The Next Evolution in Investing

I’ve always loved numbers, and I’ve always been fascinated with the stock market.

I’ve turned my love of those things into a successful career as an adviser and investor. Along the way I’ve helped my readers claim double and triple-digit gains in the market and create a more secure future for themselves.

But my career as an investor really started with a homework assignment.

As a grad student at Cal State Hayward some 30 years ago, a professor gave me an assignment that would change my life … and led me down a path that would make me, and many of my subscribers, rich.

The assignment was to create a model that would mimic the S&P 500.

My professor wanted to prove that indexing was the best way to invest. Using Wells Fargo’s powerful mainframe computers, I completed the assignment—but there was one little problem.

My model didn’t just mirror the S&P’s performance, it actually beat it!

I was one of the first analysts to use advanced computer models to analyze the market – back when computers were cutting-edge technology.

Using those tools, and lots and lots of data, I was able to make calls like Nike (NKE) at 39 cents per share and Intel (INTC) at $3.57 per share.

Leveraging mathematical analysis and the latest technology, I’ve established an impressive track record of growth. In fact, over 15 years, my large-cap stock picks beat Warren Buffett!

The lessons I learned in grad school are still serving me well today. Advanced technology is the single greatest tool investors can use to make investment decisions.

The truth is that the technology is moving so fast that even the proprietary market terminals are relics!

And that’s why I’ve kept evolving my system and used technology to take investing to the next level.

And now I’m ready to reveal the next evolution to the world.

I call it: Project Mastermind.

Using the latest tech, I’ve discovered a way to do even better in the markets. The results are faster, and come without any additional risk — that’s what Project Mastermind is really about.

Click here to hear more from me about how my system works, and join me on Wednesday, Oct. 9 at 7 p.m. ET as I unveil my system and give you my #1 Project Mastermind stock!

Finding Stocks Poised to Skyrocket

Imagine how your life would be different with just a few critical calls in the market.

Imagine your life if you had bought:

  • Microsoft (MSFT) for 39 cents per share.
  • Apple (AAPL) for $1.38 per share
  • Cisco Systems (CSCO) for 50 cents per share.

I recommended those stocks at those prices….and my subscribers collected massive gains.

And I live a comfortable life because of those calls and many many others with similar huge gains.

I didn’t achieve those gains with market timing, or just by getting lucky.

I’m a numbers guy.

I have loved math my entire life and I have used math and technology to help me find the stocks poised to make huge moves in the market.

But I still wasn’t satisfied. I knew that math and technology could lead me to find the stocks that are poised to soar in a much shorter period of time.

We’re talking about moves of 100%, 200% and even 500% in months instead of years.

I’ve been working on this project for years, and now – finally – I’m ready to share it with everyone.

I call this effort “Project Mastermind.”

Even just a few years ago, this kind of analysis was more like a dream than reality.

Using modern technology and loads of data, I am able to identify which stocks are ready to skyrocket, and the gains can come in months, not years!

Gains like these can be a retirement game changer. A chance to collect triple digit returns in a short time.

And now, I’m ready to unveil this system to the world.

We all know technology is changing the world around us, and it’s changing the way we invest too.

Click here to hear more from me about how my system works, and join me on Wednesday, Oct. 9 at 7 p.m. ET as I unveil my system and give you my #1 Project Mastermind stock!

Predictions Become Reality with Project Mastermind

Have you ever heard of Isaac Asimov? He was a famous science-fiction author and professor of biochemistry at Boston University. A good chunk of his science-fiction work was centered around robots, gadgets and the future.

One piece of writing Asimov is most famously known for is his “Three Laws of Robotics”:

  1. “A robot may not injure a human being or, through inaction, allow a human being to come to harm.”
  2. “A robot must obey orders given it by human beings except where such orders would conflict with the First Law.”
  3. “A robot must protect its own existence as long as such protection does not conflict with the First or Second Law.”

Now, these laws are fictional. But to this day, folks are still arguing about their validity and accuracy… especially as the fascination with robots and the future in our society continues to grow.

To be clear, though, while there are engineers and scientists building robots all over the world, there are none that are even remotely close to “human-like.” So there’s no need to worry about a robot breaking one of Asimov’s laws!

However, there’s something else Asimov is famous for that is applicable to today….

After going to the 1964 World Fair, Asimov wrote this in a New York Times article:

“Much effort will be put into the designing of vehicles with ‘Robot-brains’ — vehicles that can be set for particular destinations and that will then proceed there without interference by the slow reflexes of a human driver. I suspect one of the major attractions of the 2014 Fair will be rides on small roboticized cars which will maneuver in crowds at the two-foot level, neatly and automatically avoiding each other.”

Sound familiar? He’s talking about self-driving cars.

Today we have Google (GOOGL), Tesla (TSLA) and Apple (AAPL) – just to name a few – racing to release the first fully autonomous vehicle (AV). We’re not quite there yet, but that goalpost sure is moving closer with each new generation of AV technology.

And companies showing a ton of growth are focused on developing this kind of next-generation technology.

NVIDIA (NVDA) is a great example…

NVIDIA is a leading computer graphics company, making graphic processing units (GPUs) for consumers and businesses, and is at the forefront of helping to develop self-driving cars.

Thanks to Project Mastermind, I recommended this stock to my subscribers back in 2016. Then in 2019, we sold it for a whopping 166% gain!

My system also pinpointed stocks that resulted in gains like 122%…150%…109%…116%…209%… and even 487%!

So where does all this success come from?

It might surprise some people, but I owe all my investing success to one college assignment. At Cal State Hayward, one of my professors tasked me with creating a model portfolio that would mimic the performance of the benchmark S&P 500 index.

It was a dream assignment for a numbers guy like me… but I failed at it spectacularly.

