Step back with me a moment to 1999.
It's the peak of the greatest bull market in history, and Wall Street is abuzz. Why all the commotion?
An outsider from Nebraska has made an outlandish boast. And if what he says is true...
You could essentially double your retirement nest-egg every 20 months for the rest of your life.
Even better, this gentleman would do it using a special class of publicly traded stocks you or I can buy and hold ourselves.
You're about to hear what that one "condition" is. But before we peel the onion on this million-dollar mystery, I have some conditions of my own.
You see, I'd never consider sharing this story with you until I could confirm three crucial details...
Now you can see why I call this a million-dollar mystery. It's a story that could change the way you invest forever...
After all, Wall Street is notorious for outlandish claims and outrageous boasts. But before you dismiss this one, there are a few things you should know about this particular investor...
In GEICO, Gillette, and The Washington Post... together, they made him the second-richest man in the world, behind Bill Gates. No wonder Christopher Edmonds, a successful money manager and respected financial journalist, calls this gentleman simply "the greatest investor of the last half of the last century."
Yet, despite the literally thousands of pages written about him, here's something few individuals or even professional investors know about this guru's investing secret.
To earn you 50% per year — essentially doubling your portfolio every 20 months — he would NOT buy Coca-Cola or even his own $150 billion company, (I'll explain this astonishing fact in a moment). No, he would buy a different type of stock altogether...
To earn 50% profits this year, the world's greatest investor would buy a special kind of common stocks that some of the world's top investing minds can't stop raving about. Here are just a few reasons why...
Now you're starting to see why... to double your portfolio every 20 months... the world's greatest living investor wouldn't buy the stocks you're probably holding now.
He'd buy a different breed of stocks with names you've probably never heard. Companies with names like...
Why am I so sure? Because he said so! Plus, the world's greatest investor is always on the lookout for undervalued companies that offer...
But that's not all. They would also share another absolutely critical trait — in addition, that is, to the potential for providing you generous long-term profits.
Yes, the three stocks you just saw DOUBLED in value in two years...
But even that's not the absolutely critical trait I'm going to share with you just ahead. While you take a moment to consider what that elusive trait may be, here's something else these companies have in common.
All three were recommended in Motley Fool Hidden Gems, the service I'd like you to try for the next 30 days FREE. Here they are again, this time with the profits earned by my subscribers...
And these are just three of a dozen Hidden Gems recommendations that have doubled over the past three years. You'll see more just ahead, plus my top Hidden Gems performer.
That way, you'll have all the information you need to decide if Hidden Gems can help you make money. Once you're convinced that it can, I'll show you how you can try the complete service for a full 30 days on me.
But first, you need to know how my Hidden Gems are performing.
Of course, I'd never suggest that all my picks are winners. The chart you just saw reflects my winners and disappointments alike. Some Hidden Gems recommendations even lose money. But none is ever swept under the rug.
You see, I track and update every single Hidden Gems recommendation for you to see at all times.
You'll hear more about Hidden Gems and how you can put the complete service to work for you just ahead.
Or if you're ready to start your 30-day FREE trial, click here. Otherwise, read on as we blow the lid off our little mystery about the world's greatest investor and his audacious claim.
I think you'll laugh when you hear how they did it.
You see, the investor we're discussing today is a notorious straight shooter. Yet, when he was pressed to confirm his controversial "50% boast," he grew downright mysterious.
Enter a group of students from the University of Kansas. Rather than argue over who said what and when, these kids took matters into their own hands. They trekked across the heartland and demanded a private audience.
And when it was granted, they stood directly across the table from this imposing figure... and they asked:
Q: Is it true? Did the outsider from Nebraska really boast that he could earn 50% per year? And more important, does he stand by it today?
A: Yes. In fact, not only did this gentleman confirm what some believed he had first proclaimed back in 1999, he went one giant step further.
