The speed is uncertain but the destination is known. This bear market will END.And there’s one thing you need to be a successful investor in 2023…The proper temperament.It’s so important that I’m sending you this message from my family trip all the way from the Judean Hills in Israel.

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Most investors think they aren’t successful because they don’t know accounting or have IQs in the Mensa range.Nothing could be further from the truth…If so, accountants and rocket scientists would top the Forbes 400 list.The real trick is keeping your emotions in check.If you freak out every time your stock drops, you don’t have the proper temperament.However, if you see stocks as pieces of a business and don’t let short-term fluctuations bother you … you’re well on your way to making money.Because stocks offer the highest returns over the long term.Over the past 150 years, a $1 investment in stocks returned more than $20,000.

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Source: Morningstar

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However, it wasn’t a straight line up. The stock market went through bear markets, recessions, wars, pandemics, crashes…Plenty of investors, who didn’t have the proper temperament, sold their stocks when the market went down.Because they forgot that volatility is the price you pay for big gains.If anyone tells you it’s possible to earn high returns without experiencing downturns … hold on to your wallet and run.But if you can keep a cool head, it’s not hard to make money in the stock market…

My Alpha-3 Approach

Most investors see stocks as wiggles and jiggles on a chart.So instead of seeing them as they are — pieces of a business — they trade them like baseball cards.That’s why I don’t focus on the stock price. Because the stock price tells you nothing about the business.Ultimately, the stock price follows the fundamentals of the business, not the other way around.So, I don’t buy a company unless it can pass my “Alpha-3 Approach”:

✅ No. 1: Alpha Market: A company must participate in an industry worth tens of billions, and many times trillions, of dollars.✅ No. 2: Alpha Management: Any company I’m interested in needs to be run by a rock-star CEO who has a proven track record of increasing shareholder value.✅ No. 3: Alpha Money: Lastly, I want to see if the stock price is fully reflecting the company’s future earnings. If not, Wall Street is sleeping at the switch and offering me an incredible bargain.

Buy quality businesses with rock-star CEOs at attractive prices, and then sit on your butt. It doesn’t get simpler than that.If the stock price falls, ask yourself: “Did anything in the business change?”If not, stay the course. Because during down periods, all stocks will fall. But those who invest for the long term will make the most money.And right now, you have a huge opportunity…

The Gift of the Hungry Bear

The bear was hungry last year. He ate stock prices for all companies — the good, the bad and the ugly.And I looked at that as a gift!I couldn’t recommend stocks fast enough … because quality Alpha-3 companies were trading for absolute bargains!Here’s an example…Warner Bros. Discovery Inc. (Nasdaq: WBD) is a company I recommended in my 8-Figure Fortunes portfolio. This service is where I incorporate my “Fourth Alpha” — a special situation.

Disclaimer: We will not track any stocks in your Banyan Edge. We are just sharing our opinions, not advice. If you want access to the stocks in our model portfolio with tracking, updates and buy/sell guidance, please check out 8-Figure Fortunes.

Warner Bros. is a media powerhouse that could soon rival streaming networks like Netflix and Disney.The special situation, in this case, was a corporate event… The company went through a merger in April 2022. CEO David Zaslav went right to work straightening out the business.He immediately shut down CNN+ and booked a $100 million loss as soon as the merger was completed.Mr. Market started getting nervous and couldn’t figure out where the company was headed. Last year the stock plunged 60%.Here’s where the right temperament comes to play.We recommended the stock when it traded at around $12 in October 2022 … down from $30 per share in February.Instead of seeing chaos, we saw a streaming business and a company rich with more than 200,000 hours of content.Our back-of-the-envelope calculations showed us the business is worth at least $24 per share.We are big fans of CEO Zaslav and see him paying down debt and in a year or so, turning the company into a cash cow.Since the start of the year, Mr. Market is starting to catch on.The stock is higher by 41% in 2023.Real talk: This bear market will end. Quality businesses like Warner Bros. won’t be trading for bargain prices much longer.Now is the time to be a buyer. Then ride the wave higher when the bull makes its way to Wall and Broad Street.For my recommendations and Alpha stamp of approval, you can click here for the details.Regards,Charles Mizrahi's SignatureCharles MizrahiFounder, Alpha InvestorP.S. Warner Bros. isn’t the only quality business that checks my Fourth Alpha special situation box. And right now, you have an opportunity to collect “free shares.”Take a look at what happened during some of the last “free share” opportunities…

  • On October 3 investors received their free shares … they shot up 170%.
  • Earlier in the year, too — on April 4 — another set of free shares are up over 50% in the last three months.
  • And it happened to PayPal all the way back in July of 2015. After that, shares shot up over 700%.

The best part? Investors didn’t pay a dime to take ownership of these stocks!NOW is the time to get in these stocks. Why? Because you could get positions for a fraction of their true worth.Click here for the full story.


Market Edge: What NOT to Look for in a Rock-Star CEO

By Charles Sizemore, Chief Editor, The Banyan Edge

I had Charles Mizrahi’s piece on “rock-star CEOs” on my mind when I read a couple headlines this week:“Elon Musk tells court Saudi Arabia wanted to take Tesla private, $420 ‘not a joke’”“Landlord sues Twitter, saying $3.16 million owed in rent for San Francisco headquarters”Elon Musk is what you might call the wrong kind of rock star.He’s aloof and impulsive and has a larger-than-life personality. There’s a reason Robert Downey, Jr. modeled his Tony Stark/Ironman character from the Marvel movies on him. He has 10 children with three women (that we know of), including two with literal rock-star Grimes.This is a man that just swore in court that he was really serious about taking his electric vehicle maker Tesla private at a price of exactly $420 per share… and that it’s pure coincidence that 420 is slang for marijuana … a substance he smoked while in an interview with Joe Rogan.This means he’s also perfectly comfortable committing perjury in court.And then there’s Twitter…We may never know what exactly Musk was thinking when he offered to pay $54.20 per share for Twitter (again, another 420 joke…), tried and failed to back out of the deal, and then proceeded to buy it, fire everyone that seemed to know how the company actually worked and chase away his advertisers … the only consistent sources of revenue for the company.And then, of course, decides to stop paying rent and gets himself sued.Musk also dreams of building a spaceship that will take him personally to Mars and makes impotence jokes directed at rival Jeff Bezos’ admittedly somewhat phallic-looking rockets.So, yes. Musk is a “rock star” … But the bad kind of rock star.Of course, that’s not at all what Charles Mizrahi has in mind. In fact, I don’t think either one of us would allow Musk within 1,000 feet of any business we actually cared about lest he flippantly blow it up.But this brings up an important point. When Charles writes about rock-star CEOs, he is specifically not looking for CEOs that actually behave like infantile rock stars.He’s looking for CEOs that get up in the morning, roll up their sleeves and get to work. They’re not prima donnas or media attention hounds and certainly don’t spend their precious work hours playing on social media.You get celebrity CEOs like Musk in a bubble market like we saw in the years leading up to 2022. That schtick works a lot less well in a sober bear market. You need serious leaders who are up to the challenge.Charles has recently been focusing on rock-star CEOs that create what he calls “special situations.”He’s talking about those unusual times where investing in a stock is a no-brainer … because it’s about to make a move that’ll put free shares of a new business right in your hands. Find all the details right here.

Charles' signatureCharles SizemoreChief Editor, The Banyan Edge Turn Your Images On