Since the early 90s when the Internet and online investment became popular, investors started doing their own research and investing. Investment newsletters were all the rage because anyone (remember the talking baby on Etrade) could invest online, but few knew what to invest in. Investment newsletters for stocks, bonds, commodities became very popular.
Individual stock buying or individual investing has earned some disrepute over the years, perhaps on account of being (unfairly) seen as a casino, with its get-rich-quick stories which have attracted many an unsuspecting investor to a get-poor-quick fate.
However, done correctly, with the right objectives, based on information and analysis, direct equity investing will often beat the index and result in the creation of wealth over the long term.
I am often asked, “How does one obtain the right information and do the right analysis, for the millions of investment options that exist? That too, while doing a day job, because there are so many options and some may be good, but not the right fit for you.
I believe there are several different types of “investment newsletters.” Here is how I see it:
- Get Rich Stock Newsletters: These types of newsletters and alerts often tell investors about a specific stock or ETF that will have amazing returns. They often promote penny stocks or pink sheet stocks that are very risky. My personal opinion is to run away from these types of newsletters/software.
- Doom and Gloom Investment Newsletters: These types of investment newsletters often pry on people’s emotions and political opinions. They often promote Gold or some other kind of alternative investments which are often great to supplement a portfolio, just not your whole or even a large portion. Investors that are seriously worried about an economic downturn should just hedge their portfolio by buying gold, consumer staple stocks like Clorox, or blue-chip dividend like Altria.
- Specific Niche Investment Newsletters: These types of newsletters analyze a specific sector or market such as China or steel. They can provide excellent value to the right investor. Often companies will pay for theses to understand their risks and know how to hedge against them.
- Professional Investment Newsletters: One of the more expensive newsletters typically are professional reports. Banks and investment firms spend a lot of money on them. Investors and financial advisors use them to outperform the market, but usually require time to digest the information and turn it into actions.
- Personal Finance & General Fiance Newsletters: These types of investment newsletters are usually very general and contain more tips on personal finance than investing. Investors may find value in them, but most of the information they provide is extremely general and usually available for free on the Internet.
A general rule I tell people looking for financial research is to stay away from companies that market stock returns, especially if they are crazy percent like 100000% for a well-known stock like Amazon. My experience is that these publications are more hype than research.
The second rule is to try different newsletters. Today’s investment world is very broad and you may need to try different ones before you decide on the one you like. Personally, I try to find investment newsletters that offer some kind of specific insight that matches holes to fill in my research.
Lastly, don’t just take the writers of the investment newsletter word for something. I have seen many excellent newsletters get major events wrong like Brexit or stock rocketing to new highs. Below is a list of 13 investment newsletter companies to check out.
- 1 13 Investment Newsletter Ratings
- 1.1 1. ABS Advisor Market Report
- 1.2 2. Morningstar
- 1.3 3. ZeroHedge.com Premium
- 1.4 3. Early Warning Report
- 1.5 4. Finimize
- 1.6 5. Finny
- 1.7 6. Global Changes and Opportunities Report (GCOR)
- 1.8 7. Cotton’s Technically Speaking
- 1.9 8. Stansberry Research
- 1.10 9. Curzio Research Advisory
- 1.11 10. The Motley Fool
- 1.12 11. Kiplinger’s Personal Finance
- 1.13 12. Stock Gumshoe
- 1.14 13. Dividend.com
- 2 What should you do?
- 3 Why Individual Stocks
13 Investment Newsletter Ratings
1. ABS Advisor Market Report
The ABS Financial Advisor Intelligence Report combines the best economic data and market analysis for financial advisors and investors. The weekly journal is designed to be read quickly to gain insight into what is driving the markets and opportunities. Many readers economic data, while others love the stock/ETF watch lists. In summary, this report is the best bang for the value considering it is only $19.95 a year with a 100% free first-month trial. (Professional Investment Newsletter)
Well known for its rating system for Mutual Funds, stocks are not anathema for Morningstar. It also analyses stocks. Like many other publications, it offers a basic membership for free and a premium membership that provides access to company fundamentals. If you are an investor who likes to research and analyze and arrive at the final decision yourself, as should be the case, it is a good option. Morningstar also offers a widely acclaimed podcast on investing. (Professional Investment Newsletter)
3. ZeroHedge.com Premium
Love them or hate them, Zerohedge.com is one of the leading financial news websites. It leans right but does have journalistic integrity with articles on the markets and market players. They recently launched a paid version for $85 a month that includes access to their daily updated Wall Street research and exclusive content. Investors and traders that are looking for macro-market movements and conservative news will enjoy Zerohedge. (Professional Investment Newsletter)
3. Early Warning Report
Richard Maybury, the author of the Early Warning Report, which is published ten times a year, has a fan following of his own. As much for his stock recommendations as for his ‘Austrian economics’ perspective on the geopolitical issues of our times. As ‘Uncle Eric,’ he has authored many paperbacks that have introduced Economics to young adults. His recommendations are underpinned by developments on geopolitical issues such as: cyber security, national defense,alternative energy, consumer staples and precious metals. Cost is about $300 a year. (Specific Niche Investment Newsletters)
If you are one who likes to know what is happening in the world of investing, Finimize could be for you. It provides an overview of the goings-on in the market. So, in a five-minute read, you could get an overview of the key happenings of yesterday. Don’t look at Finimize for your stock recommendations. For investors who like to make their own decisions, Finminize provides an added layer of recent information that could help in your decisions. Conservative readers may be turned off by the leftist slant on politics. It also offers a very good free edition. (General Investment Newsletter, News & Personal Finance)
Finny Is designed more like a forum where one can ask questions and get a wide variety of responses. Think Quora specific to investing. In some aspects, it also resembles a Zack’s or Morningstar, like its sections on in-depth research on companies that provide financial and other facts that you normally do not get from your regular trading partners. It does not offer specific stock picks but takes you pretty close to it.
