The Best Job in the World

Stansberry & Associates Top 10 Open Recommendations
(Top 10 highest-returning open positions across all S&A portfolios)

As of 07/08/2013

* * * A letter from a subscriber! Alliance member David H. from Santa Fe, New Mexico, writes: "About five years ago my wife and I started handling our own investments. We subscribed, back tested and cancelled well over 20 investment newsletters until we found you and Dr. Steve and Dan Ferris. We have been loyal subscribers ever since… probably one of your earlier subscribers to the Alliance… Your money back guarantee is a testament to your being a faithful guide."

We read your notes – sometimes with a red face. Send them to: feedback@stansberryresearch.com.

* * * Investment newsletters are expensive… and like a pair of dress shoes, they don’t always fit right. You’ve got to let people try them on. I’ve consulted with several major (and minor) publishing outfits over the last two years. The folks that have trouble reaching new subscribers are all the same: They refuse to offer a guarantee.

* * * Only a few days ago, we sent out an endorsement for John Doody’s Gold Stock Analyst. John has a truly unique product. He crunches all of the data in the gold-mining sector by hand. Why? Doody is a former economics professor. He spent 20 years figuring out how the gold-mining business worked before he began writing his letter. By evaluating the value of the gold held by companies in the sector in terms of the companies’ share price, he discovered that, from time to time, the reserves are worth far more than the share price of the companies. (That’s when you buy the stocks). When share prices are overvalued relative to proven reserves, you buy the metal.

Figuring out which to buy – the stocks or the mineral – is Doody’s specialty. Using Doody’s indicator, you can make money in gold, even when gold is falling. (Doody has averaged 13.7% gains since 1995.) And following these stocks when gold is rising will turn you into a gold bug – a rich one. In the first half of 2006, Doody’s top-10 list was up 76%. (Click here to see for yourself).

I’ve met most of the gold-bug writers, and nobody comes close to following the producers like John Doody. Plus, his approach is genuinely unique. If you’re going to buy gold stocks, his letter is a must-read. But he doesn’t offer a guarantee. That makes it too risky for some people to try – which is a real shame because Doody is one of the all-stars of our industry.

* * * A stock worth looking at: Align Technologies (Nasdaq: ALGN, $13.77). I’ve written about Align a couple of times in my newsletter. It owns an innovative system that straightens teeth (braces) using nearly invisible, clear plastic molds that fit over your teeth and can be taken out before you eat. The stock has been weak for two years because a rival (OrthoClear) was undercutting Align’s price (and probably violating its patents). Last week, the two companies settled, with OrthoClear selling out to Align. I’ve seen this happen from time to time. When a growth company with a new technology merges with its only competition, the results are often staggering for investors. A similar merger triggered my late 2005 buy recommendation of Akamai, for example. It’s up more than 200%...

* * * * * * * * * * * * * * * * *

A very close, long-time friend, Mr. B, wrote me a letter out of the blue last month, asking about starting a newsletter.

Quite a bit older than me, Mr. B is at the end of an illustrious career in real estate. He has become a fan of our newsletters and is one of our best subscribers. This is a bit ironic because when Steve Sjuggerud and I were starting out 10 years ago, he told Steve not to leave his job as a mutual-fund manager. "Steve, you’re crazy to quit your job and start writing newsletters!"

Mr. B wanted to know if I thought he’d be a good newsletter writer and whether or not there was a place for him at Stansberry to write about real estate.

Let me explain… where Steve Sjuggerud and I grew up (we’ve been close friends since high school), Mr. B was one of the most important businessmen in town, doing the biggest real-estate deals. He knew everyone. And everyone was his friend. I was extraordinarily flattered that he approached me about publishing a letter. I know he’s a natural writer, too. He has always been outspoken. He has always been stubborn. And he has always been willing to change his mind.

If he wants to write a letter, I’d love to publish it. Consider this brief comment Mr. B wrote about his investment philosophy:

"I am at the age where I am much more interested in an income stream and not a quick profit. I have become a buy and hold investor. In fact, if I could redo my real estate career, I would never sell anything I bought, unless it was obvious I had made a mistake. When we finished Spanish Trace Apartments in 1971 at a cost of $3,600,000, we sold it a year later for an $800,000 profit which was an extraordinary return as we had no money in the deal. We had borrowed every penny. But, if I had kept my 9% interest in the property, it would now be worth more than $2,000,000 and would be cash flowing to me more than $152,000/year. We weren’t as smart as we thought we were in 1971."

This sounds very familiar to me.

When I first began trading stocks, I loved to book my profits quickly... until I noticed how much I was paying in taxes, how often I was wrong, and how much money I would have made in dividends if I’d held the stocks for more than five years. Now my favorite stocks are the ones I know I’ll never have to sell, not the ones I book a quick profit on.

I hope Mr. B will decide to write a letter for us. He may not. He was surprised when I wrote him back, telling him what I thought he should do – it was more work than he wanted at this stage in his life. But he’s still thinking about it.

The correspondence reminded me that almost all of my best hires – Brian Hunt, Dan Ferris, Jeff Clark, Vic Elias – were newsletter readers before they became newsletter writers, newsletter publishers, and newsletter copywriters.

There’s always room in my business for smart, experienced, outspoken people with something to say. If you’ve ever thought about writing a newsletter, I hope you’ll get in touch with me. There’s a very good chance I’d like to be your publisher. We offer an unsurpassed amount of intellectual freedom, high wages, and lots of company travel. For some folks, this is the perfect job.

If you’re really interested, keep reading. He’s what I told Mr. B about newsletters – stuff most people don’t know.

1. People want to get rich, and they will only read your letter if you can offer them the possibility of big gains, at least from time to time. Steady cash flow is OK... but to sell your letter, we’ll need the chance at a quick profit from time to time.

2. People want to be entertained. They will never read your letter unless you focus on stories – stories of people, stories of deals, stories of big gains and big losses. Stories need to be dramatic… compelling… unusual… and, of course, honest. How important are stories? Think about the Bible and Shakespeare – the two most widely read "authors" in the English language. Both focus on morality. And yes, one involves religion... but think about how both communicate their ideas: through stories. That’s at least partly why both are so widely read.

3. Nobody wants to read about real estate right now. Five years ago? Absolutely. Today? No way. They don’t even want to be reminded. How will you write about real estate in a way that presents safe opportunity?

4. And this is the most important… newsletters are really about good writing, not only about investing. Don’t try to become a newsletter writer unless you’re truly interested in learning to be a great writer – which is a whole separate discipline from being an investor. If you want to be an investor, organize a fund.

If this sounds like something you can do… or want to try… send us a sample recommendation, tell us about your background, tell us about your investment philosophy, and most importantly, tell us how you gain your edge in the markets. Send to: feedback@stansberryresearch.com.

I think it’s the best job in the world –

Regards,

Porter Stansberry