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Dear friend,
I hope you don't mind my calling you "friend." I do it because I think you're the same kind of investor I am. And I think it could be profitable for us to get to know each other better.
My name is David Fried. My investment strategy has consistently beaten the market, from the bull market of the 1990s through the ensuing bear market and its subsequent recovery. Whether the market is bullish, bearish or flat, solid or wobbly, my portfolios are trouncing their benchmarks.
Let me warn you up front: my investment advisory service isn't for speculators, or someone who's in and out of the market every time the wind shifts. If you expect me to guarantee you'll make a killing every month, forget it.
But I am proud of accomplishments like these*:
As of February 28, 2011, all five of my model portfolios have substantially beaten the market since inception. For instance:
- My 20-Stock Buyback Index, launched in March 1997, gained +511.25% vs. a paltry 65.49% for its benchmark, the S&P 500, over that time (3/97 through 2/11).
- My Health & Bio-Tech Portfolio, launched in December 2001, is up +303.63% vs. a paltry gain of 14.32% in its benchmark, the S&P 500 over that time (12/01 through 2/11).
This is the kind of performance my subscribers are enjoying:
- Exxon Mobil (XOM), bought in March 2002 and sold in September 2010 for a gain of 45.78%.
- Limited Brands (LTD), bought in January 2008 and sold in May 2010 for a gain of 73.68%.
- Lexmark International (LXK), bought in July 2009 and sold in January 2010 for a gain of 59.88%.
- Walter Energy (WLT), bought in October 2009 and sold in January 2010 for a gain of 45.67%.
- Merck & Co. (MRK), bought in March 2009 and sold that December for a gain of 59.77%.
- Joy Global (JOYG), bought in April 2009 and sold that October for a gain of 112.59%.
- Valeant Pharmaceutical (VRX), bought in April 2009 and sold that October for a gain of 51.21%.
- Ing Group (ING), bought in February 2009 and sold that August for a gain of 66.81%.
- Synaptics Inc. (SYNA), bought in January 2009 and sold 7 months later for a gain of 106%.
- Polycom Inc. (PLCM), bought in January 2009 and sold 7 months later for a gain of 47.77%.
- Seagate Technology (STX), bought in January 2009 and sold 6 months later for a gain of 46%.
- Tractor Supply Co. (TSCO), bought in January 2009 and sold 4 months later for a gain of 47%.
- Methanex (MEOH), bought in July 2006 and sold in July 2008 for a gain of 26%.
- Accenture (ACN), bought in April 2008 and sold in July 2008 for a gain of 14%.
- Avon Products (AVP), bought in December 2005 and sold in November 2007 for a gain of 39%
- DST Systems (DST), bought in December 2004 and sold in November 2007 for a gain of 65%
- Merck (MRK), bought in December 2004 and sold in June 2007 for a gain of 73%
- Berkshire Hathaway (BRK/B), bought in July 1998 and sold in June 2007 for a gain of 51%.
- Rex Stores (RSC), bought in July 2001 and sold in June 2007 for a gain of 48%.
- Big Lots (BIG), bought in November 2006 and sold in June 2007 for a gain of 42%.
- Intuit (INTU), bought in December 2004 and sold in February 2007 for a gain of 42%.
- Synopsys Inc. (SNPS), bought in June 2005 and sold February 2007 for a gain of 51%.
- Yankee Candle (YCC), bought in December 2005 and sold 11 months later for a 35% gain.
- Community Health Systems (CYH), bought in December 2004 and sold a year later for a gain of 42%.
- Papa Johns Int’l (PZZA), bought in June 2004 and sold in December 2005 for a gain of 102%.
- SkyWest (SKYW), bought in October 2002 and sold in November 2005 for a gain of 96%.
- Pepsi (PAS), bought in September 2003 and sold in June 2005 for a gain of 70%.
- Altria (MO), bought in April 1995 and sold in December 2004 for a gain of 338%.
- New Plan Realty (NXL), bought in April 2000 and sold in December 2004 for a gain of 93%.
- Stamps.com (STMP), bought in June 2002 and sold in December 2004 for a gain of 74%.
- Dial Corp. (DL), bought in September 2003 and sold in December 2003 for a three-month gain of 39%.
- Union Bancal (UB), bought in August 2000 and sold in December 2003 for a long-term gain of 130%.
These are just a few in the long, long line of successful trades. No wonder all five of my model portfolios are soundly beating their market benchmarks. As of February 28, 2011:
| Portfolio |
Inception
Date |
Since
Inception |
Since
Inception |
Outperformance |
| 5-Stock
Buyback Dogs: |
Mar-97 |
196.25% |
S&P 500 65.49% |
130.76% |
| Buyback
Income Index: |
Mar-97 |
230.45% |
S&P 500 65.49% |
164.96% |
| 20-Stock
Buyback Index: |
Mar-97 |
511.25% |
S&P 500 65.49% |
445.76% |
| Buyback
High-Tech: |
Jan-00 |
70.81% |
NASDAQ -32.07% |
102.88% |
| Buyback
Health & Bio-tech: |
Dec-01 |
303.63% |
S&P 500 14.32% |
289.31% |
Maybe that's why I'm a favorite
of CBS Marketwatch, Hulbert Financial Digest, CNBC and
Bloomberg, to name a few.
Legal "inside" trading
The secret? Legal "inside" trading.
When a company buys back its own shares in the open market, the price of that stock usually heads up. Not always the next day, mind you, but soon.
Why? A company usually buys back its own shares when senior executives, the ultimate insiders, determine that the market is selling them much too cheaply. After the buyback, the company is still the same company. But there are fewer outstanding shares, so each of them is worth more. Earnings per share (EPS) rises too, often dramatically.
Now anybody could just list companies that announce buybacks. I have been around long enough to know that not all buybacks are created equal. For instance:
- Some companies announce buybacks but don't follow through.
- Some that announce buybacks have better prospects than others.
- Some buybacks aren't large enough to affect the value of the stock.
At The Buyback Letter, we separate the contenders from the pretenders. We take companies that announce buybacks and analyze them more rigorously than they've ever been analyzed before.
Then we make flat-out recommendations on what to do. No gobbledygook, no doubletalk. "Buy" means "buy," "sell" means "sell" and "hold" means "hold." You get these recommendations instantly by e-mail, while the profit opportunity is still at its peak.
Our unique newsletter costs
less than you could make in one smart buyback trade.
For just $195 per year, or $59
per quarter, you can get our one-of-a-kind, unbiased newsletter
with one-of-a-kind timely information that you can put to
profitable use immediately.
Don't take my word for it. See
for yourself with a FREE 30-day trial.
You can try us out FREE for
a full 30 days before deciding whether it's for you. If it isn't,
just let us know and you won't be charged. Start NOW.
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trial.
Sincerely,
David Fried, Editor
The Buyback Letter
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