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The Oxford Club is a premier financial research provider and exclusive investor network that serves to educate and empower its members. Founded in Baltimore, Maryland, the organisation has gained notoriety for promoting Alexander Green's "3 Dollar Stock" retirement strategy. This particular strategy has been promoted by the team at The Oxford Club since 2018 and is still highly regarded.
In this guide, we will discuss what the strategy entails to help you decide whether it's something you should consider for your retirement plan.
How Did Oxford Club's $3 Stock Come About?
Alexander Green, an investment officer at Oxford Club, proposed an ambitious financial plan that could generate millions of dollars in retirement income. His strategy involves finding a single stock trading at an affordable stock price with solid fundamentals. After making the purchase and holding it for two years, investors may be able to sell the stock for a significant profit.
The stock Alexander Green recommended in his retirement plan was trading at $3 at the time, and he claimed it could generate substantial returns over the long term. However, he suggested that investors carefully research and select only companies with strong fundamentals, such as healthy balance sheets and a history of strong earnings growth.
Green's proposal was that to beat the S&P 500, investors must invest in small, unnamed businesses with massive potential. The stock he recommended was Hon Hai/Foxconn with the ticker symbol HNHPO. The company is a huge supplier of tech products, including Apple.
Getting a Hold of the $3 Stock
After pitching this investment strategy, Green wrote a paper titled 'The Single-Stock Retirement Plan: How to Retire on This Obscure $3 Stock'. In the document, he explained how to invest in the stock and provided details about its growth prospects.
However, the Oxford Communiqué subscription advisory service requires a subscription fee of $99 per year in order to access the promised “free” report. Subscribers will be provided with monthly investment advice and guidance, offering them the chance to make smarter decisions with their money.
Foxconn is an electronics manufacturing giant headquartered in Taiwan. As it is not listed on any of the major stock exchanges in the United States, American investors would need to invest through an American Depository Receipt (ADR).
It is possible to generate significant returns with the $3 stock retirement strategy, but there is no guarantee of success. The stock could go up in value, or it could remain flat or even decline over time.
Overall, investing in individual stocks can be risky, as there needs to be more diversification and a guarantee of success. However, with research and careful analysis, this strategy could potentially generate high returns over the long term.
Should You Buy Alexander Greene's $3 Stock?
The short answer is: it depends. Green's stock pick might be attractive due to its low price relative to other stocks, but the company has been underperforming recently and may not provide a good return on investment.
Hon Hai stock declined in value throughout 2021 and 2022 and is trading for less than $2 per share as of March 2023. In other words, if you bought the stock in 2020, your investment would be worth less today.
The single-stock retirement strategy is an interesting concept and one that could potentially generate significant returns over the long term. However, investors should know the risks involved when investing in single stocks and research before taking the plunge.
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