073: How to identify the most compelling investments on the planet

[Editor’s note: We have made this content available as an audio and video podcast, but I encourage you to watch the video with the slides.]

In the video I mention a preview issue of our 4th Pillar Investment Service.
Click here to download it.

For most of the past week, we’ve been spending a lot of time talking about trading overvalued paper currency for high quality, undervalued businesses.

Right now, this is an absolute no-brainer to consider.

If you’re holding US dollars, it’s critical to understand that the President of the United States, as well as key members of the Federal Reserve, ALL want the US dollar to get weaker.

This means you have an opportunity right now to trade overvalued US dollars, which will likely get weaker, for high quality, undervalued businesses, which will likely get stronger.

This is easier said than done, of course.

Problem #1 is finding a great business.

Problem #2 is making sure that you don’t pay out the nose for it.

Netflix, for example, may be a very nice business with a lot of growth potential… and even more investor hype.

But if you’re going to buy shares, be prepared to pay dearly for them.

It will take several decades for Netflix to generate enough cashflow to recoup your investment.

Successful investors never overpay.

Instead, they patiently seek out great businesses whose shares they can acquire for bargain, discount prices.

This is not rocket science. Successful, rational investing is a skill, and one that can be learned.

Last week I promised to explain how my team finds and analyzes these types of deals to ensure that we can generate strong returns while taking minimal risk.

I ended up recording a full presentation about it.

Even if you’re already an experienced investor, I’d encourage you to watch this presentation, or listen to the accompanying audio.

The presentation explains, for example, why conventional valuation metrics are deeply flawed.

Most people are probably familiar with the famous “P/E” ratio.

I’ll show you why P/E ratios are worthless… and teach you about a FAR better metric to look at… one that few people have ever heard about.

Once you understand it, you’ll never look at investments the same way ever again.

In the video I mention a preview issue of our 4th Pillar Investment Service.
Click here to download it.

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