I imagine you've figured out that the investor we've been talking about is none other than Warren Buffett... the Oracle of Omaha... the world's greatest living investor.
I bet you're also piecing together his formula for earning you those 50% profits year-in and year-out. At least you have an inkling of that special class of common stocks he wishes he could buy... small-company stocks.
You guessed it: The legendary value hound who became the world's second richest man by gobbling up shares of American icons like Coca-Cola and GEICO would invest his hard-earned money in small-company stocks... if he could!
As you're about to see, Warren Buffett can't. But WE can... and the profits can change our lives forever. And to make it happen, all we have to do is stay true to that absolutely critical trait I mentioned earlier.
In fact, it's not only the one critical trait shared by all great stock investments...
It's the missing link between the HUGE profit potential of small caps and the wealth-building strategy of the world's greatest investor. Here it is simply: They must trade below their intrinsic values.
Take a moment to let that sink in... Because once you fuse the critical connection between small caps and value stocks (for instance, the companies you're accustomed to hearing about from The Motley Fool), the rewards can be out of this world.
At least I hope I do because this really is the breakthrough that could change the way you look at risk and reward forever.
You see, my years of work analyzing America's best companies convinced me that, if we can tolerate a bit more volatility, there might be an even more powerful path to building the wealth we want and deserve.
If we could manage to buy America's top businesses when they are undervalued and unloved on Wall Street... but also when they are small... we could consistently beat the market, by ever-greater margins. (As monumental a breakthrough as this is, I didn't discover it myself. Smart investors like Chuck Royce and David Nierenberg have been exploiting it and making their clients fortunes for years.)
But most investors don't have a clue. And that's why I call this special type of extremely profitable stocks Wall Street's Best-Kept Secret.
Wall Street's Best-Kept Secret
It's worth pausing briefly to summarize that remarkable graphic in plain English. If you'd invested $1,000 in Ibbotson's universe of large-cap stocks in 1927, you'd have about $2 million today. Not too shabby.
You read that right... $33 million. And no, that's not a typo or data trick. I created that chart using 70-odd years' worth of results straight from Ibbotson Associates, the kings of market data.
Now, is 70 years a long time? Sure, but that's the point. If you're patient, small cap value stocks are the best the market has to offer — across all types of market cycles — by a long shot.
It relates directly to that one condition to his "50% per year promise" we discussed earlier.
The world's greatest investor guarantees he can earn you 50% profits per year on one condition. And here it is...
I know, that sounds crazy. After all, the big money on Wall Street has all the advantages, right? In fact, that couldn't be further from the truth. Even for the man called the world's greatest investor.
In fact, a big player like Buffett has massive amounts of capital to put to work. It's simply not practical for him to take positions in small-cap stocks — no matter how undervalued or how much he loves the business.
The same goes for most professional money managers and mutual funds. With hundreds of millions or even billions to invest, most institutions can't buy high quality smaller stocks without 1) running up the price and 2) buying up a controlling share of the business.
And it may be the secret path to building the wealth of your dreams... faster than you ever thought possible. And believe it or not, you have yet another great advantage. You may not realize that big investment banks don't do business with well-capitalized small companies.
And that this is why their analysts don't cover them... and why their clients don't buy them. At least not at first.
I call this vicious circle the herd mentality on Wall Street. But it's not your problem.
It's actually a HUGE opportunity. You see, at Hidden Gems we are building our positions before Wall Street catches on... then once the herd does wake up, we just sit back and profit as the big money bids the stocks higher.
After all, consider how this precise tactic of buying great companies early, before Wall Street catches on, led thousands of investors to the most profitable investments of our lifetime. In each of the following examples, notice how the profits are multiplied exponentially if you can get in when they're small.
Are these extreme examples? Sure.
But just imagine if you could do half as well... or even one-third as well. Imagine how that would change your life... not to mention your peace of mind and your retirement plans.
