Porter, Erez Kalir, and Marty Fridson recently sat down together for a full briefing about the Trump Administration’s plans and vision for the economy, the impact of tariffs and trade war, and make our predictions about what the Fed may (or may not) do with interest rates as these events unfold.
During inflationary environments, the best businesses to own are those that can grow their earnings without escalating capital investments… In other words, businesses with high capital efficiency. We share three from The Big Secret portfolio that offer the most resilience against the current economic environment.
The company we’re recommending in this issue is a diversified conglomerate with investments in insurance, energy, and hospitality. The founders were modestly successful as hotel operators, but they turned out to be world-class capital allocators and business buyers, turning a $100,000+ loan into billions of dollars.
We’ve noticed a growing consensus in the financial media that the Big Tech giants are currently trading at cheap valuations following the recent market correction. Given this backdrop, let’s look at how “cheap” these hyperscaler stocks really are… and you might be surprised.
Despite the risks and volatility in the U.S. stock market, there are many bargains emerging – if you know where to look. In this issue, we’re providing updates for six stocks in the portfolio that each trade at highly attractive valuations – and are being overlooked by Wall Street.
Mutual fund cash levels have historically been one of the best contrarian indicators of where the market is headed… one that’s still well worth tracking today. And right now, asset managers are holding their lowest levels of cash in history – meaning they think the market is headed higher.
The company we are recommending is the world’s second-largest company in its category. Yet despite generating 90% of the free cash flow as its top competitor, this company trades around half of what that number-one brand trades for. We believe this valuation gap will narrow significantly in the years ahead.
Our goal with Porter’s Permanent Portfolio is to improve the portfolio’s average returns without increasing its volatility. We’re trying to create a portfolio that can produce returns in the most efficient way possible, with the least amount of volatility. Here is how it’s going.
