Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Why You Shouldn’t Get Excited About Gold Price Mini-Rally - 26th Jan 21
The Truth About Personal Savings Everybody Should Know and Think About - 26th Jan 21
4 Economic Challenges for 2021 - 26th Jan 21
Scan Computers 2021 "Awaiting Picking" - 5950x RTX 3080 Custom PC Build Stock Status - 26th Jan 21
The End of the World History Stock Market Chart : Big Pattern = Big Move - 26th Jan 21
Stock Market Recent Sector Triggers Suggest Stocks May Enter Rally Phase - 26th Jan 21
3 Top-Performing Tech Stocks for 2021 - 26th Jan 21
5 Tips to Manage Your Debt - 26th Jan 21
Stock Market Intermediate Trend Intact - 25th Jan 21
Precious Metals Could Decline Before their Next Attempt to Rally - 25th Jan 21
Great Ways of Choosing Good CMMS Software for a Business - 25th Jan 21
The Dark Forces behind American Insurrectionists - 25th Jan 21
Economic Stimulus Doesn’t Always Stimulate – Pushing On A String - 25th Jan 21
Can Karcher K7 Pressure Washer Clean a Weed Infested Driveway? Extreme Power Test - 25th Jan 21
Lockdown Sea Shanty Craze - "Drunken Sailor" on the Pirate Falls Crazy Boat Ride - 25th Jan 21
Intel Empire Fights Back with Rocket and Alder Lake! - 24th Jan 21
4 Reasons for Coronavirus 2021 Hope - 24th Jan 21
Apple M1 Chip Another Nail in Intel's Coffin - Top AI Tech Stocks 2021 - 24th Jan 21
Stock Market: Why You Should Prepare for a Jump in Volatility - 24th Jan 21
What’s next for Bitcoin Price – $56k or $16k? - 24th Jan 21
How Does Credit Repair Work? - 24th Jan 21
Silver Price 2021 Roadmap - 22nd Jan 21
Why Biden Wants to Win the Fight for $15 Federal Minimum Wage - 22nd Jan 21
Here’s Why Gold Recently Moved Up - 22nd Jan 21
US Dollar Decline creates New Sector Opportunities to Trade - 22nd Jan 21
Sandisk Extreme Micro SDXC Memory Card Read Write Speed Test Actual vs Sales Pitch - 22nd Jan 21
NHS Recommends Oximeter Oxygen Sensor Monitors for Everyone 10 Months Late! - 22nd Jan 21
DoorDash Has All the Makings of the “Next Amazon” - 22nd Jan 21
How to Survive a Silver-Gold Sucker Punch - 22nd Jan 21
2021: The Year of the Gripping Hand - 22nd Jan 21
Technology Minerals appoints ex-BP Petrochemicals CEO as Advisor - 22nd Jan 21
Gold Price Drops Amid Stimulus and Poor Data - 21st Jan 21
Protecting the Vulnerable 2021 - 21st Jan 21
How To Play The Next Stage Of The Marijuana Boom - 21st Jan 21
UK Schools Lockdown 2021 Covid Education Crisis - Home Learning Routine - 21st Jan 21
General Artificial Intelligence Was BORN in 2020! GPT-3, Deep Mind - 20th Jan 21
Bitcoin Price Crash: FCA Warning Was a Slap in the Face. But Not the Cause - 20th Jan 21
US Coronavirus Pandemic 2021 - We’re Going to Need More Than a Vaccine - 20th Jan 21
The Biggest Biotech Story Of 2021? - 20th Jan 21
Biden Bailout, Democrat Takeover to Drive Americans into Gold - 20th Jan 21
Pandemic 2020 Is Gone! Will 2021 Be Better for Gold? - 20th Jan 21
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Many of the World’s Best Investors Made Their Fortunes This Way…And You Can Too

Stock-Markets / Investing 2016 May 27, 2016 - 03:03 PM GMT

By: Casey_Research

Stock-Markets

By Justin Spittler

Editor’s note: Today and tomorrow, we're stepping away from our usual market commentary to share a very important idea with you…

Below, you’ll read our interview with Nick Giambruno, editor of Crisis Investing. In it, Nick breaks down his successful investing system—what he calls “the most powerful wealth building secret in investing.”


You can start putting this strategy to work yourself by joining Nick's service (more details at the end of today's piece)…


J. Spittler, editor of Casey Daily Dispatch: Nick, your advisory is called Crisis Investing. Could you explain what “crisis investing” is?

Nick Giambruno: Crisis investing is basically buying elite companies in beaten-up countries or industries. When there’s a crisis, most people only see danger. But it’s actually an opportunity. A crisis often allows you to buy a dollar’s worth of assets for a dime…or less.

Many of the world’s greatest investors have made their fortunes this way…but anyone can do it. You don’t need be rich or well-connected. You don’t even need to travel to do it.

