Pleasure is a retired missionary.
She lives in Minnesota. And like many people, she’s making an attempt to determine thrive in retirement.
She stopped me within the hallway of the Ritz Carlton in Orlando to inform me how grateful she is that our specialists … Charles, Ian, Mike, and Adam … helped information her investments over the previous couple of years.
She’s even within the course of of shopping for a house in Mexico, because of our buddies at Actual Property Development Alert. The method has been extraordinarily clean. She couldn’t be happier.
Pleasure’s story, together with the tales of the opposite 199 attendees at our Whole Wealth Symposium, jogs my memory of why I do what I do each day.
Our mission right here at Banyan Hill is to make investing easy, enjoyable, and worthwhile for individuals who want extra: extra information, extra alternatives, and extra money, to allow them to really really feel the liberty of complete wealth.
Pleasure has that freedom.
I may SEE it in her eyes and HEAR it by the best way she spoke. There’s confidence.
It was a real privilege to talk to her in individual about her wonderful journey.
On the convention, she continued to choose up extra perception from our specialists on…
- Tips on how to pay zero taxes on her funding earnings (with out utilizing a Roth IRA).
- A cryptocurrency she will purchase to revenue from farmland. Sure, farmland!
- Tips on how to create infinite momentum together with her investments utilizing only a 10-stock portfolio.
Over this three-day occasion, she heard about dozens of different funding concepts, together with tax methods and asset allocation techniques to extend her returns and cut back her danger.
I’m glad Pleasure was there and that I used to be in a position to get to know her, together with so lots of the different attendees.
I want you might have been there too.
And though we will’t share our tales over a cocktail, I do need to do the subsequent neatest thing.
I need to ship you all of the displays, so you will get the very same perception Pleasure was in a position to get.
Right here’s a fast style of what was lined on the Whole Wealth Symposium:
- Charles Mizrahi revealed the “Costco Blueprint for 10X Returns.” Use this blueprint (together with Charles’ 4 Alphas) to seek out shares which are destined to soar larger.
- Adam O’Dell gave attendees a glance into the worldwide power transition and why it’s an $11 trillion alternative for traders. Adam shared some particular names for this transition, which he’s sharing with Inexperienced Zone Fortunes
- Ian King revealed how synthetic intelligence will rework our economic system — and your #1 technique to revenue.
And that was only a snippet of Day 1.
Day 2: Funding Suggestions Galore
Charles Mizrahi went on to share some key insights into the Nobel-prize-winning analysis behind his newest funding technique, Revenue Accelerator.
Charles is the uncommon genius who can take tutorial analysis and apply it constantly and profitably to the markets. And making a system helps traders keep away from making biased funding choices.
So it’s no shock that Revenue Accelerator has already proven some market-beating positive factors in only a few weeks because it launched, with its positions up almost 4X the inventory market (his prime picks are up 40.5%, 49.7%, and 51.8% … in lower than two months).
And Amber Lancaster revealed her #1 power play for 2024. It’s a distinct segment of the market associated to power storage. The tiny firm presently advantages from clear provide chains … and it’s a supply whose prices dropped 24% previously yr.
It’s a microcap inventory buying and selling for below $2.00. Nevertheless it gained’t keep that low priced for lengthy.
(By the best way, Amber holds Banyan’s monitor report for one of the best funding advice from a Whole Wealth Symposium. So the power storage market is value a more in-depth look within the weeks forward.)
Then, our specialists sat in on a panel dialogue on synthetic intelligence and finest put money into it this yr. That panel alone was well worth the value of admission!
Truthfully, that’s simply scratching the floor.
Michael Carr held an Choices 101 course. This can be a course that will usually price $500 alone. It reveals you use choices to extend your funding returns … and keep away from the largest dangers.
Ian King and Andrew Prince dove right into a cryptocurrency course. You’ll discover out one of the best technique to revenue from the cryptocurrency market with instruments reminiscent of staking and airdrops.
We additionally had a couple of visitor audio system attend.
One was Tom Wheelwright. He’s Robert Kiyosaki’s CPA. He talked about switching the tax dialog from “Is that this a write-off?” to “How do I make this a write-off?”
With the methods revealed, you might save hundreds of {dollars} yearly.
