This article shows you how to spot winning stocks when most investors see only risk. You will see a real example from the Shareholder Yield Letter, which recommended Chow Tai Fook - a luxury jeweller in China - just before it soared 107.8% in under a year. At the time, headlines warned of falling Chinese demand and weak retail sales. Yet the system used clear rules and ignored the fear.
After reading this, you will understand how to invest with discipline, use shareholder yield as a signal, and find strong opportunities others miss. It is a simple, smarter way to invest.
Estimated Reading Time: 5 minutes
Case Study: How the Shareholder Yield Letter Spotted a Hidden Gem in a Struggling Market
When headlines screamed about a slowing Chinese economy and collapsing retail demand, few investors would have touched a luxury jewellery stock with over 80% of its sales in China. Yet on August 13, 2024, the Shareholder Yield Letter did exactly that. It recommended Chow Tai Fook Jewellery Group Limited (HK 1929).
Over the next eleven months, the stock delivered a +100.3% return in 2025, after a modest +4.5% gain in the remaining months of 2024. Add dividends and you get a total return of 107.8%.
How did the system find such a winner when the market saw only risk?
The Surface: Falling Sales, Chinese Headwinds
At the time of the recommendation:
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China accounted for 82.5% of Chow Tai Fook’s sales
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Same-store sales were down over 20%
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Consumer confidence was low
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The stock had dropped to the lower end of its 52-week range
To most investors, this looked like a trap.
What the Shareholder Yield System Saw Instead
The Shareholder Yield Letter does not follow the crowd. It follows a data-driven investment system based on two rules:
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Only invest when global markets are in an uptrend (MSCI World Index > 200-day SMA)
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Only buy large-cap market leaders with high shareholder yield (dividends + buybacks)
The MSCI was above its 200-day simple moving average and Chow Tai Fook has:
- Dividend Yield: 8.3%
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Share Buyback Program: 1 billion shares (10% of share capital)
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Total Shareholder Yield: 8.4%
This placed it among the top capital returners in Asia, even as profits dipped short term.
This was a strong signal of long-term confidence.
The Result: 107.8% Total Return
From August 13, 2024, to July 18, 2025:
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2024 return: +4.5%
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2025 YTD return: +100.3%
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Dividends: +3.0% included
Why This Case Study Matters
This is the Shareholder Yield Letter in action:
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No guesswork
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No emotional decision-making
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Just disciplined, system-based investing in large, shareholder-friendly businesses when the market trend is positive
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Strong risk management with a strict 20% trailing stop loss system
You do not need to outguess the market. You need a strategy that sees what others ignore.
To sign up for the Shareholder Yield Letter right NOW! - Click here
Protecting Against the Unknown
Of course, not every idea works this well. No investment strategy is right all the time. That is why we follow strict risk controls:
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We only buy when the market is above its 200-day moving average.
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We sell immediately if any stock drops more than 20% from its highest price (trailing stop-loss).
This keeps big losses small and lets winners run.
Ten Times More Gains Than Losses
As of June 2025, investment ideas in the Shareholder Yield Letter with gains of over 20% outnumbered losses of more than 20% by 10.3 to 1. To be exact:
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31 ideas returned over 20%.
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Only 3 ideas lost more than 20%.
This is not magic. It is discipline, data, and a proven process working for you.
Takeaway for You
The best investment opportunities often appear at the most uncomfortable times. When everyone else saw risk, our system saw value, stability, and commitment to shareholders.
That is the power of investing with data, not drama.
👉 Want to find the next Chow Tai Fook before the market catches on? Explore the Shareholder Yield Letter here.
To sign up for the Shareholder Yield Letter right NOW! - Click here
FREQUENTLY ASKED QUESTIONS
1. Why would I invest in a company when its sales are falling?
Because short-term sales do not always show the full picture. Chow Tai Fook's sales were down, but it was still returning cash to investors. The system saw strength in its high dividend and buybacks. That showed confidence from the company, not weakness.
2. What does “shareholder yield” really mean for me as an investor?
It means the company is putting money back in your pocket. Shareholder yield adds up dividends and buybacks. For Chow Tai Fook, that was 8.4%. So even if the price stayed flat, you still earned that much from returns.
3. How does this system protect me from big losses?
It uses a strict stop-loss rule. If a stock falls more than 20% from its peak, it is sold. That helps you avoid large drawdowns and keeps risk under control. It also helps you stick to the strategy in difficult times.
4. Why wait for the MSCI World Index to go above its 200-day average?
This rule tells us when global markets are rising. If markets are falling, most stocks fall with them. So the system avoids buying during those times. It adds a layer of safety.
5. How did the system know Chow Tai Fook was a “market leader”?
It checks for large, stable companies that lead their industries. These companies have high cash flow, strong balance sheets, and size. Chow Tai Fook met all these criteria even when sales dipped.
6. I focus on income. Was Chow Tai Fook a good income stock too?
Yes. It had an 8.3% dividend yield and was buying back 10% of its shares. That is high income plus value growth, making it great for yield-focused investors.
7. What if I am nervous when a stock looks risky?
That is normal. Great opportunities often feel uncomfortable. This strategy uses data, not emotion. It only invests when the system says conditions are right, not when headlines look good.
To sign up for the Shareholder Yield Letter right NOW! - Click here