In fact, if you have a regular brokerage account—and the courage to buy when others are fearful—you're all set.

The courage part is key. You can't be a successful crisis investor if you're not willing to go against the crowd.

Baron Rothschild was correct when he said "the time to buy is when there’s blood in the streets."

Warren Buffett struck a similar tone when he said “you want to be greedy when others are fearful and fearful when others are greedy.”

Likewise for legendary investor John Templeton: “The time of maximum pessimism is the best time to buy.”

These statements perfectly capture the essence of crisis investing.

Crisis investing is how these investors became some of the richest men to ever walk the earth.

J. S.: Fascinating. What drew you to this unconventional strategy?

Nick Giambruno: I’m a contrarian by nature. I zig when others zag.

So naturally, I buy assets most people hate. Some of my close friends and family think I’m crazy for doing this…but that usually means I’m on to something. After all, it wouldn’t be crisis investing if I was going with the crowd.

I was also inspired by Doug Casey.

Doug is one of the world’s most successful crisis investors. He literally wrote the book on it. His book, Crisis Investing, was a New York Times bestseller for 34 weeks. He has also hit numerous “home runs” investing in crisis markets.

Doug is my friend and mentor. Over the years, he’s helped me hone this profitable investing strategy.

The name of my advisory, Crisis Investing, is a nod to Doug and the roots of Casey Research.

J. S.: It pays to learn from the best. You often call crisis investing “the most powerful wealth-building secret in investing.” Can you explain why?

Nick Giambruno: Because crisis investing can allow you to make five or ten times your money on safe investments.

It’s somewhat counter intuitive. Most folks think you need to take big risks to make big returns.

I see things differently. I think risk is largely a function of price. The higher the price, the riskier the asset.

Right now, U.S. stocks are trading near all-time highs. I consider them very risky. Bonds are even riskier. And real estate in places like Vancouver and London are in a super bubble.

If an asset is really expensive, it usually means you’re late to the party. You should avoid expensive stuff if you want big gains.

I prefer situations where everyone else has thrown in the towel…where the sellers are begging for a buyer.

That’s when you can buy high-quality companies for dirt cheap. It’s low risk, high reward. What could be better?

The best investors in the world understand you make a lot of money buying cheap assets, not expensive ones.

Take John Templeton. Templeton is considered one of the greatest stock pickers of the last century.

In 1939, he made a fortune betting against the crowd.

At the time, millions of Americans were in poverty due to the Great Depression. Nazi Germany had just invaded Poland to kick off World War II.

There was an incredible amount of fear in the world. Templeton, then just a recent college grad, saw an opportunity. He invested $10,000, the equivalent of $167,000 today, in U.S. stocks.

Four years later, Templeton sold his portfolio for a 300% gain.

J. S.: That's a great example. Let's turn to the things you look for in a good crisis investment. Anything in particular?

Nick Giambruno: Ideally, I want to buy at the moment of maximum pessimism.

Now, it's impossible to identify exact bottoms…but there are ways to tell if a market is near a bottom. That’s good enough to make you a lot of money.

One thing I look for is negative investor sentiment. The mass media can be a big help here. I steer clear of anything the financial media is in love with. On the other hand, scary headlines are often a clue that crisis bargains are available.


If a country or industry is getting nothing but bad press, it’s worth a look. It’s even better when a crisis makes the front page of world newspapers. That means most investors have given up. You can make a fortune buying these hated markets.

J. S.: What else do you look for?

I also look for beaten-up markets. I like markets that are at the lowest level in a decade or more. You can find incredible opportunities there…

You see, in a crisis, all stocks plunge. This gives you the chance to buy sound, profitable, and well-run businesses for next to nothing.

Specifically, I look for markets that are at least 66% cheaper than their historic average.

Most importantly, I look at dividends. Without question, dividends are the best single indicator of true value. Earnings can be unreliable. Flexible accounting rules allow companies to stretch the truth. The right fictions can easily pump up a company’s earnings.

Dividends, on the other hand, are actual cash payments landing in your pocket…and you can't fake that. They are real, and nothing is easier to measure.

Double-digit dividend yields in quality companies are a sign that sellers have panicked. Plus, it’s nice to collect a fat dividend check from a quality company while you wait for a crisis market to rebound.

It’s astounding what you can get in dividends alone when a market nears its bottom. Many people don’t realize this.

Editor's note: With severe crisis comes huge opportunity. That's why Doug Casey has released an urgent message spelling out exactly what you can do about this crisis today. In this free video, you'll learn how to protect yourself... and how to potentially make big gains as a result of the coming crisis.

And if you hurry, you'll also learn how to get $1,000 off our newest premium research service, Crisis Investing. This special offer closes on Saturday night. Click here to learn more.

The article Many of the World’s Best Investors Made Their Fortunes This Way…And You Can Too was originally published at caseyresearch.com.
Casey Research Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules