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A phenomenon called the "Inverted Nifty Fifty" i

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A phenomenon called the "Inverted Nifty Fifty" i

Wednesday, 16 July 2008

It's hogwash! A phenomenon called the "Inverted Nifty Fifty" is helping thousands of U.S. investors make up for lost time... in three easy steps... but this opportunity can't last!

Good Afternoon Prudent Investor,

The odds may be stacked against us, but don't despair.

Inside...

    * The Best Stock to Own for the Next 10 Years
    * 3 Steps to Rescue Your Retirement
    * How to Profit from the "Inverted Nifty Fifty"

PLUS, three more reasons why Wall Street's "real" smart money agrees these stocks are set to rally...

Every year, hardworking investors just like you and me beat those odds. Take a look...

    * Bill and Carol Angle put $30,000 into a single stock -- half their life savings at the time. Today that investment is worth over $300 million.
    * An IRS clerk named Ann Sheiber invested $10,000 in another stock at age 58, which she donated to her favorite school in 1995. It was worth $7.5 million.
    * Working class residents in Gadsden County, Florida fell in love with yet another stock in the 1950s. At last count, more than 67 of them were millionaires.

Are these extreme cases? Sure. But they give you some idea of the immense fortune-building potential of spotting the right investment at precisely the right time.

Moreover, the investments that freed these folks from financial worry were NOT arcane... obscure... or even high-risk speculations.

When I reveal their names just ahead, you may be surprised. You may be expecting something much more... well, dangerous.

But don't let that fool you. Unusual market conditions -- nearly 20 years in the making -- have some of the biggest brains in the investment community raving about opportunities like these...

    Pat Dorsey, Morningstar's Director of Stock Analysis, says they "offer an embarrassment of riches for long-term investors looking to build core holdings."

    David Reilly, Director of Portfolio Strategy at Rydex Investments says, "All of the dynamics of the economy are favoring [these companies]."

    Christopher Davis, 2005 Domestic Stock Manager of the Year for Morningstar, says you might get an opportunity like this, "once every 10 years or so."

I'll explain everything in the next five minutes. All I ask is that you keep an open mind. And promise me you won't dismiss the simple strategy I'm about to reveal... because it's too simple.
Yes, this is a "head-slap" moment!

Five, 10, 15 years from now, investors will look back on the "Inverted Nifty Fifty" I'm about to describe and wonder what in the world they were thinking.

Some won't recover. The lucky ones may remember the first half of 2008 as a turning point in their financial and personal lives.

Likely, they will have followed the simple strategy I'm going to share with you in the next few minutes. So, let me introduce myself.

My name is Paul Elliott. I'm 43 years old and hell-bent on retiring wealthy on my own terms. Just as I imagine you are.

If my name sounds familiar, it's because I've been writing about the markets and investing for years, both in print and online.

As a senior writer for The Motley Fool, I am thrilled to serve a grassroots community of investors The Economist calls "an ethical oasis in an area that is fast becoming a home to charlatans."

The folks at Barron's named us "the No. 1 source for financial education on the Web."

So, you'd imagine I have it pretty much figured out. Not even close. I've done well with my investing, but I have nowhere near the capital I need to retire in comfort -- after nearly 20 years in the markets.

But all that may be about to change. Now that I've been personally clued in on the once-in-a-generation phenomenon I'm going to share with you in the next five minutes.
"The planets are aligning for investors like us"

I heard that recently from one of the grumpiest, most hardcore value investors I've met in 20 years -- and one of the best, too.

His name is Philip Durell. You'll hear more about Philip just ahead... and why I see dollar signs when a curmudgeon like Philip says the planets are aligning.

I'll even show you how I'm personally using Philip's simple strategy to bolster my own retirement. And how I'm sleeping better at night as a result.

In short, you'll hear everything Philip revealed to me in a series of discussions about a phenomenon insiders are calling the "Inverted Nifty Fifty" and how it stands to make some of us extremely wealthy.

