What Is Ted Bauman’s Investment of the Decade? (Revealed)

Today I’m looking into a Ted Bauman presentation dubbed “The Great Bull Market of 2022,” where he talks about his “No. 1 investment of the decade.”

Of all the Banyan Hill Publishing presentations I’ve looked into over the years, I’ve found Bauman’s to be among the least overhyped and most enlightening because he shares useful research and breaks things down in a straightforward way.

This time, his prediction centered around real estate and one company he believes is “positioned to soar 800%” in the next decade.

What’s his stock pick?

Well, there are two ways you can find out.

The first is to join his service, The Bauman Letter, for $47. Because this comes with a bonus report that reveals his pick called “5X Your Money on the Investment of the Decade.”

The other is to look into the clues he shared in the presentation and see if you can figure out what it is, which is what I did, and I believe I know what it is.

So, read on if you want to know what stock he’s teasing. In this post, I’ll walk you through Bauman’s investment of the decade prediction and reveal his stock pick.

The “Great Bull Market of 2022” Teaser (Breaking Down Ted Bauman’s Real Estate Prediction)

Ted Bauman began his latest presentation by stating that “something strange is happening in America” that is “creating a unique window of opportunity.”

According to Bauman, a “historic shortage is causing one asset to soar to all-time highs,” and he claims to have found a “backdoor way to invest” that could lead to 800% gains.

Bauman later revealed that the asset he’s talking about is real estate, which he refers to as his “No. 1 investment of the decade.”

“So what exactly is the investment of the decade?

The investment that has been on a 100-month bull run that I see no signs of slowing?

Put simply … real estate. Or more specifically in this case, housing.

That’s right. The house over your head.

Houses just like yours and mine are becoming the hottest commodity on the planet.”

According to Bauman, “this is the No. 1 place to put your money right now.” And I’ll admit, that took me by surprise because I’ve come across numerous “experts” lately who’ve suggested that real estate is in a bubble given how far prices have risen.

Heck, Bauman himself talks about how the “Investment of the Decade” (AKA real estate) has been on a 100-month bull run and shared charts in the presentation to underscore this.

I’ve come across Bauman before, and he strikes me as a pretty conservative investor. So I was curious to see why he was so bullish on real estate.

So, what’s behind his prediction?

According to Ted Bauman, there are “five rally signals” that explain why an even bigger real estate rally could be coming in the years ahead than we saw in 2020.

Here’s an overview of each “rally signal” he shares:

• Rally Signal No. 1: The first signal Ted Bauman believes could cause a real estate boom is low mortgage rates. It’s no secret that interest rates are at historically low levels and that this tends to cause real estate prices to go up. But despite fears of interest rate hikes, Bauman says that “rates should be even lower.” Why? He suggests lenders are keeping mortgage rates artificially higher due to overwhelming demand.
• Rally Signal No. 2: Bauman’s research suggests that more millennials are buying homes than ever before and that “all signs show this is only the beginning.” And he believes this will lead to increasing demand over the next ten years.
• Rally Signal No. 3: The third “signal” Bauman talks about is “the great migration” of millennials out of major U.S. cities and into the suburbs, which has led to more millennials buying homes in suburbs instead of cities.
• Rally Signal No. 4: In the presentation, Bauman points out that over 90% of American homes are built from lumber and that lumber prices have skyrocketed. He also points out data like housing start increases and rising new building permits to explain why he thinks this trend could continue.
• Rally Signal No. 5: The last “rally signal” Bauman talked about is how a “historic shortage” in the supply of new homes could lead to a “big squeeze” in real estate prices when you also consider the increasing demand.

All of this sounds bullish, but we’ve already seen such a strong rally in real estate over the past couple of years. So, isn’t Ted Bauman concerned about a crash?

Apparently, no. Bauman suggests that this situation is different from the 2008 subprime bubble where loans were being handed out to, as he puts it, “anyone with a paystub.”

Why is it different? From what I can gather, there are two reasons Bauman thinks this isn’t like the 2008 bubble. The first is the supply and demand dynamics, which we just discussed. And second, Bauman states that “the borrowing standards are much tighter” these days.

