In 2003, Ben Trotsky retired as the greatest bond investor of the decade.

You may not have heard of him. Not many people have.

But back in 1995, PIMCO, one of the largest active investment managers in the world, hired him to oversee its newly launched junk bond mutual fund.

PIMCO manages over $2 trillion for institutions and individuals. And it’s known for its bond funds.

What was Trotsky’s secret that made him a legend at PIMCO?

He aimed for mediocrity…

I know that may sound odd. After all, how can you become an investing great by aiming for mediocrity?

But as you’ll see today, it’s one of the best strategies for making money in the markets over time.

If you follow this strategy, you’ll have the chance to make life-changing wealth without ever worrying about blowing up your retirement account in the process.

So why did Trotsky aim so low?

The Most Powerful Investing Strategy You’ve Never Heard Of

Trotsky studied his peers for years and noticed something troubling.

The best fund managers of any given year were almost always way below average the following year.

To become the best – or even get in the top 20% – these money managers took big risks. Those either paid off with huge gains… or ended in disaster.

As Trotsky told NPR…

When I did simulations as to what it takes to land somewhere in the top decile (10% percent)… It became very, very clear that if you consistently stay in the top third – but never end up No. 1, 2 or 3 – that over time, you would end up in the top decile of the competitive universe.

That’s why he aimed for mediocrity instead.

He worked hard to always be in the top 33% – no more, no less.

He would carefully study which “junk” – or high risk – bonds were the safest and buy them when they went on sale.

Then he did this over and over again.

He never had a banner year. He was never on the cover of Forbes. He never made fund manager of the year.

But he also kept his clients from blowing up by never taking big bets that went sour.

After 10 years of always trying to be in the top 33%, Lipper’s Survey of Mutual Funds named him the No. 1 bond manager of the decade.

All without ever swinging for the fences.

It’s the same winning strategy I use at my Fortress Portfolio advisory. And it’s paying off.

The Easiest Road to Riches

At Fortress Portfolio, we have a similar approach. Instead of aiming for hyped-up stocks and taking unnecessary risks, our focus is on high-yielding blue-chip stocks and hedging our portfolio.

Buying these stocks at a discount ensures dependable income in all economic and market conditions.

Take a stock I added to the model portfolio in January called Keyera Pipeline (KEYUF). It helps Canadian oil and gas companies process and transport gas over nearly 2,800 miles.

That makes it the biggest gas processor in Alberta. Without its services, Alberta’s economy would shut down. It’s not making headlines or rocketing higher, but it’s the kind of stable, reliable company we look for.

Keyera carries a yield of 6%. And it’s growing its cash flow at 8%.

In the last 20 years, it has turned $1 into almost $20. That’s double what you would have made by investing in the S&P 500.

More important, Keyera plans to keep delivering about 14% long-term returns while paying out safe and steadily rising dividends.

Since I recommended it, Keyera is up 12%.

Or take another Fortress Portfolio recommendation I made in April. It’s up 14% since then. And it pays a 6%-yielding dividend.

Another recommendation I made in May is up 15%.

These aren’t as impressive as the returns speculators have bagged this year in tech stocks. But remember, I’m not swinging for the fences.

I know that eventually, these speculators will see massive losses. Meanwhile, the stocks I recommend will keep on paying out safe and growing dividends.

And I know this because we’ve developed a safety and quality system that is 95% accurate at catching dividend cuts before they happen.

That allows us to be patient, stick with the proven performers, and have consistent winning years.

To most investors, those mediocre returns don’t sound that impressive.

But remember, these stocks aren’t just yielding 6% to 9%, but the safest 6% to 9% on Wall Street. In fact, our Fortress Portfolio averages a very safe yield of 7% right now.

The market is near record highs. That’s always a risky time to bet on speculative plays.

Yet, you can still find a very safe 7% yield that’s growing 8% per year over the last five years.

That’s the power of the “strategic mediocrity” we aim for, just like Ben Trotsky.

It’s not exciting. But it outperforms risky plays as the years add up. And we’re only interested in making the kind of money we can keep over the long term.

Fortress Portfolio comprises nearly two dozen of the kinds of opportunities that can help us reach that goal.

No matter what the market is doing today, or how scary the economy might look tomorrow… Our strategy of building up small, but reliable, income plays can help you fund a sleep-well-at-night nest egg.

Safe Investing,

Adam Galas
Analyst, Intelligent Income Daily