Jack Dreyfus took a different path to stock market riches than most.

He did something most investors are too scared to do. And then did it over and over and over again.

The results were spectacular. The Dreyfus Fund crushed every one of his competitors. Between 1953 and 1964 the fund posted 604% gains -- almost double the 346% for the Dow.

His secret was very simple too. And it might be just the ticket to lead you to a fortune in some most attractive stocks in the market today.

The Strong Get Stronger

Dreyfus’ secret to success was to buy high and sell higher.

He bought stocks making 52-week highs almost exclusively.

He bought strength, not bargain.

He was a momentum investor -- one of the best ever.

And if he was around today, one sector he’d surely be buying into is cyber security.

They have everything an investor - whether a deep value Cheap Investor or a momentum chaser like Dreyfus - could want.

First, momentum.

We mentioned the ISE Cyber Security Index in December. We said, “The stage is set for cyber security to enter a multi-year bull market and it’s already starting to show.”

The Index was sitting at a new all-time high then.

A point quite scary for a lot of investors. But a big bullseye for a momentum investor like Dreyfus.

Well, stocks like FireEye (FEYE) and CyberArk (CYBR), up 37% and 90% respectively in the last month, are leading the entire Index more than 15% higher since then.

That’s a lot of momentum. And as we know buying leads to more buying, so it’s more likely to continue too.

But we’re more than just momentum investors buying what’s up. We believe there’s much more to investing successfully. And, in the case of cyber security, there’s is much, much more.

The war has just only begun…

You know all the stories. They’re almost weekly now.

An attack cost Target $248 million after hackers stole 40 million payment card accounts.

Another attack cost Home Depot $43 million.

Sony’s recent cyber mess could cost well over $35 million.

A nasty cyber attack in the Netherlands crippled most of the government’s sites.

And most recently the cyber attack on Anthem (WLP), the second largest health insurer in the country, could be the most expensive of all.

The Anthem attack exposed the personal information of up to 80 million people. Names, birthdays, addresses and social security numbers may have been revealed is the biggest breach of a healthcare company.

But that’s nothing compared to what’s coming.

Cyber security experts warn of bigger cyber threats to gas pipelines, health records and systems, credit cards, driverless cars, smart kitchen appliances, power plants, underground networks, water supplies, and transportation systems.

Think it can’t happen here in these areas?

It can. It will. And it already has.

In fact, as the Sony issue was unfolding, hackers were attacking computer systems at a nuclear facility in South Korea.

The only solution to big problems is money. A lot of money.

And as the problem grows bigger, so will the money spent to solve it.

Engineering & Technology Magazine reports, “Many organisations are simply gambling that they do not represent an attractive enough target compared with their peers.”

That’s hope. And like investing, hope is is not a strategy.

We expect that to change rapidly as more systems outside of the traditional target areas like financial systems are attacked.

A Winning Combination

It’s the perfect set up whatever side of the investing spectrum you’re on.

For value investors, we know Wall Street is still underestimating future cyber security spending.

Analysts at FBR Capital believes cyber security spending could jump 18% to 20% this year. There expecting growth of just 3% to 5% just a couple years ago.

Basically, there’s still big growth ahead the market has not factored in yet.

That’s what all investors focused on the fundamental -- like your editor -- expects to see.

For momentum players, there’s strong and growing momentum behind these stocks.

That’s something a lot of investors like to see. And they’re the driving force that pushes a bull market like we’re watching in cyber security stocks into a bubble.

It’s the cascading profits that made Dreyfus into a legend and will likely pay off big in the next few years too.

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