Invest Like Buffet and Retire in Style

This weekend marks one of the biggest investor events of the year - Warren Buffet's annual shareholder meeting for Berkshire Hathaway (NYSE: BRK-A). There could be as many as 50,000 people in Omaha, Nebraska looking to glean investment advice from Buffet and Vice Chairman Charlie Munger.

But you won't hear Buffett talk about small cap stocks. The investing icon is more likely to discuss the future of derivatives and how potential changes in collateral requirements for derivatives could impact Berkshire in the future.

In fact, small cap stocks are essentially off limits for investors with the massive sums of money that Buffett manages because the reality is it would be easier for him to simply buy the company. He invests billions of dollars at a time. But that doesn't mean he doesn't see huge potential in smaller companies. In fact, he has been quoted as saying that he could virtually guarantee outperformance if he could invest in this asset class. The most oft quoted statement came from a 1999 Business Weekarticle:

"If I was running $1 million today, or $10 million for that matter, I'd be fully invested. Anyone who says that size does not hurt investment performance is selling. The highest rates of return I've ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers. But I was investing peanuts then. It's a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that."

Now fortunately, most of us don't have the same issue as Warren Buffett. We aren't hampered by the weight of having millions of dollars we need to invest. What a drag that must be!

But seriously, he has a point and has discussed exactly what he meant by this statement several times. It comes down to finding small opportunities and booking quick gains before everybody else sees the same opportunity.

That's exactly what small cap investing is all about.

I recently put together a special report that includes three stocks that Buffet would love to buy. These companies have strong corporate culture, great leadership, and good cash flow. And one of them has a market cap of only $780 million.

Buffett can't invest in this stock because it's too small. But you can, and I'd like to give you the opportunity to find out more about it. Between today and May 1, I'm giving subscribers to Small Cap Investor Daily an opportunity to get my Special Report: The Warren Buffett Retirement Planfor free when they sign up for a subscription to Top Stock Insights. This advisory service covers stocks across the full spectrum of market caps – and there is one small cap in particular that I think you'll find compelling.

The company was founded in 1905, and it hasn't changed much since then. It makes many of the same products and reward shareholders with steady profits.

If that's not enough, this company also pays a $1 dividend. That means for every 1,000 shares you own, you get $1,000 every year.

It manufactures goods in three sectors: house wares and small appliances, defense products, and absorbent products. It's not the most exciting company out there, but it's exactly the type of company you can invest in and enjoy both capital gains and that dividend yield. It's exactly the right kind of stock for a retirement account.

Savvy investors already know that Warren Buffett is the greatest living investor. But it's tough to match his gains unless you buy stocks BEFORE he does.

This special report includes three stocks that are Buffett would like to own. We call it The Warren Buffett Retirement Plan. It's all yours when you sign up for a trial service to Top Stock Insights. Just click here to get started reading this special report today!