Forget ETFs — This Is How Real Wealth Is Built

[00:00:05][music] Hi, Richard Heming here from Under the Radar Report. Well, 30 Junes coming up and it's time to deliver our report card. More to the point, I'm going to show you how using our proven system with 15 to 20 stocks, you will beat an ETF every day of the week. I'm talking returns of close to 20% a year. Believe it because it's a fact.

[00:00:34]So our returns in the past sort of 12 months are actually being driven by fresh blood. So when I talk about fresh blood, I mean stocks that we commenced coverage on like between 12 and 24 months ago. So these stocks have returned on average 70%.

[00:00:54]That's a lot, but you know, have a look and it's true. Yes, they include Drone Shield, but they also include lesserk known stocks like water services group Visine and gold producer West Gold. So, what we're doing here at Under the Radar for those that are uninitiated is we're looking for stocks that are good value.

[00:01:15]So, that necessarily means sort of underperformers. We're looking for winners not for tomorrow, not for next week, not for next month, but we're looking for winners over, you know, in 12 months time, over 18 months, over 24 months and beyond. So, this is how you make money. And I'm going to say it, I say it so much because it's true. Buy cheap and be patient. That is under the radar's motto. So, let's look at the facts as they stand now. Term deposit, what does that pay? around 5%. That's for 12 months. The average return since 2001 from the S&P ASX 200 index, well, that's 7 to 8%. Just over 7%. If you invested in CBA, BHP, Worth over that period, your average return would be just over 12%. What does that mean? That means buying quality and let that compound over time. That actually does a lot better than just buying the index.

[00:02:19]So what about small caps? I hear you ask. The return of under the radar small cap portfolio since inception in 2011 is just over 10% a year. Our performance is accelerating. So we've returned 17% a year in the past 3 years. Our three recent small cap dividend portfolios have returned 17% a year since 2023.

[00:02:48]So that's how does that compared to the all odds? That's about 6% 6% a year. So the good news is we come up with these dividend portfolios every 6 months.

[00:02:59]We're on the cusp of releasing another another dividend portfolio. So that's one to look forward to for subscribers.

[00:03:06]Look, I mean, the fact is if you leave your money in a bank, that costs money.

[00:03:11]Plus, you know, you're only getting a a very low rate of interest. So, you're actually going backwards in terms of spending power. Similarly, while ETFs provide you with admittedly fantastic diversification, and let's face it, if you only have small amounts of money, this is where you go. This is your one-stop shop. But at what cost?

[00:03:36]like the cost is that you're you're not getting much of anything. You own everything, but what you've got exposure to is basically sentiment. So, you're really like a cork in the ocean. In tranquil times, ETFs do perform well in comparison to stock picking, but we're not in tranquil times. And that is why stocks in our funds are performing so well. Sure, we have our, you know, ones that are underperforming, but this is more than outweighed by the winners because your winners are theoretically unlimited and your losses are limited by the amount you invest. So, this fact alone means that if you use good stock picking techniques in the current market, you can make a lot of money. And that is the key is picking quality stocks at value prices and holding on.

[00:04:30]Patient capital is the key. That is our advantage as individual investors.

[00:04:35]That's what I hold on to. That's why that's why just not doing anything for long periods actually makes me money. So short-term thinking misses the point.

[00:04:45]Like investors who chase the index by definition have an outlook that is too short. What you want to be doing is buying stocks that are going to be in the index in the next few years like the next OEL, the next Nick Scarley. Like this is how you make the big money. You have your core holdings, you have your satellite holdings. Individual investors, as I said, have competitive edge. Buy cheap and be patient. We're not chasing an index like we can utilize the ASX strength. You know, we can see what sentiment's doing. And when sentiment goes too far one way, we can buy. When sentiment goes too far the other way, we can sell. Plus, we get tax effective dividends.

[00:05:31]So, what do you do? It's simple. Access our short listed best stocks to buy now.

[00:05:37]The sooner you start, the better.

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