"The lesson is, it can always go higher..."
I was struggling. I was on deadline for my monthly True Wealth
newsletter. And I had what I thought was a fantastic idea for my readers...
But I had one problem: The darn stock had already soared 900% in the last two years.
With returns like that already, how could it possibly go higher?
I was reluctant. But it really was a great opportunity. My readers needed to know about it.
The only thing that was holding me back was the historical price
performance. If I simply ignored its historical performance and
evaluated it on its merits today, it was a buy.
So I went ahead and recommended it. Here's what happened...
The story of this stock – Silver Wheaton – is simple and great. Here's what I wrote to my True Wealth readers:
Silver Wheaton (NYSE: SLW) has one of the best business models I have ever seen...
It could make over $800 million in profits in 2013... and yet it has less than two-dozen employees and basically no operations.
Its "business" is driving to the bank and cashing royalty
checks. When your business is depositing big checks payable to you, it's
near impossible to lose money.
When I first wrote the story less than two months ago, Silver
Wheaton's market cap was $9.5 billion. Today, it's around $14 billion.
True Wealth readers are up nearly 50% on a stock I almost didn't recommend.
The lesson is simple. My colleague Brett Eversole pointed it out to
me yesterday. Brett is new in my office. He's just 22 years old. Here's
the lesson he learned from Silver Wheaton:
"It can ALWAYS go higher."
In the past, I've avoided great stocks just because it looked like
they'd already had great runs. Then I watched as they proceeded to soar,
over and over again.
I thought of those past mistakes when I recommended Silver Wheaton. I learned the lesson.
If something is a great value... a truly great opportunity... don't worry so much about where it's been.
The lesson is, it can ALWAYS go higher. Silver Wheaton is proof of that.
For more insight and actionable investment advice, consider a trial subscription to
is to show you how to avoid risky investments, and how to avoid what
the average investor is doing. We believe that you can make a lot of
money – and do it safely – by simply doing the opposite of what is most
on a free trial subscription.