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
Porter turned Monday’s Daily Journal over to a very special guest writer, Pieter Slegers… Pieter is founder of Compounding Quality, a Substack platform with more than 1.5 million readers. Among those readers are Amazon (AMZN) founder Jeff Bezos, NBA star LeBron James, and Pershing Square Capital CEO Bill Ackman. On average, Pieter’s portfolio has returned 20% annually. But, he says, apply his investing strategy to small and micro-cap stocks, and the results skyrocket. He calls these investments Tiny Titans. Pieter wrote in his Journal essay entitled “Go Small Or Go Home”:
By investing in forever stocks in the small-cap space you massively outperform the market.”
He went on to explain the seven “DNA markers” shared by companies that go from obscure small caps to global market leaders… and how to use them yourself to separate tomorrow’s winners from today’s hype.
Then on Thursday, he sat down with Porter to discuss his investing strategy in more detail. To watch their conversation, click here now.
On Wednesday in the Daily Journal, Porter discussed what he sees as the real reason behind the U.S. Civil War – economics and not slavery – and how economic and social conditions today are ripe for another civil war. One thing he mentioned in that essay is this:
The important thing to understand: Congress created an automatic annual increase in benefits, to match the government’s CPI-U index, but it never changed the funding mechanism. And that means Social Security is going to run out of money.”
He received a flood of email on this essay, many of which were published in Friday’s Journal.
On Thursday, The Big Secret On Wall Street team provided some market analysis following the Fed’s decision to lower interest rates 25 basis points. We wrote:
Adding liquidity to financial markets in this economic environment is akin to throwing a match on a towering inferno. Gold, one of the clearest barometers of inflationary pressures, has taken another leg up in the last month to yet another all-time high at nearly $3,700 per ounce. Hard assets are sending a very clear signal that inflation is not going away.”
On Friday, Pieter Slegers of Compounding Quality returned to the Journal, with a provocative thesis: What if Warren Buffett had $1 million to invest in small-cap stocks – could he generate 50% annual returns as he once boasted that he could do? Pieter plays the game and offers Buffett a list of small-cap companies to consider.
And the Saturday Stock Screen this week featured a company that was on the fast train to bankruptcy – until an activist investor intervened. Since then, the founding team has regained control of the board and installed a new CEO. As a result, the opportunity is enormous, we wrote – this company is aiming to disrupt a multi-trillion-dollar housing industry, yet its market value is only several billions.
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.
Markets And Economics
The Legends Speak
Investment Ideas
Government Bonds And Credit
Special Situations: Activist Investing, Spinoffs, Arbitrage, Mergers and Acquisitions (M&A), And More
Precious Metals
Energy
Other Commodities
Bitcoin And Crypto
White House Insider Buck Sexton:
“Trump’s Next Move Will Shock The World”
It could single-handedly reshape the global order… dramatically increase U.S. power… and trigger a massive American market boom the likes of which we haven’t seen in 75 years.