So, that pretty much sums up why Bauman is bullish on real estate.

But what stock is he interested in? And why?

That’s what we’ll discuss in the next section.

What Is Ted Bauman’s Investment of the Decade Stock Pick? (Ticker Symbol Revealed)

To find out what Ted Bauman’s stock pick is, let’s look at the main clues he provides about the company in the presentation. Then, I’ll share my guess with you.

“It’s a company located in what CBS calls “the software capital of the world.” Many people may mistake it for just another tech stock.”

[…]

“This one company is streamlining the entire process through its e-closing tools and technologies…

And it’s offering rock-bottom rates on commissions.

Sellers get to keep more money in their pockets… Buyers get to spend less on closing costs. It’s a win-win for everyone.”

[…]

“Seeking Alpha called it the “Amazon of real estate” for undercutting the dinosaur competition.”

[…]

“Right now, it controls just under 2% market share of the brokerage market…”

[…]

“In a four-year span, this firm’s market share of the brokerage business growth jumped over 100%.

Which is why it has managed to QUADRUPLE its revenues…”

[…]

“With under $1 billion in annual revenues, this company is just small enough to stay off the mainstream’s radar.”

To me, the most obvious clue out of those was the “Amazon of real estate” quote, so that’s where I started my search. And this led me to a Seeking Alpha article about Redfin published about a year ago as of writing.

From there, I researched the other clues, and they all matched Redfin (ticker: RDFN).

What does the company do?

Redfin is a real estate brokerage that helps people save money on fees when buying and selling real estate. The company offers sellers a discounted listing fee (1% as of writing), and buyers can get a “Redfin Refund” because the company shares part of its commission.

There’s a page on Redfin’s website that explains how the fees and savings work in more detail, so that may be worth checking out if you want to learn more. But the gist of it is that the company leverages technology to reduce costs and streamline the process of buying and selling a home, resulting in potential time and money savings for its customers.

And if you’re still unsure if Redfin is the company Bauman’s teasing, here’s a summary of how it matches his other clues:

• Redfin’s headquarters is in Seattle. And CBS News has referred to Puget Sound as “the software capital of the world.” So, since Seattle is a city on Puget Sound, the company matches Bauman’s first clue above.
• According to a different Seeking Alpha article written by the same analyst (Neautral Investing), “Redfin accounts for 2% market share in the iBuyer Segment.”
• According to the company’s Yahoo Finance page, the yearly revenue matches what Bauman shared in the above chart. Also, at the end of 2020, Redfin saw about $886 million in revenue. So it’s a match on all of Bauman’s statements about revenue.

So, to sum it up, Ted Bauman’s “No. 1 investment of the decade” stock pick is Redfin (RDFN) based on the clues he shares in the presentation.

Why is he so bullish on this stock?

For the most part, Bauman’s thesis centers around how the company is streamlining the traditional home-buying process and making it cheaper thanks to its technology.

“The traditional home-buying process is being turned upside down.

Gone are the days of mountains of paperwork and forking over high fees to traditional brokers.

This one company is streamlining the entire process through its e-closing tools and technologies…

And it’s offering rock-bottom rates on commissions.

Sellers get to keep more money in their pockets… Buyers get to spend less on closing costs. It’s a win-win for everyone.”

It’s hard to argue with that. Like it has done with countless other industries, technology is disrupting the real estate market. And Redfin seems like a great company that is well-positioned to capitalize on this trend.

What upside is Bauman forecasting?

According to Ted Bauman, making 5x returns in ten years is possible:

“So making five times your money on this one stock within the next decade is a real possibility. In fact, I believe it’s a conservative estimate.”

If Bauman’s “housing boom” prediction plays out (emphasis on IF), then I would agree that his estimate is conservative. Especially since Redfin is currently trading at around $23, roughly 75% lower than it was a little over one year ago. From there, a 4x plus gain could be accomplished if the stock simply reclaimed its February 2021 high of around $96.

To be clear, I’m not suggesting that will happen. I have no idea if the stock will go up or down. So please don’t consider what I’ve said advice on what you should or shouldn’t do. I’m just sharing my opinion and thoughts on Bauman’s presentation.

