An outlandish guarantee to Digest readers...
Editor's note: Continuing our holiday series on collectibles... Today, Van Simmons – president of David Hall Rare Coins and co-founder of Collectors Universe – shares with us an "oddball" idea. Unlike the popular gold coins he described yesterday, it's a collectible investment not many people know about or discuss... But Van calls it "an area that's very, very desirable."
I deal in all kinds of collectibles, not just coins...
And this is kind of an oddball subject – but I've been buying some of the California-style watercolor artists from the '20s to the '40s. I've probably read about 30 books on them, and I think that's an area that's very, very desirable.
It was a huge market prior to World War II. They would show art all across the United States in different museums, in different shows. And then the war came along and the world kind of changed. People started moving more toward the modern art era through the '50s and '60s... So the California regional art kind of disappeared.
Some of the paintings you can buy for $1,000-$3,000 are just fantastic pieces of art to hang on the wall. The downside for me is zero at this point. It's a steal – you can buy a lot for your money.
The problem is finding somebody who deals in them who's honest... and I know one or two guys who I think are very honest and very straight. So if anyone's interested in these, they can give me a call, and I'd be glad to give them a couple names.
Everyone's taste is a little different, but I think the California regional and landscape type of art is fantastic. By regional, I mean paintings of people sitting there working on their car on the side of the road with a gas station in the back... or the San Francisco scene where you've got the red car going underneath the bridges. There are people walking around with umbrellas. That type of thing.
There are many books written by Gordon T. McClelland and others that you can take a look at to get a feel for this stuff. I think it's fantastic, and I expect it to be a great investment... but this isn't like the coins I mentioned earlier. This is a much longer-term, 10- to 20-year type of investment.
Editor's note: If you would like to contact Van Simmons to discuss collectibles, you can e-mail him at van@davidhall.com or call him at 1-800-759-7575. We receive no compensation for mentioning Van or his business.
Editor's note: As we write over and over in the Digest... building a solid foundation of basic financial knowledge is the ultimate way for readers to become rich. That's why as we continue our holiday series, we share several timeless ideas for common-sense financial advice from this classic piece – originally published in mid-April. (We'll return to our typicalDigest fare on January 2.)
In particular, this Digest shares some timeless wealth-building insight from Porter's friend and mentor, Mark Ford.
Learn more about Mark's successful strategies below...
An outlandish guarantee to Digest readers... Market bears are no match for the Bernanke Asset Bubble... 'Economically sensitive' stocks confound the skeptics... One investment strategy that works and works and works... How to get an incredible wealth education...
So far, the "Bernanke Asset Bubble" is proving stronger than the stock market bears.
In Monday's edition of DailyWealth, our colleague Steve Sjuggerud updated readers on the Bernanke Asset Bubble. Put simply, the Bernanke Asset Bubble is what Steve expects will be the result of the Federal Reserve's ultra-stimulative monetary policy. Here's how Steve describes the situation...
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Ben Bernanke is the chairman of the Federal Reserve. He has a dual mandate... His goals are to deliver 1) price stability (no inflation) and 2) full employment.
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In addition to these two goals, Ben Bernanke is known as a "student" of the Great Depression. The main lesson he learned from the Depression is that you shouldn't raise interest rates too quickly, because you might not be out of the woods yet.
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Given his mandate and his study of the Great Depression, Ben Bernanke will keep interest rates artificially low for longer than anyone can imagine. And that, in turn, will create an asset bubble... in just about everything.
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As long as unemployment remains high... and as long as inflation is subdued... the Fed will continue to "juice" the economy. The "juicing" won't stop once the economy appears to be back on its feet, either... Bernanke's worries about the Great Depression will keep him from raising interest rates until it's too late... which will inflate the Bernanke Asset Bubble to its greatest heights.
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Bernanke's monetary stimulation is helping stock market bulls resist the correction that began on April 3. After hitting a high of 1,419 on April 2, the benchmark S&P 500 stock index fell to a closing low of 1,358 on April 10.
Since then, the market has rallied higher... and confounded the skeptics. Economically sensitive stocks like Home Depot (home spending), Wyndham Worldwide (hotel spending), Dick's Sporting Goods (recreational spending), Gap (clothing spending), and Taubman Centers (shopping mall spending) have helped lead the rally.
As we noted in this morning's edition of Growth Stock Wire, Dan Ferris' relentless dividend-paying "World Dominating Dividend Growers" are also pushing to new 52-week highs. As we often say... owning these Dominators isn't sexy. Most of them are in boring businesses like soda, beer, cigarettes, and basic retail. But investing in them works and works and works. Buy a World Dominating Dividend Grower at the right price, and you set yourself up for a lifetime of safe compounding with the world's best businesses.
"Build your wealth – that is key. Most investment newsletter publishers think their job is to pick stocks. I know from being in this business for 35 years that stock selection cannot make you rich."