If you're as impressed as I was, I'll also tell you about one specific "Inverted Nifty Fifty" investment opportunity Philip calls... "The One Stock to Own for the Next 10 Years."

I think you'll be amazed by how it reminds you of a younger version of what is perhaps the single greatest stock market miracle in American history -- Berkshire Hathaway.

If you're not familiar with the Berkshire Hathaway story, you probably do know about its legendary founder, Warren Buffett -- after all, he's the richest man in the world.

But it may surprise you to hear that since the 1970s, ordinary Berkshire Hathaway investors just like you and me have seen their own modest holdings balloon more than 5,500%!

Investors like Bill and Carol Angle, the young couple we discussed earlier. The ones who invested $30,000 and walked off with more than $300 million!

Or like David Gottesman, who piled up $368 million... or Ernest Williams and his family, who grew their investment into $250 million!

In Omaha alone, some 30 families are sitting on more than $100 million worth of Berkshire stock. I imagine you could get by on a fraction of that. I sure know I could...
Well, this company is one step ahead of where Berkshire was in the '70s!

The one REMARKABLE stock to own now!
Yours FREE!

As recently as five years ago, you could've gotten into this little company for around half as much as you can now.

Yet, as profitable as this stock has been, Philip conservatively expects another double at least, within just a few years.

(But right now, it's climbing, so the earlier you get in, the better...)

This exclusive report, "The One REMARKABLE Stock to Own Now!" gives you all the details on what could be the next Berkshire Hathaway!

Full details just ahead!

Now, let's be realistic. You and I both know the Berkshire miracle doesn't come along more than once in a lifetime. But suppose you could do half as well... or even a quarter as well.

We'd still be talking about hundreds of thousands of extra cash, if not millions. And that's entirely reasonable for a company that's following the Berkshire model to a tee -- like this one has.

In other words, if you missed out on the Warren Buffett stock market miracle -- like I did -- you may have a chance to turn back the clock, with the potential for serious wealth-building results.

You see, unlike Buffett's Berkshire Hathaway, this company is still small. With a market cap that's just under $4 billion -- in an industry where competitors routinely top $40 billion. (Right there, you have the potential to pocket eight times your original investment.)

But just like Berkshire in the early days, this company is accumulating a mammoth stockpile of cash. More than $650 million and growing. Also like Warren Buffett at Berskshire Hathaway, this company's expert management deploys its capital when the time is right to snap up fire-sale investments.

In other words, this roughly $4 billion company is following the very same battle-tested strategy that built Berkshire into a $200 billion global powerhouse (and made Buffett the wealthiest man alive). No wonder the herd on Wall Street is finally catching on.
This stock is already starting to move

In the last few years, every dollar you held in this stock would have more than doubled. Meanwhile, how would you have fared holding shares in the S&P 500? Not nearly so well, I'm afraid.

That's right, by holding just this one SAFE stock, you would've left most investors in the dust. Not to mention most mutual funds.

And yes, that includes all the folks who shrewdly bought the smaller, faster-moving stocks of the Russell 2000.

So, you're right to wonder: Why would Philip Durell, the stodgiest, most conservative value investor I know, recommend a company that's already up this much?

Because it's just getting started! And I intend to prove it to you. But I want you to have the full story, straight from the source.

The best way I know to make it happen is to rush you Philip's new report with all the details on this opportunity. It's called "The One REMARKABLE Stock to Own Now!" I'll even show you how to download the full report instantly.

But first, let me show you why this is much more than an ordinary stock research report...
This is Step One in your Retirement Rescue Plan

Why do I say that? Two reasons. First, when you invest directly in the "Inverted Nifty Fifty," you instantly increase the odds that you'll have the wealth you need when you need it most.

You also break free from a corrupt U.S. retirement system that the most respected voice in mutual funds calls "the next big financial crisis in this country."

And that's because, when you buy this "Inverted Nifty Fifty" stock (or any of the others we'll discuss today) and hold it in your own personal account, you won't pay a red cent in fees beyond your modest brokerage commission.

That means no finder's fee... no management fees... no marketing fees. And you'll never pay a commission or taxes associated with needless turnover.

