Editor’s Note: Our usual Digest Editor Jeff Remsburg is taking a rare break — his first extended vacation in years.
While he’s away, our team has assembled a stellar roster of guest analysts to keep your InvestorPlace Digest filled with sharp insights and actionable ideas.
On Wednesday, Louis Navellier shared details about his and two remarkable investors’ project to fuse his legendary Stock Grader system — the same model that’s helped him identify hundreds of market-beating stocks — with powerful new digital data.
Today, we turn the Digest over to one of those remarkable investors – Andy Swan. Andy is the cofounder of LikeFolio, which tracks millions of online consumer mentions and trends to spot stock opportunities before Wall Street does. Andy and his brother Landon Swan have teamed up with Louis on a collaboration that, in testing, found more than 240 double-your-money opportunities over five years.
Louis, Andy, and Landon will dive deeper into what they call the “Ultimate Stock Strategy” during a free live event on Tuesday, October 28, at 10 a.m. Eastern. Click here to reserve your spot.
It’s amazing how much you can learn from spending the day with a fellow investor.
Especially when it’s someone who’s been doing it professionally for 45 years…
… whose quantitative system has topped the performance of the S&P 500 since 1997…
… someone whose investment firm manages around $1 billion in assets…
… whose mutual funds and ETFs have been ranked #1 by Morningstar and The Wall Street Journal…
…whom The New York Times has called “icon among growth investors”…
… who’s a regular guest on Bloomberg Television, Fox News, and CNBC.
As you’ve likely already guessed, that someone is Louis Navellier. And meeting him lit the fuse on an exciting new collaboration.
Louis began programming computers that beat the market in the 1970s while still a student. And he launched his first newsletter in 1980, back when my brother Landon and I were still learning how to walk.
That’s me on the right beside Landon (in the middle). Louis, of course, is the other guy.
He’s a living legend among quant investors like us – folks who rely on data, not guesswork, for their edge. That’s why they call him the “King of Quants.” He’s been doing this longer than anyone else we know.
And when he shared how he got into this business, it sparked a collaboration that led to our Ultimate Stock Strategy. It’s a rule-based system that, according to backtests, on average would have found a new stock every six trading days with the potential to double your money.
I’ll get into the details in a moment – plus how you can learn more. First, let me share a little bit about how Louis blazed a trail for us quants.
This System Grades 6,000 Stocks
It all started with an assignment Louis got as a student.
He was studying finance at Cal State Hayward. One of his professors there had a consulting gig with Wells Fargo. He invited Louis to help him run some models using the bank’s mainframe.
Louis was tasked with building a model portfolio of 320 stocks that would track the returns of the 500 stocks in the S&P 500.
Only his portfolio didn’t just mimic the performance of the index – it beat it.
It was the foundation of the Stock Grader system he uses today. It ranks more than 6,000 stocks based on sales growth, operating margin, earnings momentum, and other fundamental metrics. Then it combines this ranking with institutional buying and other catalysts.
It all gets boiled down to a grade, just like you’d get in school:
- A stock with the highest growth and business quality ratings gets an “A.”
- A stock with miserable ratings gets an “F.”
Since Louis started his first newsletter in 1980, this system has flagged 675 stocks that could have doubled your money or more – including 22 that shot up 100 times in value.
Louis proved that a rules-based system combining fundamental analysis and market flows could systematically beat the index.
Landon and my breakthrough was proving that consumer behavior online could, too.
Our Own Eureka Moment
An assignment during our time at TD Ameritrade inspired a deep dive into Twitter (now X), which led to a eureka moment:
- Consumers enthusiastically share the brands they purchase on social media
- We found a way to use that data to forecast the sales of the companies that own those brands
- We use those forecasts to spot outlier stocks
Once this lightbulb went off, we knew we were sitting on a real edge.
So… we secured an endorsement from Georgetown University with a study that proved our technology could “predict” future outcomes. We founded LikeFolio to give our brainchild life. And in 2019, we partnered with TradeSmith to bring our data-driven edge to thousands of everyday investors just like you.
The LikeFolio playbook is simple:
- Find massive cultural and consumer shifts as they develop.
- Identify the best-of-breed brands benefiting from this shift that consumers love.
- Buy their stock before the crowd catches on.
- Hold as long as they remain hugely popular with consumers.
We track millions of individual data points from across the web – including social media posts, AI prompts, search queries, and web traffic trends. Then we distill it into a 0 to 100 Social Heat Score to spot the stocks ready for liftoff.
A stock with a Social Heat Score above 70 indicates a “Buy.” A stock with a Social Heat Score below 30 indicates a “Sell.”
It’s not far from what Louis does with his Stock Grader system. Only it uses online sentiment as its main measures instead of fundamental and quantitative ratings.
After meeting Louis, it didn’t take long for us to realize we had many winners in common. And when we looked into it some more, we realized that combining our consumer insights with Louis’ grading system would further sharpen our edge.
We weren’t wrong. In our testing, this “Ultimate Stock Strategy” spotted more than 240 double-your-money opportunities over a span of five years for an average gain of 244%.
Hundreds of New Potential Doubles
This new strategy marries our Social Heat Score with Louis’ Stock Grader system to create something even more powerful.
And that’s saying something…
Landon and I have delivered 25 double-your-money-or-more winners to our subscribers in just the past five years, spotting stocks like:
- At Home Group Inc. (HOME) during the COVID pandemic before it shot up 611%.
- Coinbase Global Inc. (COIN) in the wake of the 2022 crypto market crash before it rocketed 445%.
- And more recently, Robinhood Markets Inc. (HOOD). It soared 556% in under 17 months after our system flagged it to us.
And Louis’ list of top gains includes many of the most legendary winners of recent memory.
- Like Apple Inc. (AAPL), which Louis’ system flagged in 1988 – nearly two decades before its first iPhone and ahead of a run that took it as much as 36,000% higher.
- Or Amazon.com Inc. (AMZN), which Louis’ system flagged in 2004 before it soared 8,151%.
- Or Netflix Inc. (NFLX) in 2009 before it shot up 7,749%.
Louis’ Stock Grader even pointed to Nvidia Corp. (NVDA) in 2005, ahead of its epic 44,000% climb to become the largest company in the world.
And those gains are before you combine our two strategies.
The Ultimate Stock Strategy could add hundreds of new doubles to that list of winners. More importantly, it could add zeroes to our subscribers’ net worth.
I hope you’ll clear some time in your schedule to join us. The holidays are around the corner. And we aim to deliver at least one more stock that doubles by Christmas.
The link to RSVP is right here.
Until next time,
Andy Swan
Founder, LikeFolio
P.S. As a thank you for joining, we’ll be giving every attendee one stock pick vetted by yours truly, another vetted by Louis, and one stock we all agree you should sell immediately. Here’s that link again to secure your spot.