In 2024, we've enjoyed dozens of realized and unrealized gains, primarily in large cap technology shares. I expect technology - a major source of competitive advantage in every industry today - to continue to do well in 2025. But the biggest gains should come from small firms - and particularly those that will profit the most from the incoming Trump administration and its deregulatory policies. This month, we'll focus on a company that is upgrading, expanding, and repairing the nation's aging power grid. The firm will save millions of dollars in reduced compliance costs, faster project timelines, and increased U.S. manufacturing activity. Top-line growth is already on fire. Sales are growing at a 60% annual rate. The firm's order backlog is 1.5 times its trailing 12-month revenue. And I expect earnings to soar at least 50% higher in 2025. For all these reasons, this stock is the newest addition to our Oxford Trading Portfolio. Sights Set on Small Caps Before we look ahead to 2025, it seems only fair to look back and see what we were predicting a year ago. In that Forecast Issue, I focused on "Eight Megatrends for 2024 and Beyond" that would give us multiple ways to profit in the months and years ahead. Those megatrends were artificial intelligence, genomics, embedded intelligence, robotics, edge computing, renewable energy, cybersecurity, and smart agriculture. These are all areas where we will continue to invest in the future. After all, we've gotten off to a promising start. In addition to all the double- and triple-digit gains we're currently sitting on in the Oxford Trading Portfolio, we locked in profits of 19% in Cameco, 24% in Applied Materials, 26% in Teradyne, 48% in Lyft, 53% in Permian Resources, 47% in Merck, and 122% in Novo Nordisk. We had some losses too, of course. But we had far more winners than losers. And our gains were much bigger than our losses. Our profit in Novo Nordisk alone, for example, was twice as big as all the losses in the portfolio this year - combined! I expect 2025 to be another banner year for us... especially with our new concentration on smaller companies. Why should small caps outperform in 2025? |
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