Learn How to Beat the “Hated Elites” with this Stock
… Join the club where 3X stocks are par for the course
We often hear about the “elite.”
Admire them or hate them, these “fat cats” represent the top 2% in terms of America’s wealth and influence.
Now, some of them are lucky enough to inherit their wealth, but the vast majority builds it in their lifetime.
Do you ever wonder where these people come from?
And how you might join their elite investing “club”?
Just where do they acquire the secret skills, connections and experience to turn a $10,000 grubstake into a million dollars over and over again?
In a moment, I’m going to explain just how they do it and today give you an opportunity to join their club.
I’ll even tell you about a specific stock – led and backed by the hated elite – that has doubled in the last year and can continue this momentum fueled by 53% annual growth.
But first, let’s explore together just what’s so special about these annoyingly talented financial mavens?
For starters, they are smart – very smart.
Second, they think very analytically and strategically, plus are like magicians dealing with data and technology.
Third, the very best of best of the financial elite are big, bold, creative thinkers.
Finally, they are ambitious and have very high expectations and – this is important – they prefer to invest with each other in a special class of companies.
The elite also know that while having blue chip stocks in their portfolios is a good way to protect wealth, investing in smaller, high growth companies is the only way to build wealth quickly.
Like companies with 40% annual growth rates, stocks that outperform the market by 400% or more, and strategies that turn an industry upside down.
This exactly describes a company that one leading member of this elite group has recently launched into orbit.
It is gaining market share hand over fist in a massive market with stunning growth that can continue for many, many years.
In a moment, I’m going to tell you how you can invest in this company and easily invest alongside these so-called “masters of the universe.”
And learn about a specific stock that has doubled since last year – with plenty of room to run.
But first, let’s learn how one gets into this “elite club”.
Getting Into the 2% Club
It’s not easy getting into the club.
Many try but few are chosen.
To begin with, for every 3,000 of the talented people that apply for membership, only about 60 make the cut.
So only about 2% of those that apply are brought into the club on a provisional membership basis.
For the first few years, new members of this club are carefully tested and observed as they learn the ropes of investment, accounting, strategy and finance.
This club, headquartered in Boston, with affiliates all over the world, is not for the faint of heart.
Many provisional members don’t make the grade and are politely asked to leave the club.
But the rest are given more and more responsibility over the next decade until they reach the highest membership level in the club.
This Brand Is Powerful
The elite club I’ve been referring to is one of the premier consulting companies in the world—Bain & Company.
Bill Bain and seven other defectors from the Boston Consulting Group founded this elite club in 1973.
The reason behind their launching of this new organization was simple.
They were tired of writing reports on how a company could improve profitability that just gathered dust on some mid-manager’s desk.
Instead, they wanted to actively help the CEO execute the new strategy and then be judged – and compensated – on the positive impact on profitability and share price.
Specifically, instead of just fixed consulting fees, a good part of their compensation was based on by how much their client’s stock price went up after executing their strategic plan.
They took this strategy to another level when Bain’s Mitt Romney co-founded and became head of Bain Capital, which invested directly in private companies.
Bain, at one point, had a chart they called the “4:1 chart” showing that their client’s stock on average outperformed the market by 400%.
An audit by Price Waterhouse found that the aggregate market value of Bain clients increased 456% in one decade while the Dow Jones industrial average increased 192% during the same time period.
And members of this elite club were known not only for their smarts and skill.
They are known for their relentless determination to find the crucial data – to find the facts.
“Bain consultants have a peculiar tenacity about them,” says former Chrysler Motors Chairman Gerald Greenwald. ”They’ll dig up 50-year-old city planning commission records just to understand a competitor’s building costs.”
Many events in life that appear to be random are actually more predictable than you might think …
It’s simply a matter of intensive research and analyzing enough data points.
Soon patterns begin to emerge that can lead to stunningly profitable conclusions …
The Small-Cap Confidential Edge
This is the hallmark of Tyler Laundon – the chief analyst for the respected and successful Cabot Small-Cap Confidential.
Tyler would fit in well at hyper competitive Bain and is widely respected for his thoughtful and deep research into smaller companies.
He has a knack for finding companies that discover and execute new products and strategies that turn markets upside down.
Before I tell you more about Tyler’s special one-time stock recommendation for new members, let me tell you a bit more about his background and record of success.
From 2012- November 2019 his recommendations generated cumulative returns of 5,010%. His current portfolio is outperforming the Russell 2000 Index by an average of 73.4%.
The reason for this unmatched, remarkable stock-picking record is quite simple.
