Savvy Investors 'Buy Straw Hats in Winter'

Episode #358 | April 22, 2024

Episode #358 | April 22, 2024

Savvy Investors 'Buy Straw Hats in Winter'

In This Episode

On this week's Stansberry Investor Hour, Dan and Corey welcome David Daglio to the show. David is the chief investment officer and global investment strategist of wealth-advisory firm TwinFocus. He has more than 25 years' experience in the finance industry, including 20-plus years at the Bank of New York Mellon with $500 billion in assets under management. And now, he's sharing some of his biggest investing insights with listeners.

David 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 his current firm, TwinFocus, looks for creative 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. Here's what he says about finding hidden winners for his clients...

The big firms, they sell what they have, right? So if it's banana season, they promote bananas... Where all the money is made is going [with] what isn't being promoted, what is off the shelf, what is on sale – you know, buying straw hats in the winter. So the concept of how I invest and think about the world is, how can we find straw hats in the winter – meaning they're on sale – and in areas that are not heavily promoted by Wall Street, private equity, et cetera?

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...

One of the biases I see today in our clients across the board is that all unique and breakthrough technology is a good idea. And the truth of the matter is, it's relatively rare. And we should be selective... We probably have some crown jewels in the tech industry, but I think we've lifted up too many things simultaneously. There's only usually one or two great ideas at a time.

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.

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. Corey notes...

You forget sometimes how easily you can be swayed by politics and a presidential election. I think especially for people that may be new to the markets or investing, you probably put way more weight in the political election and which party is in control than you really should.