It's simple mathematics. You'll never earn the astonishing returns you just saw if you're buying large, mature businesses. Most of their doubles and triples are frankly behind them. Not so with my Hidden Gems.
You're right to think that way. That's precisely what we're taught in finance and investment classes. And like I said, small caps aren't for everyone.
They tend to be more volatile over the short term, for one thing. And, yes, small companies can face more business risk than larger entrenched corporations, especially in recessions.
But that just means that you have to be selective — you simply can't run out and buy just any small-company stock. However, that DOESN'T mean small caps have to be high-risk speculations.
Investors who successfully invest in small caps are interested only in fundamentals and valuation not "story" and "potential".
Earlier, you heard how Warren Buffett confirmed the boast he made back in 1999. And how he actually went one amazing step further. Well, here's the final piece to the puzzle.
Not only does the world's top investor stand by his claim that he could earn 50% profits per year, he argues...
"It would perhaps even be easier to make that much money in today's environment because information is easier to access."
I couldn't agree more. I also echo Mr. Buffett's warning that "you have to turn over a lot of rocks to find those little anomalies," and that "you have to find the companies that are off the map — way off the map."
After all, you don't think Warren Buffett became the world's second-richest man by not knowing what he's talking about? Hardly. Even so, when he suggests, "no one will tell you about these businesses. You have to find them," I respectfully beg to differ.
Mr. Buffett apparently hadn't visited our Hidden Gems website yet. After all, that's exactly why I created Hidden Gems in the first place... to turn over the rocks for you... and to tell you about the market's best underfollowed stocks.
So far, my subscribers assure me that we're succeeding. Like one member who writes from Melrose Park, Illinois, exclaiming... "My investment in Hidden Gems has me at a '68-bagger' in relation to the cost to join!"
Now, I can't promise you 68 times your investment, but when you think back to the chart you saw earlier... the one that shows how Hidden Gems are far outperforming the S&P 500... you can agree we are on to something big.
Just ahead, you'll hear about two new valuable reports you can access when you agree to sample the complete service FREE for 30 days.
That's right, you can visit the member's only site, look over my entire stock scorecard, and read over all our back issues. You can even poke around our super-active Hidden Gems community discussion boards.
Ask a question… post a comment… or simply get your fellow investors' latest thoughts on our Hidden Gems investments. My entire Hidden Gems service is yours FREE… with no pressure or obligation to subscribe.
I should probably explain how I can afford to make this offer.
There's only one way. You see, I'm convinced that once you experience all the benefits of the Hidden Gems service, you'll want to become a member for years to come. It's that simple.
By now, you should have a pretty good idea whether my Hidden Gems approach... and the prospect of building your wealth with small-cap value stocks... is right for you.
As I said, this style of investing isn't for everyone. But if you're like me, the rewards are simply too great to pass up.
At the same time, you might be a little unsure of where to start. That's understandable. I think you'll like this solution. Accept my offer to sample Hidden Gems today... you'll find that your monthly newsletter issue, the full issue archives, and our super-active members-only website provide most everything you need to get started.
But I want make sure your transition to small-cap investing is even easier and more enjoyable. So, I've also prepared this special report to help get you started.
It's yours free the instant you start your FREE trial. And it's called, "10 Steps to Becoming a Master Small-Cap Investor." Now, in one quick afternoon read, you can learn how to...
And these are just a handful of the subjects covered in my guide to winning big with small caps. You can read it today or put it on your shelf for reference. But every investor who is serious about making money in small-cap stocks will consider this a must-have.
Let's take a moment to revisit what you get when you join at my risk today...
FREE Bonus Report No. 1:
10 Steps to Becoming a Master Small-Cap Investor
Shows you how to break down the financials... diversify like a pro... and safely scale into your small-cap positions. Whether you're an experienced investor or just starting out, this detailed guide to winning big with small-cap stocks is a must for your investing library.
