It’s a tale of the undertaker and the senator… two of our old fishing pals.
We’ll take a dive into their unique story as we finish the week by taking an off-centered look at making money in an off-centered world.
The senator, you see, is just what you’d imagine.
He was born to wealthy parents in the South. The only thing repressing his gift of gab was the silver spoon in his mouth. With the help of a few good friends and some well-timed donations, he made it into law school and eventually the halls of Congress.
He’s not a bad guy… he just sees the world differently than we do.
The undertaker, on the other hand, is quiet. There’s not much need to talk in his line of work. But he’s got one sick sense of humor.
A day on the water with him is always pleasant. He’ll leave us in tears for a multitude of reasons.
But we’re not holding a personality contest.
No… the senator would win.
This is about money.
And, hands down, that’s where the quiet undertaker shines.
But what’s crazy is we’d bet not 1% of investors would follow his advice. They’d rather follow in the squishy footsteps of the senator.
His friends in the swamp, they figure, surely must know where the money’s hiding.
We beg readers to take a different perspective.
Man vs. Man
The senator, although he’ll never admit it, is a salesman. He makes his living selling promises.
He’ll tell us his tax plan will make our business more money. He’ll tell us a new spending bill is a sure thing to line our pockets. And he’ll tell you about his inside scoop…
Whatever it takes to get a vote and keep his job.
But the undertaker doesn’t need your vote.
Nope, he’s in a healthy business… well, sort of.
Customers keep coming – day and night.
He has no need to lie, no need to boast.
That’s why we like him.
And best of all, the undertaker gives us the very best information. He doesn’t give us tales of what could come… a secret that will supposedly be hidden in the next quarterly report.
No, he doesn’t even need to tell us what a company does.
His insight is much simpler – and we’ve found it much more powerful.
The Death Indicator
The undertaker simply tells us who’s selling.
“Old man Johnson came in last night,” he’ll tell us. “His wife’s torn apart. She’s not sure what she’ll do without him.”
Oh, we know what she’ll do.
We’ve seen it all before.
In a week or two, she’ll open the dusty old filing cabinet in the basement and take a gander at what her husband tucked away all those years ago.
She’ll find his brokerage statement… and cash out.
The mourning widow will sell 10,000 shares of this… 5,000 shares of that… and go on a cruise to Alaska to help get over the loss.
We’ve seen it hundreds of times.
We’ve even bought her stock.
It’s usually cheap.
You see, the senator boasts of what’s to come, whether he believes it or not. But the undertaker tells the truth – no matter how sad or unfortunate.
It’s an off-centered tale. We told you from the top.
But the lesson, dear friend, is right on the money.
The senator represents the system. He represents Wall Street and how you’re “supposed” to make your money.
The system wants you to make your bet and hold your breath. Follow the headlines and see what happens.
You know what happens. We all know what happens.
The system makes money. But you? Not so much.
That’s why it’s the undertaker’s quiet but steady advice we follow.
It’s the secret ingredient in our long-winning recipe. We don’t care so much about the big promises and far-out dreams… we just care about who’s buying and who’s selling.
By tracking that simple metric – the core catalysts for stock price movement – we’ve logged a long track record of success.
We mourn for Mrs. Johnson.
But we wonder when she’ll sell the rest of those stocks.
We’ll gladly buy them on the cheap.