What Stocks Would You Stick in Your Coffee Can?

A couple of weeks ago, I discussed the idea of a 'coffee-can portfolio'... As a reminder, we'll quote money manager Robert Kirby, who introduced the concept in a 1984 essay that appeared in The Journal of Portfolio Management... The coffee can portfolio concept harkens back to the old West, when people put their valuable possessions in […] Not rendering correctly? View this e-mail as a web page [here](. [Empire Financial Daily] What Stocks Would You Stick in Your Coffee Can? By Sam Latter --------------------------------------------------------------- [Until Tomorrow, Claim 1 FREE Year of the Quick Cash System]( A new system built by a former $1.7 billion hedge fund manager shows you how to make $1,000s per week... by getting key information FASTER than 99% of the public. Normally, it would cost $5,000. But until tomorrow, you can claim 1 year of access, free of charge. [Click here for the full details](. --------------------------------------------------------------- A couple of weeks ago, I discussed the idea of a 'coffee-can portfolio'... As a reminder, we'll quote money manager Robert Kirby, who introduced the concept in a 1984 essay that appeared inThe Journal of Portfolio Management... The coffee can portfolio concept harkens back to the old West, when people put their valuable possessions in a coffee can and kept it under the mattress. That coffee can involved no transaction costs, administrative costs, or any other costs. The idea prompted my colleague Herb Greenberg to pose two questions to his nearly 376,000 Twitter followers. ► The first: 'If you could buy one stock and hold it for one year, what would it be? And why?' Of the 60 or so responses, multiple people answered with iPhone maker Apple (AAPL), Warren Buffett's holding company Berkshire Hathaway (BRK-B), and plane maker Boeing (BA). Empire's own Alex Griese's answer was footwear company Crocs (CROX)... It could look not great in a year, if the economy really blows up, but on a multiyear horizon, it looks really, really well set up. And our friends at quant firm [Kailash Concepts Research]( chimed in with oil producer Devon Energy (DVN), writing... Phenomenal assets, blue-chip management, debt-reduction story, strong balance sheet, 8% dividend yield, valued for bad news, parabolic upside if [the] economy merely stumbles along, [and] offers free hedges on inflation, fiat money problems, and geopolitical stress. ► Later, Herb followed it up with a similar question... He tweeted: Now that I have your attention, let's take it up a few notches: If you could buy just one STOCK and hold it for 10 years, what would it be? Of the 50 responses, Berkshire got four votes, as did tech giant Alphabet (GOOGL). E-commerce titan Amazon (AMZN) got three votes. Two people voted for chip maker Advanced Micro Devices (AMD), oil juggernaut ExxonMobil (XOM), cigarette maker Altria (MO), meme stock GameStop (GME), and insurer Markel (MKL). Herb also posed the 10-year thought experiment on alternative investing platform Prometheus... There, he got two thoughtful responses that were off the beaten path... Prometheus founder Michael Wang voted for Pool Corporation (POOL), the leading distributor of pool supplies and equipment. As he explained, 80% of the business comes from people who already have pools in the ground. And of course, if you've ever owned a pool, you know you don't have any choice but to maintain it. Wang also pointed out that the average pool is 25 years old and therefore requires additional upkeep. "[It's a] beneficiary of inflation," Wang added, "[and has] been able to pass through costs to customers successfully." And it's trading at its lowest valuation in 10 years. Another fund manager, Alex Beinfield of Blue Duck Capital, responded with solar company Altus Power (AMPS), which went public via a special purpose acquisition company ("SPAC") last December. He noted that Altus "installs commercial and industrial solar [panels] on buildings and then runs 20-year purchase power agreements to be the utility provider of power to the tenants/landlord." Plus, Blackstone (BX) and CBRE Group (CBRE) are two of the largest Altus shareholders and two of the largest real estate companies in the world, which he concluded "will act as a funnel to lower customer acquisition cost, something that is historically high in solar." Beinfield also said the Inflation Reduction Act will serve as a strong tailwind, and he believes Altus is trading at a discount to fellow solar companies "because it's still relatively unknown." --------------------------------------------------------------- Recommended Link: [New Vehicle Shocks EV Market]( The Wall Street Journal calls it 'an American manufacturing triumph.' – [Will this disrupt the entire $1.3 trillion EV boom on October 27th?]( --------------------------------------------------------------- As I parsed through the answers to Herb's two Twitter questions, I noticed some overlap with the responses... Names that appeared on both lists included the previously mentioned Boeing, Berkshire Hathaway, and Altria. Iconic fast-food chain McDonald's (MCD) also received two votes, as did chip maker Intel (INTC), with one user writing... There's only a few companies that can make GPUs and we're only going to need more of them in our ever digitalized world. Biotech company Moderna (MRNA) also cropped up both times. As one commenter explained... COVID shots will probably become a yearly thing. [Moderna has] a very good personalized cancer vaccine candidate, partnered with [Merck]. They have 46 products in the pipeline and mRNA and personalized meds are the future of vaccines [in my opinion]. Another compared the vaccine maker to Apple... Is their model of vaccines cycles much different from [Apple's] iPhone cycles? Yes... You can decide to skip a new phone release, but most [people] won't skip a new COVID shot. And one user voted for big-box retailer Costco Wholesale (COST) for both durations, tweeting... It's rare to find a company/management team adept at merchandising hard goods, soft goods... and gasoline, and executing so well over the long term. All in all, the Twitter threads were an amusing – and enlightening – thought experiment... As an aside, we'd love to hear the answers from Empire Financial Daily readers. Drop us a line by [clicking here](mailto:feedback@empirefinancialresearch.com?subject=coffee%20can%20answer) and tell us what stock you'd own for the next decade – and why. In the meantime, Herb is busy building his own coffee-can portfolio in his brand-new product, Empire Real Wealth... And his latest stock writeup hit inboxes last Friday after market close. Readers who take us up on a 60-day, risk-free, money-back trial can check out all 10 stocks in the model portfolio – all of which are still trading under their buy-up-to prices. Don't miss out on this incredible opportunity to own shares of world-class businesses that can help you build wealth in the years to come... [To get started with Empire Real Wealth, click here](. Regards, Sam Latter October 24, 2022 --------------------------------------------------------------- If someone forwarded you this e-mail and you would like to be added to the Empire Financial Daily e-mail list to receive e-mails like this every weekday, simply [sign up here](. © 2022 Empire Financial Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Empire Financial Research, 380 Lexington Ave., 4th Floor, New York, NY 10168 [www.empirefinancialresearch.com.]( You received this e-mail because you are subscribed to Empire Financial Daily. [Unsubscribe from all future e-mails](