November 13, 2014
The Elite Group Of Forever Stocks
That Crush The Market
By Jimmy Butts
Last month, we had Dave Forest, one of the Chief Investment Strategists for StreetAuthority, fly all the way from his home base in Vancouver, British Columbia to St. Edward's University in Austin, Texas.
There he presented on the topic of "investments you can hold for the rest of your life." Around the office, we've been calling them simply, "Forever Stocks."
Dave also gave attendees a glimpse at his brand new list of The 10 Best Stocks to Hold Forever. I'll tell you how you can be among the first in line to get your hands on this report in a moment.
But suffice it to say, it was an incredible event.
Long-time StreetAuthority readers may be familiar with our concept of Forever Stocks. In fact, it's been the most popular piece of research in our company's history.
Put simply, when you invest in Forever Stocks, you no longer have to worry about inflation, deflation, bear markets or recessions.
And our original list of Forever Stocks has been an investor's dream.
Since we recommended them back in July 2011, these stocks have beaten the market by as much as 85 percentage points, increased their dividends up to 633% and in some cases did so with less volatility than the market.
But this year, Dave and his research team wanted to delve deeper. So they poured through stacks of SEC reports and financial statements and back tested a plethora of different strategies before they finally came up with the most impressive list of Forever Stocks we've ever seen. I'm talking about the kinds of stocks that you could buy today and hold for the rest of your life.
This new elite group of Forever Stocks has delivered average gains of 829% over the last decade, beating the market by more than 7-to-1.
One of the most exciting things to come out of Dave's presentation -- and all the research that went into it -- was the index that we created. It's an index that you won't find anywhere else and we're only sharing it with StreetAuthority readers.
This index, which consists of nearly 100 wide-moat stocks (as classified by the research firm Morningstar), has remarkably more than doubled the market's performance in the last decade. I say remarkably, because typically the more stocks you have in your portfolio the more likely you will "be" the market and not be able to generate market-crushing returns (more on that in a moment).
Take at look how these stocks fared, compared to the S&P 500 over the past 10 years:
With those 100 wide-moat stocks to start, we narrowed down this list even further, using a fairly sophisticated metric called Economic Value Added (EVA). This metric essentially measures the true economic profit of a company. So by using it, we weeded out the worst performing companies.
Then we narrowed our list down further by filtering out companies with profit margins of less than 20% -- high profit margins are a key indicator of a company with a wide moat, or a sustainable competitive advantage.
When all was said and done, we ended up with a top tier of companies, or what my colleague Dave Forest calls, "The World's Greatest Businesses." You can see how these stocks have performed compared to the market in the last decade:
| Investment | 10-Year Return | | S&P 500 Index | 118% | | StreetAuthority's Top 100 Wide-Moat Stock Index | 271% | | The World's Greatest Businesses | 381% | Source: Bloomberg
It's this type of in-depth research that goes into finding the best stocks for every single one of our newsletters -- research you won't find anywhere else. And it's one of the primary reasons why Dave's new report, "The 10 Stocks To Own For The Rest Of Your Life," could be the best one we've ever done.
Like I mentioned above, Dave's presentation was simply incredible. For StreetAuthority readers who came to see it, we would like to thank you for joining us. And for those who were unable to make it, but would like to get access to the filmed version of this special presentation right now, I invite you to watch it here.
Good investing,
Jimmy Butts
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