The All Weather Strategy

Hello,
At the beginning of last year…
When the world was standing on the brink of a precipice…
When I was staring at a sea of red ink across my portfolio and the portfolios of many of our clients…
When investors (world wide) were hurting…
When nobody knew when (or indeed if) the markets would recover…
I had to think and think hard about what it might take to rebuild from there.
To recover lost value.
An investing strategy that had not only stood the test of time but had weathered the storm.
An investing strategy that I knew inside out.
An investing strategy that would not only deliver the stream of cash I needed to fund my commitments but also potentially lower my exposure to risk.

And, as they say, I found this magic strategy in my own back yard.
Sometimes it’s easy to lose sight of the simple, effective and reliable strategies.
And sometimes, when new and exciting things dazzle it’s easy to forget old friends, friends who have hung around, stuck around, friends you can trust.
The Magic Moo Cow (buy-write) is one of those strategies… Old reliable.

Delivering cash flow and mitigating risk. It was the quite performer of the market crash.
It got on rebuilding value month in month out.
It got on with delivering cash flow even when the market was down.
And amazingly because of the increased volatility in the market, in many cases yields actually went up.
And no matter what way I looked at it this reliable, cash flow generating, risk lowering, old faithful strategy was looking like a life saver.
And I didn’t have to look far to get all the evidence I needed… The clients who had stuck with the strategy were significantly better off that those who hadn’t.
Their portfolios had already started to recover, in many cases were close to being in front, when other were still languishing.
Clients who toughed it out and continuously milked their cows (wrote the call) were receiving valuable income month in month out putting them in a position where not only were they comfortable with their position but actually keen to invest more and take advantage of the fall in the markets.
And I can’t tell you how frustrated I was when I realised this “solution” had been there, right under my nose the entire time.
It was like I was right back at the beginning, when I first learned about this powerful wealth creation tool. It seemed so good, to simple, so obvious that I couldn’t believe it was true. So much so it took me over two years to start.
And even after I had written a dozen calls it still seemed so ridiculously lucrative that there had to be an unknown trap there somewhere, a hidden flaw that I wasn’t aware of. I keep jumping at shadows thinking something was going to break, but it never did.
Sure I made some amateur mistakes and sometimes they cost me, but the regular flow of income quickly made up for those losses and put me back on track. Given time I always seemed to be ahead, no matter what I did or what the market did.

It was a great lesson – keep it simple and keep on going.

The back of the napkin maths is pretty simple.
Every month you buy blue chips shares – usually from the top 20 Australian companies, and offer to sell those shares at a higher price than your purchase price in return for a payment (called a premium).
That payment can be, on average up to 3%.
During the peak volatility of the market 5%, 6% and even 7% were not unusual.
During normal times 1% to 2% net of all costs is quite normal.
So if you have $10,000 invested that would mean a payment to you of about $100 to $200 per month – valuable cash flow, paid directly into your bank account. Magic!

If the market goes up above the agreed sale price and stays there you sell your share (usually at the end of the month) and because the sale price was above your purchase price you make an addition profit. More magic!
Even if the market is falling the payments you are getting (in premium) are going towards keeping you in front.
So if the market falls 1% and you’ve made 2% you’re still in front. If the market falls 3% and you’ve made 2% you are behind (that month) but much better off than other investors who just held the share, and it’s easy to forget, over an extended period of time, falls of 3% in a Top 20 share are pretty rare. Even more magic!

And if that’s not enough…

There are, essentially, only three major risks:
1. You have to sell your shares – remember this is the agreement, in return for the payment if the share price goes above the agreed price and stays there you sell. If you do it the way I teach this will be at a profit;
2. The share goes down in value – those of you who already own shares have already assumed this risk when you bought them. The Magic Moo Cow is no riskier than owning a portfolio of blue chip shares and most investors have these shares in their portfolio somewhere, even if it’s just in superannuation – why not put them to work earning an income for you? And remember, that additional income puts you in a better position and lowers your risk;
3. You might miss out on some upside – because you have agreed to sell your share at an agreed price if the market spikes up you will not get that capital gain. But it’s a small trade off really. Just as in a “normal” market shares are not likely to fall that much on a regular basis they aren’t likely to jump up that much in a month either. If the average return from the share market over an extended period of time is 11%p.a. and the average return from the buy write is 15% to 24%p.a. any short term loss of capital can quickly be paid back through increased income.
Magic Moo Cow made Easy
So how do you learn more about this simple, easy, effective and popular strategy?
Well we’ve gone to considerable lengths to make it easy for you…
1. Download my free eBook – go to http://www.magicmoocow.com.au/ebook-order-form
“The Story of the Amazing Magic Moo Cows and their Golden Milk – increase return, decrease risk, generate regular income and produce higher profits from your investing” reveals how you can immediately start earning cash flow.
It starts with an easy-to-understand parable and then goes on to detail the strategy in plain-English.

Yours FREE!

There’s no obligation to go any further. We make it free to you as a thank you for checking out this website.

You’ll discover:
• The strangely named but powerful Magic Moo Cow strategy
• How just about anybody can start generating cash flow straight away with little effort
• How to avoid common mistakes
• How to protect your investment
• How to use the cash to compound your returns for fun spending, boosting income or early retirement
• How to make it simple and easy

2. Come to the Cash Cow seminar http://www.magicmoocow.com.au/cash-cow-seminars
In 3 hours get all the essential information you need to discover if the Magic Moo Cow is for you and get started. Tickets are just $47. This event will be held in 10 cities around Australia starting this March. Book online or call 1800 878 878.

3. Decide “Do It Yourself” or have it done for you. Late last year we launched two exceptionally valuable resources.
The Magic Moo Cow game and forum for those who want to do it yourself and learn the strategy from the inside out with other traders who are out there getting results, with real market prices but no risk.
For those too busy to learn or who want experts looking after their portfolio we have available the Managed Options Opportunities (MOO) fund.
Easy, simple, low risk, potentially high return.
Take action to learn more today.
Who knows, in just a few months time the regular cash from the Magic Moo Cow might just be yours.

Cheers,
Peter Spann.

IMPORTANT INFORMATION
The Cash Cow Seminar does not provide individual advice.
The information contained in this letter and the seminar is general information only. Unless otherwise stated this letter and the seminar is not designed for the purpose of providing personal financial or investment advice. Any examples presented are for illustration purposes only.
In Australia returns average up to 3% per month. 1.5% – 2% net per month is very common. Past performance is not a reliable indicator of future performance.
The information provided does not take into account your particular investment objectives, financial situation or investment needs.
Without limiting the generality of the above paragraph no person, persons or organisation should invest monies or take action on the reliance of the material contained in this letter or the seminar, but instead should satisfy themselves independently (whether by expert advice or otherwise) of the appropriateness of any such action.
Unless otherwise stated the information in this letter and the seminar is not a recommendation to invest in any investments, securities or financial products.
Whilst all care has been taken in compiling information in this webpage and the Cash Cow seminar and is provided in good faith, it is not to be relied on as a substitute for professional advice.