"Whoso would be a man, must be a nonconformist." Ralph Waldo Emerson dropped that chestnut on the world in Self-Reliance in 1841, and it couldn't be more true today. We are nearing the halfway point of 2022, and this year in the stock market has been one long exercise in trampling the herd, as opposed to being trampled by it.
My clients and I are reaping the benefits. Exxon (XOM) just waved bye-bye to $100 on its way to an eight-year high - XOM was quoted above $104/share as I write this - and my HOAX portfolio is fileting Cathie Wood's (ARKK) to a degree that even I couldn't have imagined. HOAX has risen 49.64% since inception on 12/23/21 and, given the +50% plummet in ARKK in that time period, the relative performance gap - the stagger, as I like to call it - now sits at a mere 103.27%.
To quote one of those brainless, insipid Fin TV stories, and to use a little rounding, if you had invested $10,000 in HOAX in December, you'd have $15,000. If you had invested it in ARKK, you'd have $5,000. The statistics belie the size of the actual monetary mass. HOAX investors have three times as much in accounts today as ARKK holders do, an extraordinary outperformance in six months.
What's the next move? There isn't one.
We are so early in this game... it's not even funny. I am reinvesting HOAX dividend payments into Antero Midstream (AM) as we receive them. There will come a day to diversify away from hydrocarbon names. But today is not that day.
Check out the linked spreadsheets, below, and note the telephone number on top. If you use WhatsApp, send me a request to that phone number and I will add you to our investing WA group, which is composed mainly of Real Money subscribers, with some of my clients and a few old friends in there as well. I learn so much from that group. Today, one of the members posted a link to a financial article that noted that Cathie Wood sees a 13x return for Zoom (ZM) and a $1,500 share price by 2026.
You know what I am not doing today? Buying ZM. Or, more specifically, selling XOM to buy ZM. Or anything else my clients and I own. This has been the year that stocks in companies that produce cash flow have - finally - triumphed over the cash-burners trumpeted by feckless nitwits who cajole us into investing in stocks of companies that don't produce cash flow. My playbook is wide open and my firm, Excelsior Capital Partners, has a fully unblemished record of complete transparency.
Join us. We are making money, making jokes (not always at Cathie Wood's expense, although she is a frequent target of our mirth) and, crucially, ensuring the financial futures of our respective families. We do this by investing in companies that produce cash flow and consequently benefitting from our fair share of that cash flow in the form of dividends
If that makes us nonconformists, then so be it. Emerson had Thoreau and I have Cathie Wood.
Here are my model portfolios. Google Docs is set up so that you have to request access to view them, but I haven't turned down a request yet, and I certainly don't plan on doing so now.
