| Dear Reader, I’ve received quite a few questions recently as I’ve been writing to you about Wealth Accelerator stocks. As you likely know by now, I call a stock a Wealth Accelerator if it’s radically mispriced, overlooked, and ignored by the press and analysts. Some of these mispriced stocks are incredible bargains. They have great managers, healthy balance sheets, and successful track records, which gives us a margin of safety when we buy. That’s Wealth Accelerator investing in a nutshell. But today I want to go deeper and answer some of the questions I’ve received. Q: What do you do when a play goes against you? Do you hold forever or sell? A: Great question. Obviously, I want to buy solid names at cheap prices. Sometimes, the stock gets even cheaper in the short term. That may be an opportunity to increase our position at a lower price. But, yes, there are limits to my patience. I have a capital preservation strategy, and I don’t hold on to stocks if the market’s telling me I’m wrong. If my outlook changes, and it’s time to sell, I update my premium subscribers immediately. Q: How do you determine when it’s time to sell winners? A: Everyone wants to capture as much profit as possible. But sentiment shifts, conditions change, and you can’t hold every stock forever. If I think we’ve captured most or all of the upside, I send out a sell alert. Both of these questions come down to a fundamental point—an important part of my process. I play the hand the market gives me. When it’s time to sell, I sell. And I always communicate that guidance right away, along with a complete explanation of my research. Q: If markets keep levitating higher, why do I want to own mispriced stocks and wait around for gains? A: I get this question quite a bit. Folks ask me, “Can Wealth Accelerators do more for me than Tesla and other tech stocks?” The answer is yes. Look, you have to own what’s going up. And that’s what I expect Wealth Accelerators to do over the long term. If you dedicate just a small portion of your portfolio to mispriced Wealth Accelerators, you can boost your total portfolio gains significantly. Every investor has different goals, but I’m an evangelist for allocating small portions of your portfolio to different ideas. And adding a few Wealth Accelerators is a great way to play mispriced small-cap stocks. Q: How do I find out more about your experience in the markets, your background, and the opportunities you see in Wealth Accelerator stocks? A: I urge you to take a few minutes to review my recent presentation. In it, I show you my research process, discuss past Wealth Accelerators I’ve written about, and review some hypothetical examples of significant Wealth Accelerator gains. My presentation comes offline tomorrow, so before time runs out, you should click here and learn more about my work. Sincerely, Thompson Clark
Editor, High Conviction Investor | 