Legal monopolies all have similar traits: They have dominant market share, they have enviable pricing power, and given a lack of alternatives for customers, these companies likely have highly predictable and mostly recurring revenue streams. All of that means big profit margins that flow to the bottom line.
Today Marty Fridson offers a word of caution for investors: The opportunity to purchase closed-end fund shares for less than the value of the assets they represent sounds like free money. But there’s a catch, he says.
The excerpt below from one of Porter’s classics is about one of the fundamentals of investing at the centerpiece of what we focus on at Porter & Co. Through market cycles, overhyped fads, and speculative trends, his approach to building long-term wealth has remained startlingly consistent.
In P&C insurance, our average return has been 66% over the last three years, with an average holding period of about 18 months. That’s more than double the S&P 500’s returns over matching periods. And we had no losing positions.
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.
In this week’s issue of The Big Secret On Wall Street, we provide excerpts from recommendations of the three top-performing Best Buys – each company held a position in our Best Buys feature for an extended period, generating returns that outperformed the rest of the portfolio and the overall market, represented by the S&P 500.
We’re recommending an additional put sale on shares of Brazilian aircraft maker Embraer (NYSE: ERJ), via the following trade: And in order to free up additional cash to place this trade, we are also recommending the early close of our existing put option in shares of Embraer, via the following trade: Please note: the shares
This year, says Porter, has been a great opportunity to establish your own “Hershey Retirement Fund,” and I hope you’ve taken advantage of it.