Stansberry Investor Hour Stansberry Research

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)

Dan and Corey kick off the show by arguing against the Federal Reserve potentially cutting rates this year. They point out that inflation is persistently volatile, gas prices are soaring and hurting everyday consumers, and the Fed is "pretending that everything is OK," according to Corey. Dan also brings up the fact that 2024 being an election year may have something to do with this. (0:43)
Next, Stansberry Venture Technology editor Dave Lashmet joins the conversation to discuss the biotech industry. He explains that he doesn't see biotech as a sector, and rather he looks bottom up at biotech companies to find a drug that will have a macroeconomic effect. Because only 6% of drugs that start a Phase I trial succeed, he says being selective is crucial. Dave also describes the three phases of drug testing and the importance of efficacy and safety data. (17:55)
After, Dave talks all things weight-loss drugs. He reflects on how he knew Ozempic was going to be a blockbuster drug from his boots-on-the-ground research, the incredible room for growth in this area, and the unprecedented amounts of money that biotech companies are spending on factories to develop these weight-loss drugs. (24:36)
Further, Dave discusses why the obesity epidemic has worsened over the decades and how exactly weight-loss drugs work to increase metabolism and suppress appetite. It involves something he calls the "winter switch." Plus, Dave brings up the U.S. Food and Drug Administration approving these drugs for the purpose of reducing strokes and heart attacks by nearly 20%. (32:40)
Lastly, Dave talks about the widespread economic implications behind weight-loss drugs and other areas of the market that could be impacted, such as the airline industry. However, Dave emphasizes once again that any mass changes are still years away due to supply constraints. (41:20)

Dan and Corey kick off the show by discussing both bubbles and "anti-bubble" stocks. Dan
mentions how the S&P 500 Index's cyclically adjusted price-to-earnings ratio, with data
going back to 1871, is currently in the top 1%. He even believes this is the biggest mega-
bubble in all of recorded history. (0:41)

Next, Porter & Co. analyst Erez Kalir joins the conversation and shares his financial
philosophy. He talks about investing legends who have influenced his investing style, the
importance of avoiding labels, and how successful investing is similar to using a Swiss Army
knife. Plus, Erez explains the yin and yang of macroeconomics versus security-specific
fundamentals and how there are extreme periods where one can entirely dominate the
other. (13:00)

After, Erez goes into detail about biotech – the sector's history in the stock market, how it's
shaped by interest rates, and how you can find companies trading at an extreme discount
with negative enterprise value. He argues that not being able to time the markets is merely
a myth, and he shares the seven factors he uses to evaluate whether a biotech stock is
worth buying. (21:59)

Lastly, Erez explains why the conditions are right for biotech stocks today. He covers the
sector being hated and how this gives savvy investors a chance to break away from the herd and profit. (38:36)