What do you like more as an investor?

 

Growth or predictability?

 

It is not an easy decision.

Sadly it is one that we always have to make.

Because we all know that as investors we can’t have both.

There is after all no free lunch.

On one hand there is growth.

The driver of exceptional long term returns is always rapidly compounding earnings.

It is an irrefutable fact that you simply can’t generate double digit returns from companies that are barely growing their income.

Over time stock prices will follow earnings.

To really compound your wealth you need to own fast growing businesses.

But it isn’t that easy is it….

Not even close.

Because whenever we start chasing high-growth we invite something else.

A higher level of risk.

Fast growing businesses are always the least predictable.

And we have all seen companies like this crash and burn.

That is why slowing growing but predictable businesses have appeal.

They don’t provide much in the way of earnings growth.

They aren’t much fun to watch.

And they aren’t going to make you rich.

But you know what you are getting into when you own them.

A slow, steady way to growth your investment.

Yes in investing it is one or the other.

Growth or predictability.

But what if we dare to dream?

Dream of a perfect world.

A world where you could both have your cake and eat it too.

I am talking about a perfect stock.

One that is not only safe and predictable but also fast growing.

I am talking about the growth rate of a high flying tech company combined with the stability of a stodgy old utility.

A company that can compound earnings at a blistering pace…

But does so with very little doubt about the fact that earnings are going to meet those expectations.

It is a shame that as investors we have to settle for one or the other.

That we have to settle.

We can either chase growth but take on the risk that always accompanies it.

Or we can own something boring and predictable which offers minimal returns on our money.

It is one or the other.

Our dreams of a predictable high growth stock are just that……dreams.

Or are they…

 

How Do You Find Such Predictable Growth – You Never Stop Looking

 

Discuss how Keith finds ideas

Touch on the index fund bubble

Billions of dollars flooding to passive investing

Now is the time to be looking for outside the box opportunities

Off the radar is where you find something like this.

 

I Challenge You To Find Better Than This – Cash Flows Will Triple In Three Years

 

Talk about how fast an average company grows

Then go through the rate of growth on the S&P 500 and how it is valued

Then start talking about the rate of growth of this company

Then mention the multiple it trades at

Many times the growth of the S&P 500

Yet a fraction of the valuation

Again Look at where the idiot masses aren’t looking

 

It Has Always Been Growth That Has Created My Biggest Winners

 

Examples of Keith’s biggest winners

Gives a chance to go through the list of past successes

 

Even Buffett Didn’t Really Hit His Stride Until He Embraced Growth Stock Investing

Discuss Buffett’s early days of investing

Buying discounted cigar butts

Yes they were cheap, but good for only one puff

It wasn’t until Charlie Munger opened his eyes to the power of great business model

One that can compound capital and grow

Then look at what he did with Coca-Cola, one decision that made him $10 billion

 

When I Say Utility Like Stability I’m Not Joking – Here Is Why

Talk about growth is the way to go, but it is the hardest type of investing

You have to be very, very selective.

Then explain what this company is so unusual.

How the growth is ridiculous but the predictability of cash flows is even better.

This is essentially a utility with regulated prices.

Now look at how utility companies normally grow, they don’t.

Then look at how utility companies are normally valued.

Now compare the two to this company.

 

Just Five Decisions Made Buffett The World’s Richest Man

Talk about just how rich Buffett is

$60 billion

Where did it come from.

Essentially just five investment decisions.

Name them, explain why they were special.

Now remind readers why this one is special.

Certainty of growth like this is very unusual.

Certainty of pricing and cash flows like this is very unusual.

The combination of both never happens.

But it gets better still.

This company is valued like one of Buffett’s cigar butts.

This thing should trade like a high flying tech company.

Instead it is valued like utility.

This is one decision that you can’t pass up on.

 

 

Trial my OGIB service today.

I keep it simple. And I make money.

Kind Regards, Keith Schaefer, Editor

Oil & Gas Investments Bulletin

 

P.S. If you don’t think there’s profits to be had in the energy patch, look at these recent trades:

On March 30 2016 I bought Crestwood LP, a pipeline and natural gas storage company, at $10.60.

I sold it April 21st at $18.48 for a gain of 74%.  I made $15,870 in just three weeks!

On February 17, I bought CoreEnergy Infrastructure Trust, CORR-NYSE, at $12.50 with a yield of 24%.

I sold it April 4th at $19.35, a gain of 55% and I made $13,750 in just seven weeks!

Customer Testimonials

“Keith – I have acquired well over 100k in PEIX – so I am coming to the [March 1st] conference and look forward to meeting you. You have made me and my clients the most money ever in 50+ years in the business and I sincerely thank you – and have to pay Uncle Sam upwards of 6 figures – and he needs it!. Biggest positions remain NTI,GPRE, PEIX. Have traded a few others as well.”
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“Thanks again for great work – I may have bought a few of your PEIX Friday! Cheers.”
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I’m a happy subscriber.”
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Your loyal client,
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I want to Thank You Very Much for showing us your Personal Portfolio! You show us what you bought and sold and at what price. More importantly you show us How Many Shares, NO newsletter I know show this! You put your money where your mouth is Profits and Losses, even with your knowledge you make mistakes. You tell us that you have a hard time deciding when to get out in your losses. I have a very hard time and emotionally hope it comes back up but ride it down too low. I am trying to be a machine and get out at a certain percentage.
Thank You Very Much, and Very Much Appreciated.”
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Best Regards,
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Thank You.”
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“Hi Keith, O&G has become my favorite newsletter, mainly because of the no nonsense approach. No overdone promotions, just solid work behind the articles.Thanks. Living in Southern California, I was wondering if you had any further information about Ridgeline Energy’s purification system that is “testing” in So. Cal. as mentioned in the article. I would like to find out more about it if you can help. Couldn’t find anything on their website, but I am new to this sleuthing for info. Anything is appreciated.
Thanks.”
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“On 12/21/2010 Keith bought 2000 shares of GLNG & sent a strong opinion to his readers about why he bought it– I liked it & bought 1000 shares @15.14. It closed Fri. @ $43 – What more could you want for Christmas!!! Wed. it will even be long term!! As far as service,they answer phone calls[in english] & return E- Mails ! Thank`s Keith!
– palm grower Gene & Merry Christmas to all & GO Keystone !!”
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“He also tracks every holding and reports regularly on their current situations, often after personal discussions with management. He clearly has the most inside information about Canadian companies but he has taken a whirl on some non-Canadians as well. He has a way of getting slightly ahead of the crowd, which might mean a little more patience is required.”
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Hi Keith,

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Thank you,
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which for the most part have kept me in positive territory.(Thank-you Sir)….but the market insight you provide.”
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