Inside today’s Daily Journal…

When I launched Porter & Co., I had a secret goal in mind.

I wanted to create a boutique advisory, serving a select group of families – forever. Yes, I said forever.

I hope that our work adds so much value to your life that you will bring us into your family and make our wealth-building strategies the center of your family’s multi-generational wealth plan.

That’s why we allow our Partner Pass members to bequeath their memberships to their family when they die.

That’s why I shared the personal letter I wrote to my 16-year-old son, Traveler, about building wealth. (He’s graduating high school this year and will be attending the University of Virginia in the fall.)

That’s why I’ve worked so hard to convert what my mentor Harry Browne taught me about non-correlated-asset investing into Porter’s Permanent Portfolio. I wanted to create a way for retired investors to continue to compound their capital safely, so that your family’s wealth won’t die with you, but can live on and continue to compound.

That’s why I’ve shared what I genuinely believe is the greatest secret in finance, the Austrian gold-pricing model. If you will teach this to your children and your grandchildren, they will always know when it is safe and will be profitable to buy gold.

And that’s why, next week, I’m going to publish something that I’ve spent more than 20 years working on. It’s a virtual Sorcerer’s Stone of finance. It can build a fortune for anyone.

This all got started in the early 2000s – more than 20 years ago – when my long-time partner (and childhood best friend) Steve Sjuggerud discovered it. And once you see this, you can’t ever forget it. It changes the way you view the entire world.

We suddenly realized that the wealthiest people in the world all own this utterly distinctive energy asset. Sjug wrote several letters about it back then and I’ve been studying it ever since.

Much like I did with what Harry Browne taught me, I’ve been working on new ways to optimize what I learned from Sjug. And, as you’ll see, in this asset class there is a crystal clear cycle. Once or twice a decade, all you must do is buy it. It is that easy.

I’ll be publishing my full report on all this next week after working on it for more than 20 years. Why? Because that once-in-a-decade opportunity is right now.

Over my career I’ve built a few novel and valuable investment models. My Permanent Portfolio and the way it uses property and casualty insurance companies in lieu of bonds is a valuable contribution to financial theory. But this financial Sorcerer’s Stone is vastly better.

This is a fool-proof way to create millions in wealth, safely and automatically by only investing a small amount of capital once or twice each decade into a single publicly traded vehicle.

In finance, there are a handful of truly elegant models – systems so precisely attuned to the nature of their underlying asset that they seem less constructed than discovered. And if you understand them, they are simply beautiful.

What makes this particular model so powerful is its grounding in biology rather than accounting. At its heart, this asset is an enormous energy reserve. But it is a form of energy that does not care about market prices. It does not respond to Federal Reserve announcements or government trade policy. And it does not deplete. It continues to accumulate, to compound, continuously – no matter what is happening in the world. Through pandemics, financial crises, and wars abroad, this asset grows ever more powerful. Its energy reserve just keeps expanding.

And it’s permanent. It has been doing this for longer than the New York Stock Exchange has existed. It will be doing it long after the last algorithmic trading firm has shut its doors.

While the market sulks and the stock charts compress and the Wall Street analysts cut their target prices and move on to whatever is exciting this quarter, nature’s greatest energy reserve quietly continues its work. Another year of growth – for free. No capital expenditure. No maintenance budget. No labor cost. The energy accumulates.

The patient owner of this energy reserve captures every single unit of that accumulation as unrealized wealth. My model transforms all of that potential wealth into realized gains.

If this sounds too elegant – too simple – to be the foundation of serious wealth, then I would ask you to consider the families who have discovered this secret before us. They’ve been using it for more than 100 years. These families built entire regions of the country. They funded universities. They shaped politics. And they passed wealth across generations in a way that virtually no other asset class has ever done.

Men like Wellington R. Burt built fortunes worth many billions. His wealth was so vast, so seemingly permanent, that he famously structured his will to prevent his heirs from touching it for 21 years after the last of his grandchildren died – a spite clause that ended in 2011 when the estate was finally distributed.

