Our Playbook For 55% Annual Returns

How The Pros Tilt The Odds In Their Favor

This is Porter’s Daily Journal, a free e-letter from Porter & Co. that provides unfiltered insights on markets, the economy, and life to help readers become better investors. It includes weekday editions and two weekend editions… and is free to all subscribers.

Table of Contents

• How The Pros Tilt The Odds In Their Favor

• The Casino That’s Rigged For You 

• Insurance, With A Twist 

• The Secret To A 100% Win Rate 

• THIS IS NOT A DRILL: Watch This Video

• Three Things To Know Before We Go…

It’s amazing what you can learn from 20 years of mistakes. 

I (Ross Hendricks) opened my first brokerage account in the summer of 2006. I had just started my first official job, working as a summer intern for Anadarko Petroleum, now part of Occidental Petroleum (OXY). During lunch, I’d meet up with a fellow intern to talk stocks. 

Neither one of us was interested in getting rich slowly with the blue chips. Filled with youthful enthusiasm, we went looking for the high octane trades that could double or triple our money in no time. Like moths to the flame, we were drawn into the most actively traded stocks that were jumping around by 10% to 20% each day. 

You can guess how this story ends… 

A few lucky trades boosted our confidence, creating the illusion that we knew what we were doing. But it didn’t take long for the losses to mount as we waded into the cesspool of thinly traded penny stocks, including falling prey to a classic pump-and-dump scheme. Before long, I had surrendered the majority of my summer savings toward an expensive tuition bill to Mr. Market. 

Of course, we had no one to blame but ourselves. 

We treated the market like a casino, and we were the suckers at the table. And as much as I’d like to say I learned my lesson after that summer, it was just the beginning of my education. Over the first decade of my investing career, I estimate that my tuition bill ultimately ran into six figures. 

But in hindsight, it was worth every penny. Those hard-won lessons of the last 20 years have now been distilled down into a handful of proven strategies for market-beating returns, which I’ll share with you today. 

These are the same strategies I’ve used to compound capital at 60% annually since November 2023 when I opened an account dedicated to tracking this systematic approach: 

They’re the same techniques that  starting in May of 2024, I taught my own mother, a retired and risk-averse 67 year old, who was previously earning a paltry 4% to 5% in money market funds. Since she began using this investing framework, she’s boosted her annual income into double-digit territory, while trouncing the S&P 500 on a total return basis. 

And on May 30, we launched The Trading Club to show subscribers exactly how these strategies work using a live $100,000 trading account. We detail every move we make in advance, giving subscribers a full day to act on our trades ahead of us. As of last Friday, August 15, we’re up 9.7% to $109,705 in the first 77 days, or a 55% annualized rate of return, with relatively low volatility along the way: 

Now here’s the thing…