| Welcome to 2022! All last week, we featured a technology series from Luke Lango’s Early Stage Investor service. In it, we’ve been discussing the extraordinary investment opportunities in front of us today thanks to a wave of technological advancements coming this decade. In today’s final installment of the series, we cover a question on the minds of many investors as we begin 2022… But what if there’s a recession or a bear market? It turns out, elite technology companies aren’t immune from market downturns. But in the long-term, their wealth-generating ability remains enormous. We dig into those details below. Today’s Digest is longer than usual, but it’s packed with valuable information that can change how you approach investing, and by extension, transform your portfolio. I encourage you to grab a cup of coffee and settle in. Today’s read is absolutely worth it. Have a good evening, Jeff Remsburg | Luke Lango Just Dropped a Bombshell Luke Lango just dropped a bombshell on his readers. He said 99% of the population is clueless about the big market events about to rock the markets in 2022. This is the #1 thing he believes you MUST do before January 1, 2022. Learn more here. SPONSOR | Are You Worried About a Recession or Bear Market? Here’s What to Do With Your Stocks If I asked you to name some of the biggest stock market winners of the 21st century, there’s a good chance Amazon would come to your mind. After all, Amazon has gone from a small online book seller to one of the world’s largest, most powerful companies. Amazon now sells virtually everything… and its founder, Jeff Bezos, is one of the world’s richest men. As result, Amazon’s shareholders have enjoyed one heck of a ride… Amazon’s market value has increased more than 86,000% since its IPO in 1997. That kind of gain turns every $10,000 invested into a stunning $8.6 million. You probably also know why Amazon is so successful. Its Prime membership program is a huge hit. Its mastery of logistics has lowered the price of almost everything. Its cloud computing business generates billions of dollars in annual revenue. What you probably don’t know is what the Dow Jones Industrial Average did on March 4, 2015… or what the Dow did on October 18, 2013… or what the Dow did on ANY specific day of Amazon’s incredible 86,000% bull market. That’s because what the stock market did on those days didn’t amount of a hill of beans com- pared to what Amazon’s business was doing. What the market did or what made headline news on any specific day is meaningless compared to the moves Amazon’s management was making. What really mattered to Amazon shareholders wasn’t the broad market, interest rates, or political wrangling. What really mattered was that Amazon constantly innovated and beat its competition. Here’s why this is so important to you as an investor… If you follow the market for more than a few days, you’re sure to come across “bearish” news and predictions. There’s a whole industry of financial analysts who constantly predict the fall of America, runaway inflation, the next Great Depression, and a host of other calamities. These folks are born pessimists. No amount of positive things can shake them from thinking things are about to go to hell in a handbasket soon. And you know what? We listen to them. Humans are hardwired to pay close attention to potential dangers. A hundred thousand years ago, it’s how we survived. Constantly worrying that a tiger or bear could be around the corner was a valuable instinct. These days, we don’t have much to fear from bears or tigers. However, our instincts make us pay close attention to potential dangers. So, many of us are compelled to click on bearish headlines, buy magazines with gloomy forecasts on their covers, and buy bearish financial newsletters. Or as financial media insiders like to say, “Fear sells.” With this in mind, I encourage you to let common sense and the facts overwhelm your caveman instincts. You’ll be far more successful as an investor if you do. And what are the facts? Well, just consider that the stock market has averaged a positive annual return of 7% for the past 100 years. The stock market has gone through a dozen bear markets since 1930. After each and every one of them, stocks have rallied to new highs. Consider that poor people in America get better medical care now than the world’s richest people did just 80 years ago. U.S. homes have never been larger. Living standards in the U.S. have never been higher. The average bull market lasts 4.5 years. The average bear market lasts just 14 months. I’ve got one more fact for you… During the 20th century, stocks appreciated in value 1,500,000%. A 1,500,000% return turns every $100 invested into $1.5 million. But wait… Wasn’t the 20th century filled with wars and recessions and other awful things? Yes. There were two huge world wars, which killed tens of millions of people and devastated large portions of the world. You also had the Great Depression… the Korean War… the Cuban Missile Crisis… the Watergate scandal … the inflation of the 1970s… the Arab oil embargo… the Vietnam War… the 1987 stock crash… and the savings and loan crisis of the 1990s. You also had more than a dozen recessions and five horrible bear markets. Despite all these horrible things, U.S. stocks appreciated in value by 1,500,000% during the 20th century. Despite something bad happening every decade, incredible wealth was created by innovative businesses like Coca-Cola, Ford Motor, Hershey, Intel, Disney, General Electric, McDonald’s, Proctor & Gamble, Wrigley, Tootsie Roll, Pfizer, Microsoft, Walmart, Starbucks, and thousands of others. We all know there are problems in America… like debt, poverty, and inequality. These topics are covered daily in the news. They are the subjects of best-selling books. They have many people paralyzed by fear. But if you know your history and know how powerful American innovation is, you know this is no cause to sell your stocks and crawl into a hole. You know that for every ONE problem in America, there are THOUSANDS of brilliant people working on innovative solutions. They are developing amazing products and services that will make our lives better. These are the types of people who invented the light bulb… the television… the pacemaker… the airplane… and the iPhone. They are people who have the brains and worth ethic to create incredible businesses like Starbucks, Facebook, Amazon, Whole Foods, Apple, Nike, and Google. These companies have provided good jobs to millions of people… they provided goods and services to thankful customers… and they produced hundreds of billions of dollars in wealth for their shareholders. All by creating and innovating. Even better, these kinds of folks work in America. Despite what some Debbie Downers like to say, the legendary investor Warren Buffett is right: America is still the greatest place in the world to do business. We have deep and liquid capital markets. We have rule of law. We have excellent accounting standards, which creates transparency. We encourage and foster innovation. We respect property rights. We have an excellent transportation network (if you like to complain about U.S. infrastructure, I urge you to visit a third world country for comparison). We have a huge population of well-to-do consumers ready to buy great products and services. The advances made by American entrepreneurs allow today’s average American to live better than a king did 100 years ago. Even people in America’s “low income” bracket have better medical care, better food, better transportation, and better access to information than anyone did in 1919, no matter what their level of wealth. In other words, free markets, innovation, and productive enterprise has allowed mankind to achieve incredible progress despite wars, recessions, and bear markets. It’s been that way for centuries… and it will continue to be that way in the future. Below is a chart of the Dow Jones Industrial Index from post-World War II through mid-2019: 
Incredible, right? With this picture in mind, my advice is to “make the trend your friend” and ignore the ignorant naysayers. Don’t focus on the fear-stoking headline of the hour and get scared out of your holdings of high-quality innovative companies. Focus on what really matters: innovation. Remember that despite all the negative developments of the past 100 years, shareholders of innovative companies made fortunes. It’s been the surest way to get rich in America for more than 100 years. It will be that way for at least 100 more. That’s why staying bullish on innovation is at the foundation of what we do in Early Stage Investor. Don’t Miss This Once-In-a-Lifetime $3 ‘Wonder Stock’ Electric vehicles are white-hot right now. But one of America’s top tech futurists believes 99% of investors will make a colossal mistake. But behind the scenes, while NO ONE is watching, a once-in-a-lifetime $3 gem could help you retire rich… Don’t miss your chance. Get the details here. SPONSOR | Hypergrowth Investing: Like Regular Investing… on Steroids In the 1990s, the investment industry and its customers went wild for “style labels.” A style label describes a money manager’s investment approach. A key part of Wall Street’s labeling system is whether a money manager is a “value investor,” a “growth investor,” or somewhere in between. A value investor tries to buy companies at cheap valuations relative to their earnings and physical assets. A growth investor focuses less on paying cheap prices… and instead is willing to pay higher valu- ations to own dynamic, growing companies. A money manager’s style earns him or her the label of a “growth investor,” a “value investor,” or somewhere in between. However, my absolute favorite investment strategy doesn’t conform to mainstream conventions. It’s like a “missing label” in the Wall Street world. I call this investment strategy “hypergrowth investing.” And it’s the absolute best way to turn small amounts of money into life-changing wealth. In this guide, I’ll explain how hypergrowth investing is the single best way to make 100 times your money on a single investment. I’ll show you how hypergrowth investing works, how to spot hypergrowth opportunities, and how we’ll make A LOT of money together over the coming years. Think 100X Growth is Rare? Think Again… The definition of hypergrowth investing is simple: It’s the investment of money into industries and businesses poised to grow at least 10 times (and often 100 times) in size. Recent hypergrowth investment opportunities include the building of the internet in the 1990s… the production of electric vehicles in 2011… online retail businesses in 2005… smartphones in 2009… and legal cannabis in 2014. Hypergrowth investing can allow you to make five… 10… 50… even 100 times your money on a single stock. Hypergrowth investing is a strategy that gets you into massive stock market winners like Amazon very early in their lifecycles. This can result in life-changing wealth. For example, Amazon returned early investors a stunning 86,000% from its 1997 IPO through mid-2019. That kind of gain turns every $10,000 invested into more than $8.6 million. Hypergrowth investing is also how investors made more than 10,900% in genetic testing firm Illumina… 6,400% in streaming firm Netflix… 6,500% in clothing retailer Lululemon… and more than 100,000% in software leader Microsoft. Think about how your life would change if you turned a $10,000 investment into $8.6 million. As you can imagine, it only takes ONE big win like that to radically change your finances. You see, conventional growth investors are often happy to invest in industries that have the potential to double, triple, even quadruple in size. And that’s a reasonable thing. Owning stocks in an industry that doubles, triples, or even quadruples in size can double, triple, and quadruple your money over a long time span. However… for a real hypergrowth investor, an industry quadrupling in size simply won’t cut it. It’s not dynamic enough. It doesn’t have enough potential. That’s because a real hypergrowth investor has much higher ambitions for his or her money. A hypergrowth investor invests in industries and businesses with the potential to grow 10… 20… 50… even 100 times their current size. You can think of hypergrowth investors as the grand slam home run hitters of the investment world. Now, if you’re new to the concept of hypergrowth investing, all that might sound outlandish or impossible. But if you study American business history, you’ll find it is chock full of industries and businesses that generated those kinds of returns for early investors. If you study business history, you see that life-changing returns like the ones I just mentioned are actually quite common in businesses and industries that change our world. For example… During the 1990s, a radical new way of communicating and sharing data called “the internet” took the world by storm. From 1995 to 2000, the number of people using the internet soared 23-fold. Cisco, a key maker of internet infrastructure equipment, climbed 31,671% during the 1990s. That kind of gain turns a modest investment of $5,000 into $1.6 million. From 2011 to 2019, electric vehicle sales in the U.S. soared 20-fold. Shareholders of top electric vehicle maker Tesla rode this boom to 4,596% gains. From 2008 to 2018, the number of people using social media climbed 44-fold. Shareholders of Facebook rode this boom to make more than 900% from late 2012 through mid-2018. From 2007 to 2016, the number of people using Netflix’s streaming service soared more than 10-fold. This growth allowed early Netflix investors to make a stunning 6,400%. 10-Fold and 100-Fold Growth Happens More Often Than You Think You can imagine all the funny looks I get when I talk about industries with the potential to grow 100-fold… and hand investors 100-fold returns. You see, most financial advisors will remind you the stock market climbs an average of 7% per year. They’ll say you’re lucky to make two or three times your money on a stock. And most mutual fund managers are thrilled to invest in industries with the potential to grow three or four times their current size. But I’m talking about 100-FOLD growth. That’s so far from the norm it’s not even funny! When I talk about investing in industries and businesses with 100-fold growth potential, people look at me like I’ve lost my mind. But as I mentioned above, if you research American business history, you’ll find it’s chock full of industries and businesses that enjoyed 100X growth and handed investors millions and billions of dollars. Below is a list of industries, products, and services that have experienced 100-fold growth from their early days: 