Tyler has practical business experience that both complements and supercharges his stock picking skills.
Prior to joining Cabot, Tyler founded and successfully ran a small business for fifteen years. He then worked as a consultant for start-up technology companies, as well as Vermont’s largest health care institution.
From 2009 to 2015, he was the chief analyst of growth stocks at Wyatt Investment Research.
He has been a long-time contributor to Wall Street’s Best Investments, has been cited by U.S. News & World Report, and has presented investing ideas and strategies for The Money Show and Bloomberg Markets.
Believe me, Tyler’s deep financial research skills and practical business experience combined with a great feel for markets is an unusual combination for this business.
Here are three of Tyler’s current recommendations. We have omitted the names in fairness to his subscribers.
In a moment, I’ll tell you how to learn about his favorite stock right now.
This fast-growing company is on the low risk side of financial services but has produced extraordinary growth and opportunity by a new strategy that can be repeated over and over again.
This hidden company is on track to become a leading company in its huge $560 billion industry.
This is no start up but rather a company that will likely hit $120 million in revenue in 2020.
And Tyler predicts it will likely post earnings per share growth of 60% in 2020 too.
It is a “below the radar” stock in a blue ocean market already worth $560 billion – and it is growing 10x faster than the industry average as it gobbles up market share from the competition.
This company has several key advantages but the most important one takes us back to Bain.
The Secret Ingredient to Elite Success
The elite know that the most important factor in the success of a young company is the quality of its founder and management team.
It is vitally important that they know their industry inside and out and are heavily incentivized with stock so that their interests are closely aligned with other shareholders – like you.
This brings me back to Bain.
Now, many Bain consultants have long and successful careers with the company.
But for some of them, even this is not enough.
They are so talented and driven that they break off to launch their own companies.
You can imagine that the skills, contacts, experience and knowledge that they have acquired at Bain are like rocket fuel for new company.
These “Bain alumni CEO’s” are the elite of the elites.
Tyler’s favorite stock right now was founded and is currently led by a Bain alumni that after decades in the industry, saw a new way to deliver a consumer financial service that almost everyone needs.
This new, innovative low-risk strategy is leading to:
1. loyal customers that provide steady revenue and profits with recurring revenue
2. expanding profit margins as its delivery system goes digital
3. potential for sustained high growth – as spreads across the country revenue from new customers will more than double due to a unique incentive program
I have much more on this heart stopping opportunity in a moment but first let me tell you a bit more about Tyler’s stock selection system.
Tyler’s data and research system has churned out early wealth recommendations for his members – with routine gains such as +610%, +409% and +228%.
Let’s now take a closer look at Tyler’s small cap confidential strategy and its impressive results.
The Quiet, Confidential Approach that Speaks Loudly
Tyler’s approach reminds me of what I would call the “quiet capitalist.”
He’s committed to quietly investing in industries with turbo-charged growth and gale-force tailwinds at their backs.
This is how you set yourself up with a chance to make loud, gigantic returns.
Think of the Internet in the 1990s or personal computers in the 1980s and smart phones or software over the past decade.
Tyler targets industries with the real potential to grow tenfold (or 10x) in size such as software, financial services, biotech and medical devices.
But he doesn’t recommend them to his subscribers until they are public companies with market values of at least $50 million.
This is what I call the “sweet spot” between risk and reward.
Companies offering investors much lower risk than you would find with a start up but still with plenty of upside potential in the tank.
This allows his subscribers to “get in before the crowd” and before the stock hits the radar screen of big institutional investors.
Even though some of Tyler’s ideas will be aggressive, his research process is old fashioned, New England conservative.
He’s looking for companies that demonstrate a sustainable growth model, will be rolling out a steady flow of new products and services and have some sort of “secret sauce” that is difficult for competitors to copy.
Finally – Tyler’s targets operate in markets where there are skeptics that can be proven wrong – this is wind that propels a stock upward as a company flourishes.
We’ll get to some overwhelming evidence that clearly shows Tyler’s old school approach is yielding new age profits for his subscribers.
But first – let’s take a closer look at how he found his latest idea that is so far on track to dominate its industry like Microsoft in the 1990s or Sears dominated retail in its prime.
You’ll kick yourself if you don’t read on to learn more right now.
The Confidential Small Cap Edge
Tyler’s stock selection system first screens for robust top line growth.
This is absolutely essential.
The minimum is 20% growth but he prefers a 40% revenue growth rate.
This means revenue is nearly doubling every two years.
