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The Hard Lesson: Buying What No One Else Wants
Porter's Journal Issue #45, Volume #2
Porter Stansberry
April 21, 2025
Today Is The Day You Become A Great Investor
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.
An update on my big gold prediction… How I knew gold was 100% certain to outperform stocks… The foolproof way to be a great investor… These stocks are guaranteed to beat the market over the next 10 years… Trade tensions continue to escalate… |
Table of Contents
Gold is soaring, and gold stocks are ripping… should you buy them?
The answer I’ll give you can ensure that your portfolio always outperforms the market. But… I doubt it’s the answer you’re expecting.
Ten years ago, in the summer of 2015 (July 24), I promised investors that if they bought ten gold stocks and held them for ten years, they were guaranteed to beat the S&P 500. That might not sound like a big deal, but the S&P 500 has been on such a huge run that out of all actively managed mutual funds, only 20 have beaten the S&P 500 over the last decade.
Even so, the ten gold stocks I recommended in the summer of 2015 have now appreciated 171.5% (on average) versus 171.4% for the S&P 500.
And, as I’m sure you’ve noticed, that outperformance is growing by the day. It will be interesting to see where it ends up by July.
As will come as no surprise to long-time readers of my work, the biggest winners in my recommended gold portfolio over the decade were the gold “streamers.” These are incredibly capital-efficient businesses that finance gold production at mines all around the world and receive royalties on production in return. These are such good businesses, it’s almost like they cheat. Just like property and casualty insurance stocks, which get paid to use policyholders’ capital, and like McDonald’s uses its franchisees’ capital to sell hamburgers, these gold streamers end up capturing the lion’s share of a mine’s profit, while putting up only a fraction of the required capital.
The three best streamers in my original 10-for-10 gold stock portfolio were: Franco Nevada (FNV), up 306%; Royal Gold (RGLD), up 458%; and Osisko Gold Royalties (OR), up 163%.