June 2, 2015 The Ideal Portfolio For Scoring Triple-Digit Gains By Andy Obermueller If you're like me, then you never want to worry about money again... whether that means merely being financially independent or becoming filthy rich is beside the point. And while blue-chip stocks, index funds and dividend payers can keep the income flowing, the truth is these securities will take decades to amass real wealth. You'll need something else if you're after a seven-figure bank account: a "swing for the fences" strategy. So today I'm going to show you how to position yourself for "out-of-the-park" gains without jeopardizing your safer investments. I call it the "20% solution." The idea behind it is simple: dedicate a portion of your portfolio to aggressive growth stocks. Let me explain. My daughter is in private school. In a few years she may go to college. Eventually she'll need a car, an apartment and someday a wedding. All of which cost money. For her and the rest of my family, I've allocated 80% of my portfolio to safe, reliable assets. These are securities that I know will allow me to keep living comfortably and adequately provide for my family. We want this money to grow hands-free. So in this section of our portfolio, we want investments that we can buy and practically leave alone. Here's an example of what that might look like: Obermueller Family 80% "Autopilot" Portfolio Purpose:
Match or surpass market average over time. Example securities: Vanguard Admiral S&P 500 Index Fund (VFIAX) Rydex Equal-Weight S&P 500 ETF (RSP) Fidelity Nasdaq Composite ETF (Nasdaq: ONEQ)
Rules for Individual Equities:
1. Market cap must exceed $10 billion. 2. Balance sheet must show five-year growth trend in shareholder equity. 3. Dividend yield must be equal to or greater than the S&P 500 average. 4. Entry price must be in lower half of 52-week range. 5. Minimum institutional ownership of 50%.
But the other 20%? That's different. With this section of our portfolio, we buy stocks that have the ability to far exceed the market average. These are the types of stocks that have the potential to move the needle not only on the balance of our account, but also on the kind of life we live. And they're exactly the sorts of stocks I tell my readers about every month in my premium advisory Game-Changing Stocks. If you've never considered the power of the "20% solution" before and are wondering how to begin, then I may have found the perfect candidates. We all know that tech giant Apple, Inc. (Nasdaq: AAPL) has seen enormous success in the last decade. The investing world knows to watch Apple's stock in the months leading up to a product release -- whether it's the iWatch, iPad or iPhone. But few investors realize that there is a related set of companies that experiences much larger gains every time one of these is released. You see, when Apple develops a new product, they choose suppliers and manufacturers to provide the parts for that product. And then, when Apple's new releases explode onto the market, these under-the-radar suppliers often end up doubling or tripling in value. Now, I've been expecting something like Apple Pay for a long time. And after months of dedicated research, I've identified the suppliers that are -- and will continue -- profiting from Apple's game-changing innovation. I compiled the top performers in my latest research report "The Top Five Apple Suppliers To Buy Right Now." Since I first recommended them, three of these five firms are already up more than 250%. But I believe Apple Pay is just the start and that there are plenty more gains to be had. These are exactly the kind of stocks my readers and I use to fill our portfolios' top 20%. And if you're looking to build a seven-figure account, these Apple suppliers could be your perfect first step. So if you're interested in this lucrative opportunity -- and ready to put the 20% strategy to work -- you can find all the details right here. Good investing,
Andy Obermueller Chief Investment Strategist Game-Changing Stocks
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