Your time-sensitive invitation to join Motley Fool Pro Canada has arrived!
Investing in the S&P/TSX Could Be the Biggest Mistake You’re Making Right Now
It’s time for individual investors like you to think beyond the index!
That’s why we’ve crafted a unique solution for you – tailored specifically for Canadian investors – that aims to deliver profits whether the market is up, down, or stalling out.
Read on to learn how we’re taking the world by storm with our unusual “PRO” style of investing…
And claim your special bonus gift before time runs out!
Dear Canadian Investor,
I know what you’re thinking: “Wait, isn’t indexing supposed to be a smart strategy for investors?”
Sure, for Americans.
It is commonly assumed our neighbors to the south can do very well investing in the S&P 500. Warren Buffett even told his heirs to invest 90% of his wealth in a low-cost index fund.
But here at The Motley Fool, we think we Canadians need something different.
You see, the S&P/TSX Composite simply isn’t on par with the much-vaunted S&P 500.
The problem with our index is a complete lack of diversification.
Nearly 70% of the index is made up of just three sectors – financials (banks and insurance companies), energy, and materials companies (think gold and other metals).
That means the performance of the index is heavily influenced by an energy sector that I don’t see going anywhere for a while and a historically volatile mining industry.
The sectors that I expect to see the most growth in the coming decades – technology and healthcare – make up less than 4% of the index.
All that means many Canadian investors are taking on more risk than they realize!
In a recent Natixis survey, 63% of investors said they thought that index funds and ETFs offered better diversification than other investments and 64% said they believed index funds could help minimize losses.
But the performance just doesn’t prove out those beliefs.
Consider this: Over the past 5 years, the S&P/TSX Composite trailed the S&P 500 by 27 percentage points.
We believe you can do better.
I’m writing today to tell you about a little experiment we’ve been conducting here at Motley Fool Canada over the past 16 months… it’s a modest project we call Pro Canada.
If you spend any time on The Motley Fool’s U.S. site, you may have heard of Motley Fool Pro. It’s a real-money service started by my good friend Jeff Fischer out of the depths of the Great Recession in 2008.
The idea? To develop an investment approach that could weather any market conditions.
Now, over the past few years, the TSX has certainly had its highs and lows… and after watching the success Jeff was having with the Pro concept in the U.S., we started to hatch a plan.
But I’m getting a little ahead of myself…
A revolutionary investing strategy
First, allow me an introduction. My name is Jim Gillies. Among other things, I’m a Canadian, a hard-core cyclist, a long-suffering Maple Leafs fan… and most relevant to my story, a longtime Motley Fool employee.
I started working with Fool Co-founders David and Tom Gardner back in 2005. Which gave me a front-row seat to the extraordinary event I started to tell you about above.
On October 9, 2008 – in one of the worst markets most of us have experienced – we bravely introduced a revolutionary investing strategy to our U.S. audience.
We called it Motley Fool Pro.
Led by Jeff Fischer – and backed by $1 million in real money provided by The Motley Fool with the blessing of the Gardner brothers – this unusual program was designed to help smooth out market volatility and generate returns for its investors whether the market was up, down, or on a wild roller-coaster ride. (That’s something no index fund could claim!)
It was not a slam-dunk, let me tell you. Down at Fool HQ, my American colleagues were, to put it mildly, terrified to be debuting this new strategy into one of the worst market environments many of us had experienced.
But at the same time, we were excited, too. Because we thought that it was in many ways the best possible time to be buying stocks. Especially using the special sauce we’d developed that aimed to help our members profit in any market.
What’s even more incredible is that in the six months following Pro’s launch into that gut-wrenching market of early October 2008, the market plunged another, sickening 29.5%… yet the U.S. Motley Fool Pro’s portfolio was never down more than 2.4% during that period…
How did we do it? I’ll get to that in a moment.
But first, I’m going to jump to the punch line here and tell you that our little gamble paid off… big time. Seven-and-a-half years later, Motley Fool Pro is up a whopping 167.1%!
Here’s what a few of those members have said about the U.S. Pro service:
“Motley Fool PRO has fundamentally changed the way I invest.”
“”I’ve generated steady flows of income as the market has gyrated up and down.”
“Best money I ever invested!”
