Since Teeka Tiwari took the helm at our flagship Palm Beach Letter advisory in June 2016, that’s the average annual return he’s delivered in the model portfolio.
That’s 17 times the average annual gain of the S&P 500 over the same time.
And Teeka’s track record leaves the average hedge fund in its dust.
U.S. hedge funds closed out 2020 with their best average annual return in more than a decade.
But according to figures from hedge fund market research firm HFM, that return was just 12.3%.
So kudos if you’re a longtime Palm Beach Letter subscriber who had the guts to follow Teeka’s picks.
You’ve not only smashed the returns of the S&P 500, our stand-in for the U.S. stock market. You’ve also trounced the returns financial elites have made investing in hedge funds.
And if you’re not familiar with Teeka’s research, pay special attention to today’s dispatch.
I (Chris Lowe) will pull back the curtain on two fundamental principles behind Teeka and his readers’ success. I’ll also show how you can use them to generate hedge-fund-trouncing returns of your own.
They’re astronomical… And it’s natural to be skeptical of these kinds of returns.
That’s why Teeka and his team hired an independent auditor to verify them…
The independent verifier’s report
Click here to enlarge
Remember, Teeka didn’t achieve these returns by accident.
They’re the result of two principles he and his team follow obsessively at The Palm Beach Letter.
That’s when you risk a small amount of money for an outsized return.
Whether they know it or not, most investors take negative asymmetric risks.
They risk large sums for the chance at low returns.
This is what you’re doing when you bet on the S&P 500. Say, via an index-tracking exchange-traded fund (ETF).
The S&P 500 has returned, on average, 8.9% a year over the past 20 years.
So the typical investor must risk about $1,000 to earn $100 in profits.
And due to bad market-timing decisions, the average mom-and-pop investor has made just 2.9% a year over that time. That’s according to figures from JPMorganChase (JPM).
Teeka takes the opposite risk approach.
He recommends investments where you can risk $1,000 with the chance of making $100,000.
These are longer-odds bets than an investment in the S&P 500. Some may go to zero. Some may go up only single or double digits.
But you need only one positive asymmetric bet to pay off big to make up for any losses on the others… and then some.
This was back in April 2016, before the cryptocurrency became mainstream news.
Teeka recommended his readers buy bitcoin when it traded at $428. It’s up 9,250% since then – at around $40,000 per coin as I write.
So that positive asymmetric bet was enough to turn every $1,000 grubstake into $93,500.
Another example is the crypto NEO (NEO). It’s the Chinese equivalent of Ethereum (ETH).
In 2017, Teeka recommended NEO when it was trading at just $0.13. As I type, it changes hands for $34.95 per coin.
That’s a 26,784% gain… or enough to turn every $1,000 grubstake into $268,846.
I was hammering on this all last week. “Volatility” – or price swings – is the price you pay to be in with the chance to make outsized gains.
If you can’t handle bone-rattling price drops along the way, you won’t be able to hold on long enough to profit. At every bump, you’ll sell out.
Take the drops investors in bitcoin and NEO had to endure after Teeka recommended these coins.
Over that time, bitcoin plunged 30% four times… 50% twice… and even 80% on one occasion.
And NEO plummeted 30% nine times… 50% four times… and 80% once.
But here’s the thing… Although volatility may be sky-high, you’re putting only a small grubstake at risk.
Teeka recommends position sizes of between $200 and $1,000 across a basket of different speculations.
If you invest even $1,000 in each, that’s the most you can lose on each. So you can sleep easy as prices bounce around along the way.
He recommends aggressive speculations that can really move the needle on your wealth. But he also recommends you limit these bets to a small portion of your portfolio.
As I showed you here, he believes bitcoin will hit $500,000 sometime in the next couple of years. He’s as bullish on the crypto as anyone I know.
But he still recommends Palm Beach Letter subscribers put no more than 10% of their portfolios in bitcoin.
And he recommends they set aside no more than an additional 2% of their portfolios for altcoins (cryptos other than bitcoin).
The rest of The Palm Beach Letter model portfolio is made up of blue-chip stocks… stable income-producing investments… cash… and collectibles.
That way, if he’s wrong on crypto… it won’t put his readers’ lifestyles at risk. And if he’s right, they have a real shot at financial freedom.
It allows them to shoot the lights out on crypto and other positive asymmetric investments…
…without giving them ulcers in the process.
Here’s a small sample of the feedback he’s gotten from them…
Teeka, I got bitcoin and 30 other cryptos from your recommendations in 2017. I’ve been sitting on them ever since, and my $15,000 investment was worth a bit over a quarter million a month ago.
– Bill P.
At the latest highs, I was up nearly $1.5 million (on about $38,000 of cash investment), which is amazing, as my business has died over the last year.
– David W.
I’ve been with you since 2016, and you have been very consistent. I sold a bit of crypto and paid off my house last week, because until then I had never sold.
– Jody G.
Now, the best way to join Bill, Dave, and Jody is with a Palm Beach Letter subscription.
You’ll get access to all the recommendations in Teeka’s model portfolio… the in-depth research he and his team have put together… and the moneymaking ideas they share each month.
If you’re not ready to take that step right now, that’s fine, too. You can still apply the two principles Teeka and his team have built their success around.
They’re easy to follow…
Set aside a portion of your portfolio – 10% is a good starting point – for positive asymmetric bets. Then divide up the rest into safer investments.
I can’t guarantee you’ll earn returns as high as Teeka has delivered. But you’ll be in with the chance for this kind of life-changing wealth without needing to take crazy risks.
And stay tuned to The Daily Cut.
I’ll continue to share with you the best wealth-creation ideas from Teeka and the rest of the Legacy Research team… including where to find the next big positive asymmetric bets.
If Teeka… or another member of the Legacy team… has helped you transform your financial life, we’d love to hear about it. Send your success story to [email protected].
July 26, 2021