Use this simple cheat to find the kinds of companies that will deliver 450% growth in five years
We'd all love to find the next great investment; the one that grows your money fivefold.
But finding these investments isn't easy.
In fact, it is virtually impossible to get all the information you need to truly know what's happening in a company.
But today, I want to show you a simple cheat that can spot you the next Aspen. A share that has returned more than 450% over the last five years.
When a company is run by a manager investor, it’s in his best interest to grow your profits
Now you might be wondering, what exactly is a manager investor?
This is simply a manager of a company who has his own money invested in the company. These are often your investment’s best friend.
You see, these managers own a portion of the companies they manage. This is great for you because it means that, when it comes to managing the company, they make sure they put their shareholders first.
And more often than not, this results in great shareholder returns.
Just think about some of the world’s biggest companies like Microsoft and Wal-Mart. These companies become the global giants they are today because their managers had ownership in the companies. Their incentives are not a salary but the potentially massive returns they could receive by growing the business.
Now, before you tell me that companies like these are rare finds, there are gems like these in our own market right now.
Just consider the likes of Naspers and Aspen. Men who own large chunks of shares run these companies. And both of these companies would have grown your investment by more than 450% over the last five years.
The management bonus that is actually good for investors
The key to spotting these companies is to find a company where the managers buy more shares or receive incentivise with shares. This could be through share options or share bonuses. Either way, these managers will try their best to generate great shareholder returns.
As it happens, my colleague Jonathan Bachrach has found an investment where the CEO stand to make an awful lot of money if he grows the share price significantly before 2016. And he’s revealing this company to readers of his Stock of the Month advisory
, this week.
Until next time,
Here’s to staying ahead of the game.