Dear Reader,
Tom Brady has been to 10 of the 55 Super Bowls in history (18% of them). And he’s won seven of them (13%). And he’s only been playing football professionally for 21 of them.
So Tom Brady has won one-third of the Super Bowl games he’s seen in his career… and won seven out of the 10 he’s played in. His two closest rivals are Joe Montana and Terry Bradshaw, with four Super Bowl wins apiece.
Here’s my point…
There have been thousands of NFL quarterbacks over the years. And the vast majority of them have never played in a Super Bowl.
A few of them have been very good. A lot more have been very bad. But most have had average careers.
So Tom Brady is an example of a statistical outlier: a clear deviation from all other quarterbacks in history.
But if you were to do a statistical analysis of NFL quarterbacks, would you throw him out of the data set? Absolutely not.
In this instance, Brady becomes the data point to pay attention to.
Tom Brady… Wayne Gretzky… Michael Jordan – these men break all the rules for what we think should be “normal” in their respective sports. They are the best – head and shoulders above the rest.
Here’s why I’m telling you this…
If you really want to make money in the markets, you need to own what I call “outlier” stocks.
In fact, in my own career, I don’t throw out the outliers at all. On the contrary… I throw out everything but the outliers…
My Outlier Mission
Hi there – I’m Jason Bodner, the editor of Outlier Investor. In my research service, I’m on the hunt for the Tom Bradys of the stock market… the companies that outperform all the rest.
Outlier stocks are the ones that can 5x or 10x your money.
And after spending nearly 20 years on Wall Street, I built a unique algorithm that uncovers these stocks.
It picks them based on a few key factors… fundamental strength, bullish technical patterns, and – most importantly – unusually large volumes of buying. This volume tells me a major Wall Street institution is getting involved – what I call the “Big Money.”
These filters narrow down the entire stock market universe to just 20 names each week. And from that, I start digging for more info to find the absolute best stock to buy.
These stocks have gone on to hand me – and my readers – unthinkable profits. Right now, in our model portfolio, we’re looking at open gains of 246%… 334%… 107%… 155%… and 722%.
That’s why, when it comes to stocks, I say keep the outliers and forget everything else.
And I’m not the only one who thinks this way…
Arizona State University professor Hendrik Bessembinder agrees. In 2017, he wrote a paper titled, “Do Stocks Outperform Treasury Bills?”
In it, he tracks more than 26,000 stocks over 100 years’ time.
His findings? Since the 1920s, only 4% of all stocks accounted for 100% of the gains of stocks over Treasury bills. And only 1% of stocks accounted for 50% of the gains of stocks over Treasury bills.
Statistically, these stocks are outliers. They would be ignored in traditional analysis.
But in doing so, an investor would throw out any practical chance of beating the market. So that’s why I’ve devoted my career to finding this 4% and reaping the rewards…
These Stocks Keep on Winning and Winning
Let’s take a look at one of my top outlier stocks: NVIDIA (NVDA).
It has appeared on my weekly buy reports 89 times since the year 2000 – including backtested data.
And even more impressive, it has appeared in 59 weekly reports out of a possible 393 since I formally started publishing data science on stocks in 2014.
NVDA has naturally been a big winner since its first appearance on my live reports. It’s up 3,448% since then. And since I first recommended it to my subscribers, it’s up 334%.
(Note that NVDA is well above the suggested buy-up-to price I sent to my subscribers. I don’t suggest purchasing it at today’s levels.)
Here’s a chart of each NVDA buy signal, including backtested data shaded in gray.
Here’s my point…
When it comes to analyzing stocks, not only should you keep the outliers – you should toss everything else. That’s where the real money is. Bessembinder proved it!
Using data science completely changed my investing career. It taught me the true path to independent wealth – buying and holding outliers like NVDA for consistent, outsized returns.
Like Tom Brady, outlier stocks just keep winning… regardless of what the market does.
In volatile markets where opportunities zip by every day, we can easily get overexposed to stocks with unclear direction.
But with outliers, we can start adding zeroes to our brokerage accounts.
Talk soon,
Jason Bodner
Editor, Outlier Investor
P.S. Every single day, about $238 billion changes hands on the stock market. Imagine if you knew where all those billions were going to go next… before the massive rally?
Well, thanks to a stock market “glitch,” it’s possible.
My friend and colleague Jeff Brown is known for his tech investment expertise. But now, for the first time, he’s expanding his view to the wider market… and digging into this conundrum. How can regular investors compete with the “big boys?”
Well, on July 28, he’s going to blow the lid off what he found. It’s a way for regular people to turn the tables on Wall Street and use this glitch to profit just like the hedge fund managers and institutional players.
And he’s going to give the name of his top “glitch” stock away for free to everyone who shows up.
To make sure you’re in the loop, simply go right here to make sure you’re on the list to attend…
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