In short, you'll pay none of the outrageous "financial intermediation" costs that routinely eat up nearly 80% of your profits over the course of a long investing career.

Yes, you read that right, up to 80% of your rightful profits... PROFITS earned on YOUR money... at YOUR risk.

And I didn't pull that out of my hat, either. I got that figure directly from an industry insider. His name is John Bogle, and he's the founder of the prestigious Vanguard Group of mutual funds.

But that doesn't have to be your concern. Once you start following Philip's simple plan, you won't pay ransom to a financial services industry that Mr. Bogle calls "a giant marketing system... to bring in the most money by fair means or foul."
Your profits are yours to keep compounding away
until YOU decide to sell!

I'm sure you can see what a great advantage it would be if we could consistently identify the market's best opportunities... then buy them and simply hold them in our personal accounts cost-free... essentially forever.

So, what's stopping us? Well, according to Vanguard's Bogle, we've been duped by a bunch of unscrupulous fund managers and advisors, whose behavior he calls "disgusting, for lack of a better word."

In short, we are being robbed blind by an endless stream of middlemen, all looking to share in our hard-earned profits. You see why Bogle warns that if we want any shot at a comfortable retirement, we MUST kick these rascals to the curb.

At the same time, you may be uneasy finding stocks entirely on your own -- ones you're comfortable holding on to for years at a clip. I know the feeling. And to sleep well at night, you need someone to keep an eye on them in case something changes.

That's why I'm so eager for you to meet my colleague Philip Durell.

You see, unlike most mutual fund managers or fee-based investment advisors I've known over the years, I truly believe Philip can help you make more and keep more of what you make. Here's why I say that.

Philip is no financial services crony. He spent 20 years as an executive, specializing in company turnarounds. And to have the kind of success Philip had resurrecting failing companies requires a first-rate set of valuation skills and a specialized knowledge of the bottom line.

Of course, these same skills helped make him a top-notch investor and teacher, as evidenced by the stunning track record he's racked up for the investors he advises.

That includes previous recommendations that enabled members to SAFELY lock in "growth stock"-style returns of:

    * Mittal Steel -- up 53% in 9 months
    * Intuit -- up 84% in less than 21 months
    * Omnicare -- 103% gain in 13 months

Or maybe you're more interested in hearing how Philip is applying legendary investor Benjamin Graham's "margin of safety" approach that helps his clients win by never losing. Well, you're going to love this...
Overall, across every value stock Philip has recommended to me and the rest of his inner circle of investors, there's never been a time when our portfolio failed to beat the S&P 500.

So, how exactly does Philip make us money?

For starters, he cracks opens the company's books. He burrows deep into the numbers... digging out hidden liabilities... and sometimes finding hidden assets Wall Street never seems to know about.

Like Benjamin Graham (and his prize student, Warren Buffett) Philip turns every stone. And I'm not talking about price-to-earnings ratios and the other blunt instruments that slaphappy Wall Street brokers love to wave around.

And that's a major reason Philip's time-tested value investing approach can help you safely make money just about EVERY TIME you invest. But there's also research showing you could clobber the returns of all other investments with these stocks...

Value turns 1K into 8M

This chart shows that if you had spent $1,000 exclusively on growth stocks -- beginning seven decades ago -- you'd have grown your money into $800,000. If you put the same $1,000 into the S&P 500, you'd have $1,800,000 today. Not bad.

But if you owned only the kind of stocks Philip invests in instead, you'd have more than $8 million!

That's right. Disrespected, undervalued stocks like these actually crushed the performance of the top stocks in the S&P 500, which, of course, are the core of popular "index" funds.

Now, I admit, 70 years is a long time. But that's just the point: When it comes to investing, fads come and go. You must look at the long term to know what really works.

And buying and holding those special stocks I just showed you in that graph works. Period. And that's before you take into account the extra boost I expect from the "Inverted Nifty Fifty."

