natural gas

There’s a big difference between the Middle East and the U.S. when it comes to energy. In America, the government doesn’t own all the oil and gas. It isn’t shared with all of the citizens, like it is in the Mideast. Mineral rights are controlled by private shareholders, shareholders who will become some of the wealthiest people in the world. We look at one example today.

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.

Porter reports that a $1.2 billion investment into a natural gas company is the start of the most important financial trend in the world. “We are just in the first inning,” he writes.

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.

There is no excerpt because this is a protected post.