These 3 Odd Rules Can Make You a Millionaire - Smart Contrarian by Equitymaster
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These 3 Odd Rules Can Make You a Millionaire

Feb 21, 2018

Rahul Shah, Editor, Smart Contrarian

Dear Smart Contrarian reader...

For several months now I have been bringing you ideas for system based opportunities... but I have been thinking for a while about how, while my approach is sound, it might be ruling out other fantastic wealth-building opportunities I see around me. So I have decided to change this newsletter - to evolve it into something bigger, better, more profitable... I will write to you more about this change soon... so stay tuned

- Your editor, Rahul Shah

Yesterday was a big day for me - I'm in kind of in the mood to celebrate.

Yesterday, my Benjamin Graham-inspired service Microcap Millionaires completed four years.

When I started in February 2014, the rules of the service seemed a bit odd. Folks kept looking at me funny - could this possibly work, they wondered?

These were... are...the three rules:

  1. Buying stocks at deep discounts - and promptly selling when the discount disappeared.
  2. Switching the portfolio allocation between stocks and bonds - as I recommend based on market valuations.
  3. And most importantly, be disciplined.

I had great hope for the service.

...I hoped it would beat the Sensex.

...I hoped it would have loads of wins.

...Most importantly, I hoped it would make my subscribers wealthy and happy.

So I kept my head down and stuck to the strategy.

I paid no heed to the incessant noise in the stock market.

I did not give in to 'activity itch'.

If the strategy said do nothing, we did nothing. If it asked us to do a lot, we did a lot.

Now, at the end of four years, I had to take stock of 'my hopes'.

And I found this...

...Not only did the service beat Sensex - it beat the Sensex more than TWICE OVER - or 2x as we like to say in the industry.

...Not only did the service have loads of won almost 90% of the time. An extraordinary result in in any portfolio recommendation service.

...Not only did it make my subscribers wealthy, it brought them a 181.8% return over four years (yeah - it's possible... now we know!).

So you can see, while it is not in my nature to be effusive, I might have a slight smile of pride on my face right now.

Why I'm a systems guy...

So, I'm going to take a bit of time today to subtly gloat - ie show you what is possible with the Indian stock markets right now - IF you use a good system.

Starting from inception, here's what the Microcap Millionaires journey has looked like:


As you can see, we've firmly met our main objective of outperforming the benchmark index - the BSE Sensex.

While the BSE Sensex yielded 65.6% over this 4-year period, Microcap Millionaires turned in a sparkling 181.8%.

On a compounded annual basis, while the Sensex has achieved a CAGR of 13.4%, Microcap Millionaires has brought in 29.6%.

That's a point-to-point outperformance of 116.1% over the benchmark, and a 2.2x CAGR outperformance of 16.1% over index results.

Mind you, Microcap Millionaires hasn't been fully invested in stocks through this entire period.

We've had a varying but quite large proportion of money in fixed deposits (over half at most times). And in spite of that - including the fixed deposit component - the portfolio beat Sensex 2x.

The field of microcap stocks is considered a risky and uncertain one. But the right strategy can help you navigate it successfully, with rich rewards waiting for you at the end.

If I had to pin down the broader 'secret' of our success - it would be this...

"Stick to the system"

There's are no guarantees in life or investing. But I'm certain that Graham's system will continue to beat the Sensex for a very long time to come.

Today, to celebrate my good news - I have some good news for you...

You see, Microcap Millionaires is a premium service. A one-year subscription to Microcap Millionaires normally costs Rs 100,000.

But a limited number of my readers can now access this premium service at 75% off!

Open only until tonight. First come first serve.

This is your chance to try this system I am so proud of - and get the returns that can make a real difference to your life.

Full details here...

Good Investing,

Rahul Shah
Rahul Shah (Research Analyst)
Editor, Smart Contrarian

PS: Rahul Shah is right to be proud. He has done something that most people consider impossible. And he continues to astound everyone. Let his system be the key to your wealth. Try Microcap Millionaires for 75% off - this offer closes tonight.

PPS: And did we mention he just released his newest recommendation? Don't miss it - any fund manager can keep his head above the Sensex - but not everyone can find one that can double it - get it now.

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