How Bill Finds the Best Stocks First
March 29, 2017 at 05:00 AM EDT
Private Briefing 's Bill Patalon has shown us quite a bit about finding the best stocks at great prices. For instance, one of the things he looks for is high levels of "insider buying" (not insider trading), which is a very potent profit catalyst for stocks. After all, insiders sell their shares for all kinds of reasons, but they buy for one reason alone: They expect the stock to go straight up. Another method Bill uses to bullseye shares, particularly when making a prescient "early" call, is the business model. A solid business model, especially from the get-go, almost always brings in solid revenue later. Especially potent is the old "give 'em the razor, sell 'em the blades" model of locking in a juicy revenue stream. It was perfected by King Camp Gillette in the early 20th century, and you know how it works: The durable razors can be had for cheap... but the disposable blades you need to stick on the business end are often three or four times more expensive, and most people need a steady supply. That's expensive if you're a customer, but it ought to make investors' eyes light up. It's an old, profitable technique, but it's actually becoming more widespread - and more profitable - as time goes on... Tags: Stocks To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2017 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post How Bill Finds the Best Stocks First appeared first on Money Morning - We Make Investing Profitable .