One other visitor speaker was Caleb Guilliams, founding father of Higher Wealth. Caleb talked concerning the “And” asset. This can be a distinctive technique to fund an entire life insurance coverage account so that you simply get cash now, AND your heirs get cash later.
Once more, I don’t need you to be neglected.
I spared no expense in getting a high-quality video crew to cowl each speech and panel at this yr’s Whole Wealth Symposium.
I do know the significance of having the ability to sift by a convention after the actual fact. To get the important thing information and funding concepts. And as a way to get no matter your prime 5 takeaways are. As a result of as you’ve seen, there have been dozens of concepts offered.
That’s why I’m making the convention video out there to all members of our Banyan Hill neighborhood at a big low cost to attending in individual.
The earlier you obtain it, the higher.
A number of the shares are already shifting larger.
Whereas I’m recovering from our improbable convention, I believed it might be sensible to circle again to the funding suggestions I’ve made in Banyan Edge over the previous few months.
My Three Suggestions So Far
Replace #1: Wrap Applied sciences (Nasdaq: WRAP)
I outlined the chance on this small-cap development inventory firstly of the yr.
Wrap Applied sciences offers regulation enforcement businesses with a singular weapon that wraps a suspect up with a bola wrap. Many officers are already turning of their Taser weapons in desire for this new “wrap” gun.
Shares are up greater than 50% since I beneficial it. That is primarily as a consequence of an replace from Wrap’s new CEO that they’ve been in a position to improve their manufacturing capability whereas slashing prices by about 30%. These are massively optimistic indicators for Wrap.
Replace #2: Bitcoin (BTC)
On November 5, I famous that I used to be shopping for extra bitcoin … and that it is best to too. That was proper firstly of the hype over the approval of a bitcoin ETF. Since then, the SEC has authorized 11 such ETFs. And bitcoin’s value is up 36.7%.
Bitcoin has now had a wholesome pullback after its current rally larger. With the bitcoin halving arising in simply two months, the most important cryptocurrency by market cap is prone to proceed shifting larger by the tip of the yr.
Replace #3: Workplace Properties Earnings Belief Most well-liked Shares (Nasdaq: OPINL)
In October, I beneficial this 13% dividend payer. Since then, the workplace property outlook has grown darker. Shares have fallen on the information that the corporate is slashing its common dividend by 96%.
But, anybody who invested within the PREFERRED shares continues to be getting paid. See why I’m much more enthusiastic about this funding.
Aaron James
CEO, Banyan Hill, Cash & Markets
From the Mailbag: Why I’m Nonetheless Bullish on This 13.01% 15.1% Dividend
Let’s take a more in-depth have a look at a high-income alternative I wrote about again in October, the Workplace Properties Earnings Belief Most well-liked Shares (OPINL).
I’m overlaying this place once more as a result of we’ve had some curiosity from our readers.
Calvin writes in:
Aaron, I bought $75k of OPINL at your advice. It’s now down 6% … ought to I be alarmed? Does this imply I’ll now get a dividend of 13.01%?
Thanks for writing in, Calvin.
I understand how you’re feeling…
I purchased the popular shares at $12.46. Right now, they’re at $10.60.
So, I’ve additionally “misplaced” on this place up to now.
Let’s discuss why shares have fallen, and why I’m inspired by current information and shopping for extra shares immediately.
On January 11, 2024, Workplace Properties Earnings Belief (Nasdaq: OPI) introduced that they have been reducing the dividend on their widespread inventory to a penny 1 / 4.
That’s a 96% lower!
The market didn’t react kindly. The widespread inventory dropped almost 30% that day.
Why? As a result of traders need the dividend. That’s why they invested within the firm within the first place. With the dividend gone, traders offered in droves.
The excellent news? The dividend lower permits OPI to save lots of $47 million a yr.
I do know that’s no comfort to the holders of widespread inventory.
However bear in mind, again in October, I discussed that I wasn’t a fan of the widespread inventory (OPI). It was the popular shares (OPINL) that caught my eye.
And since OPI lower the widespread inventory (saving $47 million a yr), they’ve loads of money to pay out the popular shares (which quantities to $10.3 million a yr).
Be mindful…
Most well-liked shares function very similar to bonds. They initially promote at a “par worth.” For OPINL, that was $25. At that value, they provide traders a 6.375% yield.
More often than not, most well-liked shares commerce close to that par worth.
