The Strategy For People Who Hate Investing – Beat Wall Street With One Stock

The Strategy For People Who Hate Investing – Beat Wall Street With One Stock

What to do if you don’t care about investing but
you know you need to do something.

It just happened this morning while talking with a friend of a client.

The friend summed it up perfectly.

The friend said,

“RC, I know I need to do something to protect my money and I know Wall Street can’t help but I just don’t care that much about investing, I don’t have the time.”

I said to him, “What if I could get you what you want in one ticker symbol.  No trading. No looking. Just one ticker symbol that has you get what you want.”

He rolled his eyes in contempt and said,

“Yeah right!”

So I pulled out my computer to prove it to him.

I said:

1) This one ticker symbol will beat 99% of Wall Street advisors over any twenty year period.
2) You never have to pay attention to it.
3) It will keep you in the top performing 15% of Wall Street advisors year after year.

And then I said, “Here’s the secret:”

Wall Street advisors are incredibly easy to beat.

Wall Street advisors don’t want to lose clients so they stick right next to the performance of the S&P500….regardless of what the S&P500 returns, they stick to it like glue.

Even if the S&P500 falls for ten years in a row, like it has done from 2000 to 2010. They’re right there next to it.

So when someone says they can beat Wall Street advisors what they are really saying is, they can match the S&P500 year after year.

Not even beat it, just match it.

And since you are not paying fees to an advisor you can keep the difference and invest it.

Now, 86% of advisors cannot even match what the S&P500 does each year. So the first place for you to start is by simply buying an ETF (exchange traded fund) that mirrors what the S&P500 does.

You can do that with the ticker symbol (SPY).

But I’m going to give you something better right now.

How to beat the S&P500 with one ticker symbol.

You buy a ticker symbol that owns all 500 stocks in the S&P500 but you find one that puts equal dollar amounts in all 500 stocks.

This is called ‘equal weighting’.

By doing this you are putting the same percentage of your money in large, medium and small stocks within that list of 500 stocks.

The S&P500 has stocks in it that range from $280 billion to $150 million in size.

Equal weighting works really well because a stock like Exxon Mobile probably won’t double from its very large market cap of $280 billion.

But maybe a stock like Teradyne, Inc (TER) could go up 10X in the next ten years. Today Teradyne is a $2 billion market cap stock and part of the S&P500.

Teradyne is up over 200% in just the past 16 months.

So with one ticker symbol you are getting the power of the S&P500, while getting the diversity of small cap stocks, mid-cap stocks, large cap stocks, growth stocks, dividend producing stocks, international stocks, domestic stocks, etc. You get them all equally.

Here check out a picture of an equal weighted ticker symbol (black line) vs. SPY (green line).

How One Stock Beats Them All

Over the last seven years, this equal weighted ETF outperformed the S&P500. The name of the equal weighted ETF is “RSP”.

The equal weighted ETF is up 22% over the past seven years
The S&P500 ETF is up 0% over the past seven years.

So for those of you that know you have to do something to protect and grow your money but hate the idea of investing; maybe an equal weighted ETF if for you.

Do me a favor and look again at the picture above.

Do you notice that very large valley where both lines fall off a cliff into a very deep valley? That is a 58% plus fall.

If you are curious how you can avoid such a traumatic lost to your accounts, I can show you.

In fact it’s simple and easy.

If you are curious about avoiding the next fall click here.

Together, we are protecting and growing your wealth,

RC Peck, CFP

PS – There is a small group of investors that are thinking ahead of the news and crowd. Can you be one of them? Click here.