Forget Fed "Independence": Why The Federal Reserve Needs to Help The U.S. Solve Its Debt Problem

At Porter & Co. we are determined to be your best source of investing, economic, and financial insight, and your first choice for information about what to do with your money… in the entire world, bar none.

This is Porter & Co.’s Sunday Investment Chronicles. Every week, the Porter & Co. research team pores over thousands (and thousands) of articles, reports, social media posts, analyses, regulatory filings, and anything else we can get our hands (and eyes) on to understand what’s happening in the world of investing and finance – and to uncover the most original, compelling, and double-head-fake ideas…

… and we curate the best of those here. We do it all the old fashioned way: Hours of reading and brainpower (no AI curation here). We read everything – for you.

In Case You Missed It… What We Published Last Week

In Wednesday’s Daily Journal, Porter shared his latest “Lost Stocks” strategy. A concept he first introduced to readers in January, Lost Stocks are businesses that create incredible wealth by their own internal cash generation plus excellent capital allocation. Their superior and behind-the-scenes approach distinguish them from businesses that create wealth through the expansion of their equity multiple with the Wall Street marketing machine or by constantly raising new capital.

Earlier this year, Porter shared five Lost Stocks to watch – but at the time, only one of them (Comfort Systems) offered anything like a reasonable price.

Texas Pacific Land (TPL) – up 2,900% last 10 years, 66x earnings
Casella Waste Systems (CWST) – up 2,632% last 10 years, 926x earnings
Champion Homes (SKY) – up 2,434% last 10 years, 35x earnings
Comfort Systems USA (FIX) – up 2,406% last 10 years, 33x earnings
Copart (CPRT) – up 1,141% last 10 years, 40x earnings

On Wednesday, he created a list of Top 10 Lost Stocks, which you can see here.

On Thursday, we offered paid-up subscribers two new recommendations. The Big Secret On Wall Street offered up a household name that many investors have been warning will be severely hindered by the growth in large-language model, artificial intelligence platforms like ChatGPt. We wrote:

Some rare companies are so dominant in the marketplace that their brands actually become the business. A sneezer asks for a ‘Kleenex’ when they are looking for a tissue… Someone looking to make a photocopy says: ‘Xerox this.’”

This month’s issue deals with a company that epitomizes this phenomenon better than any other business on the planet. The company is so dominant in its field that it should have been included in the “Legal Monopolies” portfolio category, but there’s only one problem – that legality has been called into question by the U.S. federal government.

And Tech Frontiers debuted with his first issue after expanding its reach beyond Biotech Frontiers, with a recommendation of a pharmaceutical company with a huge impending catalyst just weeks away that could send shares soaring. The company is also helped over the longer term because one aspect of its business is being supercharged by artificial intelligence.

Paid-up subscribers can read the issue here if you missed it on Thursday.

And Porter closed out the shortened week in the Daily Journal by sharing how pretty much anyone can earn 50%-plus annual returns, on average – and without suffering the kind of drawdowns most investors believe are inevitable. In fact, the strategy he demonstrates has volatility that’s much lower than the market’s. He wrote:

At the heart of our method, there’s a simple inversion. We’ve learned to use the government’s most powerful weapon of control to achieve our own financial ends.

I call these ideas and their execution in the markets, The Solution.”

You can read it here.

The Best Things We Read Last Week

Out of the hundreds of sources of investment, finance, and economics news and insight we regularly review – our Bloomberg terminal, hedge-fund letters, annual reports, the financial news media, Securities and Exchange Commission (“SEC”) filings, investment newsletters, newspapers, X (Twitter) threads, conferences, podcasts, and more – here’s what we’ve read that we think you might find interesting.