Pro’s ‘secret sauce’
Pretty compelling stuff. So just what was that “secret sauce”?
Options.
Now, don’t get nervous. I know that options have a reputation as risky, even dangerous. Some might call trading options a form of gambling. And when we first introduced Pro, many long-time Fools said just that. Even Tom Gardner!
But Tom has come around, and so have the thousands of members who have experienced the strategic way Jeff uses options in Pro as a tool to help smooth out returns… provide a “guardrail” designed to protect your portfolio against sudden drops and volatility… and all with the ultimate aim of clobbering the market.
In fact, as a result of Jeff’s incredible success deploying options in Pro, less than a year later, he and the Gardners invited me to join Jeff as Co-Adviser in a spin-off service, Motley Fool Options.
I’ve had a ball working on Motley Fool Options, teaching members (many of whom had never before used options!) how to invest with options with a targeted, strategic aim of enhancing their returns. I’m proud to report that as of last Friday, my closed options positions have an accuracy rate of 89.3%.
But I kept an eye on what Jeff was doing in Pro, and I followed along closely as he and his team turned their initial $1 million real-money stake into the $2.7 million portfolio they manage today.
And I started to get an idea…
Pro heads Down Under
Excited by the massive success of Motley Fool Pro in the U.S., in 2014, we took the Pro concept across the Pacific to Australia, where, in less than three years, it has already delivered returns of 91.9% for our members there. Here’s what some of the members of Pro Australia had to say:
“Joining Pro is the best financial decision I’ve ever made…”
“The value here is much better than going with other financial institutions.”
“I enjoy the camaraderie between members on the forum, everyone is so eager to provide information and assistance to others.”
Seeing the success of Pro Australia, I knew it was time to bring Pro to my native Canada
I requested an emergency meeting with Motley Fool CEO Tom Gardner and Motley Fool Canada Chief Investment Officer Iain Butler on Victoria Day last year.
Tom and Iain quickly agreed that we were in the midst of a very special moment in our company’s history. And over a few beers, we concocted a plan.
Our goal: Generate paycheque-like income in ANY market
We would bring the Pro strategy to a small group of Canadians, backed by $250,000 of The Motley Fool’s cold, hard cash.
Last summer, we piloted our strategy, introducing our revolutionary approach to Canadian investors.
Now a little more than a year in, I’m even more excited about what we’re doing in Pro Canada: Combining Iain’s stock-picking prowess with my decades-long experience using options in a strategy designed to generate paycheque-like income in any market.
It’s the “in any market” part that I want you to focus on right now.
Sure, it’s great that the financial pundits are calling this a bull market. It’s fun to watch stocks go up and up. But bull markets and bear markets have one key characteristic in common… they don’t last.
That’s why we feel so strongly about our mission here at Pro Canada… our strategy that aims to help you generate profits in any market.
Let me tell you a little about how we’re planning to do just that in the coming year.
I’m doubling down on what I like to call “Fortune Makers”… these companies are compounding machines. What does that mean? It means I believe these businesses will just keep churning out cash and increasing in value. We’ve got a few of them in our portfolio already, including a massive stable of brands you never knew were all owned by the same entity… it’s up more than 40% since we first bought it in October.
This company is producing cash by the bucket load, and is run by a quintessentially Foolish CEO with a giant ownership stake and the wisdom to stick with his business and let the market do what it will do. Hard to argue with that!
And we have four more “Fortune Makers” on our Watch List right now… just waiting for the right time to act.
When you join Pro Canada today, you’ll have access to all of my current and future picks in the service… accompanied by full research reports… along with all of the stocks on my Watch List (and when we get ready to buy, you’ll be the first to know!).
But here’s the thing… we can only open the service for a limited time.
With what we think are such great opportunities at hand, why would we limit the opportunity to enroll? It’s simple. The type of hands-on service and in-depth research I offer in Pro Canada just wouldn’t work with a large group. Not only does Pro Canada tell you exactly what to buy and when, we also tell you how much.
AND we tell you all of that before we invest our portfolio’s money, so you can make your trades before we do. (More details on all of this ahead.)
Just take a look at how a few of our current Pro Canada members have described their experience:
“Pro Canada does very detailed analyses of a company and its situation… Equally beneficial is its education. I would never have purchased or sold an option contract on my own before this service!“
“Not time-consuming… you just do it for me and I am copying your trades overnight.”
