There are countless investing “gurus” out there who promise to make you money if you subscribe to their service, and Louis Navellier is no exception. I was recently invited to attend his “Breakthrough Stocks Summit”, which is basically a sales pitch for his newsletter.
What did I find? In short, Breakthrough Stocks is a newsletter subscription service that costs $1,999 per year and is written by Navellier and published by Investor Place. It focuses on investing in small cap stocks. It’s legit, but some of their claims seem overstated.
Read on to find out more about what the Breakthrough Stcoks newsletter is all about, what you get with your subscription and whether or not Louis Navellier is a legit guru.
What’s Breakthrough Stocks About?
Breakthrough Stocks is a newsletter subscription service from Louis Navellier of InvestorPlace. The idea behind Breakthrough Stocks is that you will get tips and recommendations from Louis Navellier on what to invest in and what is going to make you the most profit.
This is all based on Navellier’s “Quantum Scoring” formula.
This formula is supposed to find small cap investments that will double, triple, or even jump “10x higher in just a few short years.”
But before we get more into that, let’s talk about small cap stocks in general.
Market capitalization is basically a publicly traded company’s value based on all of their shares. And you can figure out the market cap by multiplying the number of outstanding shares by the share price.
Outstanding shares are all the shares that have been authorized, issued, and purchased by investors outside of the corporation itself.
So, a small cap stock is a company with a market cap valued between $300 million and $2 billion.
Contrast that to a large cap stock, which has a market cap of $10 billion or higher. These are big name companies like GE or Boeing.
In regards to investing, large cap stocks provide you with an added level of stability, as you’re generally investing in a well-established company.
However, large cap stocks have generally undergone all their aggressive growth, which tends to happen in the earlier stages.
Because of this, you exchange stability for the lack of high profit potential.
But with small cap stocks, it’s just the opposite: the company has the potential to grow rapidly and produce major returns for their investors, however there’s a lot more risk involved.
So, what the Breakthrough Stock system is doing is supposedly helping you find small cap stocks that are poised to soar in the near future.
By getting in early before all the aggressive growth, the idea is that you’ll be able to make bigger profits.
How Does Breakthrough Stocks Work?
With Breakthrough Stocks, you are paying for a one-year subscription and you will get all of these features along with it:
- Access to Louis Navellier’s Quantum Scoring Research: This is research based on Louis Navellier’s system that has made clients who followed Breakthrough Stocks recommendations over millions in the past four decades.
- 10-bagger potential on each recommendation: These stocks are small-cap stocks and have the potential to move faster, which could in turn lead to 100%, 500% or 1000% or more in just a few years.
- Limited downside risk: The risk is limited because of using Louis’ Quantum Scoring formula to find stocks with high alpha and this brings lower risk and potential of higher profits.
- Instant trade alerts: As soon as Louis thinks a buy is good, you will get an alert telling you to either buy or sell, and this will be sent to your phone and email.
- Monthly position monitoring: You will receive an update each month from Navellier that lets you know if any changes have been made with current stock recommendations.
- 24/7 access to the Breakthrough Stocks members-only website: Upon subscribing, you will receive an email with your username and password that gives you access to the members-only website, containing the Position Tracker, current recommendations and a list of alerts.
- The Breakthrough Stocks Model Portfolio: This is where you can see all of Navellier’s current recommendations and whether you should buy, sell or hold them.
- 5 Small Caps Set to Soar 5,000%: This report will tell you all about Louis’ 5 top-rated small-cap recommendations currently and these stocks have the potential to bring you 5,000% in gains.
- The Breakthrough Stocks concierge service
All of this is going to cost you $1,999 per year for the subscription, which is a little pricey. But compared to most other subscriptions from financial publishing sites, it’s not too bad.
And the subscription is also set to auto renewal, so if you are unsure about wanting to get a second year, you should remember to turn that off before the next year comes up.
There is also a guarantee which comes with it, called the $150,000 Ironclad Guarantee.
It basically says that anyone following his research will “discover” how to turn $10,000 in investments into $150,000 within the next year. And if not, you’ll get the next year free.
So, if you follow his advice and lose all your money, then you wont’ get a refund.
Is Breakthrough Stocks a Scam?
I don’t think Breakthrough Stocks is a scam because you are paying for a newsletter and you are receiving the features of the service.
There is no guarantee anywhere that you are going to be making any money from it, and I do think the marketing and the claims it makes are hyped up.
They show a list of supposed testimonials from people, which seem to paint a picture that you are really going to make a lot off of following these recommendations.
I personally think they’re played up a lot, and apparently I’m not the only one. Under the testimonials, they point out that the results in those testimonials are “not typical” and that investing in securities “carries a high degree of risk.”
They’re even as blunt as to say that you may “lose some or all of the investment.” So, at least they do acknowledge that even if people had this experience, not everyone will.
Can You Really Make Money With Breakthrough Stocks?
There is people who have actually made money off of following Navellier’s tips and Navellier himself claims to have a net worth of just under $100 million, so he does have a good track record for being successful in investing.
Because of the nature of the recommendations – being that they’re small cap stocks – there is the potential to make larger profits if you invest your money correctly.
However, most of these companies are not as well established as their large or even mid cap counterparts, and therefore there’s a heightened risk that you’ll lose all your money.
So, it all comes down to whether or not this system and Navellier can correctly predict which stocks are about to soar and which aren’t worth investing your money in.
Sure, someone with experience like Navellier could have some valuable insight and he could be correct sometimes, but there is no system or person that can accurately predict what stocks are going to do well and which ones won’t.
Therefore, it’s a gamble.
And, to get some of those gains he mentions in his sales pitch, you’d probably need to invest a lot of money – more than most people would be comfortable with potentially losing.
Who is Louis Navellier?
His interest in stocks was first piqued during his time in grad school, when a homework assignment challenged the students to create a model that mimicked the S&P500.
Well, not only did his model beat it, but he did so well that afterwards he began to tweak and perfect it.
Then, in 1980, he released his own independent newsletter for investors called MPT Review.
After 20 years, it was renamed to Breakthrough Stocks, and his Investor Place page claims that its track record shows it consistently beating the S&P500, sometimes even beating it 6-1!
In 1997, he also released a newsletter called Growth Investor, which focuses mainly on large cap stocks and has beaten the market 3-1.
Now, he has a third newsletter service called Accelerated Profits, that focuses on short term money making opportunities.
On top of all that, he’s also the author of a highly acclaimed book titled The Little Book That Makes You Rich.
All in all, Louis Navellier’s Breakthrough Stocks is legit because it is a subscription service where you are paying for features that you actually get.
I’m sure with Navellier’s experience, he probably has some advice that can actually make you some money if you follow it.
Just remember, even someone with a net worth of $100 million dollars and a “proven” system can lose money on investing.
Be smart with what you invest in. And if you really want to try following the advice of Navellier, maybe start off with very small investments, but never invest more than you can afford to lose.