YOUR OFFER EXPIRES AT MIDNIGHT:
“In my 53 years in the investment world, I’ve seen a number of economic cycles, pendulum swings, manias and panics, bubbles and crashes, but I remember only two real sea changes. I think we may be in the midst of a third one today.”
—Howard Marks, Billionaire Co-Chairman of Oaktree Capital Management
“If you grant that the environment is and may continue to be very different from what it was over the last 13 years — and most of the last 40 years — it should follow that the investment strategies that worked best over those periods may not be the ones that outperform in the years ahead.”
—Howard Marks
“In the last 1,000 years, the last 15 years were unprecedented. I don’t know that there’s a reasonable case that that’s coming back anytime soon.”
—Motley Fool analyst Bill Mann
“Inflation and U.S. interest rates are highly likely to remain the dominant considerations influencing the investment environment for the next several years.”
—Howard Marks
“After years of lagging behind their growth peers, cheaper so-called value stocks outperformed in 2022 as major central banks hiked rates to tamp down surging inflation.”
—Bloomberg
“As big cap technology sees further margin pressure, commodity prices rise and real interest rates remain higher, we think this trend [value outperforming growth] has further to go.”
—Bloomberg
“Value Investing is the Key Now”
—Yahoo Finance
Chart refers to U.S. market.
Now, if you’d put that same $25,000 into value stocks earning an estimated 10% per year, you’d be looking at $64,844.Chart refers to U.S. market.
Okay, that’s a difference of about $20,000 — not a bad start for just a decade in, right?Chart refers to U.S. market.
Chart refers to U.S. market.
But the same $25,000 in value stocks now soars into the six figures — $168,187 to be precise.Chart refers to U.S. market.
6X your original investment, not to mention almost exactly double what you’d have from growth stocks.Chart refers to U.S. market.
Chart refers to U.S. market.
But here’s where value stocks really start to stretch it out. After 30 years at 10%, $25,000 — and remember, ZERO further investment after that — would skyrocket all the way up to $436,235. So not only are we fast homing in on half a million dollars overall… but we’re at more than 17X our initial investment.Chart refers to U.S. market.
And we end up with a staggering $296,656 more than we’d otherwise have from investing in growth stocks.Chart refers to U.S. market.
The proof is in the pudding. Over the long haul, U.S. value stocks have utterly destroyed growth stocks. And it makes sense when you think about it, right? By definition, value stocks are just stocks that are cheaper on a per-share basis. Growth stocks are the opposite — stocks that are more expensive. So they’re less proven, and, barring advantageous circumstances like the past 15 years in particular… Yeah, they’re probably less likely to work out. For many investors, it’s probably hard to remember a time in the market when growth stocks didn’t have that kind of radical advantage. That time has returned. That’s the “Sea Change” I’ve been telling you about. Now how are we going to take advantage of it?Sustainable competitive advantages: We cherish U.S. companies with enduring economic moats — a set of characteristics that will keep competitors at bay and enable the business to consistently earn high returns on invested capital. Such characteristics include strong brands, cost and data advantages, high customer switching costs, and solid network effects.
Sound financials: We look for companies with diversified revenue streams, strong balance sheets, and steady free cash flow. These businesses can comfortably reinvest to drive future growth and use excess cash to enhance shareholder value via dividends and share repurchases.
Talented and trustworthy leadership: We love to invest alongside execs that treat shareholders as partners. We look for sensible compensation practices, a material ownership stake, and a history of sound judgment and prudent capital allocation. We also appreciate clear and candid communication with shareholders.
A margin of safety: We always insist upon buying a stock with a sufficient margin of safety. This represents the difference between the market price of a stock and our estimate of its fair value — the wider, the better. Buying with a margin of safety helps protect our downside in case our investment thesis doesn’t play out as we expect… and it adds extra upside when we’re right.
Inside Value Hunters, we’ll be targeting four specific sub-categories of value.Strong and sustainable competitive advantages
Experienced, savvy, and shareholder-friendly management
High and consistent returns on capital
A history of innovation and winning
Difficult to displace assets
A reasonable current valuation
Sounds easy enough, right? Of course, because everyone recognizes the greatness of these bedrock companies, they are rarely available at attractive prices. But during periods of economic uncertainty and market downturns — you know, kind of like right now! — we sometimes get the opportunity to buy these best-of-breed businesses at cheaper (if not downright bargain) prices. What kinds of companies am I talking about? Think long-time Motley Fool U.S. recommendations like Berkshire Hathaway, up more than 5X your money since first recommended by the Fool…Chart refers to U.S. market.
And of course, legendary Motley Fool U.S. recommendation Costco, which is actually the single longest active recommendation in company history after being picked all the way back in April 2002. It’s up roughly 16.5X since then, turning every $25,000 invested into $411,500.Chart refers to U.S. market.
Chart refers to U.S. market.
Perhaps the best example is historic Motley Fool winner Monster Beverage.Chart refers to U.S. market.