“Straightforward disclosure of info without the hype associated with most stock letter publishers.”
“I don’t have the time to do all the research required to be a true DIY investor so I value reading the analysis and the regular updates, particularly during a downturn for the stock.”
I’m sure you can see from those comments that this is something just a bit different!
7 ways Motley Fool Pro Canada is changing the lives of Motley Fool members like you
Pro Canada doesn’t try to churn stocks… we aim to own great businesses for the long term and compound our gains year after year.
Pro Canada has skin in the game… we put real money behind each stock pick only AFTER our members have had the opportunity to make their own trades.
Pro Canada uses options relatively conservatively with a goal of generating income in any market and purchasing shares of great companies at better prices. (Of course, options are, er, optional. We think you can still benefit from Pro Canada even if you opt not to use them.)
Pro Canada is currently sitting on a large cash balance… giving us plenty of firepower and more potential opportunity to profit.
Pro Canada is not tied to a publishing schedule… we have the freedom to make recommendations whenever we find the right opportunity – at the right price!
Pro Canada tells you not only WHAT to buy, but HOW MUCH to allocate to each position. There’s no guesswork.
Pro Canada is designed to deliver professional-style portfolio guidance… but unlike with traditional money managers, YOU are always in control of your money.
We’re investing $250,000 of The Motley Fool’s real money, right in front of your eyes… searching for what our team believes are the very best investments to own right now.
You’ll see first-hand when to buy, what to buy, and how much of each investment to buy… how we strive to fit different types of investments together into an optimized growth portfolio… how to combine the savvy use of options that could enable you to generate income no matter what the market throws our way (plus alternative trades for those who’d prefer not to use options)… when to add to or trim back a holding… and when to take profits and redeploy your capital.
In short, this could be the complete resource for TSX investors… and perhaps THE MOST IMPORTANT service The Motley Fool Canada ever offers!
As you might expect, there are a great many people interested in this opportunity to become a member of Pro Canada… thousands have read the special “Fortune Maker” reports and watched the videos we’ve shared over the past week and hundreds joined our recent Live Chat.
To better understand why so many Canadian investors have raised their hands to ask for this invitation, let’s examine 3 unique advantages Pro Canada offers:
Pro Canada Member Advantage #1:
You can follow all of Pro Canada’s stock recommendations and options trades and then “front run” our $250,000 real-money portfolio!
You’ve probably heard the term “front running” before. But did you ever wonder where it came from?
The term dates to the earliest days of the venerable stock exchanges in places like London and New York. Stock deals were transacted right out on the trading floor in plain sight. Clever young traders watched as representatives of the big money clients sauntered from post to post, placing their buys and sells. And it dawned on them…
If they could literally run in front of these guys and get their own, smaller orders placed first – ahead of the big money – they would boost their odds of getting a better price.
Now, when we talk about “front running,” here’s what we mean…
Motley Fool Pro Canada members will always know exactly which stocks we’re buying… exactly how much we’re buying of each… and you will be alerted BEFORE we make our trades with our own money. (Our trading rules strictly require that we wait to purchase for The Motley Fool portfolio until after our members have been alerted to the trade.)
That way, you always have the opportunity to get in – or get out – first, even before we do! As a member of Pro Canada, you will come first, ALWAYS.
Pro Canada Member Advantage #2:
You get peace of mind knowing our wealth-building interests will always be aligned.
Have you ever wondered if your financial adviser is investing his own money in the stocks he’s recommending to you? And if he’s not, why do you suppose he’s reluctant to “eat his own cooking”?
It’s an important question. Because too often financial services are rife with conflicts that stack the deck against individual investors like you and me. But don’t just take my word for it.
The Globe and Mail reports that “Canadians cough up some of the highest mutual fund fees in the world.”
Worse, often these fees aren’t always openly disclosed. In a mystery shopping study sponsored by three of Canada’s leading investment regulators, in 30% of the client interactions studied, “the advisor failed to disclose all costs associated with purchasing or holding the recommended investment.”
The study concluded with the damning statement that 37% of the advisors failed to meet the expected standards.Even if your advisor does pass the test, you may still be paying too much for advice.
