The strategy in our 4th Pillar investment service focuses on buying shares of high quality foreign companies that are selling for less than the amount of cash they have in the bank.
For example, a company might have $5.50 per share in cash, but due to the market's irrationality, the company is traded on the stock market for just $3.75 at a 31% discount to it's cash backing.
So this means that there are several different ways you can profit from this strategy:
1. Capital Appreciation. By purchasing a well-managed, growing company that trades for less than its cash balance, there's a very strong chance that you're buying near the bottom, which reduces your risk significantly.
Consequently, you can expect the share price to increase dramatically, even if it returns just to its cash backing.
Again, this strategy is producing results averaging a return of 52% just on the share price appreciation.
2. Currency Appreciation. The second way you can make money with this strategy is with the currency appreciation.
Some of these investments involve buying companies in foreign currencies, like the Australian dollar or British pound, that are trading near multi-year lows against the US dollar, and far below their historic averages.
This substantially reduces the downside risk.
And if these currencies do nothing more than return to their historic average, then you will also make money on the currency appreciation.
3. Dividend Income. Many of the investments we make also return a portion of their profits to shareholders in the form of a dividend, often as high as 7% or more.
We make money when the stock price goes up, even just to its cash backing.
We make money when the currency appreciates from its historic low.
PLUS, we make money because we invest in well run companies that generate positive cash flow (which means we may receive dividends).
This is an exceptional investment strategy: you're taking on limited risk while exposing yourself to multiple, significant upside opportunities.
Here's a great example of what's available to rational investors like us: