Editor's note: Don't be fooled by the market's mood swings... With sky-high inflation, geopolitical conflict, and the banking crisis weighing on stocks, no investor can predict where this chaotic market is headed. But you can still uncover great opportunities, no matter how volatile this market gets. In fact, Stansberry Venture Value editor Bryan Beach says you can earn huge gains by identifying good businesses with high upside potential that are trading for cheap amid today's bear market. In today's Masters Series, adapted from the January 14, 2021 issue of our free DailyWealth e-letter, Bryan discusses the market turbulence we've seen over the past few years... details how this ongoing turmoil is creating a slew of buying opportunities... and reveals how you can position yourself to take advantage of this "value bowl"...
When 'Mr. Market' Panics, Be Ready to Buy By Bryan Beach, editor, Stansberry Venture Value You might have heard about "Mr. Market"... This allegory comes from Warren Buffett's mentor, Benjamin Graham. In his seminal investing book The Intelligent Investor, Graham likened the stock market to an impetuous neighbor he calls "Mr. Market." Every minute of every weekday, Mr. Market makes bids to buy the companies you own... and provides quotes to sell you thousands of businesses that you don't own. But Mr. Market is capricious. And thanks to his shifting moods – as I'll show you today – you can make a lot of money by hunting for stocks in the bargain bin... As Buffett – Benjamin Graham's star pupil – elaborated on "Mr. Market" in his 1987 letter to Berkshire Hathaway shareholders: Even though the business that the two of you own may have economic characteristics that are stable, Mr. Market's quotations will be anything but. For, sad to say, the poor fellow has incurable emotional problems. At times he feels euphoric and can see only the favorable factors affecting the business... At other times he is depressed and can see nothing but trouble ahead for both the business and the world... The more manic-depressive his behavior, the better for you. Many people don't understand that the stock market isn't some code to be cracked or system to be beaten... It's really just common sense. Mr. Market is always there, ready to make you an offer. Most of the time, his offers are reasonable and fair. But when he makes a stupid or irrational offer to buy or to sell, you should take him up on it. Otherwise, just ignore him... After all, you know full well he'll be back again the next day. After a raging bull market that lasted more than 10 years, Mr. Market finally started selling like crazy in 2022. Much of this sell-off was warranted. But sometimes, shares of great companies also get pummeled during these broad market sell-offs. One of my favorite value setups is when a good company's shares fall for a reason that is not related to the underlying fundamentals of its business. Businesses can go on sale for any number of reasons. I've covered a lot of those reasons over the years... For instance, one-time solvable problems – like the temporary cost overruns that plagued a single project for HVAC contractor Limbach (LMB) – can be a source of temporary market opportunity. I recommended Limbach to our Stansberry Venture Value readers in December 2018. Within three months, shares had doubled, and we were able to lock in some gains. Investors may also overreact to the macro trends they see taking place. For example, in September 2019, Mr. Market had a panic attack and decided that nobody would ever buy a house again using a human realtor... As a result, the market cap of global realtor Anywhere Real Estate (HOUS) – which was called Realogy at the time – slid from $2 billion in early 2019 all the way into small-cap territory. We scooped up shares when they changed hands for just $6 and sold for a quick 70% profit just two months later. We also like to take advantage of specific "delisting" scenarios. To be clear, I wouldn't recommend delisting situations to most other investors or speculators... but our team happens to have extensive experience with these situations. I'm talking about cases when an otherwise solid company delists from a national exchange while its accountants redo prior-period financial statements. These radioactive situations always come with "forced selling," which drives down prices. Such was the case with orthotic and prosthetic provider Hanger, which we introduced to our readers in December 2017, and Osiris Therapeutics, which we covered in November 2018. It often takes much less to give Mr. Market a good scare, though. And as you can see below, these kinds of value situations make for interesting, bowl-shaped charts. Take a look at what happened to the stocks I mentioned... All of these stocks were Venture Value recommendations, except for Osiris. We didn't time these "bowl" shapes perfectly, but we still made fantastic gains... We sold LMB at a 43% gain, HNGR at 26%, and HOUS at 71%. In short, when the market hands you a fantastic value, it's simple: You want to be ready to buy. By buying at the bottom of the "value bowl," you're betting that Mr. Market will go back to paying what he used to pay for solid, established businesses... And that's a great bet to make. Good investing, Bryan Beach
Editor's note: According to Bryan, the market is full of "blind spots"... huge moneymaking opportunities that most investors miss because of negative mainstream headlines skewing their perception. And he believes this gives investors a rare opportunity to double or even triple their money within the next 18 months – but only if you start preparing right now. Click here to get the full details... | 
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