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Sit-On-Your-Ass Investing

Written by Charles Mizrahi
Posted May 23, 2017

Investing is not hard.

No matter what the media, Wall Street, or so-called professionals say, investing is simple.

It comes down to nothing more than buying something today in the hopes that it will be worth more at a later date.

That’s it.

You don’t need to stare at a computer screen all day or read every SEC filing in order to make a great return on your money.

Charlie Munger, Warren Buffett’s partner, calls it “sit-on-your-ass investing.”

In a nutshell, if you buy a few great companies, you don’t have to make another decision.

All you need to do is sit on your ass and watch the company and your net worth grow.

I have seen sit-on-your-ass investors earn amazing returns... yet they never read the company’s annual report or follow how it is doing.

Once they made the decision to buy, they went on enjoying their lives, continued to reinvest the dividends, and saw a small investment turn into a huge one.

Firsthand View

I first came across sit-on-your-ass investing at a very young age.

One of my uncles was a pharmaceutical salesman for a subsidiary of Johnson & Johnson (JNJ).

Uncle George was a man who enjoyed life to the fullest.

Back in the 1960s, he worked from his home office, was home for his two daughters, spent time with his wife, and rode a motorcycle.

He was also a very good salesman.

In the 1960s, he began receiving his bonuses in JNJ stock.

He didn’t know much about the stock market or what the GDP rate was for the first quarter. All he knew was that JNJ was a great company.

In the early 1970s, he left his company and went to work as an electronics salesman for another company... but didn’t sell one share of JNJ stock.

Back in 1972, the farthest my data goes back, JNJ shares, adjusted for four splits and more than 35 years' worth of dividends, were trading for less than $1.

I never knew how many shares he had, but it is safe to say that he had at least $20,000 of JNJ stock back in 1972.

As Uncle George grew older, he got sick and needed full-time care. He eventually had to be placed in an assisted living facility.

Each month, his family sold a few shares of JNJ stock to pay for his care.

Right up until his last day, he was cared for in comfort, had the best medical care, and passed away with those who loved him by his side.

When he passed in 2009, each share of JNJ was worth more than $50 share... a 50x return on his money.

Even though he never read financial reports or the Wall Street Journal, he was able to amass more than $1 million, which took care of him when he could no longer take care of himself.

Lesson Learned

I saw close up how sit-on-your-ass investing works, and it always amazed me that most people never follow this simple idea.

Instead of finding a few great companies and holding them, they continually try to hit it big in option trading or by buying penny stocks. Unfortunately, they usually end up losing money and hoping the next trade will be a winner.

In all my years on Wall Street, I haven’t met one investor who made as much money with as little effort as sit-on-your-ass investors.

Each month I roll up my sleeves and find great companies with sit-on-your-ass potential.

One such company was a military ship builder that is up close to 400%, and another is a medical device company that is up more than 350%... and both are in our portfolio.

I recently recommended a company that is probably one of the best sit-on-your-ass investments I’ve seen in a long time.

It is a technology provider to small businesses, and this business is “printing money.”

Once a customer signs up, it continues to pay this company year after year.

In fact, the company retains an astonishing 90% of its customers who are with it for more than three years!

Wall Street is missing the boat on this one and is offering it for a very attractive price, which I don’t think will be the case for much longer.

You can get all the info on this sit-on-your-ass investment — and more like it — right here.

All my best,

Charles Mizrahi signature

Charles Mizrahi

Twitter: @IWPeditor

Charles cut his chops on the trading floor of the New York Futures Exchange before moving on to become a wildly successful money manager on Wall Street.

And with more than 35 years of recommending stocks under his belt, Charles has knocked the cover off the ball, compiling an amazing record of success and posting gain after gain for his loyal readers. He is the editor of Park Avenue Investment Club and the Insider Alert newsletters.

Charles is also the author of the highly acclaimed book, Getting Started in Value Investing.

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