Today, I want to introduce you to Andrew Packer, my newest co-editor here at Investors Alley.
Andrew comes with an impressive resume in the markets, and he’s developed a very impressive approach to squeezing income out of the markets.
In today’s article he’s going to share some of that approach with you.
So, keep reading – and stay tuned for more from Andrew…
Hi, I’m Andrew Packer.
When it comes to investing… I’ll admit that I’m a little, well, weird.
I don’t just do what everyone else is doing.
If I did that, I’d get the same results as everyone else too. And I’m not ready to settle for average.
That’s why I’ve developed a new way of thinking about my investments.
It’s a strategy that anyone can use. Once you learn it, you’ll probably never think about the old way of “investing” again.
You won’t just want to let any new stock into your portfolio.
Instead, you’ll make a stock prove itself. By paying you.
Because that’s what I do.
First, I make a stock pay just for me the privilege of being considered.
I know, I know. It’s a quirk of mine. But as an investor, I want cold, hard cash. Up front.
Even with that cover fee requirement, it’s no guarantee a stock will get in. Sometimes, a stock will pay me a cover fee for years and not get in.
That’s been the case with Nvidia (NVDA).
The graphics processing company has become a big growth name, and they’ve had huge returns.
But that’s only in hindsight. Many investors got in early when shares were cheap … then turned around to cash out before ever seeing the biggest gains NVDA had to offer. Likewise, for those buying in today’s volatile markets, where the stock has proven its potential but is also going for uncomfortably high valuations.
In short, the rules of today’s markets aren’t exactly set up for investors to win.
So why play by the rules?
My Portfolio Has a “Cover Fee”
For years, I’ve happily collected cover fees on NVDA, only to decide to leave shares hanging. We’re talking thousands of dollars in extra income each year without making a single stock purchase. I’ve even got friends and family doing the same thing—and they’ve got the receipts to show you!
Sure, someday, I may finally let shares in. But they’ll still have to pay the current cover fee, and it’s got to be worthwhile enough to make room in my portfolio.
Sometimes, a company gets desperate to get in.
Case in point? The Walt Disney Company (DIS) needed a place to crash while markets were imploding in the spring of 2020.
So, for the right price, I let some shares into my portfolio. Today, shares are up about 45%. Not bad for two years.
But… once the stock market was getting back on its feet, I wasn’t just going to let Disney stay in my portfolio forever like some freeloader.
Once again, why play by the rules?
The traditional buy-and-hold approach is limiting. Specifically, it limits my ability to turn the positions in my portfolio into cash.
So that’s when I started charging rent for Disney.
Most of the companies in my portfolio pay rent. Sometimes, I get a big fee up front. Other times, I get some modest payments each month. Figuring out the right balance is key to maximizing income.
And that’s how you get wealthy. Building up small, consistent, and cash payments over time.
I did some math last fall when I took my wife to Walt Disney World. Based on Disney’s cover fee… and all the rent payments I got…
…our three-day excursion to the major theme park was already paid for!
And Disney is still paying rent to be in my portfolio to this day.
Here’s How You Can Do it Too
I’m charging these companies rent through a standard legal contract that anyone else can use to get a cash payment on demand.
If this sounds like something just for the rich… you’re right. But now, I’m going to share the same strategies they’ve used to build astronomical wealth and massive income.
Warren Buffett has used some of the tools I’m talking about when profiting from Coca-Cola (KO) or when he was buying the entire Burlington Northern Santa Fe railroad.
If you want an investment strategy where you can “be like Buffett” while also getting a much better annualized return than buying and holding common stocks… you’ve come to the right place.
That’s why I call my strategy the One Percent System. Because it captures the real-world earning potential that’s often only enjoyed by the “one percent.” Yet you don’t have to be wealthy to use it.
And after proving this concept over the past two years, I’m finally throwing open the doors for Investors Alley to reveal the moneymaking secrets of the world’s wealthiest investors.
I’ll have more on that opportunity in the days ahead. In the meantime, I want you to think about how charging your stock positions a cover fee and ongoing rent can potentially change your life.
Why settle for a 2 percent dividend when you can get triple or quadruple that amount every few months? Why worry about chasing investments when you can let them come to you?
Once you realize the benefits of getting the most cash out of your stocks, you’ll be off the treadmill in no time and on the way to true wealth, with your portfolio finally delivering instant cash payments on demand.
Stay tuned for details on my upcoming presentation…