A recent Harvard Business School study of 1 million Canadian clients showed that the average investor pays $1,575 per year for financial advice.
That’s a lot of money, especially since the study found, “the investment advice alone does not justify the fees paid to advisors.” In fact, the study found that the portfolios lagged their benchmarks by 2-3% a year.
In conclusion, the authors of this extensive study wrote: “Our results show that investors… rarely benefit from these relationships in the form of higher returns. These findings suggest that investors… are misinformed about investment performance or fees.”
(And we’ve already discussed why we think index funds simply aren’t an ideal alternative for Canadians!)
This is really the impetus behind why we developed the Pro strategy and are deploying it around the world. You see, we think it’s important that we are invested right alongside you.
With skin in the game – a quarter-million dollars in Motley Fool company money! – you know we’re serious. And you can rest assured you’re getting our absolute best recommendations. After all, we’re partners in a unified cause – building wealth together.
The bottom line: We believe Pro Canada is an honest resource in an increasingly hostile environment for individual investors like us.
To accept your invitation and claim your spot in Pro Canada right now, click below!
Let me take a moment here to tackle 5 pressing questions you might have about Motley Fool Pro Canada…
#1 How much do I need to have to invest in Pro Canada?
You can benefit from Pro Canada and grow nearly any amount of money with the strategies we use, however, we typically suggest that people don’t pay more than 1-2% of assets managed for a financial services product such as this one.
#2 How much time does it take to follow along with Pro Canada?
Here’s something that shocks a lot of people… following along with Pro Canada takes maybe 30 minutes of your time per month – TOPS!
#3 Does it cost a lot to join Pro Canada?
I’ll break down everything you get with your Pro Canada membership — including the special pricing and bonus offer — available down below. Right now, I’ll just say that I think this deal is an absolute no-brainer!
#4 Do I have to use options to benefit from Pro Canada?
Nope! Plenty of members choose to follow our stock investments only, and that’s just fine. We’ve designed Pro Canada with the goal of benefiting all members, no matter what their comfort level with options, and we always offer alternative trades that you can follow if options aren’t right for you. That said, if you are interested in learning, we offer plenty of education and guidance to get you started.
#5 Is it too late to join Pro Canada?
Absolutely not! We still have $150,000 in cash to put to work and I’ve got a Watch List brimming with stocks that, according to our valuations, look like bargains. We’re excited to start putting our cash hoard to work… and for YOU to follow along with us as we do!
The fact that you’re still reading tells me you’re giving Pro Canada some serious thought. But before I tell you how to claim your spot, there is one important administrative detail to consider while you read the remainder of the message…
This offer – and the special bonus gift I’ll tell you about shortly – are only available for a short period of time…
I’ve often been asked why we open Motley Fool Pro Canada in this limited manner. It’s not a gimmick, and we aren’t trying to be elitist. As I explained above, it’s simply a function of the type of investments we’ll be making and the emphasis we place on member experience.
Remember, you’ll have the chance to invest in a wide range of investment vehicles… which will include writing puts and calls… we’ll guide you step-by-step through each trade, ensuring that you have the education and the guidance you need to make options trades… even if you’ve never done so before! Limiting our member base is the only way we can ensure you get that hands-on expertise.
Remember also that you’ll be receiving trade alerts BEFORE we buy for the Pro Canada real-money portfolio… keeping our membership small means you will have the opportunity to get into and out of those positions.
But enough about that. Let’s get to the price.
Pro Canada Member Advantage #3:
For a limited time, we’re offering an exclusive bonus gift… plus savings of up to $1,398… details straight ahead…
As I’ve said, Pro Canada is unlike anything The Motley Fool has offered here in Canada. Using the market-walloping strategies of Motley Fool Pro in the U.S. (up an amazing 167% since inception!) and Motley Fool Pro Australia (up 91% in less than three years!), Pro Canada is designed to be a revolutionary wealth-building resource specifically for Canadians.
And, quite frankly, a resource-intensive service like this… that combines long positions with investing in options… that shows you not only WHAT to buy but HOW MUCH… requires a great deal of time and effort. So it carries a higher price tag than our purely stock-picking newsletter.
