This is something that I invest in

by Simon Black · 4 comments

One of the keys to living free is being able to make money… enough to support the lifestyle that you want as well as provide peace of mind for the future.

To me, there are two clear ways to do this; one is by starting a business and generating cash flow through sales.  The other is by generating investment income.

I try to talk about both in this missive; I am happy to share my own ideas, as well as different products and services out there that I invest in to make money (or keep more of the money that I earn).  Again, these topics are cornerstones to living free.

As I’ve discussed before, I don’t like to take big risks… I take calculated risks to carefully control my downside, and love investing in what I call ‘low hanging fruit.’

We’ve talked about some low hanging fruit already, and one of my favorites is buying cash at a discount… strong, growing companies that are trading for less than the amount of cash they have in the bank.

I recently picked up another one of these stocks, a highly undervalued pharma company, courtesy of Dr. George Huang.  Huang is a master at finding these solid pharma companies that are trading at less than cash value, and he writes about them in his FDA Report.

I’ve mentioned this to you in the past because I know Dr. Huang and believe wholeheartedly in both his ethics and his trading strategy.  I personally think it’s pretty ingenious.

While other biotech letters (and fund managers for that matter) go broke trying to find the next Genentech or Amgen, Huang capitalizes on predictable market patterns based on the FDA’s drug approval, and covers his downside so the risk is limited.

So how’s his track record?

Huang’s average pick returns 30% in just 14-weeks, and he has never had a significant loss.

This is why I wanted to mention Huang’s letter to you again today… making money is critical to living free, and George’s track record, methodology, and good character stand out among the best.

I asked my friend and partner Matt to once again track down Dr. Huang and conduct an interview with him for the benefit of the group… Matt grilled him for about a half hour on his background, his strategy, and his track record, and you can listen to the interview here in MP3 format or below if you have flash (just click on the green area):

I would encourage you to listen to the interview and decide if Huang’s simple strategy is right for you. It works very well for me, but I might have different circumstances.

As a note, the audio quality is not the greatest, but I’d rather get the content out to you than worry about ‘pretty’.  For more information about Dr. Huang’s letter (and don’t mind the marketing copy), click here.

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  • jim metcalf

    Hi Simon,

    Where can one buy gold boullion or gold coins out of the U.S. where the
    exchange rate is more favorable than the Euro. I would want to keep it out of the U.S. which would be another question I guess. The only place
    I am aware of would be Perth Mint.

    I am new to this site, impressed so far. Are you aware of the legality or method of moving Am. Eagle gold coins out of U.S. to another country then again where do you store. I read missive on Austria and banks.

    Thanks in advance for your kind reply.

    Jim Metcalf

  • Victor Rodriguez

    Hi Simon,

    I was listening to Doug Casey and an interview he did not long ago. Of course, he calls for a greater depression to set in (I think he is right).

    BUT, I have a question about the “green shoots” that we keep hearing so much in the media, one that maybe a few of your subscribers have as well: Is there a possibility that there is, indeed, a world recovery of the economy, but a recovery that doesn’t include the USA and/or Britain-EU? After all, the Chinese and Koreans still have financial dealings with Gulf Arabs and Africans who are starting to recover from their own political/economical mess. As an American living outside the USA, and looking at the USA, I see recovery and biz, but one that does not include the USA.

    As an anecdote, I have met real estate professionals in Bahrain that say they still do business, but, of course, not as brisk of business as during the go-go bubble years. As another anecdote, Daewoo Shipyard of Korea is doing good in business as well.

    Your comments?

  • David

    Having listened to Matt interview Dr Huang I am left wondering why the system does not simply short the stock ready for the dramatic fall in price on the first day of the public announcement. One would then cover that same day or the following day perhaps.

    Thanks,
    David.

  • freedomoffshore-dot-com

    I am interested in knowing how his recommendations did during the meltdown and if he recommended any during the time of the meltdown.

    Are these the kinds of stocks that go against the general market direction?

    Thanks for feedback

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