Issue #110, Volume #2
Porter Re-Allocates The Portfolio, Erez’ 3 Tsunamis, Cactus Goes Nuclear
This is Porter’s Daily Journal, a free e-letter from Porter & Co. that provides unfiltered insights on markets, the economy, and life to help readers become better investors. It includes weekday editions and two weekend editions… and is free to all subscribers.
| Porter & Co. Annual Conference… Porter’s grand entrance… Re-allocating the Permanent Portfolio… Erez Kalir’s flight companion… Dave Lashmet’s weight-loss discussion… Cactus Schroeder’s visit to Tyler, Texas… Day 2 is tomorrow… |
Porter & Co.’s two-day Annual Conference commenced today at Porter’s farm just outside Baltimore. Partner Pass members from around the country… indeed, the world… gathered for a reception and breakfast before Porter & Co. CEO Jared Kelly welcomed attendees this morning. The agenda for day one included more than a dozen presentations, discussions, and speakers.
In today’s Journal, we offer a snapshot of a few highlights from the day, which is just wrapping up now.
Preceded by a tongue-in-cheek TV trailer for the upcoming streaming series Millions, Porter arrived to the tented gathering in his classic Chevy Nova, engine revving at full force, then jumped on stage and into his explanation of how he’s re-allocating Porter’s Permanent Portfolio.
In short, Porter’s Permanent Portfolio is killing it: up 24.8% from when he launched it exactly a year ago at the 2024 Annual Conference, compared with a 18.5% return in the S&P 500 – not to mention the low volatility created from the balanced asset mix.
From the stage, Porter described how he re-allocated that mix. This includes revamping the equity portion with a more diversified mix of ”Lindy” businesses – those with a combination of excellent economics and long (at least 40-year) track records – and updating the “Better Than Bonds” portion with a new selection of property and casualty (“P&C”) companies based on his latest analysis.
Next, Erez Kalir led off his presentation by sharing that the person sitting next to him on the flight out from San Francisco, who it turns out was a classmate of his at Stanford University, was employee #5 at Yahoo. It enabled Erez to reflect on all that’s happened in tech since then, and how so many people, like that employee #5, have watched remarkable innovations unfold – dramatically changing our lives and generating mountains of new wealth.
It was a nice segue into his fascinating tour through biotech, tech, and crypto.
Erez recently expanded the domain of his Porter & Co. advisory to include tech, the blockchain, and other elements beyond biotech. The recently revamped Tech Frontiers published its first issue in September.
Erez told the audience that across technology, economics, and culture, we all will encounter what he calls “a small handful of tsunamis,” the metaphorical 100-foot-tall waves that change everything…
These tsunamis are major life- and financial-changing opportunities, rewriting the landscape for generations to come. The key point Erez stressed is his presentation:
The thing about these tsunamis is – if you’re relatively early to them, understand what they’re about, and are able to identify the right financial instruments to ride them, you can earn generational wealth. For example, investing $1 million into a basket of Amazon (AMZN), Google (GOOG), Microsoft (MSFT), and Apple (AAPL) in 2003 would have generated $50 million today.”
The three tsunamis Erez detailed to the audience this morning were: Artificial intelligence, which is transforming how we work… Blockchain, which is transforming money and how we bank… And Biotech, which is transforming how we approach health and disease.
Erez will cover in depth each of these historic “tsunamis” in coming issues of Tech Frontiers – and help subscribers identify the securities to ride them with favorably asymmetric risk/reward.
He will “connect the dots,” as he says, between these epic tsunamis and what’s unfolding in the Big Picture of our economy and markets.
Trading Club lead analyst Ross Hendricks offered members a two-part trade as part of his presentation. Simultaneous to his remarks, we shared a full report on the company and the trade at the heart of his presentation to Partners and Trading Club subscribers.
The two-part trade involves a digital forensics software company that provides tools and platforms for law enforcement, government, and business clients to legally access, analyze, and manage digital evidence from mobile and other devices. He explained:
In the old days of crime fighting, the primary forensic tools law enforcement relied on were fingerprints and DNA analysis. But today, digital data is king in fighting crime.”
What makes this trade so interesting, Ross told the audience, is that it also includes a possible acquisition of the business – and he shared how insider hires and behavior leads him to believe this is a strong possibility – plus a way to potentially acquire shares at up to a 45% discount through an under-the-radar Japanese company.
Stansberry Venture Technology analyst Dave Lashmet discussed the wide world of weight-loss drugs. The problem with injections, he said, is that when people stop taking them they gain back the weight. He then delved into Eli Lilly’s pending pill release… probably sometime in 2026. Orforglipron, as it’s called, will likely reshape the entire market. “Everyone will take this pill,” Dave said.
Then, Dave shared what he calls a “$2 trillion biotech-to-be” company – it produces a weight-loss drug that unlike the leading weight-loss drugs – even Eli Lilly’s oral pill Orforglipron – does not lead to muscle loss, a critical flaw from the current offerings.
Just exiting that stage as we release this to readers, energy investor and longtime friend of Porter Cactus Schroeder threw out this nugget for the audience. The challenge of our lifetime, he said: In five years or less, Texas will need 75% more energy. Some areas will need 100% more energy. How in the world can this be achieved?
He transported the audience to Tyler, Texas, explaining the massive investments being made in energy generation, including in small modular nuclear reactors (“SMR”).
A great presentation that could only be delivered by someone with his feet on the ground… and who has years of experience in the world of energy – and energy investing.
We will be back on Friday with updates from Thursday’s happenings from the Porter & Co. Annual Conference.
Tell me what you think: [email protected]
Good investing,
Porter Stansberry
Stevenson, Maryland