You can only get this sort of growth if your products stand out from the crowd and you’re selling into what I call “blue ocean” markets with lots of room for growth.
Tyler’s institutional quality research confirms that both are in place.
Next, Tyler assesses the quality of management.
Is it top notch?
Does management own a significant chunk of shares and is it putting its own money into shares?
Is the interest of key management closely aligned with other shareholders – like you for example?
It can’t get much better than in the case of Tyler’s top pick right now where an experienced and talented founder also serves as CEO.
A study by three professors at Purdue’s Krannert School of Management is part of a growing mountain of evidence of the superior and more lasting performance of companies where the founder still plays a significant role as CEO, chairman, board member or owner.
Specifically, the study found that S&P 500 companies where the founder is still CEO are more innovative, generate 31% more patents, create patents that are more valuable, and are more likely to make bold investments to renew and adapt the business model.
They are willing and able to take risk to reinvent the future.
All this supports the belief that when the founder is still involved in management of a company, companies are more innovative and more willing to make bolder investments, and able to maintain more loyal employees.
Next come profit margins.
Are they expanding due to expanding economies of scale and the application of new technologies that cut costs?
Net profits per share should be growing much faster than top line growth though sometimes they lag a bit if the company is investing for future growth.
This is the key since Tyler has zero interest in “flash in the pan” ideas that fizzle out.
Finally, Tyler looks at the stock chart to make sure the stock is in an uptrend and has a good-looking chart indicating a nice upward trajectory.
Summing up, Tyler’s lodestar is identifying, analyzing and recommending companies that become well-known quality brands providing great jobs and real wealth for all and for a long time.
Tyler checked all of these boxes before settling on his best recommendation that he wants to send you right now.
You will absolutely not want to miss this one. Click here now to order.
Now let’s turn for a moment to the bigger picture of why you absolutely need small cap stocks in your portfolio.
Why Small Cap Stocks Offer You Big Advantages
David Swenson, the well-respected chief investment officer of Yale’s $30.3 billion endowment, has admitted that but for Yale’s Trustee’s and other risk metrics imposed upon him – he’d otherwise invest in nothing but small cap stocks.
What a remarkable endorsement.
To some extent, that smaller stocks can and oftentimes do outperform larger stocks is just common sense.
Let’s take a quick look at the reasons why.
1) Higher Growth and Stock Appreciation Potential
It’s easier for smaller companies to grow revenue and profits at a much faster pace.
With large cap companies, growth potential is limited. Companies like Amazon (AMZN), which have seen exponential growth, eventually slow down. A smaller company, on the other hand, may have years of growth and price appreciation still to come.
This means an opportunity to get in on the ground floor with an up-and-coming company. Buying and holding shares when the company is still small could pay off hugely if it grows and its share prices increase in value.
2) Under the Radar Discovery Potential
When a stock ignored by Wall Street begins posting better revenue, cash flow and earnings – its stock will begin trading at a higher valuation.
For example, as a company’s earnings advance, giving the stock an initial boost, investors will likely recognize its lower risk and improvement in quality, leading to a higher price tag on the earnings, thus giving the stock a second boost.
While there are dozens of analysts covering a major stock like Kraft Heinz, many small cap stocks are hardly covered at all.
When a prominent analyst does pick one up, the results can be surprising.
This is because institutional investor support sends a message to markets and other analysts soon jump on the bandwagon.
When large institutional investors learn about a new company with solid growth potential and good management, they often times begin building positions and this can have a marked impact on stock prices.
I recall many instances of a good presentation at an investment conference resulting in a small cap stock soaring.
Of course a poor presentation or just plain disappointing news can send it the other way as well.
3) Smaller Caps Are More Agile & Entrepreneurial
Aside from having greater growth potential, smaller companies are often more agile than larger companies.
This can make it easier to adjust to changes in the market cycle, develop and launch new products or services, or change their strategy if necessary.
The management of these companies also tends to be more entrepreneurial and less bureaucratic.
There is less corporate infighting since everyone knows and trusts each other on a personal basis.
Many smaller companies cannot offer mega salaries so stock options are a very powerful performance motivator.
The ability to be nimble enables a small company to seize opportunities much faster than its large cap older brothers.
This means potential double-digit growth, not plodding 3-4% growth.
4) Many Small Caps are Prime Acquisition Candidates
Of course big companies and their balance sheets do come in handy as partners or, even better, when they swallow a small company at a hefty premium to market value.
This means a nice payday for investors as well. Even if an acquisition does not take place, just the thought of it can be a nice level of support for a stock in a promising sector.