However business actual property has been hammered over the previous yr — notably workplace house. So, the value of the popular shares has additionally declined.
Once I purchased at $12.46, or about half the par worth, the yield was far larger, at about 13.1%. Since then, OPINL has dropped additional, pushing the dividend as much as 15.1% immediately.
Why?
Effectively … it’s riskier as a consequence of a number of components, from rising rates of interest to an underlying firm’s well being as a consequence of a nasty business actual property market.
With OPI reducing its widespread dividend, traders are understandably cautious proper now. That’s mirrored within the deeper low cost within the OPI most well-liked shares as nicely.
However be mindful, the corporate simply saved $47 million … greater than sufficient to pay the $10.3 million it pays out as a dividend to the popular shareholders!
And once more, a most well-liked share is extra like a bond than a inventory. The dividend have to be paid!
Right here’s some extra encouraging information.
Final week, OPI introduced the renewal of a credit score facility. A handful of their properties secures it. Between that and the fee financial savings from the widespread inventory dividend lower, I anticipate the popular funds will proceed to receives a commission.
General, OPI is in a tricky spot. They’re a REIT (Actual Property Funding Belief) that’s been impacted by rising rates of interest. And so they’re targeted on the workplace market, which is adjusting to the post-Covid actuality of elevated hybrid work.
Nevertheless, whereas issues look dire now, there are some indicators of a restoration underway.
Demand for workplace house in New York Metropolis is up 40% year-over-year. Bear in mind in the course of the pandemic when some predicted the tip of the Large Apple? How rapidly perceptions change!
Plus, as I discussed in October, OPI’s largest tenant is the U.S. authorities.
That’s a gradual tenant. If something, authorities demand for workplace house grows when the economic system is dire. And when issues get well? Effectively, it definitely doesn’t shrink!
OPI’s dividend lower could also be an indication that we’re near the underside. Nevertheless, widespread shares will take years to get well from that shock.
The popular shares will seemingly rebound quicker. After they do, I think that can present a touch to traders that the workplace sector is recovering earlier than it turns into a mainstream concept.
As Michael Gigliotti, a managing director at Jones Lang LaSalle, just lately said: “We’re seeing extra bids, and we’re seeing extra excursions. You could have maturing loans, you’ve gotten dry capital, you’ve gotten events all for investing in actual property.”
To wrap issues up, I’m not anxious concerning the OPI most well-liked shares over the lengthy haul.
Sure, the share value could get cheaper over the subsequent few months. However that’s true of any funding. Within the meantime, I’m raking in double-digit revenue.
Right now’s consumers can get a barely higher revenue and extra upside when the shares pattern again towards their par worth. Bear in mind, in time, OPI must purchase again these shares at $25. It could take till 2050, nevertheless, so this ought to be thought-about an revenue funding first.
**Be aware: I couldn’t purchase shares on-line. My brokerage agency wouldn’t let me. I needed to name my dealer and state that I understood the danger with this funding, after which he put the commerce in for me.
Again to Calvin’s query:
Aaron, I bought $75k of OPINL at your advice. It’s now down 6% … ought to I be alarmed? Does this imply I’ll now get a dividend of 13.01%?
Must you be alarmed?
I can’t reply that.
I’m not your advisor and may’t let you know what to do personally. Plus, I don’t know your danger tolerance, or if $75,000 is some huge cash or slightly cash for you.
With that stated, I anticipate OPINL to stay unstable. I might not be shocked to see shares commerce decrease.
However I anticipate the funds will proceed to be made. And that’s the reason I’m on this funding … for the revenue.
As for the upper yield…
You’ll not get the upper yield.
That’s as a result of your yield is predicated on what you paid for the shares.
For instance, when these shares have been issued, traders paid $25 per share, they usually had a yield of 6.375%.
Because you paid about half that, your yield is way larger.
For those who purchase extra immediately (at about $10.60 a share), will probably be even larger nonetheless. Round 15%.
I’ll be including slightly extra to my stake right here. I don’t imagine in shopping for into an funding , simply in case one thing like this occurs. After all, I’m additionally nonetheless going to remain diversified!
So once more, thanks for writing in, Calvin.
If anybody else has joined me in investing in OPINL or any of the opposite alternatives I’ve highlighted previously few months, be at liberty to drop me a line.
My electronic mail handle is AaronJames@BanyanHill.com.