6. Global Changes and Opportunities Report (GCOR)
This is another investing newsletter for the Average Joe. GCOR recommendations are authored by Jim Powell, who analyses ETFs, large-cap stocks as well as non-traditional investments to present a wholesome menu to the investor to choose from. He also makes reference to macroeconomic issues and uses them as a background while analyzing and making recommendations. (Specific Niche Investment Newsletters)
7. Cotton’s Technically Speaking
You get close to the basics for investments with Cotton’s Technically Speaking which publishes a weekly Market Report, as it encourages the habit of making small investments on a regular basis. Joe Cotton, the publisher, from whom the publication takes its name, is another known figure in investment circles and has won several contests in investing. The Market Report follows an industry approach and provides a low-down on industries like Energy, Technology, Banking, Biotech, and others. Recommendations are generally on ‘long equity’ buying of common stock rather than dabbling in Options and other derivatives. An understanding of charting and technical analysis is useful if you follow this publication.
8. Stansberry Research
Stansberry Research publishes a bouquet of investment newsletters. For the entry-level investor, the following might be suitable: Stansberry’s Investment Advisory, True Wealth, Retirement Millionaire. While each follows a different strategy, their methods eventually does seem to lead to sound investments. Some of their material is very good, but the doom and gloom marketing is a huge turn off. Of the three, True Wealth appears to be veering more towards China investing. They also run the popular Stansberry Investor Hour podcast. Overall, Stansberry follows a fairly structured approach in their offerings and have a wide portfolio. All recommendations, whichever of their publications it comes through, come with a detailed analysis. (Doom & Gloom)
9. Curzio Research Advisory
Published by the eponymous Frank Curzio, the Curzio Research Advisory has a simple format; it gives you one stock pick a month and could be slotted as a newsletter for the early-stage investor. He also offers more advanced analyses and recommendations in other newsletters for accredited investors and investors with a belief in their investing knowledge and ability.
Curzio is visible in the investment circles through the free videos and podcasts he puts out. More recently, he is credited with being one of the first to highlights risks emanating from the Covid-19 pandemic, much before mainstream media picked it up. (General Investment Newsletter)
10. The Motley Fool
The Motley Fool’s stock suggestions can be accessed through two of their newsletters. Stock Advisor – An awarded newsletter, this is the workhorse, and perhaps of interest to the average investor. Rule Breakers – As the name suggests, this might be a better fit for the more aggressive investors, with its focus on high growth candidates. It is possible you have not heard of many of the names being recommended. The Motley Fool has published a lot of other literature, mostly in the form of books, on investing. Cost varies according to the newsletter, but expect to pay $200 or more year. (Stock Picking & Personal Finance Newsletter)
11. Kiplinger’s Personal Finance
Kiplinger’s Personal Finance has a wider remit and offers tips on managing money, but zeroes in on stock investing in several sections. Wisely investing in stocks, after all, is a part of the larger money management discipline. As so often happens, some sections acquire more of a fan following than others. In Kiplinger’s case, the column by James Glassman is one such.
Kiplinger’s also offers advice on Mutual Funds and ETFs and regularly lists their top few every month. Followers say some of their stock recommendations have yielded returns of over a hundred percent. Cost is roughly $30 per year.
12. Stock Gumshoe
In one way, Stock Gumshoe operates as an aggregator, as it also provides an analysis of the recommendations that some of the high-end publications provide. What is more, in a crowded market of investment newsletters, it is a free service. So, if you are a newcomer to the investing world, this could be a good place to start. At least you won’t burn cash just as yet. And it could even provide you some guidance on which paid newsletters to eventually gravitate to. The publication is closely linked with Travis, its founder. It also offers a premium membership which gives you a peek into the investing Travis is doing.
As the name suggests, Dividend.com has a focus on dividend growth investing. When one visualizes investing, it is normally seen as a way to corpus growth and wealth creation. To that extent, the dividend growth strategy is different from your regular stock advisor or newsletter. As investors look for yield in times to come, this could well become a central strategy followed by many. The dividend yield is the basis on which its stock recommendations are made, of course with substantial information and analysis and forty years of the company’s history. It offers a Lite plan and a Premium plan. Cost is $149 per year. (Niche Investment Newsletter)
What should you do?
Eventually, it boils down to this simple question. Whether you do it through newsletters or through advisors or on your own, the goal remains the same; to create wealth.
Should you buy everything that is recommended?
Even, which newsletters to trust and read?
You will go bananas.
If what you are investing is your own money, you need to do it in a responsible manner, take decisions such that you can live with their weight on your conscience. A few simple starting suggestions:
Do It Yourself – Collect all the information there is. Listen to all advisors you have access to. But eventually, do your own due diligence, to the extent you can. Make it your decision.
Wait a month – Don’t rush in, especially if you are starting out in investing, or starting out with a new newsletter. Give yourself time to get a ‘sense’ of the market and the newsletter and the stock. It is not the end of the world if you miss one ‘pick.’ It is a continuous business. There will be many more.
No need to buy premium newsletters – Since we are on the subject of investing newsletter, a more expensive newsletter does not translate into a better stock portfolio.
Understand the business – Invest because you identify with the business and the opportunity it represents. Understanding the business also facilitates an ‘exit’ as and when required.
Why Individual Stocks
While it may not be for everyone, there is an allure of stock investing that is difficult to ignore. And it emanates from the possibility of reaping rewards over and above the market.
However, the prospect of higher reward carries with it the possibility of higher risk.
The question to ask yourself is – Am I in a position to bear the risk of losses while pursuing a strategy of seeking higher returns from my investments?
And if the answer is Yes, do it in an informed, responsible manner.