Two New Buys

Here at The Kelly Letter, I rarely buy or sell anything outside of my permanent portfolios. Any subscriber will tell you that my list of open positions stays fairly constant. Each year, there are only about five buys and sells.

I report that to you proudly. The key to investing is not lots of activity. It’s prudent activity. Lots of activity leads to high commissions, high taxes, stress, and weak performance.

Prudent activity leads to:

  • Low commissions and low taxes because it requires few trades
  • Low stress because waiting for the right prices over long periods of time does not require split-second accuracy — which nobody gets right anyway, regardless of what their ads claim
  • Strong performance because stocks bought at prudent valuations and held for a long time appreciate in value

One of the main features of The Kelly Letter is its Watch List. Each stock on the list is identified as being of high, medium, or low risk and provided with a target buy price. The targets are flexible. Sometimes, when a stock hits the target, I’ll lower the target further and wait longer if I’m not convinced that the bottom has been reached or is reasonably close.

Now, that Watchlist doesn’t change much either. I get a lot of new subscribers who write to me when a stock hits its target and ask, “When are we going to buy?” I usually reply, “Perhaps never. Most of the stocks on the list are never bought.”

The reason is simple. Few stocks on the list ever hit their target buy prices. Eventually, they drop off the list because more compelling values come up. Of the stocks that do hit their targets, few do so in a way that’s convincing enough to trigger my setting an active order, so the target moves down and we resume watching only. Rarely, a stock hits its target, all conditions look right, and I set an active order to buy.

Given all that, you can imagine how remarkable it is to have more than one stock on active order at the same time. In fact, it’s only happened once before in the history of the letter. The second time it’s happened is…


That’s right, the recent market sell-off over the sub-prime lending delinquencies, about which I’ve written extensively for subscribers, has brought two of the stocks we’ve been watching for more than four months to their current target prices. In the case of one of the stocks, its target price was lowered from $20 to $19 to $18 to $16 to $15 and finally to its current $14, where it rests right now as I type. It’s a full 36% cheaper than it was when I started watching, yet the company is stronger now than it was then.

That kind of situation is what we live for around here. It has worked dozens of times for me, and it’s going to work again.

What this means to you is that now is a fabulous time to try my one-cent, one-month trial. For a penny upfront, you get:

  • The two stocks I’m buying and their prices before the market opens tomorrow
  • Access to the entire archive of past letters, portfolio activity, and other research on the letter’s password-protected area of this website
  • Every note I send for the next month

If you don’t like the letter, cancel at any time during the next month and pay nothing more than the initial penny.

If you do like the letter — and I’m confident you will, which is why I’m making this offer — then do nothing and I’ll automatically charge your PayPal account the whopping sum of $5.48 per month. You can cancel at any time and the monthly payments stop immediately.

On that last point, I’ll make it even more compelling for you. All payments for The Kelly Letter are collected by PayPal. When you subscribe via PayPal, you control the subscription, not me. That means that you’ll never run into the situation here that you sometimes hear about at other places where you try to cancel and it doesn’t go through and they end up charging you for another month, quarter, or year, and then you end up fighting with their customer service department for a refund, which may or may not ever happen.

Not here. If you ever want out, you’re out.

Enough about canceling, though, because the fact is that 85% of people who ever try the letter stick around. That’s one of the industry’s highest figures, and one of my proudest talking points.

So, to recap:

  • I make very few buys in a year.
  • I’ve placed active orders to buy two stocks right now, and two at the same time has happened only once before this in the letter’s history.
  • These two have hit their target prices after four months of patient waiting and several target price adjustments lower.
  • I’ll share these bargains with you and give you everything my letter has to offer for the next month for just a penny.
  • If you like it, you’ll pay just $5.48 per month as long as you want to keep receiving it.
  • If you ever want to cancel, it’s easy to do so and the payments stop immediately.
  • You probably won’t want to cancel, though, because 85% of people who’ve ever tried the letter want to continue receiving it.

If you sign up today, I’ll be sure you get the log-in information you need before the market opens tomorrow. I hope to welcome you soon!

Please start your one-cent, one-month trial here.

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