How would you like the opportunity to go back in time and
invest with Warren Buffet when he was first started out?
When he could still turn your $10,000 investment into a $197,000,000 fortune. This could be your second chance.
Warren Buffett now manages so much money, he’s stuck investing in huge companies whose best growth days are behind Tthem. His returns over the last decade have really suffered as a result. He’s barely managed to beat the S&P 500 over the past decade.
Not wanting to settle for average returns, the Value Investors Association went on a quest to find the next Warren Buffett, if such a thing existed. What we found will likely surprise you
The Next Warren Buffett?
The Value Investors Association doesn’t take our mission lightly. We analyzed hundreds of portfolio managers and investment newsletters looking for the next great value stock investor.
It took a herculean amount of money and time to complete our research.
Overall, as expected, we were disappointed with our findings. Less than 1% of the investment funds and newsletters we looked at merited further consideration in their ability to consistently outperform their benchmarks over time when taking costs and fees into account.
But then we got lucky.
The Value Investor That’s Quietly
Crushing the Returns of the S&P 500
The Worthington Stock Letters highlighted stocks have outperformed the S&P 500 by an average of over 5% annually over the last decade.
While an extra 5% a year might not seem like much, it adds up very quickly. It’s the difference between an average retirement and a spectacular retirement.
Let’s start with a couple examples depending on your age.
You’re 30, have $10,000 to invest and add $5,000 a year. An additional 5% a year would compound and add an extra $4 million dollars into your retirement account by the time you retired at age 65 compared to historical market averages.
If you lived off the yearly profits and left the principal alone, you’d have an annual income of over $900,000 a year in retirement. And you’d still have over $6 million sitting there, for whatever you wanted to use it for.
Personally, I’d retire much sooner, live off my investment income and spend the rest of my life doing what I loved.
If you’re 40, have $20,000 to invest and add $5,000 a year, you’d retire with an extra $1 million dollars in your retirement account from the additional 5% returns by the time you retired at age 65. If you paid yourself in average yearly profits and left the principal alone, you’d have an annual income of over $250,000 a year to live off in retirement.
If you’re 50, have $50,000 to invest and add $5,000 a year, you’d have almost an extra $300,000 by the time you retired at age 65. While not as impressive as starting earlier, you’d still be able to pay yourself over $95,000 a year without touching your principle. That’s a lot more than most people need to live off in retirement.
What would you do with all that extra money?
-Buy the vacation home of your dreams.
-Pay for your children’s college or help them start a business
-Be able to make a significant impact with your favorite charity
*Don’t worry about starting too late or if you don’t have that much money saved up. Most people don’t need $95,000 or more a year to live off in retirement, especially when taking social security into account…but the longer you wait the further you fall behind.
How to Get Wealthy Investing in Value Stocks – The Worthington Triple Play
Michael Worthington didn’t become successful by happenstance. He distilled the teachings of value investing legends Shelby Davis and Warren Buffett among others, into a simple set of investing laws that could not be broken.
These seven laws became the foundation for the Worthington Stock Charter which has enabled the Worthington Stock Letter to comfortably beat the stock market.
“When I combined what I learned from investing legends such as Graham, Buffett, Templeton and Lynch with my proprietary ratings, things really took off. The returns since then have been phenomenal.” – Michael Worthington
Here’s what we learned about the approach Michael Worthington uses to gain an edge on the market.
1) “If you discover a low P/E stock with the potential for long-term earnings improvement, you’ve found yourself a gold mine.”- Michael Worthington
Shelby Davis was one of the greatest investors of all-time. Davis turned $50,000 of his wife’s money into $900 million over 47 years.
Shelby Davis attributed his success to what he referred to as the “Davis Double Play”. The Davis Double Play consists of investing in low-P/E stocks that don’t reflect their true earnings potential. As the company increases its earnings, investors bid up the P/E multiple, ensuring enormous gains for the stock price.
Essentially Davis focused on low P/E stocks that didn’t reflect the true future earnings potential of the company. It’s a simple formula to follow in theory, but the Davis Double Play is quite difficult to successfully implement in practice. If you don’t do it right, you end up in a lot of value traps with your capital tied up in under-performing assets.
What many people didn’t realize was that Shelby Davis was an acquaintance of Warren Buffett’s father. The approach of the two investors was uncanny. Warren Buffett was indeed paying attention.. and so was Michael Worthington.
2) “You can get away with investing in companies with high levels of debt in the short-term during economic expansion. In the long-term, investing in those types of companies will obliterate your portfolio.” Michael Worthington
Students of the markets are familiar with Warren Buffett’s recommendation to only invest in companies with a clear competitive advantage in the market. This competitive advantage (or moat) allows the company to sell its products at a higher price and provides a barrier to entry from competitors, thereby protecting profits. The wider and deeper the moat around the castle (business), the harder it is for competing companies to penetrate the market.