And get this: these examples are just from the past 30 years! Industries grow more than 100-fold in size quite often in America. Industries make their early shareholders millionaires and billionaires quite often in America. That’s what mainstream financial advisors don’t get… or don’t want to get. You see, it’s way, way less work to just stick a client’s money in simple stock and bond index funds. That gives advisors plenty of time to play golf. It’s a lot harder to do the kind of deep research that uncovers 100X opportunities. But as I just showed you, industries and businesses grow 100X all the time in America. If you ask me, that’s what makes America great. How the Ground Floor Phenomenon Works Every industry you’ve ever heard of had to start at zero. From cars to airplanes to computers to online retail… every new industry starts at zero. If a new industry didn’t start at zero, it wouldn’t be a new industry, right? Let’s say an industry starts at zero and then eventually grows to generate $120 billion in annual revenue. That makes it a relatively small industry in America. If you buy an investment stake in that future $120 billion industry when it’s generating only $20 billion in revenue, you’ll be on board for six-fold growth. 120 divided by 20 is 6. That’s good, but not great. If you get into the industry when it’s generating only $10 billion in revenue, you’ll be on board for 12-fold growth. 120 divided by 10 is 12. Now… picture you don’t stake your claim when the industry is at $20 billion or $10 billion. Picture you get in on the ground floor… when the industry is just $1 billion in size. That’s 120-fold growth! That’s the power of getting in on the ground floor. That’s the power of getting in FIRST. That’s the key to making the elephant sized “hypergrowth” investment returns like those made by early Amazon, Microsoft, and Illumina investors. Again: The key to making giant investment returns is to get in on the ground floor… when the industry is tiny. Most mainstream financial advisors well tell you getting in on the ground floor of an industry poised to grow 100-fold is impossible. But tell that to the thousands and thousands of early stage investors who see 100-fold industry growth and shareholder returns ALL THE TIME. With all this in mind: Here’s my commitment to you: As a reader of Early Stage Investor, you’ll put the power of getting into huge, hypergrowth investment trends at the ground floor to work in your own portfolio. Every book, every update, every report, and every issue we produce is done so with this guiding light in mind. You know what’s around the corners of the business and technology worlds BEFORE anyone else. And you’ll have an incredible resource in your journey to financial freedom. As I’ve just shown you, the rewards for looking “around the corner” and acting boldly can be enormous. There’s a lot to cover, so let’s get deeper into how you can make a fortune as one of the world’s premier “hypergrowth” investors… The Snowball Effect: How to Think Like an Investment Genius During the final months of 2008, shares of Amazon did what shares of most every public company did at the time: Plunged as a result of the biggest financial crisis in decades. From its August 2008 level of $88 per share, Amazon’s stock fell 60% in value to reach $35.03 per share. However, in the years that followed, Amazon shares did something that shares of most every public company did not do. From the stock market low of March 9, 2009 to the summer of 2019, Amazon shares skyrocketed more than 2,900% (a 30-fold return). The benchmark S&P 500 advanced just 315% during the same time period. Credit for the stunning performance goes to Amazon’s dominance of online retail, its profitable move into cloud computing services, and CEO Jeff Bezos. The huge increase in Amazon’s market value made Bezos the richest man on Earth. It’s safe to say that owning an “Amazon-like” stock is the dream of most any investor. Put in a modest sum, make enough money to buy a new house or two. As well-known as Amazon’s success is, most people would be shocked to see a breakdown of Amazon’s annual stock market gains over the years. That’s because during its 2,900% run, Amazon stock generated no annual gain greater than 162%. And out of the 10 full years of the 2,900% run, Amazon had two losing years. Said differently, about 20% of the years were losers. There’s a powerful lesson to be learned in the breakdown of Amazon’s annual gains, shown in the table below. Amazon Returns
