Rachel’s note: On Monday, industry veteran Kris Sayce introduced us to the “10 x 10” Approach to investing. It is a simple, three-step process that ensures your portfolio will thrive during any market conditions.
Today, Kris showcases one of Crisis Investing chief analyst Nick Giambruno’s best investment ideas… one that’s made his subscribers incredible gains, but that has most investors split down the middle on whether it’s great… or a con.
At the Dispatch, we think it’s the perfect category for one of your 10 columns in the “10 x 10” Approach. It’s got the potential for 1,000% gains… while putting a fraction of your money at risk.
Read on for what Kris says is, “one of the best ideas Casey Research has ever published.”
By Kris Sayce, editor, Casey Daily Dispatch
We know what you think about “this thing.”
It’s not hard.
You fall into one of two groups.
That’s because it’s so polarizing…
You either think “this thing” is the greatest innovation in history…
Or you think it’s the biggest con in the history of mankind.
There’s no in-between.
Any guesses what we’re talking about? We’re sure you know…
Before we give the game away, welcome to today’s Dispatch. Our goal with this newsletter is two-fold:
To introduce you to the most important investing themes of the day, and
To show you how to profit from them.
We do this by drawing on the ideas of our in-house investing experts: Nick Giambruno, Dave Forest, and the founder of our business, Doug Casey.
Yesterday we showed you an example of the Casey “10 x 10” Approach in action. Today, we’ll show you another real-world example of how investors can use this approach.
The High-Reward Investment With a Twist
To recap, the “10 x 10” Approach is a simple but effective way of creating a portfolio of diverse, high-reward investments.
It involves dividing your capital into 10 investment ideas or themes. Each theme should give you the chance to make 10 times your money.
One of your themes could be high-yielding stocks or fast-growing tech stocks. Either way, the idea is to invest relatively small amounts of money into high-reward plays.
Of course, because we won’t get everything right, we also assume one or two of the ideas will fail. Instead of making 10 times your money, you might lose 30%, 50%, or perhaps your entire investment.
But because you’ve diversified, what you make on the winners will more than make up for those that fail.
So let’s get back to “this thing” we mentioned above. What is it?
It’s bitcoin… but with a twist.
Hands Down One of Casey Research’s Best Ideas
We’ll be straight-up on this: This idea from chief analyst Nick Giambruno is one of the best ideas Casey Research has ever published.
And while the idea is related to bitcoin, it’s not actually a direct investment in bitcoin.
And no, it’s not some kind of ETF or listed investment trust, or anything like that. (Although, to be clear, we’ve got nothing against those ideas.)
The twist in this idea is that Nick has focused a lot of his research on the bitcoin miners. These are multimillion- and multibillion-dollar market capitalized companies.
They’ve made an industry by verifying blocks of bitcoin transactions, which are then added to the blockchain. In turn, they’re rewarded in bitcoin.
They do this by using immense amounts of processing power with specialized bitcoin “rigs” to try solving a complex math problem. It’s hard to solve, but easy for the system to check if it’s correct.
And whoever is the first to do so is rewarded in bitcoin.
Nick first told his readers about this idea last September. It was perfect timing. And what’s more, it’s another perfect example of an idea that can fit into one of the “columns” in the “10 x 10” Approach. You stake small sums in return for the chance to make outsized gains.
To show you what we mean, check out the table below.
$500 in Each of Nick’s Bitcoin Miners
(We’ve blanked out key information about the open positions to protect the integrity of Nick’s premium investment service.)
But check out the returns. Remember, all these gains have occurred in the last eight months. The last position on the list – Argo Blockchain – Nick told his readers to cash out after less than 90 days!
Why It Can Pay to Set Aside Skepticism
Again, see how you can make the “10 x 10” Approach work?
Think about how simply adding this particular investment idea to one of your “10 x 10” columns could have made a big difference to your portfolio.
And just like the example we showed you yesterday, this is with just $500 in each position ($3,000 total)… for total profits of $21,341.
It’s a terrific result.
Look, even if you have a negative view of bitcoin, the reality is that in certain situations, it can pay to set that skepticism aside.
We’re not suggesting that you do anything crazy… or that you ignore the fundamentals of investing.
What we are saying is that there are always investment opportunities out there. Some of them you may be passionate about – others, not so much.
But there’s no doubt this theme is a smart speculation… and deserves a column.
The great thing about the “10 x 10” Approach is that you can allocate small amounts to high-reward ideas. If one of those “columns” doesn’t pay off, you’ve only risked a small sum.
Yet if it does pay off – as it has with Nick’s bitcoin miners theme – gains like this are not only possible… they’re actually achievable.
Editor, Casey Daily Dispatch