What the majority of investors don’t pay attention to is the ‘Buffett Inflation Moat’ as Michael Worthington likes to call it.
Warren Buffett illustrates this perfectly with the example of his purchase of See’s Candy. In 1972 See’s Candies was earning $2 million in revenue on $8 million in net tangible assets. He compared the performance of See’s Candy to a company earning the same $2 million but requiring $18 million in net tangible assets.
Both companies generate the same earnings and have similar cash flows which causes investors to value them the same. But what happens over time when inflation doubles the price of goods?
See’s Candies will require an additional $8 million in net tangible assets to earn an additional $2 million in sales. The second company needs an additional $18 million in net tangible assets to generate the same additional $2 million in sales. As inflation rises, the second company must invest more than twice the money for net tangible assets which means it will earn lower rates of return and have less money to return to shareholders.
This helps illustrate why using only price-to-earnings and earnings per share can lead an investor to lose over time.
3) If you can catch the “meat of a stock move” and repeat the process year over year, you’ll never want for money due to the power of compounding returns.” – Michael Worthington“
When Michael Worthington presents a stock, he’s pricing in an expected 20- 25% upside return within a 12-month period. Sure, he’ll get plenty of 100% gains, but he’s not swinging for home runs. He’s more concerned about eliminating big losses. Consistent returns and eliminating big losses are two of the biggest keys to beating the market while being able to sleep well at night.
The easiest way to make big money in the stock market is to buy a stock when you have highest probability of catching the “meat” of a stock price move. The meat of the move is the sweet spot where you catch the majority of a stocks gain in a short period of time, with the least amount of risk.”- Michael Worthington
Financial models play a part in identifying the right stocks but they’re limited in their usefulness. It’s the Worthington propitiatory PPOI technical indicator that helps him get in and out of stock at the right time to maximize returns.
The Worthington Stock Charter
Michael is a huge proponent of sticking to a set of principles to guide his investment decision making. These principles or “stock laws”, have stood the test of time and helped his investors. They’re the same principles that helped Shelby Davis and Warren Buffett attain their fortunes. A few are included below to help you get to know the man a little bit better.
“I’ve watched people lose a lot of money because they couldn’t get out of a position that went against them fast enough.” – Michael Worthington
It’s vitally important that you’re able to easily get in and out of stock investments. If you invest in non-liquid stocks your costs are higher due to the larger bid/ask prices and it takes a long time to build up a decent size position. The greatest risk occurs if the stock begins selling off on a bad news event.
If you’re not able to liquidate your stock position quickly, you can become trapped and suffer large losses trying to get out of your position. Make sure the stock you’re invested in has large enough volume for you to get out of your position within a day or two.
“I believe in the principal precept of “first do no harm” for my investors. My ultimate goal is to maximize returns with the least amount of risk, that’s the true measure of investment success”– Michael Worthington
Financial models have severe limitations because of the assumptions built into them. The further you go out in time, the lower the degree of accuracy across any number of projections. In addition, no one can foresee the future with complete accuracy.
Value investors first and foremost should be looking for stocks with a margin of safety built into their price. If you focus on undervalued stocks using conservative financial projections and don’t place too much of your money in any one company or sector, you minimize downside risk without limiting upside price potential (provided you’re in the right stocks).
I’ve seen to many individual investors self destruct during market downturns trying to catch the next Microsoft, Priceline, Amazon etc. I’m looking for something a lot more predictable than that. – Michael Worthington
Strength of Management
“It’s the work I do after crunching the numbers that makes the difference.”– Michael Worthington
The final check to go through prior to investing in a company is the most time consuming. This is where the individual skill comes in. It determines the winners from the losers.
You must do the painstaking research of analyzing financial reports, sifting through industry magazines looking for trends and analyzing the management team. Some of the questions you must answer include the following. Has the management team been successful in the past? Are they honest and forthcoming? Is management doing the right things for shareholders such as paying additional dividends, buying back stock at a reasonable price, funding acquisitions of related companies with their own competitive advantage or reinvesting the extra cash back into the company? How big of a competitive advantage does the company have? What industry trends are in place? Are there any near-term potential disrupters to the industry? Are there any footnotes in the 10K or 10Q that cause concern?
The entire list is longer, but the questions above provide a great starting point. The Worthington Stock Letter selection requirements are so stringent in this regard, that on average only 15-20 stocks will qualify in any given year.
You can do all the work yourself, sacrificing a tremendous amount of time away from your family and favorite hobbies while hoping for the best or….choose the easy path and let a proven, successful investor do the hard work for you.
Some of the brightest doctors, lawyers and finance professionals have dedicated a good portion of their lives to beating the stock market but continue to fail. They’ve read the top investing books, bought the most expensive software, paid for high-end coaching and still lag the market.
Along the way they’ve given up pleasurable hobbies and sacrificed time away from their family and friends. You don’t have to do that to beat the market and retire wealthy.