Is it worth the extra cost? Well, let me ask you this… what’s it worth to get…
Full insight into the construction and management of a $250,000 real-money portfolio.
In-depth education and step-by-step guidance on incorporating options that could help you generate paycheque-like income in any market… even if you’ve never invested in options before!
Alternatives to all options trades for those who prefer not to use options… to ensure all members have a chance to take part in our trades.
Advance alerts pre-announcing all actions, when buys and sells are made, and news alerts when something important happens with the companies we cover.
24/7 access to your Pro Canada advisers and team, including myself and Iain Butler, via members-only message boards.
Regular reviews of our recommended stocks, access to exclusive on-the-ground research, and detailed management commentary, including weekly investment updates.
Pro Canada provides you with a goal-oriented wealth-building plan and expert portfolio guidance… for less than half of what many Canadians are paying for underperforming advice.
So just how much are we talking about?
One year of Pro Canada normally runs $1,099. I think you’ll agree that’s a fair price to pay for everything we’ve discussed so far.
But if you’re willing to stick with us for longer than a year, I’ve worked out an even better deal, because I believe so strongly that the most meaningful returns will come over several years.
If you sign up for a 3-year membership, I got special permission to drop the price by $1,398!
That brings the annual rate to just under $633 per year.
I’ve also arranged a special BONUS GIFT! When you join Pro Canada today, you’ll also receive a full year of Stock Advisor Canada, our monthly stock-picking service. (That’s a $299 value!)
I can’t imagine you’ll find a better offer that includes all the in-depth research… all the stock recommendations… the options strategies and education… the Watch List packed with potential bargains… the timely updates… the hands-on support and depth of information available on our members only forums…
Still not sure? Remember, we offer a 30-day guarantee: Cancel anytime within the first 30 days and we’ll refund your full membership fee. (Your bonus year of Stock Advisor Canada is yours to keep, absolutely free.) That’s how important it is to us that you feel confident Pro Canada is right for you.
What have you got to lose?
After all, you know The Motley Fool invests for the long term. We’re looking for those great investments that can compound our profits for years and years to come. The stocks I call “Fortune Makers”…
And I’d like nothing better than for you to put yourself in the best possible position to take advantage of the kind of life-changing gains I hope to generate in Pro Canada.
But we need to hear from you RIGHT AWAY!
It’s true that this offer – and bonus gift – is only available for a limited time. But the last thing I want is for you to feel rushed…
Simply say yes to this offer right now. If later tonight, or next week, you have second thoughts, we’ll just fix it. You simply tell me to send your money back and I’ll personally ensure you get a FULL REFUND of your membership fee – NO QUESTIONS ASKED.
In fact, you can take a full 30 days to decide. And if for any reason you want to quit at any point, even after initial guarantee period ends, I’ll gladly send you the full dollar value of the remainder of your membership term – and you can keep your bonus year of Stock Advisor Canada as our thank you gift for giving Pro Canada a try.
Which brings me to one final question: What if investing and seeking out wealth ‘LIKE A PRO‘ were easy… with zero guesswork… took just minutes per month… and most important, your interests and ours were always perfectly aligned?
Is that an offer you’d accept? If you’re anything like me, the answer is an easy one.
So don’t risk missing out! Motley Fool Pro Canada promises to be a rich and rewarding experience. And one that could make a big difference to you and your family for generations. Click below to start your Pro Canada membership while spots are still available!
Sincere regards,
Jim GilliesLead Portfolio Adviser, Pro CanadaCo-adviser, Motley Fool Options (U.S.)P.S. I know this deadline and the special bonus we’re offering could lead to a hasty decision – or worse, a missed opportunity. So please keep in mind The Motley Fool’s 30-day FULL MEMBERSHIP FEE-BACK GUARANTEE that allows you to claim your spot now and get your membership fee refunded if you later decide Pro Canada is not for you. So you’re free to proceed with complete confidence. Start your membership now!
Returns and portfolio size for Motley Fool Pro (U.S.) and Motley Fool Pro Australia are as of September 14, 2016. Returns for Motley Fool Options (U.S.) are as of September 14, 2016. Motley Fool Pro U.S. inception as of October 2008; Motley Fool Pro AU inception as of March 2017. Jim Gillies owns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of Berkshire Hathaway (B shares).