The Un-Secret to My Success

If I'm having a bad day, or if I'm maybe just feeling kind of blah, I've found the perfect antidote. All I have to do to guarantee a smile on my face is pull up the Wealth Advisory portfolio. It is a thing of beauty...

We have 37 stocks in there right now. And I'll admit that's a few too many stocks. Jason and I will be selling a few in the July issue (which comes out next week). But it's not going to be easy because each of those 37 stocks is up an average of 71%.   

I don't worry much about what "the competition" is doing (why should I?). But I bet you there aren't many stock-pickers out there that can put up average gains of 71%...

Thank you, thank you, I'll be here all week...

Seriously, though — the strong gains we have in the Wealth Advisory portfolio aren't an accident. On the contrary, it's all part of a simple yet powerful plan. I call it the Un-Secret to My Success...

Because while I've developed my techniques over my 20-year career in this business, they aren't really a secret. I'm happy to share them with you.

We talk a lot about great companies at The Wealth Advisory. Companies with vision, that execute a business plan flawlessly, that give their customers everything they want and also what they didn't even know they wanted...

The best investment gains will come from companies that have a truly unique product or service... a company that is the only place you can get what you want. 

Like, I've got a thing about Starbucks coffee when I'm on a road trip. If I need coffee on the road, I'm not hitting McDonald's or the Exxon or Dunkin' Donuts. When I need 30 ounces of iced-java goodness, Starbucks is the only answer. Call me a snob, that's fine. I know what I want, and I hold out for it. (Full disclosure: We sold Starbucks last year for 152%.)

The Un-Secret

Back in 2014, the whole "cloud" thing was really picking up some momentum. There were a lot of software companies — IBM, Microsoft, etc. — that would get you to the cloud. But I found an even better "no-brainer" place to invest for the growth of the cloud...

To be on the internet, er, I mean CLOUD, you have to go through a data center. Data centers are literally the on-ramp to the information superhighway. I ran the numbers of the data center stocks (there's only a handful), found the best, and told The Wealth Advisory subscribers to buy CoreSite (NYSE: COR) for $33 a share. It's $120 now, and we are getting paid nearly $5 a year in dividends (15% yield on cost). 

I started following Visa three years ago because one of my Real Income Trader subscribers wanted to trade covered calls on it. The stock was around $70–$75 at the time. The chart was amazing (still is), and Visa beats earnings consistently. Earnings growth is good for a mega-cap — mid-teens. Margins are phenomenal at 65%.

But I got hung up on the P/E ratios. The trailing number was over 30, and the forward multiple was around 27 or 28. I concluded it was a bit pricey. Sheesh...

Visa is now at $177 a share. And can you think of a more robust business model? Take a small chunk of every financial transaction. It's like the dang mafia...

New Sector, New Leaders, New Wealth

It's not every day that a totally new sector pops up. So The Wealth Advisory has a special fondness for the cannabis sector. That new sector means new leaders... and new wealth for our subscribers.

Now, I'll tell you straight: We just made our first cannabis investment about 18 months ago. Because we found a really nice dividend stock that was supplying the cannabis sector with something nobody else was. It is a truly unique company that pays a nice little dividend...

And as it happens, this little gem has delivered the biggest percentage gain that The Wealth Advisory has ever had: 548% in just 18 months. Yeah, our readers are pretty happy with that.  

I want to let you know that I will be revealing our third cannabis investment tomorrow. And you guessed it: It's another company that's bringing a unique and indispensable product to the market. 

You'll get an email from me about it tomorrow. Take a couple minutes and check it out.

Until next time,

Briton Ryle

@BritonRyle on Twitter

A 21-year veteran of the newsletter business, Briton Ryle is the editor of The Wealth Advisory income stock newsletter, with a focus on top-quality dividend growth stocks and REITs. Briton also manages the Real Income Trader advisory service, where his readers take regular cash payouts using a low-risk covered call option strategy. He also contributes a weekly column to the Wealth Daily e-letter. To learn more about Briton, click here.