What I’m about to tell you changed my financial life.

It opened up endless opportunities.

From attracting the attention of wealthy investors to opening up VC opportunities to being able to pass on less-than-ideal jobs, this did it all.

It’s so simple I’m somewhat embarrassed to reveal it.

However, if you want less risk and outsized returns, this is the absolute best way to get them.

Here it is and what to buy now because of it.

Revealed: The Greatest Investment Secret

There are basically two types of investors: value and growth.

Value investors focus on buying cheap, out of favor stocks of companies with assets worth more than their current market price.

Growth investors chase rising stocks in companies posting big growth and hoping their growth accelerates.

Both can work. Neither are ideal.

Value investors know all too well their undervalued stocks can get a lot more undervalued before they start going up.

Growth investors have been caught by precipitous price drops when the stocks they have run their course.

There’s a third way though which produces far better results over time.

The best way to invest safely and for maximum returns is combine both value and growth investing.

The reason?

It works.

Consistently.

The chart below breaks down the returns of stocks with the best and worst value and growth/momentum between 1963 and 2013 (source):

best and worst value and growth/momentumThe difference in returns is staggering.

The best value stocks return an average of 11.8% per year.

The best growth and momentum stocks deliver 11.6% per year.

The stocks which offer both the best value and strong momentum deliver 18.5% per year.

Over time, that extra 7% adds up tremendously.

It’s literally the difference between making hundreds of thousands of dollars and millions of dollars over a couple of decades.

Honestly, it took me years to learn this.

I’d sit in deeply undervalued stocks for ages.

Often times, I’d watch those stocks drop and get even more undervalued.

This method avoids that problem altogether.

It starts with finding cheap, undervalued stocks and then jumping on them only when they start going up.

Simple right?

It is.

And you saw the numbers, it works extremely well too.

Rule #1: Only Buy Stocks That Are Going Up

Right now there are still undervalued stocks in the market. 

That’s probably what you focus mostly on and you probably have a few targeted.

Now, here’s where the momentum part comes in.

This chart shows all the main sectors and their recent momentum (source):

best momentum sectors this year are energy, utilities, telecom, and materials

The best momentum sectors this year are energy, utilities, telecom, and materials.

Now, there are no guarantees when it comes to stocks.

The only reasonably achievable goal is to perform best over time.

In this case, if you find an undervalued stock in those sectors, odds of success will be deeply in your favor.

And if you keep the odds in your favor, you will have far fewer losses and far greater riches in a few years time.

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