What’s your investing edge?
The majority of investors don’t have one.
I won’t sugarcoat it. If you don’t have an edge, you might as well be roadkill.
And that’s the No. 1 reason investors lose money.
Yet, instead of finding an edge, most investors will just buy whatever Wall Street’s marketing machine is selling.
Remember 2017?
The hype back then was all on pot stocks. Wall Street claimed that federal legalization would open a floodgate of riches to early investors.
I avoided them like the plague. I never recommended a single pot stock.
But people piled in … pushing the price of the ETFMG Alternative Harvest ETF to around $40 a share by September 2018.
And since then? The fund has plunged more than 75%.
The same thing happened with special purpose acquisition companies (SPACs) and initial public offerings (IPOs) in 2021.
They haven’t worked out too well for investors, either. Many popular SPACs and IPOs are now underwater.
The Real Talk is that Wall Street’s goal is to make money for itself — public be damned.
So, in order to beat it, you have to have an edge like this one…
Market Glitch
One of the biggest edges is a glitch in the way Wall Street does business.
And when these glitches show up, we have a huge advantage.
I call these particular glitches “pre-market” shares.
They’re not IPOs. Anyone can reserve these shares before they go public. Yet Wall Street often ignores them.
But the early bird gets the worm. Investors who get in early usually see huge market-beating gains.
In fact, over a decade, pre-market stocks have outperformed the S&P 500 on average by almost triple!
And that’s just the average.
The best opportunities can outperform the market by six, eight or 10 times.
That’s why some of the most legendary investors have taken advantage of them to build their fortunes…
The Wheel
Yesterday, I mentioned that Peter Lynch used them to lead Fidelity’s Magellan Fund.
It averaged an annualized return of over 29% over 13 years.
But Lynch isn’t the only one calling them “astoundingly lucrative” investments.
Joel Greenblatt — co-founder of Gotham Asset Management, which manages more than $4 billion — agrees that “you can make a pile of money” from pre-market shares.
And even Warren Buffett has made some of the best gains of his 70-year career by reserving some of these pre-market stocks.
All these great investors are saying that this area of the market is so profitable.
So, why reinvent the wheel? It makes sense to follow what they’re doing.
And the good news is that these pre-market opportunities are available for investors like you to profit from … no matter what market conditions are like.
I’ll show you how in tomorrow’s Real Talk.
Keep in mind, one of these pre-market opportunities is about to happen again soon. And I’ll be sharing the details on it on Thursday at 4 p.m. ET.
So, to be sure you don’t miss any of my insights on it … you can sign up for notifications at EarlyInvestorEvent.com.
Regards,
Founder, Alpha Investor