You're Not Warren Buffett (So Don't Act Like Him)

Don't be like Warren Buffett...

You read that right. It's not a typo. And no, we haven't lost our minds...

There's no doubt Buffett is one of the best investors of all time. He has nearly doubled the return of the S&P 500 since taking control of Berkshire Hathaway (BRK-B) in 1965.

He's also one of the richest men on the planet, with an estimated net worth of $147 billion.

Despite his decades of success, though... Buffett is bad at timing the market.

It's true. Just ask him.

When stock market valuations get high – like they are today – Buffett has a habit of throwing in the towel...

He'll take some gains and wait for stocks to get cheap again. Being one of the richest men on the planet affords you this luxury.

That's why today, Berkshire Hathaway is sitting on a record $325 billion in cash.

Many folks take that as a signal that we're near a market top. Surely, Buffett knows something we all don't.

But the truth is, Buffett will be the first to admit he's not trying to time the market. His system simply doesn't work when valuations get this high.

He did the same exact thing in 1998 during the dot-com era. By September of that year, Berkshire was sitting on $9 billion in cash... a record at the time.

Buffett said he didn't own tech stocks because he lacked insight into the industry. That was a big mistake. The stock market continued to rocket higher for more than a year.

Today, the S&P 500 is sitting at a 25 times Uniform price-to-earnings (P/E) ratio... one of the highest levels in history. Inflation is still moderate based on history. And corporate tax rates are still favorable.

It's setting the market up for sustained high stock valuations. And once again, Buffett is sitting it out.

That doesn't mean you should do the same.

While many stocks are expensive, there are plenty worth owning...

All this means is we have to be extra tactical. And that's where one of our all-time favorite strategies comes into play...

If you've been with us for a while, you're likely familiar with the term "Perfect Stocks." In short, we teamed up with our corporate affiliate, Chaikin Analytics... combining our deep fundamental research with their award-winning "Power Gauge" stock-picking software.

Our Perfect Stock strategy finds high-quality stocks – and shows us the exact right time to buy them.

The results are astounding. In a back test, we would've pinpointed two Perfect Stocks that each shot up more than 100%... one that soared 160%... and even one that skyrocketed nearly 800%... all either kicking off during the 2020 election or in the 12 months after.

And that's nothing compared with the opportunity we see forming straight ahead...

Our teams believe what's coming this year will trigger both huge gains and losses, depending on how you position your portfolio ahead of Donald Trump's inauguration.

We've identified five different stocks to help you prepare, each of which qualified as "Perfect" as we put our research together – and each of which is still a screaming "buy" as we go to press.

Plus, we put together a list of 10 "Toxic Waste" stocks that could tank your portfolio. If you have money in any of these stocks, we urge you to get out before January 20.

As a holiday gift, we made this research available to new subscribers at 50% off the regular list price. But the holidays are over now... and this deal is coming offline at midnight tonight. Click here to claim this special offer while it's still available.

A lot is set to change in the market this year...

And with valuations so high, there's not much room for error. As we mentioned, there are a lot of toxic stocks that could come crashing down.

The best thing you can do is make sure you're in the right stocks at the right time.

Now is a great time to proactively set your portfolio up for success... so you don't end up throwing in the towel like Buffett.

Remember, he can afford to sit on his hands. Most of us don't have that luxury.

Regards,

Joel Litman
January 3, 2025