June 13, 2024
Close this search box.
Close this search box.
June 13, 2024
Close this search box.

Linking Northern and Central NJ, Bronx, Manhattan, Westchester and CT

The Secret to Building Your Wealth

Be the richest you can be. You built your wealth. Now multiply it by using the powerful strategies of two legendary investors—Warren Buffett and Peter Lynch.

Their strategy was simple: Focus on owning the stocks most likely to multiply in price – the potential multibaggers.

Their challenge: Likely multibaggers are extremely hard to uncover. Very few individual investors and securities analysts can identify which stocks are likely to multiply in value for years.

Yet these two great investors each found a way to build fortunes with stocks that had powerful long term appreciation potential.

Warren Buffett concentrated on long-term investments in “wonderful businesses”– companies with dominant market positions that could grow for decades.

Peter Lynch focused on rapidly growing businesses likely to outperform their competitors for years. He acknowledged my contributions to his success in his classic book “One Up On Wall Street.” Among the thousands who sent him their recommendations, I was one of the very few analysts he thanked.

Using the combined strengths of these two outstanding investors’ approaches, along with several very successful analytic tools and screening techniques that I developed, I have identified many of the best performing stocks of recent decades years before they jumped in value. These are the “hidden gem” stocks that serious investors are seeking.

Like Kansas City Southern.

Years ago, Kansas City Southern (KSU) was the smallest of America’s major railroads. The company was followed by 11 analysts who were very familiar with its assets and operations. But they did not recognize its enormous potential.

In a relatively short period of time, the company gained control of the most direct train routes from the Midwest to the ports of Texas, Louisiana and Alabama, which gave it a commanding position to gain control of much of America’s commerce with Latin America.

KSU was also completing very profitable new rail routes into Mexico precisely when American firms were rapidly building many massive plants in that country in order to take advantage of the sharply lower costs of labor, construction and certain materials south of the border.

Analysts also did not recognize the extraordinary long-term value of the “hidden gems” the railroad owned. They included several mutual fund companies that were on the verge of experiencing huge inflows of funds from investors. One, Janus Capital, was among the fastest growing major mutual fund companies in the world.

KSU also owned the largest provider of mailing services to nearly 100 million stock market investors and clients of insurance companies. Like the aforementioned mutual fund companies, these services were also poised to experience tremendous growth.

Since my initial recommendation of Kansas City Southern, when its stock capitalization was just $900 million, the company and its spin-offs increased in value to over $40 billion. It became the second-best performing stock of the past two decades.

Before being acquired.

Using the combined Buffett-Lynch investment approach also helped the investment fund I managed for years achieve a 30.1% audited average annual rate of returnfor clients such as the world’s largest entertainment company.

I appreciate the lessons in investing that I learned from studying Warren Buffett’s writings and from Peter Lynch’s personal advice. Their guidance explains why BARRON’S called me the “stock picker’s stock picker” and stated that my investment performance was “dazzling.”

I would enjoy sharing my current thoughts on several interesting situations with substantial investors seeking much stronger performance in their stock portfolios.

Please send me your contact information soon so that we can identify the next Kansas City Southern opportunity together. You can reach me at [email protected]

Leave a Comment

Most Popular Articles