"These overlooked stocks are overdue." -- CBS MarketWatch

You read that right. Even though these stocks turned $1,000 into $8 million over the course of EVERY TYPE OF MARKET, I think we can expect even better results today -- thanks to the "Inverted Nifty Fifty."

Perhaps Philip said it best to his subscribers in a recent issue of his Motley Fool Inside Value newsletter:
"As long-term buyers of stocks, we can hardly contain our delight at this lucky break."

As you may have guessed, Philip's Inside Value subscribers are the tight-knit group of investors I mentioned earlier. The ones Philip is helping to "win by never losing."

In a moment, I'll tell you how you can join them without risk today, if you like -- at a special low charter member price. But if you're anything like me, you want to hear a lot more before accepting an invitation, even if it is without risk.

So, why don't I tell you about another "Inverted Nifty Fifty" opportunity Philip revealed to me in our recent discussions. Though, don't be surprised if you find yourself itching to get invested right away. You'll be in good company.

You see, this very stock is heavily owned by the man many consider to be the world's greatest living investor.

Of course, I'm talking about Warren Buffett again. As it turns out, Berkshire Hathaway owns nearly 20% of this remarkable little company.

And it's little wonder. In 2007, this little business earned a whopping $701 million on revenues of $2.26 billion -- a figure that's grown an average 17.2% each of the last five years.

Profit margins are fantastic -- currently hovering around 30%, while the company's ultra lean business model requires minimal capital to grow. Yet the balance sheet is stocked with $340 million cash.

Of course, given that the company has a long history of returning free cash to shareholders via share repurchases and dividends, this is great news for investors like us.

With such great numbers, a solid business model, and an impressive commitment to shareholders, it's no wonder that Warren Buffett's Berkshire Hathaway owns nearly one-fifth of the company's common shares.
Ordinarily, you'd pay through the nose for a company of this quality

After all, we're talking about a 100-plus-year-old company that provides a unique service the global financial markets can hardly function without.

A company whose customers read like a "who's who" of top corporations and governments, as well as investors, depositors, creditors, investment banks, commercial banks, and other financial intermediaries.

And here's another big plus Philip points out. Nearly 40% of the company's trailing 12 months' revenues were earned outside the borders of the United States, up from 30% in 2001.

Great business... superwide moat... tested, trustworthy management... rock-solid balance sheet... quality international exposure... So, what's the problem?

Why can we still buy this blue chip company at blue-light-special prices?

Frankly, the company slipped up. It was one of a handful of top-notch specialty finance companies blindsided by the collapse of what is known as the structured finance market.

The misstep was real, and management owned up to it... but Wall Street's knee-jerk response was an overreaction. If you ask me, Wall Street needed a convenient scapegoat!

Philip agrees. He's been over and over the situation, and he assures me that the company's management has earned its sterling reputation and has proven itself to be totally independent, accurate, reliable, and trustworthy.
More important, the hysteria on Wall Street has punished this stock way more than is warranted by the fundamentals and the business outlook.

And that's more great news for us. This gives us a brief window to scoop up shares in a blue-ribbon company that's trading at a 40% discount to its 52-week high!

Most investors run from opportunities like this one. And that's probably a good thing. Few of us have the financial chops to unravel such a complex situation.

Philip Durell licks his chops at opportunities like this.
Now, for Step Two of your Retirement Rescue Plan

OK, we've discussed Step One of your Retirement Rescue Plan -- claiming Philip's report and getting the full details on "The One REMARKABLE Stock to Own Now!"

As an added bonus, I'll also rush you a second free report -- "Excellence Has Just Gone on Sale" -- that will fill you in on the 100-year-old company that's good enough for Warren Buffett.

Step Two is gradually supplementing these core holdings with a portfolio of undervalued "Inverted Nifty Fifty" stocks. And here's why there has never been a better time or an easier way to get started...
If you have some experience with investment newsletters, you can appreciate what a hassle it can be to get caught up. That's why many subscribers never actually buy a recommendation. Well, getting started with Philip's Inside Value is a breeze. Let me show you why...

