Bitcoin

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.

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.

Porter explains today that Bitcoin’s price and its intrinsic value are understandable (and predictable) using standard economic metrics. And even if you’ve never understood the first thing about the internet or Bitcoin, you can easily understand (and predict) its price.

Stablecoins represent a way to completely disintermediate the entire banking system, replacing vaults with cryptography, and expensive private payment networks with the free internet. This means the demise of traditional banks.