Is Charles Mizrahi a Fraud? – The Truth Behind His Investment Services

Who's Charles Mizrahi?

Charles Mizrahi is a trader, money manager, hedge fund manager, and manager of his own personal wealth who has "seen all that the market can throw at an investor" and is now on a "mission to give back to Main Street investors like you."

 "As a kid, every dollar mattered" to Charles, who wasn't born into "old money" but knew "the value of a hard-earned dollar."

Mizrahi went to Yeshivah of Flatbush Joel Braverman High School in Brooklyn, New York, where he grew up as well. His father was a warehouse manager, while his mother was a stay-at-home mom, who looked after Mizrahi and his three brothers.

"At 20, I was trading on the floor of the New York Futures Exchange. And it wasn’t long before I had my own money management firm, overseeing $200 million in clients’ money. Barron’s even crowned me the No. 1 trader in the nation when I was 35," says Mizrahi. "Investing in the stock market without an experienced guide is a lot like being a one-legged man in an ass-kicking contest... In both cases, you’re at a very big disadvantage."

Mizrahi claims he has 37 years of experience on Wall Street and is "excited to help show you how to get the right stocks at the right price—without risking your hard-earned money."

Mizrahi previously worked as the editor-in-chief of Park Avenue Investment Club and Insider Alert, the president of Eastman Communications Inc., and the managing partner of CGM Partners Fund LP.

Mizrahi was also the founder and CEO of Hampton Investor, Inc.

Mizrahi is the author of "Get Started in Value Investing" and runs investment newsletter services like "The Forever Battery" and "Miracle on Main Street."

Mizrahi boasts over 25 years of investment experience and claims to have taught investing at New York University’s School of Continuing and Professional Studies, and touts having been featured in The Wall Street Journal, Barron’s, The New York Times, MarketWatch, and on CNBC.

"Getting Started in Value Investing"

Mizrahi, who calls himself an ardent follower of Warren Buffett, "the most high-profile value investor today," uses his book, "Getting Started in Value Investing," to break down the "successful strategy" of value investing "so that anyone can learn how to use it in his or her own investment endeavors."

The 190-page e-book was published on Amazon in 2007 by Wiley, an American multinational publishing company.

Mizrahi describes the book as an "introduction to the proven method of value investing," which is written in a "straightforward and accessible style" to help "readers gain an overall understanding of the value approach to investing."

The book "presents statistics that reveal the overwhelming success of this approach in a variety of markets," and "skillfully shows readers how to look for undervalued companies and provides them with the tools they need to succeed in today's markets."

Past readers, however, agree that "Getting Started in Value Investing" is a great book. It contains many common points for value- and growth-style investing, deepens understanding of the stock market, and makes one understand the importance of reading a company's 10K-form.

The book, which is a "simplified version of Benjamin and Graham's book," presents value investing in a simplified and concise manner and emphasizes patience and a lot of research before buying equities. It provides detailed information on how to start value investing and contains excellent information on how to pick stocks to buy.

But does that mean that this book doesn't have its downsides? Probably not!

"Getting Started in Value Investing" contains "not so new information" and doesn't have a step-by-step guide on how to find the intrinsic value of stocks. It also doesn't provide any useful information on knowing when to sell the stocks, nor does it "summarize the process of assessing a company, step by step, using annual reports and other information."

The Kindle edition of the book sells for $19 while the paperback costs $27.49, which has been criticized as being "a little expensive" since there are so many other great books with about 200 and 500 pages, which are under $10 and $40, respectively.

Overall, "Getting Started in Value Investing" is a great book per se. It's not a get-rich-quick book on investing, but it'll surely help you if you want to start value investing on your own.

Apart from this book, Mizrahi also shares his ideas on value investing through newsletters such as "The Forever Battery" and "Miracle on Main Street."

"The Forever Battery"

Is there anything like "The Forever Battery," as often touted by Charles Mizrahi? Is it real or is it just a figment of Mizrahi's imagination? If it ever does exist, what is it used for? If it doesn't, why is Mizrahi always talking about it?

These are some of the issues we're going to dissect right away to find out what Mizrahi means by "The Forever Battery" and help you avoid any pitfalls as a result of his aggressive marketing of what he calls the battery of the future.

First things first, "The Forever Battery" is not the name of a battery per se.

So, what does it really mean?

"The Forever Battery" is Mizrahi's imagination of the next generation of batteries for electric vehicles, which he believes would play a key role in EV development and eventually replace the current lithium-ion, or Li-ion, batteries used in such vehicles.

According to Mizrahi, a "secret company" is developing "The Forever Battery," which would boost EV sales by 1,500% over the next four years and generate a lot of money for investors in the process.

"What kind of battery is 'The Forever Battery?'" you may ask.