By Year | | Year | Return | | 2009 | 162.32% | | 2010 | 33.81% | | 2011 | -3.83% | | 2012 | 44.93% | | 2013 | 58.96% | | 2014 | -22.18% | | 2015 | 117.78% | | 2016 | 10.95% | | 2017 | 55.96% | | 2018 | 28.43% | I believe this lesson will make you a much better, much more informed investor. It will help you think of the market like an investment genius. The #1 ‘Forever Battery’ Stock for the EV Revolution Luke Lango hated penny stocks… until he discovered a tiny $3 gem boasting a powerful breakthrough that could disrupt the entire Electric Vehicle industry as it gets rolled out. He reveals all in his special presentation. Learn more here. SPONSOR | The Powerful Lesson Inside Amazon’s Annual Stock Returns If you’ve read investment newsletters for more than a week, you’re familiar with the industry’s often hyperbolic claims. You’ve heard publishers tell you that you’ll make your first million in months and that they’ll guarantee a stock will gain 1,000% in just one year. Investment newsletter publishers aren’t crazy. They make those claims because they work – and have for decades. Individual investors vote with their wallets, and – ask any marketer – investors vote for big claims. While it’s possible to make 1,000% in a year in a single stock, you and I and every other investor are unlikely to do it. This means that claims of making “1,000% in year” frequently help novice investors build unrealistic expectations that can block the road to financial freedom. Here’s why… Amazon’s performance from early 2009 to mid-2019 is a performance for the ages. It’s one of the best stock market runs and one the best business success stories you’ll ever come across. Now let’s look at that table of annual Amazon stock returns again. Amazon Returns
By Year | | Year | Return | | 2009 | 162.32% | | 2010 | 33.81% | | 2011 | -3.83% | | 2012 | 44.93% | | 2013 | 58.96% | | 2014 | -22.18% | | 2015 | 117.78% | | 2016 | 10.95% | | 2017 | 55.96% | | 2018 | 28.43% | There are no years in that table that show an annual gain of 1,000%… or 500%… or 300%… or even 200%! Instead of riding some monster 500%+ annual gains, Amazon “snowballed” its way to world domination and incredible stock market returns. When I say “snowball,” I’m not talking about playing outside in the winter. In the business and financial world, the term “snowball” is used to de- scribe the incredible effects of compound returns. Compound returns happen when you place some money into an investment that generates a return on your money. But instead of taking the return and spending it, you “reinvest” it… and buy more of the investment. By doing this, your dividends earn more dividends and your interest earns more interest and your capital gains earn more capital gains. You stack gain on top of gain on top of gain on top of gain. You can think of compounding returns like rolling a snowball down a hill. As the snowball gets larger, it’s able to gather more snow… which enables it to get larger… which enables it to gather more snow… which enables it to get larger… and so on. Eventually, you build a snowball the size of a house. Investment genius Warren Buffett credits his success to the “snowball effect” of compound returns so much that the preeminent book on the man is called “The Snowball.” When it comes to owning high-growth companies like Amazon, you don’t compound your wealth with cash dividends. Instead of paying cash dividends, smart, high-growth companies like Amazon snowball their way to massive market values by retaining their earnings and investing them back into the business to generate more growth. By following this strategy, Amazon followed up a big 162% gain in 2009 with a 33.8% gain in 2010. Then, after modest decline in 2011, Amazon gained 44.9% in 2012 and 58.9% in 2013. After another decline in 2014, Amazon went on to generate and compound on a 117.7% return in 2015… a 10.9% return in 2016… a 56% return in 2017… and a 28% return in 2018. Despite no astounding 300% or 500% years, Amazon generated a 2,900% return for investors… by generating and compounding on a bunch of really good years. Amazon took over the world, but it took time. Even Amazon – one of the biggest business successes in American history – didn’t grow massive overnight. It didn’t make its shareholders fabulously rich in just a few months. Instead, Amazon took time to “gain weight.” Patience is Key You can hardly make a move in America without coming into contact with Amazon, Apple, or Microsoft. They are among the most successful businesses in U.S. history. Their soaring stock market values have made many people very rich. However, these incredible businesses didn’t take over the world in a day, a week, or even a year. It took them years and years to grow from small to dominant. Only their patient shareholders made the really big money. Even the greatest businesses need time to “gain weight” and let compound returns work their magic. As investors, we’d be wise to keep this in mind… be patient with great businesses… think long term… maintain reasonable expectations with our holdings… and snowball our way to wealth. But remember, it only takes one of these winners to radically increase your net worth. By using the strategies and mindsets we’ve covered in this series, you’ll own the future… and reap the rewards. To learn more about joining us in Early Stage Investor, just click here. In the meantime, have a wonderful and prosperous New Year! | 
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