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From Greg Wilson, chief analyst, the Legacy Portfolio: It’s exciting to get something you want for less than you thought possible…
To get rid of the slow-sellers, Designer Shoe Warehouse (DSW) uses a color-coded discount sale strategy.
Unsold shoes go on the discount rack, where a colored sticker identifies them as “deals.”
A green sticker means the shoes are marked down 30%. Red means 50% off, and blue—the biggest steal—means 70% off.
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The system works.
DSW is able to move the slow-sellers.
And customers have fun scouring the discount racks and finding great deals.
Finding great deals is why we introduced a new feature to the Legacy Portfolio in June. We called it the “Legacy Multiplier.”
The tool helps you identify the best opportunities among our Legacy stocks. It shows the discount levels for each stock. And it alerts you when quality assets go “on sale.”
[“On sale” means low valuation. Multiple studies have shown stocks with the lowest valuations (i.e., the cheapest stocks) produce the biggest future returns.]
Now, while the overall response was positive, some subscribers found our table hard to follow. So, we’re making it easier to use. We now call it the “Legacy Discount Table.” Here’s how it works…
Green Means Go
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Like DSW, we’ll let you know when one of our Legacy stocks is trading at a discount.
But you won’t have to go scouring through the racks… All the information you need is in our updated Legacy Discount Table on the portfolio page.
We’ll show you each Legacy stock, its buy-up-to price, and its recent price.
And we’ll show you the price ranges for each level of discount.
Each stock will be color-coded according to its discount level. We’re looking for the highest grade possible:
- Grade A (green) shows the biggest discount: 40% or more below the buy-up-to price.
- Grade B (yellow) shows a moderate discount: 20-40% below the buy-up-to price.
- Grade C (red) shows a slight discount: 0-20% below the buy-up-to price.
But keep this in mind: The bigger the discount, the rarer the occurrence. Really special sales (Grade A) may happen once every 10 to 20 years. When you find them, you want to load up.
Using the Discount Table
You’ll find our Legacy Discount Table on the portfolio page. It sits beneath the open positions table. And it shows all available discount opportunities.
Our top-ranked pick, with a Grade A discount, is marked in green. But five other picks are also in the discount range.
Any stock without a color-code is above its buy-up-to price. Don’t buy these until the prices drop below our buy-up-to prices.
By putting this tool to work today, you can grow your wealth even faster than the 8-12% baseline annual returns we promise with the strategy.
As the table shows, about half of Legacy’s prizewinners are trading at a discount.
Current Legacy subscribers can access the new Legacy Discount Table right here. And watch your inboxes for the September Legacy issue—with its exciting new Legacy options plays—due out tomorrow.
Reeves’ Note: Legacy is now closed to new subscribers, but you can join the waitlist. You’ll receive updates and insight on the Legacy investment strategy from Mark, Tom, and Greg. And you’ll get the first crack at signing up at a discount during the next Legacy Portfolio “open season.”