WARNING! What you’re about to read might upset you…
Analysts on Wall Street are in on the con. So are most of the talking heads you see on the financial news media.
They don’t have your best interests at heart.
They aren’t telling you that many of the companies you may own stakes in right now - are flat out lying to you!
Even worse, it’s 100% legal for these companies to tell you these lies.
Which is why you need to take matters into your own hands and learn the truth about...
Wall Street corporations don’t want you to become a well-educated investor.
They don’t want you to know all the details about the products you’re buying…
Or ask questions, be patient, and use common sense when investing...
They want you to believe investing is too hard — and too complicated — for you to be any good at it on your own.
Instead you’re expected to blindly trust that what a company is telling you about their numbers… the health of their business… and their prospects for the future, are 100% FACT.
And they want you to hand over your hard earned money that’s taken you decades to save — without question.
These businesses drown out the good ones too, making it impossible to see the forest from the trees.
It might be the most elaborate “scam” ever devised.
For decades, companies have used it to suck money out of the pockets of everyday folks just like you… and transfer it directly to the same corporate fat cats who legally lie to you about their stocks.
And if you’re not careful, you could become one of the thousands — possibly millions — of people who get ripped off again by the so-called “blue chips” of Wall Street.
But I’m here to tell you that it’s not “too hard” or “too complicated” to learn the truth about a whether a company is a good investment.
If you’re looking for a way to quickly build confidence in your own abilities … take control of your financial future… and finally know for sure if the stocks you own are truly going to pay off… I can show you how.
My name is John Del Vecchio. And there’s literally nothing these corporations can hide from me.
You see, I’m a forensic accountant.
For 20 years, my job was to slice and dice earnings reports that were hundreds — sometimes thousands — of pages long and find out what companies were REALLY worth, the good and the bad.
But after two decades on Wall Street, I was ready for something new… a way to help the everyday person…
Which is exactly why I’m revealing this information to you today.
I’ve created six simple tests you can easily run yourself on a company that can tell you whether or not their numbers contain any of these “legal lies” that can destroy your wealth.
But before I tell you how to put your stocks to the test, it’s important you know exactly why it’s so critical for you to be able to spot these corporate smokescreens.
Take a look at this chart...
Do you see anything wrong with this?
Now I’m all about free market capitalism. I have no problem with anyone making money, especially when it’s well deserved.
But I do have a problem with this...
Corporate CEO’s are currently earning 335x more than their employees!
While in many cases, shareholders aren’t making anything at all. They’re LOSING money on these companies!
All thanks to the 100% legal lies that corporations are permitted to fudge their numbers with.
And chances are very good that you own at least one of these stocks in your portfolio right now.
Like I said earlier. It’s a con that everyone at the top is in on.
Wall Street... corporate executives... and the more than $2 billion per year spent on lobbying to buy our elected government officials.
Well it goes back to one fateful move 36 years ago that opened the door for companies to mislead you.
You see, for the majority of the 20th century… companies weren’t allowed to buy back their own stock, except in extraordinary circumstances.
It was actually considered market manipulation (i.e. FRAUD!) for companies to artificially inflate their stock price by reducing the available supply.
Why? Because if a company sees it share price plummeting for any number of reasons… and their investors are getting nervous and ready to sell… then that company can easily buy back outstanding shares in the market.
This reduces the amount of public shares available… and when supply dwindles - share prices naturally go up!
It’s a way for a CEO to buy himself some goodwill with his investors… their stock goes up and his company’s dropping share price is temporarily halted and out of the financial headlines.
The only problem is - NONE OF IT IS REAL.
The issues that had driven the company’s price down to begin with - still exist!
All this buyback did was put lipstick on a pig… and lipstick eventually ALWAYS rubs off.
But then in 1982, the Securities and Exchange Commission passed rule 10b-18... providing safe harbor for companies to buyback their own stock without fear of repercussions.
And take a look at what happened...
Buybacks and dividend payouts have exploded! But it’s all because of a legal “LIE”.
