What Are You Chasing?

This is an extract from Early to Rise- Investors' Edition. Hope you'll
find it useful.

What Are You Chasing?

Today, I want to show you how you can make 50%-100% in the next three years. It
may mean switching your investing strategy, but the results could transform your
portfolio.

But first, which would you rather do...

Buy something for $0.60 that is worth $1.00, or

Spend $1.00 on something that might someday be worth $1.00 but isn't now?

Logically, you would take the first choice. You would prefer to buy something
cheap now, knowing - with a degree of certainty - that it will be worth more in
the near future.

Unfortunately, many investors go with the second choice. They buy something,
hoping that, one day, its value will catch up with what they paid for it.

To be fair, it sometimes does. But that isn't a very reliable way to invest. For
every "can't miss" growth story like Amazon.com that actually pans out, there
are three or four Pets.com or Napsters out there.

What investors should be doing is buying companies offered at a discount to
their true prices. It's what Benjamin Graham did. And what Warren Buffett and
Seth Klarman do today. They are all on a short list of the greatest investors of
all time.

They buy companies that are on sale. They know that, eventually, the sale will
be over and Wall Street will want full price again.

Compare that to buying a company at (or even over) its full price, and hoping it
can somehow keep increasing in price.

It is the difference between investing in value and investing in growth.

With value investing, you identify companies with strong fundamentals -
earnings, dividends, cash flow, etc. - that are selling at a discount compared
to those numbers. These companies have the potential for large increases in
share price once Wall Street recognizes its error.

To be clear, this doesn't mean buying any old stock just because it has fallen
in price. There is a distinct difference between buying cheap "good" companies
and buying cheap "junk" companies. Some are cheap because the market has made a
mistake in pricing them. Some are cheap because their business is broken.

Granted, this may sound like a boring way to invest. It can't possibly offer the
sexy returns of growth stocks.

But what if that weren't the case? What if you could invest in "boring" value
stocks, make over 120% gains (even with the huge market collapse of 2008), and
outperform growth stocks?

You can.
And in case you are wondering, large cap value stocks also outperformed large
cap growth stocks over the last 10 years.

So what are you chasing?

If you are chasing bigger returns by investing in growth stocks, your money is
misplaced. You are better off buying value.

Isn't it time you followed Warren Buffett and some of the other great investors
of all time?

Respectfully,