Stansberry Digest May 27, 2016

Over the years, it has been described in many ways, but legendary investor Jim Rogers may have said it best…

I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime.

In other words, don’t risk your hard-earned money on every opportunity you come across. Instead, focus on opportunities where the odds are stacked heavily in your favor.

This is the opposite of what most investors do…

The average investor doesn’t have the patience to wait for high-conviction opportunities. He feels like he always has to be doing something…

He racks up huge brokerage commissions buying and selling, constantly looking for the next “hot” stock tip. He has dozens and dozens of positions and can’t remember when or why he bought many of them.

He would be far better off following Rogers’ example…

Of course, that can mean different things to different investors and in different circumstances…

It may mean buying only great businesses at good prices, or companies trading at substantial discounts…

It may mean buying only assets that are extremely cheap or hated, or selling assets that are extremely expensive and popular…

Or it may even mean trading only high-probability or low risk-to-reward chart patterns.

In any case, the idea is the same…

Don’t waste your time and money chasing every opportunity you come across. Be willing to hold cash and wait for great opportunities where the odds are overwhelmingly stacked in your favor.

Again, this requires patience and discipline.

These opportunities don’t come along every day. The very best ones may come along only once a decade or more.”