Sure, it’s a lie that makes you some money in the short term… but when a company is masking their problems…
Things like declining revenue, stalled cash flow, loss of market share, or an oversupply of inventory…
… then all a stock buyback and a dividend increase does is kick the can down the road a little more.
And when that road finally ends (and it always does) the amount you could lose by owning one of these companies will FAR outpace what you make from a small dividend increase.
Now don’t get me wrong, buybacks and dividends aren’t inherently bad – a lot of companies can have a good reasons for both.
They do create value for the shareholders… but only under certain conditions (which I’ll tell you about here in just a minute).
Over the past 40 years, corporate profits have doubled— from an average of 6 percent of GDP during America’s post-war economic heyday to more than 12 percent today — to an incredible $1 trillion a year!
So where are all the jobs? Why haven’t real wages for gone up? Why is our nation going further and further into debt?
Where did all this extra money go?
The answer is as simple as it is surprising: Much of it went to stock buybacks—more than $6.9 trillion of them since 2004!
Over the past decade, the companies that make up the S&P 500 have spent an astounding 54% of their profits on stock buybacks.
Last year alone, U.S. corporations spent about $700 billion, to prop up their share prices by repurchasing their own stock.
But here’s the real kicker. Since the 1980s, public corporations have actually bought back more equity than they’ve issued.
That means, YOU the shareholder are in many cases LOSING money while a CEO is pocketing the profits instead!
After all, do you think the corporate executives who are mostly compensated with stock and stock options? Have a good reason to inflate the value of their shares through buybacks?
And then dump them on the unsuspecting everyday investors for huge gains?
Yeah, me too.
Now, I don’t want to imply that all management teams are a bunch of crooks and stocks aren’t safe. There are absolutely great companies who put you — the shareholder — first.
The only question is - how in the world do you find them???
How do you tell the difference between a company that’s trying to pull the wool over your eyes using legal tactics like stock buybacks… and a company whose business is rock solid and sustainable?
In other words - a company whose numbers and future profit prospects are 100% LEGIT.
If you don’t know what you’re looking for, you’ll be easily fooled by the smoke and mirrors.
Which is why I want to tell you about...
In 2012, my co-author Tom Jacobs and I wrote our first book, “What's Behind the Numbers? A Guide to Exposing Financial Chicanery and Avoiding Huge Losses in Your Portfolio” with the sole purpose of revealing dirty tricks like corporate buybacks to ordinary folks like yourself.
It was named the “Best Investing Book of 2013” by Stock Trader’s Almanac and widely praised by other industry professionals…
We’re proud of that book, but after working alongside Harry Dent and the rest of the Dent Research team… we realized that it wasn’t as useful for the everyday person as it could be.
Because we left out a critical piece of the puzzle... where to find the RIGHT companies to invest in instead!
So we decided to simplify everything I know about forensic investing and create a simple system you can use… no matter your current skill level… to gain control of any portfolio and feel confident you can find quality stocks that pay you first… not the CEO.
The most important thing an investor should do is minimize the risk of a blow up... and maximize the chances of picking a winning stock…
Which is exactly what the six simple tests Tom and I have designed are intended to help you do.
Here’s a brief look at what each one of these six, easy-to-do, evaluations can reveal:
#1 The Revenue Test:
If the revenue numbers a company releases are bogus or even a bit misleading, it all flows downhill like an avalanche, destroying the company’s entire financial performance in its path. This test enables you to steer clear of management teams that make sales—and customer demand—look better than they are.
#2 The Cash Flow Test:
Cash is king! A company can’t spend earnings, only cold hard (or digital) cash flowing into the company’s bank accounts. You want real money, not management’s smoke and mirrors. This test can show you how much of it a company really has in its accounts.
#3 The Earnings Test:
Earnings season is prime time on Wall Street. And there’s tons of ways for management to pretty up their quarterly results and fudge what their real profit margin is with legal accounting tricks. You need to know that the earnings they report are quality, not fluff. This test puts those figures under the microscope and shows you the truth.
