Stansberry Investor Hour Stansberry Research

On this week's Stansberry Investor Hour, Dan and Corey are joined by the founder and president of Chisholm Exploration, Cactus Schroeder. Cactus kicks off the conversation by describing the current economics of the oil industry, why rig counts are deceptive, what's happening with the Haynesville Shale and Marcellus Shale, and the upside in natural gas. He also explains why the Barnett Shale has become so attractive, how Chisholm Exploration differs from the oil majors, and how these larger companies essentially control the price of oil. (4:18)
Next, Cactus discusses why his company prefers oil to natural gas, earthquakes as a side effect of drilling, and how the Biden administration has been hampering exploration and pipeline development. He also details his experience in the Eastern Shelf region, including both good and bad wells and royalty interests. (21:52)
Lastly, Cactus covers the oil major he finds the most interesting today, the green-energy movement, and what's on the horizon for oil. He brings up Saudi Arabia cutting oil production in an effort to make prices reach $100 per barrel, the consequences of the war in Gaza, and the ongoing fight between land ownership and mineral rights in different states. (31:03)
Dan and Corey close things out by discussing the consequences of the Drug Enforcement Administration moving to reclassify marijuana as a Schedule III drug. They analyze what has
been happening with cannabis stocks since the announcement and the tax implications behind the move. Plus, they talk about Starbucks' recent disappointing earnings report and what weight-loss drugs becoming more available could mean for the economy and certain stocks. (53:32)

David Trainer, the founder and CEO of New Constructs, joins the show. He kicks off the conversation by describing how his company takes value investing to the next level with AI. He explains that the days of buying stocks and holding them forever are gone. Today's investing landscape requires investors to be more agile, and AI helps with this. David specifically mentions how he uses AI to sort through millions of financial filings, footnotes, and data points to give him an edge and produce better results. However, he warns that AI is only as good as the data that goes into it. (3:49)
Then, David talks in depth about how humans are still involved in the investing process, including making decisions when the AI is unsure how to interpret certain findings. He breaks down how New Constructs' technology is giving clients a competitive advantage and augmenting the rest of their strategy. Plus, David discusses the importance of using both technicals and fundamentals when investing, and he shares why expectations matter so much to valuation. (14:34)
Lastly, David names the two sectors he finds most attractive and two that folks should avoid. This segues into a conversation about a recent pump-and-dump scheme used to take advantage of retail investors, why the U.S. Securities and Exchange Commission doesn't take action even when it should, and the damage done by years of low interest rates. (33:35)
Dan and Corey close things out by discussing inflation and the hotter-than-expected numbers for the personal consumption expenditures index. They cover unrealistic investor expectations for rate cuts, the government's misplaced priorities, and the very real consequences of this persistent inflation on workers and small businesses. (51:20)

David Daglio, the chief investment officer and global investment strategist of wealth-
advisory firm TwinFocus, joins the show. He kicks things off by describing himself as a
contrarian, and he explains that understanding who you are as a person will lead to the best
investing results. After, he goes into detail on how TwinFocus looks for creative "straw hat"
solutions that the market isn't seeing. Plus, he talks about risk premiums, the current
opportunity in natural gas, and the 30-year discount in gold-mining stocks. (3:29)

Next, David discusses the advantages and disadvantages of working at a large firm versus
being an individual investor. He shares that individual investors have the advantage of not
being overloaded with information, plus they're their own boss and can make their own
decisions. David also details the three conditions TwinFocus looks for before jumping into an
investment, the importance of recognizing your own intellectual biases, and how market
skepticism can be a huge opportunity. (15:29)

Lastly, David talks about "net-net" companies in the biotech sector that are trading for less
than their total assets... he breaks down what capital imbalance is and how to spot it... and
he explains that the savviest investors try to be like Spock from Star Trek, valuing facts over
feelings. (28:49)

Dan and Corey close out the podcast by discussing the Stansberry Research editorial
meeting that happened last week. This meeting brings Stansberry's editors and analysts
together to discuss different investing ideas and pertinent world news. One of the hot topics
at the meeting was the presidential election in November. Dan and Corey emphasize that
the best investors keep politics out of their investing decisions and stick to their core
strategy regardless of which candidate takes office. (49:22)

Gary Mishuris of Silver Ring Value Partners talks about today's market being one of the most challenging periods for bottom-up investing since 2007. In terms of the quality of a business
versus its stock price, there isn't a lot of opportunity right now. But he emphasizes that transparency and candor with clients is essential, as is prioritizing the long-term process
over short-term performance. (5:19)

Next, Gary describes what sets Silver Ring Value apart from other fund managers. He shares why he left the "sausage factory" of larger firms behind, how his firm makes money for
clients rather than off of clients, and how his unique temperament and behavioral models allow him to make better investing decisions. (14:38)

Gary also goes into detail on the psychology behind investing and compares it with a game of poker. He talks about trying to avoid making mistakes, continuously learning from past
errors, the importance of having guardrails in place, and cutting your losses. (21:44)

Then, Gary explains why you should never be ashamed to change your mind, even when you haven't received any new information. It's OK to reanalyze the same set of facts and admit
that you were wrong, and he cites several examples of investors who have learned and grown from their past mistakes. (31:21)

Lastly, Dan and Corey discuss the consumer price index and gold. Inflation came in hotter than expected, while gold has broken out to new highs. Dan and Corey speculate on how long gold's bull run can last. Plus, they detail gold being a good hedge for retirement against the government's money-printing addiction. (48:18)

Dan and Corey kick off the show by discussing inflation staying persistently higher, rampant government spending and money-printing, and the repercussions of the Federal Reserve's decade-plus of low interest rates. (0:41)
Next, Cambria Investment Management's Meb Faber joins the conversation to talk about the exchange-traded funds ("ETFs") at Cambria and why the team focuses on shareholder yield when picking stocks for these ETFs. He breaks down the importance of shareholder yield in mega-bubble markets like today's and urges investors to pay more attention to it. (24:25)
Meb then discusses managing risk on a portfolio level, including focusing on quality and value. He also covers why emerging and foreign markets are so attractive today, the opportunity in fixed-income investments like bonds and Treasury bills, and how higher interest rates have changed the game. (38:21)
Finally, Meb describes himself as a value investor and shares which areas of the economy he's most concerned about. He talks about inflation driving commodities sharply higher, gold hitting new highs, and why investing at all-time highs can still be a smart choice. (56:43)

Dan and Corey kick off the show by reviewing the most recent PCE number, what's
happening with inflation, and the current state of the economy. (0:41)

Next, real estate expert and entrepreneur George Gammon joins the conversation and
explains how he became a self-described "macro addict" without any formal education in the
world of finance or economics. Plus, he discusses why he considers himself a libertarian and
why most investors and billionaires would fall into this category, even if they don't self-
identify as such. (21:59)

Further, George describes how his investment style is influenced by being a libertarian. By
default, his view is that the government is always going to do the wrong thing, resulting in
unintended, net-negative consequences. George also goes into detail on the similarities
between value investing and trend following. He argues that successful value investors are
always looking for a catalyst so that they can catch the trend at its very beginning stages,
while stereotypical investors are happy to catch the middle portion of the trend. (34:16)

Lastly, George explores the biggest differences between retail investors and professional
investors. He details the strategy that the best hedge-fund managers use: starting with a
macro view and then looking at the fundamentals and the narrative later. George
emphasizes that these experts spend most of their time deciding how to position themselves
and using asymmetry to stack the odds in their favor like in a game of blackjack. (46:32)