Banking unreasonably good returns - 20% or more per year - requires an unconventional approach to investing and a global perspective.
As Americans, we sit smack dab in the middle of one of the biggest, richest, most diversified, and most developed markets on Earth. A lot of times, U.S. investors don't see the need to look elsewhere for opportunities, even if they offer outrageous profit potential.
Sure, we hear a lot about the rise of China, for instance, or India, and there's plenty of money to be made there. But for truly phenomenal profit potential, I'm looking even further afield.
I'm looking at Africa. And as a guy who loves to rake in money, I like what I see.
The headlines don't inspire confidence: deadly floods in East Africa, the ultra-violent militants of al-Shabaab, Cape Town's potentially fatal water crisis. The media sensationalizes the place as rife with violent conflicts, corrupt governments, and starvation.
All of this only reminds me of the words of legendary investor John Templeton. He advised, "People are always asking me where the outlook is good, but that's the wrong question. The right question is: Where is the outlook most miserable?"
He was touting the benefits of not following the crowd, and I think that applies here. Fortunes are born in troubled markets, in no small part from folks' burning desire to not be so troubled anymore. And huge parts of Africa currently qualify as uncertain, if not outright distressed.
That's why some of the biggest investment funds in the world are quickly pouring money into these uncertain and distressed - and undervalued - areas...
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of Peak Yield Investor.