Dear Reader,
If you ask most investors what they look at to determine if a stock is a buy… they'll often reply with earnings or sales.
But truly great investors know its something entirely different.
Warren Buffett, for example, says, "common yardsticks such as dividend yield, the ratio of price to earnings or to book value, and even growth rates have nothing to do with valuation."
Rather, he says value "all relates to [this one metric.]"
Richard Branson says you should "never take your eyes off [this metric], because it's the lifeblood of business."
And Austin Hankwitz of Seeking Alpha put it simply… "if you can predict [this metric], you can predict the stock price."
What is this metric?
And why do the wealthiest people in the world swear by it?
Good investing,
Marc Lichtenfeld
Chief Income Strategist, The Oxford Club
P.S. Studies have proven that Buffett, Branson, and Hankwitz are right. This one metric is the most powerful predictor of stock market success.
Pacer ETFs, for example, did a study going back to the 1990s. They uncovered that stocks found using this one metric "offered the investor the highest return and the fewest period of negative returns."