Think about an asset that can outlive all of your grandchildren and that will compound, no matter what, year after year. That’s exactly what this asset will produce when accumulated properly.

John Kirby did exactly the same. He became one of the most powerful men in Texas – a place where energy fortunes are routine. But his wealth was never threatened by any energy bust and his fields never depreciated. They continuously refilled.

This approach was perfected by the Temple family. For three generations they understood something that most investors still do not: this asset is the most reliable wealth-compounding machine ever devised by nature.

These are not isolated anecdotes. These individuals are the foundational fortunes of American commercial history, built not on speculative bets on technology, not on leveraged paper, not on regulatory arbitrage, but on patient ownership of the world’s greatest natural energy storage system.

The families who understood this principle did not merely build wealth. They built dynasties. And the principle that made them rich has not changed in 150 years.

More than 20 years ago, Sjug and I began studying this asset class in earnest. Steve traveled thousands of miles – across the Pacific Northwest, through the American South, even across South America by private plane – to understand exactly what this asset was worth and when to buy it. He hired valuation experts. He built models. He interviewed the managers of the great family holdings. He studied the biological mechanics of the energy-accumulation process itself, learning how the reserves grow, how they compound, and how their rate of energy storage varies with age, geography, and climate.

We were not alone in our conviction. Jeremy Grantham – one of the greatest investors alive, the co-founder of the Boston investment firm GMO and a man with one of the most formidable track records in institutional asset management – identified this as his single top asset class for the coming decade.

Grantham understood what the historical data made unmistakable: the raw energy value of these reserves has beaten inflation by 3% per year for more than a century. Not for a decade. Not for a cycle. For a century – 100 years. No other real asset class – not gold, not farmland, not oil – can match that record of consistent real appreciation.

I took all this research and studied it for more than 20 years. I watched, closely, as the industry around this asset class matured and developed. Big changes to the business models happened after the Global Financial Crisis, changes that made the stocks in this asset class inherently cyclical. And that’s when I discovered the Sorcerer’s Stone.

What happens when you pair a deeply cyclical stock price with an asset that always compounds – always?

What 20 years of research ultimately taught me was a single, simple signal. When the public market values this asset below a certain threshold, the market is wrong. It is mispricing a biological asset that cannot be permanently impaired. The energy keeps accumulating regardless of what the stock ticker says.

And then, when the market eventually corrects its mispricing (as it has, every single time in the modern era), the recovery is dramatic, rapid, and incredibly profitable.

This is not a theoretical observation. It is a quantified, documented model with a 15-year live track record.

And the signal is active today.

Here is what happens when you apply this model systematically. The Sorcerer’s Stone has come alive five times since 2011 – immediately after the structural changes I mentioned. Each time that it comes alive, all you have to do is deposit $100,000 into the asset via one (publicly traded) conduit. The sorcerer’s stone has glowed five times since 2011. If you’d invested $100,000 each time (a total of $500,000 in capital) your account would be worth more than $2.4 million today – almost 5x your money.

Since 2011 through today, the Sorcerer’s Stone has compounded capital at 19.9% per year. But that’s a little misleading. The rate of return changes based on share prices, and currently the share prices are depressed. Peak annualized returns are more than 30%.

As our Partners will learn next week when we share the details of the Sorcerer’s Stone with them, the best part of this strategy is that the real value of the underlying energy asset continues to grow. For investors who want this kind of “can’t lose” investment, there’s simply no possible better way to build wealth.

This is like financial magic.

And here’s the best part. The stone only glows once or twice a decade. Your holding period will be something like two to four years. And when you’re not invested in this magical energy asset, you can redeploy your capital into Porter’s Permanent Portfolio. This combination is the ideal way to grow your wealth when the opportunity is right and then maintain your wealth while you wait for the stone to glow again.

Partners, I’m eager for you to see this strategy: Look for it next week. And, although becoming a Partner Pass member is usually invitation-only, because of this new model, we will open for new members through the end of this week only.