And, although I highly doubt it, my guess of Redfin could be wrong. The only way to know for sure would be to read Bauman’s “5X Your Money on the Investment of the Decade” research report, which comes with a subscription to The Bauman Letter.

So let’s discuss what this service is about and how it works. That way, you’ll have a better idea of what to expect if you decide to give it a try.

What Is The Bauman Letter? (Overview)

The Bauman Letter is an investment advisory service edited by Ted Bauman of Banyan Hill Publishing that covers a mix of growth and dividend-paying stocks.

Bauman describes it as “the single best way” to stay updated on the latest housing market developments and “other moneymaking opportunities that the mainstream ignores.”

As a subscriber, you receive Bauman’s latest market analysis and investment ideas in the monthly newsletters. Each issue starts with his analysis of a major trend he believes could impact your wealth before detailing his top idea of how to profit from it.

That’s the core of the service. However, subscribers also get access to three separate model portfolios, which are essentially lists of stocks he’s currently recommending.

One portfolio is focused on high-yield dividend stocks for generating income. The second portfolio focuses on reliable growth stocks. And the third focuses on higher-risk, higher potential reward growth stocks.

Aside from that, subscribers receive regular updates on Bauman’s recommendations and some bonus reports that cover different stocks he’s tracking.

Here’s an overview of the reports that come with the “Great Bull Market of 2022” presentation we’ve discussed in this post:

• 5X Your Money on the Investment of the Decade: This report details Bauman’s “investment of the decade,” which appears to be real estate brokerage Redfin.
• The Real Estate Rental Boom: Invest in America’s Leading Landlord: This report centers around how rents are increasing and features a company Bauman believes is “perfectly positioned to cash in on this boom.”
• The Millennial Homebuilder of the Future: The third report covers a home builder that specializes in Wi-Fi smart home designs which Bauman says has “come up with an ingenious plan” to get millennials buying.

All in all, The Bauman Letter is a comprehensive service, and it only costs $47 to join through the presentation. Not to mention, it comes with a one-year refund policy.

Who Is Ted Bauman?

Ted Bauman is the editor of three Banyan Hill Publishing services; The Bauman Letter, Profit Switch, and Bauman Daily. And according to his Banyan Hill profile, he has decades of experience as an economist and financial writer.

In summary, Bauman has postgraduate degrees in economics and politics. He spent 25 years as an executive in South Africa’s nonprofit sector, mostly related to managing money for low-cost housing projects. And his profile states that he was a consultant for the United Nations, World Bank, and South African government (among others) in the 2000s.

In 2013, Ted Bauman’s profile states that he began researching and writing full-time. And based on what he states in the presentation, he’s recommended numerous winning stocks and made some notable market predictions in that time.

Is he the real deal? Yes, Ted Bauman is a genuine investment expert. And unlike many other “investment gurus” I come across, he doesn’t seem to overhype things too much. Instead, he breaks his thesis down in a straightforward, no-nonsense way.

Bottom Line

Ted Bauman’s recent Banyan Hill presentation centered around his prediction that the housing market will boom over the next ten years, mostly due to supply and demand factors. And based on the clues he shares, I believe his “No. 1 investment of the decade” is Redfin, a real estate brokerage that uses technology to reduce buying and selling fees.

Bauman suggests that his investment of the decade pick could see 5x gains within the next decade and says it’s the best way to play his housing market rally prediction.

“Many folks were curious on the BEST way to play this opportunity since I made my housing market rally prediction.

Well, this is it. I truly believe this single stock play could reward you with big profits if you act now.

Hands down, it has more explosive growth potential than any homebuilder stock or mortgage company in my opinion.”

Of course, there’s no guarantee that Bauman’s real estate stock pick will make you money or that any of his recommendations will work out.

However, Ted Bauman is an expert, and his Bauman Letter service is legitimate, so at the very least, you could find his insights worthwhile if you decide to join the service.

What do you think? Are we headed for an epic real estate collapse like some are predicting? Or is Ted Bauman onto something? Let us know in the comments section below.