What happens when Home Depot, Microsoft, Sears and other companies start buying back
their own shares?

Their share price goes up. Way up!

 
 

Now you can take advantage of this investment phenomenon by subscribing to David Fried's Buyback Letter. In this valuable monthly newsletter, editor David Fried employs one of the most successful long term investing strategies in the market. Academic research proves that getting in early on the stocks of companies repurchasing their shares produces superior investment returns over time.

So just what is a buyback stock? Simply put, it’s when a company buys back its own stock. This demonstrates the company’s enormous confidence in its own financial health. Buybacks result in an increase in a company’s earnings per share and price to sales ratio. This invariably leads to higher share prices and market-beating performance.

Each month, David Fried combines his winning stock buyback formula with solid value investing to deliver buy, sell and hold recommendations to you on his favorite picks. In fact, Fried is actually the only investment advisor who closely follows Corporate Buybacks and offers timely recommendations.

You won’t find this groundbreaking buyback strategy
practiced in any other newsletter!

Does David’s buyback strategy actually work? Just take a look at his portfolio returns (as of 9/30/07):

  • The 15 to 30-Stock Pickers Portfolio – UP 375.05% since inception (1/9/96) vs. a gain of 107.37% in the S&P 500.
  • The 10-Stock Buyback Income Index Portfolio – UP 219.64% since inception (3/5/97) vs. a gain of 90.40% in the S&P 500.
  • The 20-Stock Buyback Index Portfolio – UP 597.08% since inception (3/5/97) vs. a gain of 90.40% in the S&P 500.
  • The 5-Stock High-Tech Sector Portfolio – UP 51.84% since inception (1/3/00) vs. a decline of 34.03% in the NASDAQ.
  • The 3 to 5-Stock Health and Bio-Tech Portfolio – UP 330.19% since inception (1/28/01) vs. a gain of 31.52% in the S&P 500.
  • The 5-Stock Buyback Dogs Portfolio – UP 278.23% since inception (3/5/97) vs. a gain of 90.40% in the S&P 500 (These are the companies most active in their stock repurchasing plans.)

David has even made money in the difficult high-tech sector. His Buyback High-Tech Portfolio is outperforming its benchmark by more than 85.87%! He began that portfolio with a $50,000 investment on Jan. 3, 2000, just two months before the NASDAQ hit its all time high. The NASDAQ has tanked since then, while we have not only held steady, but gained more than 50%. The moral of that story is that staying invested is only half the battle; you also must be invested in QUALITY companies.

For another example of how David Fried's Buyback Letter's low-turnover, high-quality stock strategy has worked, look at David's Stock-Pickers Portfolio, which has gained 375.05% since inception, vs. a paltry 107.37% for its benchmark S&P 500. Since January 1996 – more than 11 years ago – we have made only 88 trades in the Stock-Pickers Portfolio, so you can see we are not just churning. Of those 88 trades, 72, or 82%, were profitable, and the average profit for winning trades is 92%!

David Fried's Buyback Letter's offers you 4 diversified value portfolios and 2 sector portfolios using David's proven strategy of quality companies with high book-to-market ratios that engage in stock buybacks to add value to every share. Simply put, this approach minimizes risk and maximizes returns to produce truly outstanding results.

With your subscription you’ll receive:

  • Unlimited access to the online Buyback Letter. Read the latest issue posted by the 7th of every month, as well as news briefs, performance updates on all portfolios, and more. Plus, download back issues and hotlines
  • Email Notices when each new issue is available
  • Weekly Email Hotlines with trading instructions for all portfolios and more
  • Exclusive Special Reports on important investment topics
  • 5 FREE REPORTS:
    1. The Buyback Letter Users Guide
    2. Buyback Value Stocks: A Special Report
    3. What is a Buyback Stock?
    4. David's Exclusive Buyback Strategy
    5. Five reasons Buyback Stocks Outperform the Market
 

         

  Meet our Forbes Guru: David Fried

David Fried, editor and publisher of The Buyback Letter, runs Fried Asset Management, which offers investor advisory and money management services using the “Buyback Strategy” principles. A graduate of Cornell University, Fried has been a featured guest on business programs such as CNBC’s “Money Club” and has also been widely profiled in periodicals such as The New York Times, Forbes, Barron’s and BusinessWeek.

The Buyback Letter carefully analyzes each buyback stock, separating rhetoric from reality. According to leading academic studies, buyback stocks tend to outperform over time, in part because they indicate management’s confidence in future business prospects. The Buyback Letter pores over announcements, scrutinizes quarterly and annual reports and talks to company officials, lawyers and competitors. It sifts through the buyback hype to identify solid growing companies reducing their shares outstanding at bargain prices.

Every month you’ll get Fried’s commentary on market issues plus access to his six sector oriented Buyback portfolios. Each issue guides you through new recommendations and performance updates. You’ll get weekly email commentary, plus reports on recommended stocks and chronology of company activities. The Buyback Tracker keeps you up to date on the last 30 days of buyback announcements over $5 million, including number of shares, current share price and book value.

 



 

 

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