Consistently Beating the Market
In leadership, life and all things it’s far wiser to judge people by their deeds than their speech - their track record rather than their talk” – Rasheed Ogunlaru”
One of the things I have found in my now over three decades of investing in the stock market is this. The only way to consistently outperform the overall market is identify and action stocks, sectors and niches that are overlooked or under weighted by the majority of investors.
Unfortunately, it is hard for most investors to fully embrace this sort of contrarian investing. Humans tend to be much more comfortable when their views are deeply within the norm. This is one of the key reasons most investors, and for that matter, fund managers; consistently underperform the overall market.
One niche I have to be consistently profitable and that has yielded out sized returns over the years is to follow the insiders especially when they are making significant purchases in attractive small and mid-cap stocks. I have doing this consistently for many years in one-off situations but never had put together a portfolio of these sorts of small and mid-cap holdings insiders were buying.
That changed on June 30th, 2016 when we launched The Insiders Forum offering on Seeking Alpha. We started with a hypothetical $150,000 model portfolio consisting of 15 $10,000 positions in attractive small and mid-cap stocks insiders were making significant purchases in. Unlike the model portfolio of the Biotech Forum, this portfolio was diversified across many sectors of the market including technology, transportation, housing, retail, industrial and yes biotech concerns.
As can be seen above, the Insiders Forum model portfolio has delivered the goods and then some. Thanks to taking profits on consistent winners and redeploying that 'dry powder' into better opportunities, our model portfolio has grown to 25 names.
More importantly, as of the end of the third quarter the Insiders Forum model portfolio has generated an overall return of 81.96%. This amounts to three percent (non-compounded) for every month the model portfolio has existed. It also is double the 39.81% you would have got investing in the Russell 2000 over that same time frame.
This means our hypothetical model portfolio that started with $150,000 has now grown into $272,936.88. This compares to $209,711.99 a similar portfolio consisting of the Russell 2000 would have accumulated over the past nine quarters. This is a difference of over $60,000!
Not only that, but the portfolio's outperformance and returns have been consistent. The Insiders Forum Model portfolio has generated a positive return in eight of the nine quarters it has existed. It has produced four quarters of over 10% returns, and in three of those returned over 15%. The model portfolio has also beaten its benchmark consisting of the Russell 2000 in seven of nine quarters. A remarkable achievement.
Not surprisingly given this level of performance, The Insiders Forum has generated very positive reviews from our subscribers. Here are our last three member reviews.
Automatically deployed as a basket allocation within my portfolio. Perfectly satisfied with results to date. Highly recommended.Many know the true words of Peter Lynch about insider buys. The great news is - this service leverages them and presents opportunities with insider activity that often prove relevant in hindsight. Bret‘s communication provides well-founded opinions for adding and closing positions, which resulted in nice gains so far.Many, many good ideas. I'm always surprised by the number of great ideas, amount of follow up and his willingness to answer questions. You can make money following Bret.
Has your personal portfolio came anywhere close to that return over the past nine quarters? I would encourage you to pull up your quarterly brokerage statements to ascertain what kind of returns your current portfolio is actually producing. If you are like most investors, it is probably less than you think. This is human nature and is also the reason more than 90% believe we are better than the 'average' driver according to polls.
To celebrate our remarkable performance over the past nine quarters, we are not only enabling 14-day totally risk-free trials but also offering 20% discounts off your first year of membership should you decide to stay in the Insiders Forum community. Membership includes access to our model 25 stock portfolio, weekly investment analysis on new small cap stocks insiders are buying, notification of portfolio changes and access to our Live Chat community.
Everyone who has ever taken a shower has had an idea. It's the person who gets out of the shower, dries off, and does something about it that makes a difference.” ― Nolan Bushnell
So don't wait any longer to 'test drive' The Insiders Forum. This special offer will only last until the market close on Friday. To activate your risk-free trial into The Insiders Forum, click HERE by 4pm EST Friday.
Thank You & Happy Hunting,
Founder, The Biotech Forum, The Busted IPO Forum & The Insiders Forum