Who is your trusted stock market mentor?
Hopefully, one, or several, trusted individuals come to mind when you are asked this question.
But what does an excellent investing mentor look like?
Well, he or she should possess the following skills:
Cool under pressure
A great mentor knows how to keep their cool when other investors panic. People frequently get nervous and sell stocks at the exact wrong time. These people consistently ride the elevator down, but not back up.
Past experiences build trust, and your mentor should set realistic and clear expectations for your investments. Oh, and they should deliver results more often than not.
There are some things you simply cannot learn in a book, and real advice stems from actual experience. The best mentors have experience with success, failure, and recovery.
With that said, these people can be tough to find.
But the good news is you can never have too many mentors.
The more QUALITY mentors you have, the more successful you stand to become.
My “dream team” of mentors include personal friends, former college professors, stock market gurus, and even Warren Buffet!
Now, Warren Buffet wouldn’t know me from a hole in the wall, but nevertheless, he is one of my most trusted mentors.
Which brings me to my next point…
…you DO NOT need to know all of your mentors personally!
It is great if you can make an in-person connection, but it would be foolish to exclude a stock market genius because their success makes them challenging to access.
Another one of my mentors is Tom Gardner, one of the co-founders and present-day CEO of The Motley Fool.
Gardner attended Brown University and has spent numerous years perfecting his craft.
Currently, the Motley Fool serves over 5 million people around the world each month!
He and his team of finance professionals have managed to outperform the S&P 500 by nearly double.
Investors do not achieve returns like that without a consistent, effective process for picking WINNING stocks.
Luckily, Gardner is not a greedy individual intent on keeping his secrets under wraps.
You can enter the mind of Tom Gardner to see what makes him so successful as an investor.
In fact, his mission is to make the world smarter, happier, and rich (not necessarily in that order).
This is why Tom Gardner has become one of my personal mentors when it comes to investing.
So, are you ready to discover what makes Tom Gardner tick?
BEST STOCK NEWSLETTER OF 2020 (December 6, 2020 UPDATE)
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- DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 15%
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FYI -- Updated as of January 16, 2021 -- Thank goodness 2020 is over and we look forward to life returning back to normal in 2021. But the one GREAT thing about 2020 if you were a Motley Fool subscriber was 21 of their 24 2020 stock picks are up; and EIGHT (TSLA, NVTA, ZM, SHOP, ZM (re-recommended), CRWD, CRWD (re-recommended), and FVRR) have now at least DOUBLED! The average return of their 2020 stock picks is now +95% compared to the SP500's +19%. Their top performer was TESLA which is now up 860% since they recommended it in January 2020. In addition, their 2019 stock picks were awesome too and they are now up 121% beating the SP by 87%; and their 2018 picks are up 209% beating the SP by 165%. Now for 2021, with a new President and a COVID vaccine, most analysts expect the market to continue up, but make sure you have the right stocks!
In fact, over the last 5 years the average Fool stock pick has more than tripled (up 214%)! This time period covers the 2016 election, the Trump administration, the China trade negotiation, COVID, and now the Motley Fool is getting ready to release their stock picks for 2021 and the Biden administration. Don't miss out on the Motley Fool's next stock pick. Here is the schedule for their next TRADE ALERTS:
- January 21, 2021 - David's New 5 Best Stocks to Buys Now List
- January 28, 2021 - David's New Stock Recommendation
- February 4, 2021 - Tom's New Stock Recommendation
- February 11, 2021 - Tom's 5 New Best Stocks to Buy Now List
Tom Gardner Stock Picking Process
Tom Gardner focuses on the underlying business of any stock.
Rather than focusing on a ticker or chart, he invests in companies with transformative potential.
Companies with this potential are the ones that can outperform and drive performance over the long-term.
You know what we call this approach to investing?
Fundamental analysis is excellent for long-term investing goals, like retirement and college savings.
Predicting markets over the short-run is nearly impossible due to volatility from many unexpected events that can occur.
However, over the long-run, market volatility normally smooths out as the markets gain value over time.
This theory tends to hold true for an individual business, as well.
If you believe a business is a good investment at the outset…
…would you sell because of one or two weak quarterly performance reports?
However, the stock price usually drops when such events are announced.
