Warren Buffett is the best investor of all time… right?

That’s the conventional wisdom. But the truth is there are plenty of investors with better track records than Buffett…

For example, have you ever heard of Ed Seykota?

[ad#Google Adsense 336×280-IA]Most people haven’t. His name doesn’t show up on lists of the world’s best investors. But it should…

Seykota is said to have turned $5,000 into $15 million in 12 years in one of his core accounts. That’s an extraordinary return of nearly 300,000%.

How did he do it? It was surprisingly simple…

Instead of focusing on fundamentals and earnings reports, Seykota simply follows the trend. He buys what’s going up and sells what’s going down.

Seykota isn’t the only guy with an amazing track record using this approach. Other guys have used the same basic concept to produce extraordinary gains of their own…

  • Michael Marcus claims to have earned an incredible 250,000% return on an account he managed over a 10-year period.
  • Bruce Kovner reportedly made 87% gains PER YEAR… for 10 straight years. That’s an extraordinary total gain of 52,000%… which turned $10,000 into more than $5 million!

You never hear the “pros” talk about these guys. Why is that?

I think it’s because most pros don’t believe such a simple trading idea could possibly work. But how can you dismiss returns like these?

Buffett’s approach – finding good companies by digging into fundamentals – feels “smart.”

But I have crunched the numbers to figure out what works. Here’s what I’ve learned: You can make money Buffett’s way… But you can make more money Seykota’s way.

I realize that sounds crazy… Simply following prices shouldn’t lead to massive gains. But it does. When you crunch the numbers, you learn that’s what works.

Doing just that – following trends – is how Seykota made nearly 300,000%.

I prefer to do what Seykota does. I rarely buy into a downtrend.

I might find an idea through the fundamentals like Buffett. But I almost always wait to buy until the uptrend appears.

I highly recommend that you do the same for one simple reason: It works.

Good investing,

Steve

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Source: Daily Wealth