Thank you for your interest in the AOE Investors’ Club. The Club is set up to serve two purposes. To help provide quality investment ideas to investors in both the professional and private-investment communities who would like to pick stocks and manage their investments on their own. The second purpose is to help those who are interested in investing in stocks but are not interested in picking stocks and managing their investments by themselves. If you fall into either of these two categories and do not mind using some help, then the Club can be of help to you. This is because the Club is formed to help disciplined and long-term oriented investors who desire safety of capital and a better than market averages rate of returns.
Today, more people are investing in stocks than at any time in the past. Stock markets around the world are growing as more and more people are seizing the opportunities provided by the stock markets to increase their wealth. Yet, one cannot help but ask: how many of these investors are investing in stocks at a rate of returns that’s better than the market averages? Judging by the number of investors who under-performed the S&P 500 Index, my deduction is, not many.
While doing market average is a lot better than putting your money in fixed income investment instruments or underperforming the market, limiting yourself to doing market average when you can actually do better is not a wise investment decision. This is because over time you will be leaving a large amount of money that can easily be taken at no extra risk or cost on the table. Regrettably that’s exactly what a lot of people who invest in stocks are deliberately doing with their money. You don’t have to be one of those people. For example if you invest $100,000 over 15 years and achieve the market’s average return of 12% annually, your account will be worth $547,356.58 at the end of the period. The same $100,000 will be worth $1,540,702.16 at 20% over the same period. The difference is nearly $1 Million for doing 8% better annually. With the help of the AOE Investors’ Club, you can beat the pants off the market averages while taking on lower risk than the general market. (See the AOE Equity Index’s returns vs. that of the S&P 500 Index below)
For a truth, if you truly want to do a lot better than the market averages, most investment professionals and academics cannot help you. For example, among the active fund managers, the statistics are pretty clear: 80% to 90% of active fund managers underperform the indexes. But even among the 10% to 20% who do, only one in about 200 managers outperforms the index consistently by more than 3% a year over the long-term. So the chances that an individual investor will beat or find someone who will beat the index by more than 3% a year is less than 1%. It's about half a percent.
So where does that leave the individual investors? As an individual investor, you are left with just two alternatives: you either have to learn how to do it yourself; or you look for one of the very few great fund managers that can help you to do so. But the fact that not so many people have the temperament or the ability to do the necessary analysis required to do a lot better than the market averages shows that a lot of people will need help if they are to do so. And as we have just stated, help from these great fund managers are not easily available just because there aren’t that many great fund managers; and the probability of finding one of them is quite slim.
So, if you happen to be one of those numerous investors, who desire to do a lot better than the market averages; but are having difficulties doing so on your own, don’t worry; the AOE Investors’ Club can help you to do so. I kid you not. The AOE Investors’ Club is one of the very few helps that can assist you to beat the market averages handsomely while taking on lower risk than the general market. But I don’t expect you to simply take my words for it. You will have to see or experience the performance of the club to believe it.
Through the AOE Equity Index, the Club’s Adviser researches and recommends to the Club and all her subscribers annually, 24 quality stocks believed to be selling cheaply based on either their assets value and/or long-term future earning power.
During the 20 years test period of the strategy used in managing the AOE Equity Index, the overall market as measured by the S&P 500 Index averaged a return of about 12 percent; while the portfolio of the strategy use in managing the AOE Equity Index returned approximately an average of 25 percent per year. Investing at this rate for 20 years would have turned $10,000 into ($867,363), while the same $10,000 invested in the market averages as represented by the S&P 500 Index would have turned into $96,463. And you would have achieved this higher return by taking on lower risk than the general market.
While we cannot guarantee results similar to the sterling performance of the Index during the test period, we strongly believe that as long as you have the patience to stay with the Club, your result will be quite satisfactory, if not extraordinary. In fact, for most people, investing in the club or stocks recommended by the Club will remain one of their very best, if not their very best investment alternative.
The AOE Investors’ Club is a collection of disciplined and long-term oriented investors who are using part of their present resources to take advantage of wonderful investment opportunities in the stock markets. And if you are like one of us-desirous of using part of your existing asset to create a better tomorrow (either for yourself or for your loved ones)-we invite you to join us; otherwise, we wish you good luck in your own endeavour.
“While you are fifteen or twenty, it’s hard to imagine the day will come when you will turn sixty-five. But if you get in the habit of saving and investing, by then your money will have been working in your favour for fifty years. Fifty years of putting money away will produce astonishing results, even if you only put away a small amount at a time.”-Peter Lynch
Get what you can, and what you get, hold; it is the Stone that will turn all your lead into gold- Benjamin Franklin