Dear Reader,
Good morning!
Happy Tuesday.
Today I woke up with a headcold, cut myself shaving - Mama said there’d be days like this is running through my head.
But, nothing can get me down this week - I am very excited about our big event this Thursday!
I really can’t wait to share with you what we’ve been working on all year behind the scenes here.
Save the date for our “America First Summit” - this Thursday, Dec. 11th at 1:00pm Eastern. Click here to register for your link to join.
I talked about semiconductors/chips related to America First on Friday.
I talked about critical resources and the Gulf of America yesterday.
And there are a couple other big areas I’d like to discuss today.
One of them is defense and the other is energy.
There is a LOT happening here in America on these fronts.
It’s very exciting.
A lot of friends of mine who subscribe to everything have said to me, “what are you going to do with defense?”
I tell them, look, we actually have a guy named Dan we’ve interviewed and will be bringing into this conversation regularly.
He worked in special forces and then was a liaison between the military and Congress.
And of course, after he left that, he became a lobbyist. Which is what happens.
And I always really wanted my finger close to the pulse of what is going on in policy, on Capitol Hill.
Let me explain why…
When you look at our biggest defense winners - and we’ve picked a heck of a lot in Breakthrough Wealth -
Think of AeroVironment, 120%; Spirit, 105%; C3 AI, 130%; Kratos, 192%; Leidos, 110%; Palantir, 310%...
Those were all great winners, but what did those all have in common?
They all had established government contracts.
And what was happening is, they were expanding their government base.
But when you look at the small companies we recommended that really didn’t have government contracts in defense-related areas…
Rocket Lab which jumped up to 503%...
IonQ 431%...
Those small companies that didn’t yet have real government contracts offered bigger upside.
There’s a lot of opportunity in the smaller companies. Duh. Of course there is.
Now, I’ve always said to myself, when it comes to biotech investing you have these companies that are putting out capital - they’re starting a drug, they’re taking it through clinical trials, they can’t do that alone. It’s very expensive. So they go public, and every year you get another readout - Phase 1, Phase 2, Phase 3. So you’re able to track how the biotech is doing. And there’s capital available.
When it comes to defense weapons - companies that are inventing new things - it’s much harder for them to raise capital.
They go through what’s called “the valley of death.”
They create a new technology and it takes about eight years, on average, for them to win a government contract.
So a lot of investors who back these companies up and say, “wow - this is a great drone” or a great this or a great that…
They sit there and wait eight years, and they don’t really put more money in, so by the end of that eight year period of time, the technology’s kind of dead.
So, one of the great things the Trump administration has been doing is try to shrink that “valley of death”...
Really move new defense projects to the battlefield much faster.
It is very important for us to modernize our military very quickly.
Especially as we enter the drone phase of drone wars.
Very important for us to move fast without these legacy weapons systems. Test new things.
So my friends Dan and John - people I know - are going to be bringing us close to the companies that are at the tail end of the “valley of death.”
That are really prime up for some of these big contracts.
Like I said to you before, we want to get as close to these insiders as we can get, without breaking the law.
Obviously. Money is not important enough to me to do that - never gonna happen.
But I want to get as close to these insiders as we can.
And this really is the difference between 130% average profits and 200%, 300%+ average profits.
A company that is already established - yeah, we can pick it - AeroVironment was great, C3, Kratos were all good stocks - they all went up 100%, 200%...
But when you’re picking companies that are really small, that have lobbyists, like Dan, to be frank, really fighting for them…
That have this Defense Department budget looking at these companies saying this one has the best drone technology, this one has the best this technology, that one has the best that technology…
We can really get close to when high probability events and government contracts are going to be rewarded to these small companies.
And what happens to these stocks is bonkers.
So I’m really looking forward to that being one of the key pillars to our America First investment recommendations as we modernize our military.
Anyway, that is all for today. I’ll speak to you tomorrow. Have a wonderful day.
And again, if you have not taken the time to pre-register for the event…
Make sure you click here to register now for free >>>
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