The problem? My model kept beating the S&P 500.

This was back in the late 1970s, when everyone believed it was virtually impossible to beat the market without taking on excessive risk. Conventional wisdom was that you might get lucky for a while, but no one could consistently beat the market.

Thankfully, my professors gave me unprecedented access to Wells Fargo’s expensive and powerful mainframe computers to continue to build my stock selection models. (Remember, this was more than 30 years ago, before laptops and PCs.)

Through hundreds of hours of research, I discovered how an elite type of stock consistently outperformed the broad market, year in and year out. After extensive analysis, I isolated the eight key qualities that these super-performing stocks shared… and I developed a system for riding them.

The research I did back then serves as the foundation of what is now an advanced, high-tech method of computerized market analysis, or Project Mastermind.

Finding the Next Big Winners with Project Mastermind

As you can now see, with Project Mastermind I can find the next big winners in the stock market without the risk.

Over the next week, we’re going to talk a lot about Project Mastermind and how this system can work for you.

And then, on October 9, at 7 p.m., I’m hosting a special event where I unveil Project Mastermind and reveal the stock I’ve rated number one based on insights from Project Mastermind – ticker symbol and all…

I can already tell you with confidence – this recommendation has the potential to double your money or more over the next three months.

I hope you join me, so click here to sign up now so you don’t miss my special event!

Between the glimpse at my system and potential access to its number-one stock pick, you’re not going to want to miss out on what I’ll be sharing on Wednesday.

The Biggest Lie About Stocks That You Probably Believe

If you’re like many investors, you learned early on that one of the most important things to know about a stock’s value is the price-to-earnings (aka “P/E”) ratio.

I hate to be a party pooper, but if that’s how you were “brought up” as an investor – or if you only like to buy cheap stocks with low P/E ratios – you’ve been missing out on a lot of profitable growth opportunities.

The good news is that today I’m going to show you how to make a lot more in stocks than you’re making now. Here’s the story…

For generations, investors have used P/E ratios to determine if a stock is cheap and should be purchased or if it’s expensive and should be sold (or avoided).

Typically, stocks are considered bargains when they sell for P/E ratios of less than 12. Many people think a stock with a P/E of 25 is too expensive. (The long-term average P/E of the broad market is about 16.)

Now, I’m a bargain hunter in “normal” life. I’m always looking for deals when it comes to things like cars and real estate. However, decades of investing – and my studies of the greatest stock market winners in history – have taught me that a slavish devotion to low P/E stocks will cause you to miss out on pretty much every massive stock market winner of the next 100 years.

Put simply, a devotion to low P/E stocks will doom you to a life of under-performance.

Why is this the case?

Basically, you have to pay up to own the best, in both the stock market and in life. There’s a reason why Ferraris cost more than Hondas… and oceanfront property costs more than inland property.

Full disclosure: I’m a big fan of Ferraris, and even own a few of them, but I certainly don’t have anything against Hondas. But the reality is that Ferraris are in a whole different world than Hondas when it comes to quality and performance. That’s why Ferraris are more expensive than Hondas. The very best doesn’t come cheap.

This dynamic is at work in the stock market as well. The stocks of businesses with superior products, superior services, superior sales growth, and superior prospects outperform the stocks of lower-quality businesses. So, investors are willing to afford the higher stock market valuations of the best businesses.

My studies of the top stock performers of the past 100 years show that most mega stock winners trade for more than 25 times earnings during their huge runs.

What Really Matters When It Comes to Capturing Triple-Digit Returns

In my years of investing and studying the market’s all-time biggest winners, I’ve found that it’s much, much more important to focus on a stock’s earnings and sales growth than its P/E ratio. So much so that they are key factors in my proprietary stock grading system.

If you aren’t willing to buy stocks at more than 30 times earnings, you’ll automatically eliminate yourself from owning the world’s best growth stocks.

It’s not uncommon to see mega winners trade for 30, 40, and 50 times earnings during their mega runs. I’m talking about massive winners like Netflix (NFLX), Amazon (AMZN), Facebook (FB) and Google, now Alphabet (GOOGL).

I could list mega winner after mega winner after mega winner. But I’m sure you get the idea. You can’t buy a Ferrari for a Honda price. You can’t buy oceanfront real estate for an inland price. And you can’t buy the absolute best growth stocks at laggard valuations.

As winners like these soared hundreds of percent, many investors sat on the sidelines because they felt these stocks were too expensive given the P/E ratio. Those folks just didn’t understand that the very best doesn’t come cheap.

Now this doesn’t mean you should run out and buy any expensive stock. It’s important to keep in mind that a company with a fad product or service can get bid up to absolutely ridiculous valuations — and ultimately burn investors. You don’t want to get swept up in the hype and end up paying a ridiculous valuation that leaves you holding the bag in the end.

Tesla (TSLA) is a good example here. It’s got poor earnings and sales growth and is burning through cash. Those are clear signs that the company’s underlying fundamentals are weak, which could impact its long-term growth potential. And yet, the stock trades at over $200 per share.

All that said, the best investors know that top-shelf stocks often trade for seemingly-rich valuations of 30, 40, and 50 times earnings.

Earnings and sales growth are the major drivers of a stock’s price. The more a company grows its earnings, the more its shares will be worth.

That’s how the market works. It’s the “iron law” of the stock market.

And that’s why you should focus on the companies with massive revenue and earnings growth if you’re looking for stocks with massive upside potential, stocks that can bring you triple-digit returns.

Bottom line: High-quality stocks sporting high P/E ratios scare off the folks who are devoted to buying cheap, lower-quality business… but they reward those of us who understand market history… and know the very best doesn’t come cheap.

More Louis Navellier

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