Dave Forest is out with a new presentation – “The 5G Master Key” – for his Strategic Investor newsletter. 5G Master Key is projected to show substantial gains. And one tiny company is set to roll out the “5G Master Key” and take 5G technology countrywide.
Play the 5G Trend With 5G “Royalties”
There’s more than one way to play a fast-growing trend.
So if you only play the trend one way, we’d argue you’re doing it wrong.
For example, if you want to profit from 5G and you only own, say, the biggest wireless carriers, you’re making a mistake.
So what do you want to do instead?
You want to invest in a basket of related stocks.
And that can include anything from so-called “picks and shovels” plays… to “royalties” plays… and more.
Today, 5G is one of the hottest investment trends. But Dave Forest and Casey Research team look at it from a different angle.
The Safer Way to Play the 5G Trend
That different angle involves the “picks and shovels” and “royalties” stories.
As a reminder, “picks and shovels” are the companies that supply equipment to an industry. So in mining, for example, “picks and shovels” companies provide, well… picks and shovels… and other equipment… to the miners.
And the “royalties” companies supply the land.
We believe the only sure way to make money in mining is to be in these businesses. (You can never be sure to make money in mining from explorers or producers alone – it’s too speculative.)
The same is true in tech. And specifically, 5G tech.
Today, we’ll look at one of those alternative approaches. For now, we’ll put the “picks and shovels” to one side (we’ll get to those another day) and we’ll focus on “royalties.”
In this case, we’re not dealing with land (as such), but the infrastructure that goes on the land.
In the case of 5G… the “land” looks like this:
To put it simply, 5G “royalties” companies make money by leasing their “property” to the 5G network players.
It’s a terrific business. It means that regardless of how much money the 5G companies make (or don’t make), the “royalties” companies cash in.
And best of all, whereas a mining royalties company only has one miner operating in an area, these 5G “royalties” companies can have multiple tenants.
They may have two or three at once… which means two or three times the revenue for the “royalties” company.
What a great business. But it gets better.
You’re Making a Big Mistake if You Don’t Own These
According to investment expert Dave Forest, this is a great low-risk way to play this hot trend. In fact, Dave has just released important research on this entire 5G theme. You can find it here.
(Naturally, because of that, we can’t give too much away. We have to protect the integrity of Dave’s research.)
But look at the chart below:
Over the past five years, two of the biggest wireless companies and players in 5G have seen their stock prices rise 11.6% in the case of Verizon (VZ) and fall 24.3% in the case of AT&T (T).
Over the same timeframe, Dave’s “royalties” companies are up 138% and 105%.
And even if you counted the dividends, an investment in AT&T would be no better than breakeven over that timeframe.
For Verizon, it would only increase the overall return to 36%.
That’s still well below the return from the “royalties” companies… and we haven’t even added in the dividends they pay.
It goes to prove what we said above – Dave’s “royalties” plays pretty much couldn’t care less whether the wireless companies make a buck or not. These stocks continue to collect “royalties.”
It’s hard to think of a better business for the long term. And that’s why Dave and the rest of the team at Casey Research are so excited about the 5G trend. Not just because of the technology and what it will allow businesses to do.
We’re excited about it because of the great investment opportunities… and huge profit potential… in a wide range of related sectors.
There is so much more to the 5G trend, and Dave is completely on top of the best stocks to profit from it.