The quote above is from our friend and colleague Mark Ford. It's from a letter he sent to every reader of his newsletter, The Palm Beach Letter. While it may sound like common sense, Digest readers should realize this is a controversial thing to say in the investment newsletter business...
As many readers know, Mark is one of Porter Stansberry's mentors. Over the last 35 years, he has built a reputation as one of the country's foremost experts on wealth-building. But unlike most "experts" in this field, Mark actually walks the walk. He's a serial entrepreneur and New York Times best-selling author who has built dozens of businesses... and a huge personal fortune.
Mark now spends his time with family, mentoring entrepreneurs, and managing his investments. He also shares his unconventional wealth ideas with people in books and financial newsletters. One of his newest projects is The Palm Beach Letter... which he started with longtime Stansberry & Associates analyst Tom Dyson.
For our money, nobody in America delivers no-B.S. financial advice as well as Mark Ford. When Stansberry & Associates looks into starting new projects or side businesses, we go straight to Mark for advice. So we were happy to take a stake in his latest endeavor. And that's why we're not surprised by his controversial statement... that "stock selection cannot make you rich."
As we've detailed dozens of times in the Digest, building a solid foundation of basic financial knowledge is the ultimate way readers become rich... not scoring on a "hot tip" or a big options trade.
That's why at Stansberry & Associates, we've gone to great lengths to share our best "timeless" ideas... like proper asset allocation... how to identify a great business... intelligent position sizing... how to buy discounted corporate bonds... and how to sell put options.
Ideas like proper asset allocation are FAR more important to your long-term success than trying to find the next "hot" gold stock... the "next Apple"... or the next miracle-cure drug stock. But here's the thing: The majority of investors have no idea that this is the case.
Also keep in mind that most people have no desire to learn. It's too much work. This is why most newsletter publishers only write about stock selection. That's what the typical customer wants to read about. That's what the typical customer "believes" will make him rich... so that's what he gets. He never gets what he really needs... which is a solid education on timeless wealth principles and tools.
I know what you're thinking... that this all sounds like basic common sense. Many Digest readers know stock selection is simply one part of a bigger picture. Many Digest readers know they can make a fortune outside of regular stocks (with ideas like buying discounted corporate bonds and selling put options).
But trust me... most investors do not know any of this.
That's why it's much more popular (and thus, more profitable) for publishers to constantly write about ideas like "the next Apple"... or "the next Berkshire Hathaway."
Mark and his colleagues at The Palm Beach Letter agree with our take... that while great stock selection is important, it's far more important to know how to save... how to spend... how to compound your wealth over decades... and how to intelligently spread your assets to ensure a safe, rich retirement. These aren't the most popular ideas to broadcast to the world, but they are the most useful.
I've spent the last 15 years of my life reading about the best ideas on how to live a wealthy (and healthy) life. I've read hundreds of books and newsletters on wealth-building. I've got classics like The Richest Man in Babylon, Think and Grow Rich, How to Win Friends and Influence People, One Up on Wall Street, Investment Biker, and Market Wizards in my brain and on my bookshelf. I've read, met, and/or worked with just about every investment guru in the world... So I feel qualified to judge the ideas Mark and his team are sharing with subscribers of The Palm Beach Letter. And I can say they are of the highest quality in the world.
Most people who know Mark think of him as a multimillionaire business guru... But he's actually a born teacher. And his ideas... like those in his "Secret of The Golden Buckets" piece... his classic "Letter to a 47-Year Old"... and his unusual take on retirement are a revelation to most people. These ideas have helped thousands of people achieve financial freedom. I'm glad someone is out there doing it.
They don't teach common sense wealth-building concepts in school. Most people go their whole lives not knowing basic concepts like compounding and intelligent portfolio diversification. Thus, they always struggle with money... and complain about rich people.
It's only after someone understands Mark's concepts – and ones we share in the Digest – that a stock selection newsletter can be truly useful. It's only after you know about things like how to identify a great business (knowing about capital efficiency is a big help here)... and intelligent position sizing (read my interview on this subject here)... that you can safely take advantage of ideas from analysts like Dan Ferris and Steve Sjuggerud.
That's the reason The Palm Beach Letter has quickly become one of the most useful investment research advisories in the world. Yes... Tom is world-class in finding safe, dividend-paying stocks that should form the foundation of any retirement portfolio. And yes, from time to time, The Palm Beach Letter recommends stocks that could potentially double an investment position with little risk. But readers also receive a huge amount of classic educational material from Mark... material that can transform a person's financial situation in a short time.
Right now, Mark and his team are extending an incredible offer to Digest readers. You can sign up for The Palm Beach Letter – and gain access to all of the fantastic educational materials from Mark and his team – for one whole year, for free. If, after that year, you find the service is not for you, you can get 100% of your money back. That's how confident Mark and his team are that you'll enjoy their work. We second that opinion. The Palm Beach Letter is a bargain at three times the current price. You can learn more about a subscription here. (Note: This link does not go to a long video.)
Regards,
Brian Hunt
Delray Beach, Florida
April 18, 2012