For this reason, the price will fluctuate but increase over time if the company is built for the future.
If you stay the course, you will be rewarded handsomely for your patience and foresight.
Apart from that point, Gardner considers the following aspects:
- How safe is the underlying business from an investment perspective?
- What strategies does management use to unlock value?
- Is management competent enough to run a successful business?
Gardner is a long-term, buy-and-hold investor that relies on fundamental research.
Additionally, here are some standard strategy components of Tom's investment strategy:
A stock catalyst is an event that causes the price of a security to move. These factors can range from product launches to global trends.
For example, the trade war between the United States and China is detrimental to U.S. imports. However, ABC Company can benefit from shifting its supply chain outside of the U.S. and avoid tariffs altogether.
When it comes to stock valuation, the more under-valued a stock becomes relative to its peers, the more attractive it becomes to investors.
Gardner can use financial metrics like sales and book value to make these determinations.
While Gardner does not sell on market overreactions, he does try to capitalize on any opportunity to buy.
For example, let’s say ABC Company stock drops 15-percent on an earnings miss. However, upon further review, it is discovered the earnings miss was based on timing.
But the company maintains its sales forecast and EPS guidance. In this instance, the market is clearly overreacting to the news.
The financial metrics are strong component of stock analysis as they represent the stability of any business.
Tom Gardner chooses investments that have solid financial metrics in conjunction with other factors mentioned above.
Now, it is essential to note that Tom Gardner has spent years tweaking his investing technique to make sound decisions.
You may not achieve the same success from the start by making investments on your own.
But fortunately, you can get access to Tom Gardner’s process.
Learn to Invest like Tom Gardner
As we said, Tom Gardner does not keep his stock-picking wisdom to himself.
But remember, the man is an expert in his field and needs to make money somehow.
At this point, you may be thinking: ‘I came here looking to make money, not spend money!’
So, I will share with you the cheapest product where Tom Gardner shares stock picks with investors.
The product is called Motley Fool Stock Advisor.
Every month, Tom and his equally capable (depending on who you ask) brother David Gardner each pick one stock to present to investors.
Additionally, Tom and David also choose ten stocks (five each) that they consider “best buys now.”
These “best buys” provide timely opportunities that are particularly attractive buys TODAY.
This is by far the cheapest and easiest way to get Tom Gardner’s stock picks.
And Stock Advisor provides superb value by offering many other benefits, including:
- Access to “Starter Stocks,” which are foundational companies that Tom and David recommend to anchor any investment portfolio.
- Special reports that cover significant trends and investment opportunities, including explosive growth opportunities like Artificial Intelligence (AI) and driverless cars.
- Investor community with thousands of engaged subscribers who come together online to discuss stocks, personal finance, and basically anything else you can imagine.
- Investment education provides top-quality investment education and insight on Motley Fool investment strategies.
- Stock management and alerts include the ability to manage your investments, receive buy/sell alerts, and notifications on significant price movements in the market.
It is important to note that stock picks are long-term only recommendations. Furthermore, you need to determine when to enter, and when to exit any position.
However, the Stock Advisor does an excellent job at listing the potential risks that could warrant selling your position.
You can use this information to weigh the risk and reward before parting with your money.
Is the Stock Advisor a Good Value?
Stock Advisor is running a big discount. Today, you can sign-up for Stock Advisor for just $99 annually.
Tom Gardner spends his life serving investors just like yourself and all for under $100.
If he offered his advice for free, there would be far too many people lining up to benefit.
For this reason, the price is totally reasonable in exchange for the value that you will receive.
You can build your portfolio from start to finish with the Stock Advisor product alone.
And seriously, see how much an electrician, plumber, or carpenter would charge for even an hour of their services.
You can use Stock Advisor to:
- Build your portfolio with Tom Gardner’s expert recommendations
- Expand your investment education by reading and interacting with Stock Advisor community
If you are uncertain on whether this is the right product for you, consider taking a test drive.
If you find Stock Advisor is not your cup of tea, you can get a full refund if you cancel in the first 30 days of your subscription.
What do you have to lose?
You have nothing to lose, and a mentor to gain!
Who are your stock market mentors?
Help us with your recommendations…
…and we may just future them next!