When I started on Wall Street, to call me naïve would have been an understatement. I was as green as summer grass.
I thought my goal was to help clients make as much money as possible. At least, that’s what I wanted for my clients. Working on commission, I figured wealthier clients would mean more income for me.
But apparently, I didn’t understand what it really meant to work on Wall Street.
That all changed once I got into a conversation with my mentor… a grizzled veteran who’d been in the game for a long time. He’d made millions of dollars since the 1970s.
One day he grabbed me, took me aside, and said, “Tiwari, here’s what you’ve got to understand about this business. You never want your clients to make too much money.”
I was shocked. But he continued…
“If your client makes too much money, he doesn’t think he needs you anymore. He’ll take that money and put it somewhere else. He’ll put it in real estate. Or a private business. And guess what? You won’t generate commissions from him anymore.”
This was when he told me about the dirtiest secret on Wall Street…
“The key to making money is to keep your clients even. Don’t lose them too much money, and don’t make them too much money.”
This is why Wall Street tells us that to become rich, you’ve got to put your money away for 30 years. You make 7% per year. It compounds. Then you double your money every 10–12 years and have a happy retirement.
And, sure, that’s one way to do it.
But think about it from Wall Street’s self-serving point of view…
If you sock away your money for 30 years, it will help fund your retirement… But you’re funding your broker’s retirement, too.
You’re funding their houses… cars… their kid’s college tuition… vacations… and private jets for 30 years.
It’s an amazing business model for Wall Street… but not so much for its clients.
That’s why Wall Street doesn’t want you to be rich.
On the flip side, Wall Street also doesn’t want you to be broke… because broke clients can’t pay commissions.
The sweet spot is a customer who’s “break-even.” Wall Street keeps them in the game year after year… All while milking them for commissions.
My Wakeup Call
It took 15 years before I woke up and said, “You know what? I don’t want to work with people like this anymore. This is not who I am.
I genuinely love people and want to see them succeed in investing. I’ve got talent. I’m compassionate. Why am I living like this?”
It was a fool’s choice that I wasn’t aware of because I entered that world at such a young age.
So when I discovered the newsletter business, it was eye-opening.
That’s why I was so excited when I joined Palm Beach Research Group in August 2013. Because here, I’m on the same side as my readers. Whereas on Wall Street, I couldn’t be.
Now, as I enter my tenth year here… I’m proud of the work we’ve done.
Since I took over our flagship Palm Beach Letter, it’s performed 10.7x better than the S&P 500… that’s a 144.2% average annualized return versus a meager 13.5%.
And our average return per position (both open and closed) has risen by 267%. That compares favorably to the 115% gain for the S&P 500 over the same period.
But as I pointed out in July 2022, the markets are changing dramatically.
We’re entering a New Order of Money… And we need to think outside the box to perform better. That’s the real secret to getting rich.
Thinking Outside the Box in 2023
At The Palm Beach Letter, there are three ways we plan to do that in 2023:
The first is asset allocation.
Asset allocation is just a fancy term for dividing your portfolio among different investments… And if you talk to any reputable financial adviser, it should come up immediately.
But our asset allocation strategy goes beyond – and outperforms – the typical 60/40 stocks and bonds allocation.
(At PBRG, we use a 50/20/30 allocation consisting of 50% equities, 20% fixed income, and 30% Maverick Investments. More on them below).
The second part of our plan is risk management.
You can’t build your wealth if you’re losing money… So we use several methods to mitigate risk, including stop losses and making small asymmetric bets using the income from our safer positions.
The third part of our plan is the “secret sauce,” which we call Maverick Investments.
When money becomes too abundant (via inflation), it seeks out investments that are real, rare, and enduringly desirable… that’s where Maverick Investments come into play.
Since I started in the newsletter industry, I’ve found the formula for my readers to thrive in any market.
I’m always refining our asset allocation model to strike the right balance. And by adding our unique Maverick Investments, you’re building a portfolio that will outperform Main Street… without looking at Wall Street greed for direction.
2023 Will Be a Year of Turmoil and Opportunity
2023 will bring a different challenge than 2022. Last year’s rapid interest rate increase created several market disruptions and ushered in a New Order of Money.
But it’s also created some pockets of incredible opportunity. We’re here to guide you to them.
We’ll do it gladly, as trusted friends… not for a source of endless commissions.
And by following our asset allocation model, we’ll go where the values are in today’s changing market.
As we enter the new year, there are finally opportunities in the bond market…
The past year’s market chaos has also brought many great companies into a reasonable buying range…
And although we’re in the depths of a brutal Crypto Winter, spring will come. And these Maverick Investments will soar.
Buying at depressed prices has historically resulted in massive returns on the other side of the market cycle – even from small investments.
The asymmetric return potential is even bigger now than at any time over the past two years. While 2022 was a poor year for the markets – including our own portfolio – it makes 2023 a time to target Maverick Investments strategically.
2023 will be the year to plant the investment seeds that will flourish once this bear market comes to an end…
Because I’m confident that with the strategy I outlined above (that has seen us through multiple market cycles), we’ll continue to outperform the market as we come through the other side of this turbulence.
Let the Game Come to You!
P.S. If you’re looking for an easy way to get started in Maverick Investments, one asset class has outperformed all my traditional investments combined over the last two years… and I don’t expect that to change in 2023.
To learn more about this inflation-proof, volatility-resistant asset and how you can get started for as little as $50… click here.
You’ll also be taking your first steps toward the 10.7x market-beating returns I mentioned above.