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Just when I suspect one of America's greatest investors might be digging through my mail... I become convinced he's doing it.
Howard Marks of Oaktree Capital lambasted index investing in his latest investor letter. In this, we're 1,000% agreed: Indexing is a silly, dangerous waste of time (unless you want sub-3% returns... minus fees).
An eagle eye for warding off popular con games like indexing is just one of the reasons Marks is worth about $1.9 billion. Clearly, he knows a thing or two about grabbing unreasonably high returns.
He warned his readers about another return-sapping scheme out there on Wall Street.
It's one I've compared to buying a "ticket on the Hindenburg" and thinking you signed up for a walking tour of the Chicago Botanic Garden.
This is worth a second look - because Marks is actually pointing us toward a much, much more profitable way to invest.
It's an approach I've mastered and profited immensely with for years - and so can you...
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.
I am learning and I like your explanation and theory.