investments that are cheap, hated, and in an uptrend is hard. They don't come around often. And when they do, it certainly doesn't feel good buying them.
But these are the pieces that matter if you really want to succeed when investing. And to me, they're all that matters when making any investment...
First, you've got to understand value. You want to understand what you're buying and how much you're paying for it. The exact valuation measure isn't what's important. But getting a feel for value – including the value relative to other assets – is crucial.
Then, you want to buy something when others aren't interested... when it seems like the world hates your idea. When that happens, the worst of a decline is likely over. After all, who's left to sell if everyone hates an investment?
Now, here's a very important detail...
Neither of the above pieces matter if prices are still falling...
If there's one thing I've learned in nearly 30 years of investing, it's that prices can always fall further than you'd imagine. And that means you must wait for prices to begin moving higher. That's the market's way of telling you that things have turned a corner.
When this all works, you end up buying at a great price... and at the perfect time.
That's exactly what happened in 2010, when I started pounding the table on real estate...
The whole world had given up on real estate after the housing crash and the financial crisis it sparked.
But for me, the crash was the most obvious buying opportunity I'd ever seen. Real estate was dirt-cheap and completely hated, but the worst was behind us. Things were already getting better. But no one could see it.
I spent the next few years buying up as many properties as I could... many of which I still own. And I sold several for hefty profits along the way.
I bought a cheap, hated asset in the start of an uptrend. It was my investment system in action. And it has worked out perfectly as real estate prices soared in value.
Now, you don't need to follow my investment system to make money in the markets. But I do urge you to find what works for you – and stick with it.
Good investing,
Steve Sjuggerud
Editor's note: By focusing on assets that are cheap, hated, and in an uptrend, Steve has been able to earn massive profits from overlooked investment stories in bull markets and bear markets alike. And when it's time to sell, he relies on an entirely different powerful system to protect his portfolio...
It's a one-of-a-kind tool that helps you overcome your emotions and ignore the market noise – keeping you invested for the remaining upside while limiting your downside.
If you're ready to get started on the path toward lower risk... higher rewards... and less financial worry, you must listen to Steve's urgent message today. Learn more here.