This Is How Professional Investors Run Rings Around You
I can't tell you how many times my friends or family members come up to me, frustrated, asking the same question:
"This market is blowing up, but why am I only making these single-digit returns?"
It's a question as old as investing itself, and it can be boiled down to an even simpler question: How do the rich just keep getting richer?
Every year, it seems, regardless of what the market does, one class of investors just keeps raking in more net worth than any other, while everyone else is left to watch, wonder, and envy.
If you're among those who are wondering, I've got an answer for you right here.
The following is a transcription of a voicemail I got just a few weeks ago.
Hey Alex, just following up with you about the matter we discussed last week. I've got the details of the deal and would like to talk it over ASAP. Right now [censored] is raising [censored] to finance the commercial rollout for later this summer. Stock's trading at a dollar even, but this financing's pricing shares at $0.50, with a $0.75 warrant good for 18 months. Bear in mind that it's only going to be open for another 10 days, so let's get on a call today if possible.
Doesn't sound like much, but based on my initial estimates, I figure that phone call will make me, personally, upwards of $50,000 in the next four months.
To most people, that sounds like a dream come true, right? Like winning a mini-lottery.
Well, let me tell you right now, it's nothing like that.
This Is Why I Love Voicemail
I get these calls at least a couple times a month.
Calls from wealthy independent investors, venture capitalists, and company executives all looking for the same thing — investors to propel their companies to the next level.
This voicemail I got about two months ago:
Hi Alex, this is [censored]. We spoke last week on the topic of [censored]. Clinical trials are going great. We're about to head into the next stage of trials and have now nailed down the conditions of the financing. I know you were interested in being kept up to date, so here are the stats: We're offering $0.37 shares with $0.45 warrants, good for two years. We're trading pretty actively on the open market. Price at last check was $0.95 but we're hoping to be up past a dollar before this thing closes. Let's talk.
That particular call came from a young pharmaceutical company that's perfecting a method for using computer software to analyze blood samples several hundred times faster and more accurately than current methods.
A year from now, its technology, which is patented, will likely be in place at every major blood lab across the country.
Today, the company is trading for just a dollar, but with this private access, investors who know the right people could get shares for less than 40% of what they cost on the open market.
Here's another one from last November:
Hey Alex, just circling back on the matter of [censored]. The financing right now is $0.30 a share and we're expecting to close it in the next week. Stock should IPO at around a dollar and who knows where it will go from there. Once those government contracts kick in next year, we could be looking at a whole new order of magnitude here.
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The Key to Winning... Is to Play a Different Game
Since I got that message, the stock did IPO at a dollar, and it went on to hit two dollars.
At $0.30 a share, investors were looking at almost 600% gains in just a few months — on a company that today is on its way to becoming a globally recognized brand.
Who knows where it could be in a year or two... $10? $20? Anything's possible.
All this sounds a bit unfair, right? While the retail investing world is fighting for shares on the open market, driving up prices only to sit and wait and hope to squeeze out a profit, an entire segment of investors is buying for way under market price and then just sitting back and picking an exit point.
It's like shooting fish in barrel, really. You simply can't lose. The only trick is to be invited to play in the first place.
And that trick, ladies and gentleman, is where the difference between you and the guys who make millions every year investing lies.
But what if you had access to some of that same information?
What if you, too, had the ability to talk to the heads of some of today's brightest, most prospective, but least-known companies?
Besides the ability to throw huge sums of money around, what would separate the guys who make the cover of Fortune magazine from you?
The answer is nothing.
Sure, you might not be able to throw $50,000 or $100,000 at an investment on a whim, but with returns like the kind I'm talking about — the kind that you'd get by following up on any of the voicemails I transcribed for you a moment ago — you don't need anywhere near that much to get the ball rolling.
Even as little as just a few thousand dollars could turn into a small fortune...
The first thing you need to get started is a foot in the door.
Luckily, I can give you that right here and right now. Whether you make it or not is entirely up to you.
Life-changing opportunities don't always present themselves this clearly.
Fortune favors the bold,
Coming to us from an already impressive career as an independent trader and private investor, Alex's specialty is in the often misunderstood but highly profitable development-stage microcap sector. Focusing on young, aggressive, innovative biotech and technology firms from the U.S. and Canada, Alex has built a track record most Wall Street hedge funders would envy. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.
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