Shares of MNST fell 44% between June and November 2012 after the U.S. Food and Drug Administration said it was investigating five deaths associated with the company’s energy drinks. Did the bad publicity weigh down Monster’s shares for a few months? It did. But it didn’t stop consumers from buying Monster’s drinks, which drove a steady increase in sales and earnings. Nowadays, Monster shares are up 600% from those 2012 lows.Chart refers to U.S. market.
Chipotle shares fell 65% from Aug 2015 to Feb 2018 due to food safety concerns following a series of E. coli outbreaks, and it seemed the once-mighty brand was dead. In fact, in a 2018 survey, a whopping 32% of consumers said that “nothing” would make them want to visit the chain more frequently. But Chipotle brought in a new CEO from Taco Bell who fixed the food safety issues, added novelty to the menu, invested in marketing, and made a big push into digital. Half a decade later, the stock is up roughly 500% since the new CEO took over. Which brings me to a question that’s likely starting to bubble up in your head…“The Booking.com of Latin America” — With services available in 20 different countries, the “Booking.com of Latin America” is the leading online travel agency in the region. Online travel agency services still have huge room for growth in the Latin American market, and this company’s stock price is even more attractive after having nearly 2/3 of its value shaved off at the outset of the pandemic.
Speaking of which, pandemic conditions have accelerated digital commerce and online banking adoption in Latin America, helping to further expand this company’s addressable market. Mobile hardware and high-performance wireless internet services are also seeing increasing adoption in the region, and it’s likely that a growing share of travel commerce will be conducted through online channels.
Not to mention that the company’s middleman role in the travel industry — facilitating business for other players in the space and benefiting from their growth — allows the company to run a relatively asset-light business and opens the door for big earnings growth down the road.
“The Litigation Leader” — This London-based company is a leader in the budding litigation niche of the finance industry. Essentially, the company lends upfront cash to other companies for lawsuits, in exchange for a percentage of the potential settlement down the road.
Risky? Perhaps. But the rewards for “The Litigation Leader” can be exponential. For instance, the company currently has an outstanding case in which the team invested US$50 million at the outset… and would stand to make billions if the case is resolved favorably.
No wonder this company has generated 95% return on invested capital over its history… OR that more than 90% of the top 100 law firms in the world have done business with this brand!
Of course, that’s just the beginning of everything you’ll get as a charter member of Value Hunters, including:Ongoing monthly recommendations
A monthly ranking of every stock in the service, so you always know which ones we prefer at any point in time
A monthly commentary with updates on significant events impacting our recommendations
More timely updates as needed if there is a material change to one of our investment theses or intrinsic value estimates
A recorded monthly member Q&A
And, yes, while our team’s preference is to own great businesses forever, this is still a value-oriented service. That means we’ll occasionally sell stocks. There are three primary reasons our Value Hunters team will sell a company:Our investment thesis is busted
The stock is significantly overvalued
We find a superior investment alternative
Please note that we will not necessarily sell a company if its share price reaches or even exceeds our intrinsic value estimate (which will accompany all recommendations). Our goal is to own these wonderful businesses for the long haul, even if they do become moderately overvalued every now and then. We believe that letting our winners run is a key component of successful Foolish investing.VIP Exclusive
“The Executive List” report:
Five of our current top stocks from “Fool IQ,” our proprietary internal program that ranks the most respected stocks by our analysts across all of The Motley Fool. [A $500 value — yours FREE!]
VIP Exclusive
“3 Dividend Stocks to Combat Inflation” report:
As we’ve discussed at length today, inflation is here… and, despite the Fed’s best efforts, it’s likely here to stay for quite a while. This report reveals three stocks that we think are perfectly set up to fight off inflation, while delivering a healthy dividend in the process. [A $300 value — yours FREE!]
Okay, that’s a lot of value included in your charter membership to Value Hunters.
At this point, there’s just one final question to answer…Here’s how it looks for the more visually inclined.
Motley Fool Value Hunters | $1,199 |
“The Executive List” | $500 |
“3 Dividend Stocks to Combat Inflation” | $300 |
Total Value | $1,999 |
Your Price |
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And while we don’t offer cash refunds on Value Hunters, I do have some good news…
Our Ironclad 30-Day Satisfaction Guarantee
VIP Exclusive
With that all said, I leave the decision to you.
To capitalizing on the coming “Sea Change,”
Data as of 1/12/2023 unless otherwise stated. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor David Hanson has positions in Amazon.com, Apple, and Berkshire Hathaway. The Motley Fool recommends Amazon.com, Apple, Berkshire Hathaway, Lululemon Athletica, Microsoft, Monster Beverage, and Netflix. The Motley Fool U.S. owns shares of Costco and Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
Value Hunters Canada includes U.S. and Canadian stocks. All billing is in CAD. You will be billed according to your choice below and then $1,199 for each year thereafter.
This product is non-refundable.
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