Chris’ note: Over at his Strategic Trader advisory, colleague Dave Forest has been handing his readers eye-popping wins from a little-known strategy. It’s cheaper than buying stocks… and has much higher potential upside.
The closed recommendations in the Strategic Trader model portfolio have averaged gains of 259% using this strategy. Meanwhile, the S&P 500 returned just over 16% last year… and that was better than the index’s average annual return.
In today’s dispatch, Dave lays out this strategy. Then tomorrow night, he’s hosting his first-ever live event to teach you the right way to implement it. He’ll also reveal a deal he’s found that he says has the potential to make early investors more money than any deal he’s seen before. Reserve your spot – for free – right here.
Now, over to Dave.
I’m a geologist. Before I joined Casey Research, I traveled the world looking for new mines, oil fields, and renewable energy sites.
When I found a promising project, I’d arrange financing and take it public.
One of those projects was a large gold mine in Colombia.
It had more than 10 million ounces of gold and was worth over $1.6 billion at today’s prices. So it needed major financing.
I ended up securing initial investments from two prominent billionaires: Lukas Lundin and Robert Friedland.
Over time, three other billionaires – Thomas Kaplan, John Paulson, and Seth Klarman – became shareholders of my company through their Wall Street investment firms.
I was directly involved in negotiating these financing deals. And it taught me a billionaire’s secret most regular investors don’t know about.
During financing discussions with these major investors, they demanded something called stock warrants as one of the first orders of business.
No warrants, no deal with these billionaire financiers.
Without getting too far into the weeds, here’s why: Warrants reward big investors for the risk they take by investing in a smaller company.
But most everyday investors aren’t familiar with warrants. That’s by design.
Check out Warren Buffett. The Oracle of Omaha used warrants to grab $12 billion in profits on a boring stock: Bank of America (BAC). But Buffett barely mentions warrants in his numerous public appearances, shareholder letters, and Berkshire Hathaway (BRK.A) investor events.
He and other billionaires… including Carl Icahn, Richard Branson, and even Jeff Bezos… have used warrants over and over again for enormous gains.
Look… I won’t say there’s a conspiracy to keep this incredible profit tool secret. But think about it… If you were a billionaire with access to warrants, wouldn’t you be tempted to keep them to yourself?
The potential gains are just too attractive to want to share.
But I’m here to help level the playing field by adding one simple step to your investing repertoire.
Here’s a chart of a regular stock: Virgin Galactic (SPCE). It’s billionaire Richard Branson’s space travel company. Nearly every investor on Earth knows of it.
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The stock went public in October 2019… and did pretty well. Early investors in SPCE grabbed 200% returns.
But here’s what few people know. If you added a “W”… and an “S”… to the end of Virgin Galactic’s stock symbol, you could have bought the company’s warrants…
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SPCE.WS delivered over 600% gains at their peak. In other words, the warrants tripled the performance of the regular stock.
This isn’t a one-off phenomenon. In fact, it’s a pattern you find often – if you know where to look.
Here’s another stock, oil drilling company U.S. Well Services (USWS).
You’ve probably heard the oil sector is getting hot. Crude oil rose over $80 per barrel recently.
U.S. Well Services’ stock rode that wave higher. Early this year, USWS shares gained nearly 400%. That would have turned a $2,500 investment into $12,500.
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But look what happens if you add a “W” to the end of the stock ticker…
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The company’s warrants – USWSW – delivered over 900% gains. That would have turned a $2,500 investment into more than $25,000.
That extra profit potential is why billionaires love warrants. It’s like filling up with premium, high-octane gasoline at the same price – or for less than – everyone else paid for the basic stuff.
I’ll show you one more example of the power of warrants.
The next chart is of Purple Innovation (PRPL). It’s a recommendation from my Strategic Trader advisory.
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Purple Innovation is a leader in online mattress sales. When stock markets bounced back after the April 2020 crash, PRPL shares soared. Regular investors gained nearly 500%.
But my Strategic Trader members didn’t buy the regular stock. Instead, they added a W to the ticker…
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Purple Innovation’s warrants – PRPLW – delivered astonishing gains. By the time we advised members to take profits less than two years later, they booked a life-changing 4,942% win.
That would have turned a $2,500 investment into $123,550 – enough to pay off a mortgage… put your kid through college… or put a substantial down payment on a vacation home.
Most investors will never see a 4,942% gain. Even if they buy and sell stocks every week.
The profit power of warrants is obvious. In all my examples, warrants multiplied the profits from regular stocks, in some cases by several times.
That gives you thousands, even tens of thousands, of dollars of additional gains – just by adding that extra letter (or two) on your next trade.
The problem is there are no major services that provide easy-to-follow information on warrants for free… or even for reasonable prices. Meanwhile, countless directories and services cover regular stocks.
The only way to get solid information on warrants is with a Bloomberg Terminal – a tool that costs over $25,000 a year just to operate. It also requires lots of time sifting through company press releases… earnings reports… and numbers.
Mainstream investors just don’t have that kind of time or money. Essentially… big investors are pricing you out of this market.
But that’s all changing tomorrow at 8 p.m. ET. I’m doing my first-ever live seminar to level the playing field for everyday investors.
I’ll show what warrants are, how to buy them, and how to multiply your gains from normal stocks.
I’ll teach you about this incredible profit tool for free. Just reserve your spot for my event here. Plus, you’ll get access to five training videos just for signing up.
In my experience, warrants are better, cheaper, and faster than stocks. That’s why the world’s most successful investors love them – even demand them.
So don’t forget to reserve your spot here. You have nothing to lose and everything to gain.
Keep walking the path,
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Dave Forest
Editor, Strategic Trader