If you’re looking for the perfect, fool-proof way to build wealth with only one or two transactions each decade, then I know you’ll like our new Sorcerer’s Stone approach.

To learn about how you can become a Partner Pass member, click here now or call our Customer Care team at 844-933-9986 or internationally at +1 443-815-4447.

Tell me what you think of today’s Journal: [email protected]

Good investing,

Porter Stansberry
Stevenson, Maryland

1. Energy is dramatically undervalued. Despite the big rally in energy stocks recently, the entire sector currently represents less than 4% of the S&P 500’s market cap. Meanwhile, even after the big sell-off in software stocks this year, the technology sector accounts for a massive 32% of the S&P. Prior to the Global Financial Crisis in 2008, energy represented 15% of the index. And in the 1970s – the last time geopolitics drove a sustained increase in energy prices like we’re seeing today – energy made up a quarter of the S&P 500, according to global investment management firm Carlyle.

2. Broadcom’s big AI deal. Anthropic – creator of AI platform Claude – signed an agreement with Alphabet (GOOGL) and Broadcom (AVGO) to get 3.5 gigawatts of TPU capacity starting in 2027. From this, Broadcom could generate $42 billion from Anthropic next year – that’s roughly 40% of its entire AI revenue target from a single customer. The Pentagon calls Anthropic a national security risk, and now Anthropic – allocating more than 100% of annual revenue to the effort – is planning to build massive amounts of American AI infrastructure. Google meanwhile will customize the TPUs for its own AI workloads.

3. Iran war tensions rise as Trump’s deadline approaches. The 39-day-old U.S.-Israeli war on Iran is escalating on every front today, with diplomatic off-ramps closing by the hour. The U.S. reportedly struck more than 50 military targets on Iran’s oil hub Kharg Island – hours before President Trump’s deadline for Iran to reopen the Strait of Hormuz or face strikes on power plants and bridges. Iran retaliated by broadening the conflict: overnight attacks reportedly hit the SABIC, a major petrochemical complex in Saudi Arabia. Iran’s Islamic Revolutionary Guard warned it would “deprive the U.S. and its allies of the region’s oil and gas for years” if further attacks are carried out. With Trump threatening that “a whole civilization will die tonight” and Iran calling the ultimatums “delusional,” the 8 PM ET deadline looks less like a turning point and more like the beginning of a new phase of the conflict… The only winner is the investor in energy.

As Porter explained above, the Sorcerer’s Stone only glows once or twice a decade, and when it does, it’s like financial magic. It’s beginning to glow again.

Chip F. writes:

Porter Comment: Thanks for your letter… the private equity problems are real and will make a profound impact on our economy.

Roy F. writes:

Porter Comment: I have two balls. Neither of them is crystal. I say that of course because it’s true and it’s funny. But there’s a deeper meaning people often miss. I’ve made a lot of money investing – many millions. I never needed to know the future to do very well. All I had to know was how to buy great businesses at good prices. Just focus on what you know and what you can control. Try to ignore everything else.

Yra H. writes:

Porter Comment: Uh? Canada is the world’s fourth-largest oil producer. In 2024, it set new records with average crude oil and equivalent production of about 5.13 million barrels per day (MMb/d), with oil sands (mostly heavy bitumen) accounting for roughly 59% to 65% of output. Most of this crude is not refined in Canada – domestic refinery capacity is only around 2 MMb/d, so Canada exports the vast majority (~4.2 MMb/d in 2024, or about 80% to 95%) of production after meeting domestic needs. A notable portion of Canadian output is upgraded bitumen turned into synthetic crude oil (“SCO”). SCO is a lighter, diesel-rich feedstock that commands premium prices precisely because it produces high yields of distillates like diesel.

Please note: The investments in our “Porter & Co. Top Positions” should not be considered current recommendations. These positions are the best performers across our publications – and the securities listed may (or may not) be above the current buy-up-to price. To learn more, visit the current recommendations page of the relevant service, here. To gain access or to learn more about our current recommendations, call our Customer Care team at 888-610-8895 or internationally at +1 443-815-4447.