"The Forever Battery," I understand, refers to solid state batteries. Yes, that's what Mizrahi actually means when he talks about "The Forever Battery."

So, how does a solid-state battery function? Why is Mizrahi promoting it?

A solid state battery doesn't have a liquid electrolyte like a lithium-ion battery. Instead, it uses a solid electrolyte made of ceramics and glass.

A solid state battery carries more energy than a standard Li-ion battery, which means that it can power an electric vehicle for a longer period of time on a single charge.

A solid state battery is also lighter and charges faster. It's obviously safer to use as it can't cause electric vehicles to burst into flames, which is a current problem with lithium-ion battery-powered EVs.

But why are solid-state batteries not so popular despite having a lot of advantages? The reason is not far-fetched.

Solid state batteries are expensive to produce. Although they have been used in wearables for years, producing bigger ones for EVs at minimal cost is difficult.

Which company produces solid state batteries?

According to Mizrahi, battery maker QuantumScape, which he refers to as QS, is the company producing it.

QuantumScape is currently making headway in solid state battery technology by addressing issues that make it unattractive.

But is "The Forever Battery" worth investing in? Is it a genuine opportunity?

There is no doubt that the EV market is witnessing exponential growth, which is even predicted to increase in the next few years, and the race for better EV battery technology will continue.

However, Mizrahi created "The Forever Battery" stock in 2005 and promised that investors would get 10 million shares for every battery sold, but it turned out to be a scam after the first product was sold in 2017. The company that was producing it was found to be using false advertisements to sell the product.

"Miracle on Main Street"

What does Mizrahi really mean by "Miracle on Main Street?"

Come with me, let's find out.

"Miracle on Main Street" is Mizrahi's latest presentation, where he uses Mike Huckabee, a former governor of Arkansas, to promote his investment advisory services.

In this newsletter, "We break down why so many people are struggling to achieve the American dream—and the real secret to making a lot of money in the stock market today," Mizrahi explains. "You won’t have to worry about ups and downs in the economy ever again."

The newsletter claims to have helped 100,000 Americans defy the odds and take control of their financial future. And so, they want you to join the newsletter as well, so you can take advantage of that.

In the video presentation, Huckabee claims that Mizrahi has helped him find the best investments.

"That’s incredible. $1,000 would turn into $2 million. So, it doesn’t take a ton of money to make a ton of money if we 'partner' with these companies for the long run," says Huckabee. "But, Charles... I’ve got to state the obvious here. Most of us don’t know which companies to invest in. Back then, I would’ve just as likely invested in Sears as I would in Walmart, and that company dwindled down to nothing."

Mizrahi agrees with Huckabee, saying that was why he created the newsletter service, "Miracle on Main Street."

"Through this service, I can show everyday Americans which companies to avoid, and, more importantly, which ones to invest in," Mizrahi says, adding that his goal was to help you invest in the next Amazon or Walmart.

According to Huckabee, Mizrahi "upgraded it [the service] three years ago to reach people outside of your community. And now 100,000 have signed up to get your insights. And, according to their own words, they’re defying the odds. Many are calling it a ‘Miracle on Main Street.’"

Mizrahi identifies massive growth in 5G, AI, blockchain, battery power, the Internet of Things, robotics and other technologies as these innovations are coming up at the same time.

Invariably, Mizrahi is advising people to invest in these industries but that they should join his newsletter service before doing that so he can teach them how to go about it.

Mizrahi later recommends the following three companies: software company Arista Networks, video streaming service Disney, and AI firm Lumentum Holdings.

Mizrahi expects the three firms to grow by 500%, 500% and 3,000% respectively in the next 10 years.

Mizrahi makes his assessments using what he calls the "Alpha Scorecard" and ranks the companies he assesses based on innovation, leadership, and money.

Mizrahi also promises to recommend other stocks if one signs up for his newsletter service.

According to Mizrahi, this is an ideal time to invest because we're currently experiencing a convergence, a phenomenon occurring every 50 years that is often a great time to invest.

There's no doubt that these industries are witnessing exponential growth, but it remains to be seen if this growth will continue in the coming years and whether it would be wise to invest in these industries now or later.

Be that as it may, Huckabee is overt in his endorsement, or rather promotion, of Mizrahi's newsletter service so as to persuade you to sign up like he did.

Nobody can rule out the fact that Mizrahi's parameters may be flawed, thus requiring due diligence on the part of a potential investor.

Wrapping up

After scouring various online sources, I found no reason to tell you that Charles Mizrahi is a fraud.

However, value investing is full of risks and you can lose your investments in no time.

It's true that Mizrahi is an investment guru, but that doesn't make his investment advice foolproof. Take it with a pinch of salt.

So with this, I think I have been able to answer your question, "Is Charles Mizrahi a fraud?"