#4 The Expectations Test:
Remember when I said many Wall Street analysts and the talking heads on TV were in on this scam? There’s no better example of this than earning expectations.
Many analysts have a herd mentality when giving stock ratings and earnings estimates and don’t like to go out on limb with an estimate too different from everyone else. Which means you can’t take their ratings in good faith. But because we know most other investors are going to follow them blindly, this test can get you ahead of the curve by doing your own research instead.
#5 The Discount Test:
Valuation, not price, matters. We always want to buy great stocks at a discount… not when they’re overvalued and selling at a premium. This test helps you find companies trading below their TRUE value - giving you a head start of profits when the market finally catches up.
#6 The Payout Test:
Everyone knows the value and pitfalls of dividends. What everyone doesn’t know is that there’s more than one way to get “paid” to own a stock. There are three keys to shareholder yield… and understanding how they work is crucial to picking winning stocks… and avoiding the bad ones. This test can help you locate the companies that will pay you the best, most sustainable yields… without the worry that they’ll dry up in a year when a company runs out of tricks.
Whether you’re brand new to investing, a seasoned pro, or just want to learn more of the investing world… learning and using these six tests to evaluate every stock you come across could dramatically improve your results.
And the best part is - you don’t need to be a forensic accountant to run them on any stock!
Because I’m revealing the simple, easy-to-follow way for you to put any company on Wall Street through these six tests inside our BRAND NEW book…
I wrote this book with one mission in mind.
To help YOU stop falling for the “legal lies” that corporations have been feeding their shareholders for years… and to instead point you in the direction of stocks that put YOU first with their money.
Because they ARE out there! It’s true. But they’re essentially hidden in plain sight.
You’ve just got to know where to shine your light to find them.
Inside you’ll not only learn exactly how to use all six of these tests to uncover these “hidden profits” … but also:
And much, much more!
You didn’t need me to tell you the deck was being stacked against you by Wall Street and greedy CEOs…
But what you do need to know is that it’s NOT too hard or too complicated to pinpoint rock-solid, profit-producing investments on your own!
So that you don’t have to accept the “legal lies” that corporations expect you to believe… that only end up padding THEIR pockets.
But now that you DO know, you have an important decision to make…
Is today going to be the day you take control of your financial well-being and learn — once and for all — how to invest in the right companies?
Or are you going to make excuses and kick the can down the road… or worse, bury your head in the sand and pretend like none of this is true…
If you’re still reading this, I think you know the answer.
Which is why I’m urging you to get your copy of my brand new book, The Rule of 72 today and read it all the way through.
To reserve your copy of Rule of 72, all you need to do is click the “Order Now” button below.
Once you’ve completed your secure order, you’ll receive your email confirmation in less than a minute and your copy of The Rule of 72 will arrive in your mailbox in 5-7 business days.
Please don’t hesitate. It’s never too late to learn the truth about your portfolio and to make change that could impact your wealth for years to come.
The six simple tests you’ll find inside Rule of 72 could guarantee you never fall for corporate trickery again… and learn how to ONLY fill a portfolio with companies with the ability and health to pay you FIRST, for years to come.
Don’t wait a second longer! Get started transforming your financial future with your copy of Rule of 72 right now.
John Del Vecchio
P.S. My brand new book is written for everyday folks who are fed up with being lied to and taken advantage of… and are ready to do something about it.
If you’re looking for a way to quickly build confidence in your own abilities … take control of your financial future… and finally know for sure if the stocks you own are good or bad… I can show you how.
Click here now to order your copy of Rule of 72.
It’s a quick and easy read that will demystify the investment process and help you navigate the many landmines you’ll face as an investor in these strange financial times.
Inside, you’ll learn a simple, easy-to-use investment strategy I call “The Six Texts” which you can use to research every investment you currently have… and are planning on making.
And I’ll be debunking many of the common — but dangerous — investing myths you’ve probably learned from your broker or financial advisor.
Click here now to order your copy of Rule of 72 today!