Using leverage across a low beta portfolio – with opportunistic put selling – is the best way to gain access to additional capital and routinely beat the market by a wide margin. It works so well because it’s an application of the first principle of great investing: use other people’s money.In the video below, Porter shares
This Bermuda-based P&C insurance company made a series of strategic moves over the last few years, with the same objective in mind – to transition the company away from volatile and lower-margin insurance and reinsurance underwriting toward higher margin specialty insurance… And it’s worked.
Unlike first generation gene editing tools based on CRISPR technology, this new one, prime editing, doesn’t make breaks in DNA’s double helix. Instead, it uses a guided search-and-replace mechanism – like a molecular word processor – to correct typos in our genetic code. And the big name investors are pouring in.
Each Friday, we provide an update on the current live tracking portfolio (as of the previous day’s closing prices), a summary of the last week of trading activity, and updates on any significant developments among the companies we have positions in.
On February 13, we issued our Distressed Investing report A New Burst Of Life, in which we recommended purchasing Herbalife’s 4.25% convertible bonds due June 15, 2028. Today, we are recommending selling the bonds, to realize a return of 35% from our entry price. Our thesis for recommending the bonds less than five months ago
When Shelby Davis died in 1994, his portfolio had achieved a compound annual growth rate of 23% for an incredible 47 years. He is the best demonstration of the third rule of great investing: compounding over the long term.
You can avoid losing money by only buying these “inevitable” businesses that are virtually certain to continue growing for decades. And, if you’re willing to do so, just like Warren Buffett with insurance float, you can safely use other people’s money to create life-changing wealth.
In last week’s update, we introduced our risk-management framework from a theoretical perspective. Today, we’ll dive into the specific strategies we’ll use for controlling risk, including our first portfolio hedging trade: purchasing a put option on the Invesco QQQ Trust (NYSE: QQQ) – an exchange-traded fund (“ETF”) that tracks the Nasdaq 100 Index. Here’s the