First, the instant you join, you get both stock reports we just discussed. Plus, you get two more top recommendations -- right there on pages 2 and 4 of Philip's August issue of Inside Value.

Those four timely investment opportunities should be more than enough to get you started. Still want more? You also get Philip's Top 10 Picks for new money right now -- adjusted for risk level and handpicked from more than three years of Inside Value top recommendations.

Now, you're up to 8 timely opportunities to choose from -- all in less than five minutes. There's no need to get overwhelmed by model portfolios and watch lists and heaven knows what else.

You can see why I say that getting Philip's special August issue of Inside Value is a lot like getting three full years of the valuable advice Philip delivers to his Inside Value subscribers each month -- all in one concise volume.
Get on track starting this afternoon

Best of all, within mere minutes, you can see for yourself whether the Inside Value service is of value to you (of course, all the archived issues are waiting for you -- when you have the time to read them).

If for any reason you don't like what you see, no worries. You risk nothing. Your satisfaction is completely guaranteed personally by me and by The Motley Fool (more on that just ahead).

"People have called for large caps to lead... and have been proved wrong. However, history is on their side." -- RealMoney

Earlier, I showed you the real-life stores of three successful investors. Now, it's time I revealed the three investments that secured their fortunes.

The first, you may have guessed, was Warren Buffett's stock market miracle, Berkshire Hathaway. The second was Schering-Plough, one of the world's premier drug companies.

And the third? You may have guessed this one, too. It was Coca-Cola. Hardly needles in a haystack, right?

But it's important to realize that those folks I showed you, who quietly got rich and retired in luxury, not only bought the right stocks... they bought them at the right time.

And thanks to the "Inverted Nifty Fifty," great companies just like these are incredibly attractive right now. In fact, Philip has already recommended Coke to his Inside Value subscribers (I bought it myself - and I'm already up 53%).

But just so we're 100% clear on this point, it bears repeating... When you get right down to it, there's really only one factor that determines who gets RICH buying America's best companies and who does just okay.

And it's not necessarily what stocks you buy. It's WHEN you buy them. This is the secret that makes the "Inverted Nifty Fifty" so powerful... and how it can make us rich. But what the heck is it?
The "Inverted Nifty Fifty" -- what it means and how you can profit today

Amazingly, this story has its roots in the 1960s. If you were investing then, you recall how investors drove the stocks of America's top companies to astronomical levels. These bluest of the blue chips came to be called the "Nifty Fifty."

The idea was that these businesses were so rock-solid, you simply couldn't lose money on them. Of course, this was nonsense. In fact, because the stocks were so expensive, investors who showed up late to the party got creamed.

Here's why: They overlooked valuation. The lesson of the "Nifty Fifty" was that when investors get too enthusiastic, the shares of even a great company can become way overpriced.

But what if the opposite occurred? What if the world's best businesses went on sale? That would be an "Inverted Nifty Fifty" -- and it would be extremely rare. In fact, this is the first time I've encountered it in more than 20 years.

Right now, America's top companies are unbelievably among the cheapest on the market. It's the investing equivalent of buying a Mercedes for the price of a Toyota.

But how can such an opportunity arise? Well, it really would take the "perfect storm."

First, profits would have to soar to record levels. And cash would be overflowing the companies' coffers. Yet the stocks will have gone nowhere fast... for at least five years running!

Were every one of these improbable pieces to fall into place, America's best and most profitable companies -- the Mercedes and BMWs -- could get downright cheap.

Cheaper than their overpriced mid-and small-cap peers. And that's precisely what's happening now. But I assure you, it can't last.

Christopher Davis, the brilliant money manager we discussed earlier, insists that we get an opportunity to fill our portfolios with top-shelf companies when they're at the top of their games, "once every 10 years or so."

I'd say it's far less often than that. And remember the investors I showed you earlier? In each case, when the market offered them "an embarrassment of riches," they took the bait and quickly made up for lost time.

Now's your chance to do the same. Even Warren Buffett himself -- yes, the same fellow who made investors millionaires many times over with Berkshire Hathaway -- is gobbling up blue chips right now!