5) Small Caps Are Less Effected by Global Storms
An uncertain global landscape is also driving the appeal of domestic, small-cap stocks that tend to be insulated from the threat of trade war and a strong dollar.
Many of these companies, such as Tyler’s favorite stock right now, are made more attractive by their focus on U.S. retail sales and consumer spending which accounts for 70% of the American economy.
Bottom line: this all adds up to small caps being able to offer better investment performance.
Since 1925, small-cap stocks have posted greater gains than any other asset class – 2% to 5% a year more than large caps.
And there are years when they greatly outperform big companies. For example, between September 2011 and September 2015, small caps rallied by 20% more than large caps, posting a total return of 97%.
In addition, the recent round of Federal Reserve interest rate cuts are a tailwind for small cap stocks. Lower interest rates have historically been supportive of small-cap equities.
Over the past six decades small caps have surged an average of 28% in the first 12 months after the start of a Fed rate cut cycle, compared with 15% for large-caps, according to Jefferies.
Next, let’s look at Tyler’s five “rules for the road” for picking the best small cap stocks for his followers.
How Tyler Finds the Very Best Small-Cap Stocks
1. Searches for paradigm shifts that are opening up new opportunities.
Tyler searches for paradigm shifts in any field of business that requires a unique, new solution that will be provided by a stand-alone company.
A good example of such a paradigm shift was the move from the mainframe computer environment to the personal computer environment in the 1990s.
All the new personal computers needed to be connected!
And Cisco (CSCO) filled the void, supplying the industry with networking tools and its stock increased 70-fold.
In the consumer market, energy drinks burst on the scene in the late 1990s, giving the industry its first truly new product in decades.
Hansen Natural (HANS) stepped in to become the leader and its stock, now renamed Monster Beverage (MNST), has been one of the best performers of the post-2002 bull market.
2. Invest early in companies before the big investors catch on
Through intensive research, Tyler finds companies before big investors such as mutual, hedge and pension funds get on board. The idea here is that subsequent investments by institutions will raise the profile and drive up the value of the stock.
3. Be open to both growth and value stock opportunities
While most of Tyler’s recommendations are growth stocks., he’s open to quality growth and value opportunities as well. These usually come about when a small company exists in a steadily growing industry and has figured out a way to grow much faster than the competition by specializing in one aspect of the industry.
4. Carefully manage risk and capture gains
As a general rule, small caps are more volatile than large caps so it’s important that they be monitored closely.
Tyler and his premium service Cabot Small Cap Confidential do this for you. Each week you receive an update on each recommendation with Tyler’s best advice. He’ll tell you when to take some profits off the table and when the market moves against you, when to limit a loss on a stock that doesn’t work out as expected.
5. Invest only when the market opportunity is huge
Tyler only recommends small companies that serve large, fast-growing markets because the companies can realize tremendous growth with even small market share.
This is the law of large numbers.
The sheer size of the markets creates the potential for huge gains while helping to reduce your risk profile.
6. Invest Alongside Talented Founders & CEOs
This may be listed last but is perhaps the most important of Tyler’s “rules for the road”.
Having a founder and CEO on board greatly raises the probability of success and closely aligns the interests of both management and shareholders like you.
This is the case with Tyler’s top recommendation from Cabot Small Cap Confidential.
This Midwestern company is gaining market share quickly and is expected to grow earnings over 60% in 2020 in a $560 billion market.
It has a simple yet powerful rocket-fueled strategy led by a talented and experienced Bain alumni founder and CEO that knows the industry inside out.
A Time to Choose
You now have a choice to make.
Do you want to continue to invest in the same tired old names that all your friends and colleagues invest in?
Or do you want access to the very best small cap stocks that can build wealth quickly?
That are founded and led by the most talented driven people on the planet?
With elite CEOs that have a keen eye on the bottom line and the share price?
That act like owners and investors rather than bureaucrats?
I strongly suggest that you accept our no-risk offer to find out about Tyler’s favorite small cap stock right now.
Join us now here at Cabot Small-Cap Confidential today.
And if you choose to join his Cabot Small Cap Confidential, you’ll also receive the following:
- 3 Cloud Software Stocks To Buy Now ($29 value)
- 3 Canadian Small Cap Stocks To Buy Now ($35 value)
- Secret Strategies To Get In Great Stocks Early, And Hold For Huge Gains ($27 value)
CEO and Chief Investment Strategist, Cabot Wealth Network
P.S. Accept our no-risk offer to find out about Tyler’s favorite small-cap stock right now. Join us now at Cabot Small-Cap Confidential.