Aprediz

Motley Fool Stock Advisor
Volume 11, Issue 9, September 2012
With

TM

TM

Ignore the Naysayers

stockadvisor.fool.com

David & Tom Gardner
Motley Fool Co-Founders

New Recommendations
Kinder Morgan (NYSE: KMI) - David: This energy pipeline holding company offers the potential for gushing gains . . . p . 2 - 5 and 3 . . . . . . . . . . . . . . . . . . . . . p . 3 Priceline.com (Nasdaq: PCLN) - Tom: Come fly with an online travel-booking behemoth headed for huge global growth . . . . . . . p . 4 - 5 and 3 . . . . . . . . . . . . . . . . . . . . . p . 5

Dear Fellow Fools, When BusinessWeek published its infamous “The Death of Equities” cover 33 years ago, investors had all but given up on equities. By 1979, rampant pessimism, spiking oil prices, and nearly 12% inflation had caused millions of investors to drop out of the market. And small wonder: According to BusinessWeek’s article, equities gained 3% per year — far less than inflation (6.5%), single-family homes (9.6%), and gold (19.4%). With those statistics, who would want to buy stocks? Not So Fast … Of course, it turned out to be a wonderful time to invest: A $1 position in the S&P 500 index in 1979 was worth more than $28 by the end of 2011 — that’s an annualized return of 11% over three decades. For most of my (Tom here) adult life, stocks have been the best place for investors’ money. But Bill Gross, the founder of bond giant Pimco, echoed that BusinessWeek death knell this summer when he wrote that the past outstanding returns of stocks are anomalies and stock investors have little chance for similar performance in today’s (and tomorrow’s) world of low gross domestic product increases. “The cult of equity is dying,” he proclaimed. Sorry, Bill. I’m not buying it. Beating the Market Here at Stock Advisor, we aim not only to beat the market, but to crush it. Our strategy is simple: We buy and hold dozens of stocks backed by great businesses