Top billionaire investor's US$120 billion dollar strategy for volatile markets…
By: Greg Maxwell
Is it time to get out of growth stocks?
If you're watching the volatile markets lately and asking this question… you're not alone.
Many in the financial media are certainly saying so…
"Switch to value stocks to prepare for inflation"
– Financial Times"Four reasons why value stocks are poised to outperform growth in 2022"
– MarketWatch.com"Tech investors are suffering the second stocks rout of the COVID pandemic—and Wall Street thinks it could get far worse"
– Fortune
And the media aren't the only ones…
Many "growth" minded stock investors may be thinking the same…
Just ask those who just watched US$230 billion in Facebook – now called Meta Platforms – value disappear overnight…
Among his many achievements, Mark Zuckerburg now lays claim to a historic share price collapse…
The largest single stock slide in history.
Literally in a matter of hours Meta lost US$200 billion of market capitalisation…
The biggest loss of wealth in a single stock… ever.
That's the total value of the market cap of the smallest 475 companies on the S&P 500.
Or, the same as two Goldman Sachs being shut down…
Or, three General Motors being boarded up overnight.
Meanwhile, notorious "value" investor Warren Buffett just made US$120 billion buying what is presumably the number one "growth" stock of all time… Apple.
And in a cruel twist of fate – Buffett's Berkshire Hathaway has now surged past Meta Platforms in market cap.
So, it just goes to show – A proven investment strategy can make all the difference…
And it also begs the question… Do investors follow the financial media and drop growth stocks in favour of value?
Or do they take an entirely different approach?
At Motley Fool Share Advisor, we DON'T define ourselves as growth investors or value investors.
In fact, we won't be constrained by labels…
Just like Warren Buffett… we fish where the fish are.
We've recommended high-yielding, slower growing businesses.
We've recommended loss-making companies with big dreams and infinite profit to earnings ratios.
And lots in between.
Not because we're following the crowd… or even trying to avoid the crowd.
We just recommended companies, based on their current prices and our assessment of their futures.
Where some investors are running, as a mob, from one side of the ship to the other as fashions and fads come and go, we've stuck to our knitting.
If there truly is a move from growth to value, so be it.
We're long-term investors.
We harness the gains from years or decades of compounding, rather than waste our time trying to work out what the cool kids are doing.
And just like Warren Buffett, the rewards we're seeking will come from the value creation of the companies themselves, aided by buying at good prices.
Just like when we recommended…
Netflix in July 2012, at just $8.42 a share. That's now shot up an incredible 46% a year since.
Corporate Travel Management in August 2012. That company has now grown 17% a year since.
Apple in December 2011 at just $12.39 a share. They're now trading at a gain of 26% per annum.
While not all our recommendations do as well (and we certainly haven't made US$120 billion from Apple) our full scorecard of recommendations is there for all to see inside our service.
While we're proud of our track record, we're motivated by being able to help everyday Aussie investors take control of their own financial future.
And at a time of peak market uncertainty… when the decisions investors make now could have a dramatic impact on their returns in just a few years…
We think investors looking for more value oriented stocks certainly don't have far to look – with some great long-term prospects on the ASX right now.
We've even done something to help Aussie's capitalise on the same proven investment strategy as Warren Buffett…
Our analysts at Share Advisor have sharpened their pencils and uncovered four stocks that we think can be snapped at great prices… have good yields… and most importantly represent great long term perspective right now…
And you'll find these four stocks in an exclusive research report… "Top Value Stocks for 2023".
Whether you're just getting started in the stock market or you're an old hand, here are four high value "bedrock" companies we think need to be on every investor's radar right now.
So, if you're looking to take control of your financial future, then we'd recommend you check out our research inside this report.
However, there's just one catch:
Details of these four companies are only available to members of our Motley Fool Share Advisor service.
Now why should you listen to the experts at Share Advisor?
Well, Motley Fool Share Advisor has been helping investors find great stocks since 2011!
And you don't hang around in this business for over a decade unless you have a track record of uncovering stocks like those I just mentioned for your members.
What's more, we're so confident you'll love the in-depth research inside Share Advisor, your subscription is fully protected by our 30 day no quibble guarantee.
That means if you're not happy for any reason, contact us within 30 days – you'll get a prompt subscription fee refund – no questions asked.
Call it our 'thank you' for giving Share Advisor a fair try.
Remember: It's at times of peak uncertainty that investors could make the biggest impact on their financial future…
So I urge you to take advantage of this meticulous and timely investment research today.
Enter your email below to discover how you can get your hands on this exclusive report…
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Returns as of 21 December 2024. Motley Fool contributor Greg Maxwell has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Meta Platforms, Inc., and Netflix. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple, Corporate Travel Management Limited, Meta Platforms, Inc., and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. For more information about The Motley Fool see our Financial Services Guide. All returns cited are hypothetical and based on the percentage change between the stock price at the time of recommendation and the current or sell price (if the position has been closed) at the time of publication. Brokerage, taxes and any other associated costs are not taken into account. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. Performance figures are not intended to be a forecast and The Motley Fool does not guarantee the performance of, or returns on any investment. Any money back guarantee is strictly limited to the subscription price paid for the product.
