Stocks

My #1 Stock Tip? Invest in Your Body.

By John Del Vecchio  |  September 14, 2018

Our health.

It’s our most valuable asset.

We talk daily in this space about the stock market and building wealth, but if you aren’t healthy, you aren’t wealthy.

In the end, it’s all that matters.

For me, the big realization about our collective health came when I read a study that said 50% of people in every state in the United States of America are either overweight or obese.

Every state.

I understand weight management is a complex issue, with social as well as behavioral variables. But obesity is, largely, a preventable condition.

We are killing ourselves.

This is our biggest crisis. It’s not terrorism. It’s not trade wars. It’s not class warfare. It’s our health.

And it’s costly, too.

Insurance premiums are skyrocketing. Even the wealthiest among us need a huge cash cushion to brace for the cost of medical expenses.

Over one-third of bankruptcies in the United States are due to health-related bills. Some of the biggest dividends out there only come when we can make an investment in ourselves to live healthier lives.

It’s been on my mind recently. I feel strongly about this issue, and I’ve made this investment in myself. It’s paid huge rewards: I feel better and lighter; I sleep better; my mood has improved greatly; and my overall well-being is the best it has been in years.

That’s why this month’s Hidden Profits recommendation is in the heart of the wellness sector, one that’s undergone a major transformation. Not long ago, short sellers circled the wagon as the company was headed the way of the dodo bird.

Thankfully, the company’s management has been innovative in creating new products and disrupting its sector. As a result, the stock price has taken off and outperformed the overall market handsomely.

But, it’s only the beginning.

These initiatives have been working.

Customer engagement has increased dramatically. Folks are hanging around longer as they see major results in their health and overall wellness. That has led to bigger profit margins, which should continue to trend higher. In addition, sticky customers are easier to monetize. That means more predictable revenue and higher profits.

At peak earnings, this stock is cheap.

That’s hard to come by in this market where average valuations are at historical and nosebleed levels. Recently, the stock has sold off and I think that has created an opportunity for savvy investors to get in on the action. With a good quarter or two in the future, I think the stock can pop 30% or more.

And speaking of disruption, that’s the theme of this year’s Irrational Economic Summit. I’m presenting an investment idea on a company that owns a little-known piece of software that is disrupting a trillion-dollar industry.

Ironically, I was short this stock in the past and made a tidy profit from its demise. Today, I’m bullish on its prospects and I wouldn’t be surprised if the stock doubled with much less risk than the overall market. I hope to see you in Austin in October!

John Del Vecchio

Author of Rule of 72: How to Compound Your Money and Uncover Hidden Stock Profits and What’s Behind The Numbers: A Guide To Exposing Financial Chicanery And Avoiding Huge Losses In Your Portfolio, John is a forensic accountant at heart. Standing on the shoulders of the great David Tice, James O’Shaughnessy and Dr.MORE FROM AUTHOR