In our report Dig Baby Dig, published on September 12, 2024, we recommended purchasing Albemarle’s 7.25% Series A Mandatory Convertible Preferred Stock, then trading at $42.89 per share. Our rationale was that the sharp decline in lithium prices had caused the stock prices of the companies, like Albemarle, that produce it, to fall too far.
The last great computer revolution (the internet boom) was run by multiple companies that controlled the key enabling technologies: Intel, Cisco, Microsoft, Apple, and Oracle. With the parallel processing revolution, Porter writes, it’s all Nvidia.
Today, we’re recommending a series of trades designed to reduce portfolio risk and raise cash. We plan to execute all five of these trades at the prevailing market prices on Friday, October 31.
In response to reader feedback, we are changing the format of our weekly updates to start with a brief executive summary of the portfolio and the key message, followed by the portfolio table and details at the end.
Our top three Best Buys this month include one of Porter’s favorite all-time companies, whose shares have fallen recently because of production costs. Plus an energy drink that is poised to soar.
The price of the bond featured this month has fallen sharply during the year – but our team believes the bond represents solid risk-adjusted value at current prices. We think the bond will ultimately be valued materially higher than it is today.
Warren Buffett’s greatest secret – to be fearful when others are greedy and to be greedy when others are fearful – is largely ignored because, first of all, a frothy market that’s going higher virtually every day looks like the best time to make a lot of money in stocks.
