Special Introduction from Louis Navellier
How can a little book like this claim to make you rich? That’s what any skeptical reader is likely to be thinking. And if that’s you, I say “Bravo!” You cannot be a successful investor if you believe every story Wall Street throws your way. But believe me, dear investor; though I may use fun analogies, the strategy to riches I lay out page by page in this Little Book is no fairytale.
My name is Louis Navellier, and I’m a numbers guy, plain and simple. I’ve been investing in the stock market for over 27 years and within that time have helped investors beat the market nearly 4-to-1. How did I do it? I did it by investing in healthy, vital, growing companies.
Value investing in the manner of Warren Buffett will reward those who find the occasional undervalued company. And index investing is for those satisfied with keeping pace with the overall market (no matter how slow). But growth investing—finding the real power-engine companies pushing the economy forward—is what I have found to be the most potent strategy for making investors rich.
Frankly, it’s what got me to where I am today. My father was a hardworking bricklayer and stonemason, so I come from humble beginnings. The wealth I’ve made over the years is a result of my inherited work ethic (a tireless drive I owe to my dad). That drive led me to uncover an investing formula for picking growth stocks that forever changed my life. I now live predominantly in a nice oceanfront house near Palm Beach with my beautiful wife and kids, have a number of nice cars (outside of a passion for numbers, I confess I have a real passion for cars!), and frequently utilize one of my private jets to take my colleagues and myself where we need to go when meeting with clients and folks on Wall Street.
A Life-Changing Discovery
I was one of the first in my family to go to college, and it was a proud moment for my folks to see me start at Cal State Hayward (now Cal State East Bay) in California. We all knew my years at Cal State would be life changing, but I don’t think any of us knew to what extent! You see, one of my finance professors was from Wells Fargo and I got the opportunity to work on a research project where my assignment was to build a model that mirrored the S&P 500. Yes, it was a dream assignment for a “numbers geek” like me. Putting all the quantitative calculations aside for a minute, the concept of mirroring the market sounds simple enough, right? Well, much to my surprise, the project didn’t go quite as I planned. It turned out that my model did better than the market—a lot better! The significance was breathtaking. Back then, for years and years, I had been taught that it was impossible to beat the market. And then suddenly, I did.
I admit I was both delighted and a little bit outraged to make this discovery. I was delighted because I had unlocked a formula for finding stocks that continually outperform the market without taking on any excess risk—and outraged because I felt deceived by the very Wall Street pros I had once admired.
The day I discovered this market-beating formula, I made it my mission to help hardworking individual investors who might not have the resources that the powerful Wall Street firms do. My schedule today is hectic, but incredibly fulfilling. I write four newsletters, do regular speaking engagements around the country, and run a successful money management company in Reno, Nevada. I do it all to help empower individual investors to achieve their financial dreams. And today, in the pages of this Little Book, I’m here to empower you with the knowledge and tools that can help make you rich.
We’ll begin with my proven formula for finding growth stocks that beat the market, which combines one part powerful fundamentals—such as sales growth and cash flow (just two of the eight key variables we’ll cover later on)—and two parts high quantitative marks that indicate “buy this stock now!” (as you’ll soon see, this is the real moneymaker part of our formula.) Best of all, this formula is also incredibly effective in flashing great big neon warning signs over the stocks you shouldn’t touch with a ten-foot pole.
I’ve created this companion web site where you’ll gain online access to my exclusive stock-rating database—an interactive tool that rates nearly 5,000 stocks according to my proven formula. This way, when you’ve finished reading this Little Book, you’ll be able to take what you’ve learned cover to cover and apply it in the real world of investing, instantly!
I want this book to do what it says it will do—make you rich. I want you to be able to send your kids to college or retire in comfort or take that dream vacation you’ve always wanted or achieve whatever is your financial dream.
Being a successful growth stock investor allowed me to achieve my financial dreams. I hope this Little Book will start you on the path to doing the same.
Copyright © 2007 John Wiley & Sons. All rights reserved.