It takes hundreds of hours to research companies, construct financial models, stay on top of company news, follow industry trends, analyze management and scour 10Qs and 10Ks for nuggets of priceless information. If you don’t have the time or inclination to do that, you can sit back and let the team of professionals at the Worthington Stock Letter do all that hard work for you. Leveraging technology and staff, they’re able to unearth value stocks with an upcoming catalyst in place that give you a great chance to experience eye popping returns over the next 12-24 months.
You’re essentially paying their research team pennies a day to do all the hard work.
So what do you think? Click Here To Get Our Best Ideas
Why It’s Vital We Limit This Offer
One of the reasons Warren Buffett and Michael Worthington have been so successful is that they stick to what works, understand their limitations and find the greenest pastures to maximize their returns. Ideally, this includes limiting the numbers of investors they work with to maximize returns.
“It’s a huge structural advantage not to have a lot of money. I think I could make you 50% a year on a million dollars. No, I know I could. I guarantee that.” Warren Buffett
While we believe 50% is a stretch, it’s no exaggeration that if Warren Buffett could invest in small and mid-cap value stocks like he did when he first got started, that his returns would be double of what they are now. We want the same advantage for our members that Warren Buffett had we he first started out.
We want to make sure that our members returns aren’t diminished while their money continues to grow exponentially. Therefore, we track the moves of stocks The Worthington Stock Letter recommends.
At some point, the growth of our members money will start affecting returns. Then we’ll close the opportunity to join The Worthington Stock Letter to any new members. We see that coming in the short-term, but we’re not quite there yet.
Here’s What You Receive When You Join Our Family of Successful Investors
The Worthington Stock Letter is different. The Worthington Stock Letter hands you winning undervalued stocks that aren’t found in the headlines. The big winners you’ll miss because they’re not on your radar – that’s value.
1) You’ll get exclusive access to the best value and dividend stock recommendations, the same ones that have consistently outperformed the stock market averages and other top-rated newsletters.
When a stock is presented, a 20- 25% gain is anticipated within a 12-month period. Sure, you’ll get the 100% gains in less than 12 months but the Worthington Stock Letter is not swinging for home runs. They’re more concerned about eliminating big losses. This is one of the biggest keys to beating the market while sleeping well at night.
2) Who said value investing was dull? Highlighted stocks have included Priceline (PCLN), NetEase (NTES), Stamps.com (STMP) and Tower Semiconductor Ltd. (TSEM). They all doubled in price in less than a year and went on to much bigger gains from there. There are others too numerous to mention.
While the future returns of many of the stock recommendations have been mind blowing, we want you to focus on the overall performance of the newsletter in relation to the risk you take. Any stock newsletter can get lucky a couple times. Instead, focus on the overall results that you can obtain.
3) You’ll receive a complete analysis of highlighted stocks including buy and sell prices to help maximize profits.
One mistake many value investors make is getting into a stock too early which ties up their capital, thus limiting their potential returns. Another is getting into a stock too late or staying in a stock too long and watching helplessly as profits disappear. The Worthington proprietary technical indicators will help you avoid those traps and keep more of your hard-earned money.
4) You can spend hundreds of hours doing the research yourself or save your sanity and time by letting us do all the work for you.
The Worthington requirements are so stringent and the research so thorough, that on average only 15-20 stocks will qualify in any given year. Essentially, you’re only paying $10-$20 a stock recommendation for all that work which turns out to be pennies on the dollar for all the research we do.
5) In addition to the highlighted stocks you’ll be granted access to an actual stock portfolio with buy and sell prices. You typically don’t find this feature except in ultra-expensive newsletters costing you up to $5,000 a year.
So what do you think? Ready to take a small leap of faith (based on proven results over a decade) to join our family of successful investors?
We remove any of the risk by offering you a full money back guarantee!
You can get in at the special introductory rate of
We provide you with the lowest price possible the first year to give you a chance to get familiar with our newsletter and build stock positions as you deem fit. After the first year your subscription rate will be billed at the current rate of $199 year, as long as you choose to stay with us. The Value Investors Association provides a 30-day money back guarantee for the Worthington Stock Letter.
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P.S. If you currently subscribe to any of the popular investing newsletters and you’re serious about beating the market, shouldn’t you subscribe to the top performing value and dividend newsletter? Join us today!
We can’t guarantee that you’ll turn $10,000 into $197 million like Warren Buffett did. But we think we’ve found one of the best ways to help you get started.
*Here’s the required legal disclaimer. Past performance does not guarantee future results. Results will vary by individual due to price fills, commissions, taxes paid and timing of purchases and sales. Performance was calculated by holding highlighted stocks for 12 months, buying and selling at the month end closing price and holding an equal amount in each stock. There are periods of time where growth and momentum stocks will outperform Value and Dividend stocks. We cannot and therefore make no guarantees that our subscribers will beat the returns of the S&P 500, Wilshire 5000 or other investing indices and newsletters by investing in stocks listed in the Worthington Stock Letter.