Plus, This Free Special Report:
Simply agree to give Hidden Gems a try for 30 days without risk today, and you get all three reports free. Plus, you also get:
The Hidden Gems private newsletter, every single month — chockfull of the best coverage on small-cap stocks the industry has to offer.
Hidden Gems Weekly rushed to your inbox every week. Now, you will always be up-to date should news develop affecting any of my Hidden Gems picks.
Your personal password to the private Hidden Gems website, where you'll find full archives of every Hidden Gems issue. Plus a running portfolio that's kept up-to-date with my newest recommendations.
Unlimited access to the members only Hidden Gems community, where you can discuss the latest issue... the latest recommendation... and all current and past Hidden Gems picks.
And just as you've come to expect from The Motley Fool, you also get full access to my real-time Scorecard, listing every current and past Hidden Gems recommendation. Plus, access to my staff of analysts online... and to me.
Even after all we've discussed today, you still might not know for certain that Hidden Gems is just right for you... no matter how reasonable the price or exclusive the deal.
The last thing I would want is for you to feel you'd made a mistake. That's why… even if you decide to forgo your FREE trial and join Hidden Gems today… I want you to take a full 30 days to decide if you want to stay on.
That way, we can both rest easy. If you are not thrilled with your decision to join Hidden Gems, you simply cancel within the first 30 days.
You will get back every penny. And whatever you decide, my Special Report "Rising Stars," is yours to keep forever as are all the other valuable bonus reports we've discussed today.
And I even want you to have the valuable bonus report, The Motley Fool's Oil, Gas, Precious Metals and Timber Report: 8 STOCKS to tap the global resources boom!.
Thousands will gladly pay $59 for this product over the next few months. I want you to have it today as my gift.
I would never betray Mr. Levitt's trust or yours by making promises I can't keep. The truth is, I can't guarantee you will make a fortune with small caps. And I won't promise you will never have to take a loss.
But the surest way I know to build immutable wealth with stocks is to buy value where Wall Street isn't looking — then wait for the market to come to you.
And my research and experience confirms the powerful secret Warren Buffett let slip back in 1999 — if you can get in early, when the companies are small, your rewards can be multiplied.
I think we've demonstrated that clearly today.
The only question is whether you're ready to get started. If you think so, please take me up on my risk-free offer and join me and my team at Hidden Gems today.
Surely, there will never be an easier way or a better time to explore the profitable world of small-cap investing than by taking advantage of this special offer. And, remember, the risk is all mine. I hope to hear from you today.
Simply click on the big "Start Now" button below to start your Hidden Gems membership.
To Many Years of Great Investing,
Advisor, Motley Fool Hidden Gems
P.S. Again, I can't promise you 50% per year profits. Only Warren Buffett can do that. But even if your returns are only half as great — just imagine the effect that would have on your wealth. Don't let another day go by. Join me at Hidden Gems right now.
P.P.S. I can only guarantee you'll receive the new report, The Motley Fool's Oil, Gas, Precious Metals and Timber Report: 8 STOCKS to tap the global resources boom!, if you respond in the next 10 days. And remember, this is a NO-RISK proposition for you. If you are not thrilled with Hidden Gems, you can cancel for a full refund anytime within the first 30 days. Simply click here to join today.
The Motley Fool stands behind our products and our guarantee. If for any reason you are not 100% satisfied with Hidden Gems, simply notify us within the first 30 days and you won't pay a cent. Even after your first 30 days, if you change your mind, you will receive a pro-rated refund for the remainder of your subscription term.
Yes, I want to try Motley Fool Hidden Gems for 30 days FREE. If I love it, I can subscribe for the low rate of $199 per year. There's no risk and no obligation! I'll get:
Yes, I want to profit from small-cap Hidden Gems! Start my subscription at the low rate of $199 per year — and send me "The Motley Fool's Oil, Gas, Precious Metals and Timber Report: 8 STOCKS to tap the global resources boom!" FREE! My satisfaction is guaranteed! Plus, I'll get: