Invest in Companies That Prove Their Worth

The companies you should invest in prove themselves over and over again, no matter what... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] Editor's note: We can learn what to look for in a company in some surprising places... And our new colleague Brad Thomas, from our corporate affiliate Wide Moat Research, learned one of the most important lessons at an early age. In today's issue – originally published in the June 26 issue of his Wide Moat Daily e-letter – Brad explains how his experience shaped him, and how it drives his investing today... --------------------------------------------------------------- Invest in Companies That Prove Their Worth By Brad Thomas, founder, Wide Moat Research --------------------------------------------------------------- Before the Internet, there were these things called newspapers... Back in the 1970s, these newspapers were delivered directly to your doorstep every morning, usually by young kids looking to make some spending money. And at the tender age of 12, I was one of those paperboys. Most people's image of the job comes from the movies. A young boy takes a leisurely bike ride, tossing papers over white picket fences. It sounds idyllic. In reality, it was a lot of work with a lot of responsibility. And the lessons I learned as a paperboy can influence how we choose companies to invest in today... --------------------------------------------------------------- Recommended Links: [Here's What You Missed Yesterday]( For the first time ever, Stansberry Research, Chaikin Analytics, and Altimetry have joined forces to announce a new lead analyst joining their ranks. You can't afford to miss this historic announcement, including this expert's newest market prediction and his No. 1 recommendation you MUST move your money into before the end of 2024. [Click here to watch – before it goes offline](. --------------------------------------------------------------- [Is Gold Headed Above $3,000 per Ounce? Here's How to Play It...]( With so many strange events happening across the economy (the longest bear market for bonds since the Civil War... unprecedented bank closures... and soaring prices), it's no wonder the richest investors are loading up on gold. But what you might not realize is there's a much better way to profit from rising gold prices – WITHOUT ever touching an ETF, mining stock, or even bullion. [Click here for a new gold recommendation](. --------------------------------------------------------------- Every day, I had to be up at 6 a.m. to attend to the stacks of papers my employer would leave at my door... starting with counting and sorting them. If I was looking at inclement weather for the day, then I also had to bag each one to keep it safe and dry from the elements. As paperboys went, I was pretty fortunate since I didn't have to walk the whole route. My mom saved up to buy me a little scooter, and I rode that thing around the neighborhood, stopping at every subscriber's house... Subscribers I knew by name. I had to. Part of my job was to know their preferences on how they wanted their papers delivered. Most were fine with me just throwing their papers on the driveway or sticking them in the appropriate slots beneath the mailbox. But others wanted them placed on their doorsteps or inside their screens. I also had to talk to them directly once every quarter to collect their dues. I got to know them that way. I knew if they had dogs and if they were mean. "That's all very interesting," I can hear you say, "but what does it have to do with investing?" Well... As a paperboy, I knew that our customers relied on us no matter whether it was raining, snowing, or so muggy we were soaked with sweat by the time we finally got back home. As a paperboy, I also learned to be respectful... Customer service was key to making tips, so we had every incentive to make the route about the people instead of the company or ourselves alone. But here's a big benefit of being a paperboy that isn't talked about very much. That job taught me how I should expect businesses to treat me as a customer. I know the effort, much less anything extra, can be tough. However, I also know it's doable. If I could do it as a 12-year-old boy, then any adult can do it. That's especially true if that adult represents a multibillion-dollar company... the type we often consider investing in. If you're going to pay for shares of a company – which makes you a partial owner, not "just" a customer, for the record – you should be treated like you matter to that company. As a shareholder, I'm not asking for paperboy-level treatment. Management doesn't need to know my name or what my personal preferences are. But I do expect them to treat their collective shareholders with respect, making decisions that directly benefit them along with their customers, employees, and management. This is a topic I could write about over and over again. But here's a summary from the last book I published, REITs for Dummies: Companies thrive when they create real economic value for their investors, which happens when their rates of return exceed their cost of capital. And that happens under ethical, experienced, in-the-know management... It's management that assesses [buyable and sellable] options and chooses accordingly. This is why it's extremely important to follow the money. You always want to make sure management is making the most of its opportunities to deliver steady earnings and grow dividends. This doesn't mean they're always buying or always selling. A company that's obsessed with growth is a company that doesn't actually value its shareholders. Really, it's more focused on the short-term spotlight for its own benefit than any long-term investor value. Management that prioritizes you prioritizes a healthy balance sheet, where growth and savings are both valued. They buy quality assets at fair or bargain prices. If no assets fit that description, they don't buy. Instead, they put more money aside for a time when worthwhile opportunities do present themselves. And they maintain that business mantra, no matter the economic weather. Like all those paperboys from yesteryear who knew they had to deliver the news, rain or shine... the companies you should invest in prove themselves over and over again, no matter what. It can take a bit more time and effort to spot these kinds of companies, admittedly. You'll have to research not only how their stock price is performing but also who is behind that movement and how. You'll have to monitor them and what they're doing, paying attention to their news releases, quarterly statements, and everything in between. But don't you think you're worth the far-superior end results? This former paperboy definitely does. That's why I run the services I do, demanding only the best from myself and the companies I recommend... All for the good of the customer. You. Regards, Brad Thomas --------------------------------------------------------------- Editor's note: Seventeen years ago, Brad went broke. He had to sell his house and move in with his in-laws. But one secret helped him build his second fortune, and also earned him a long contact list of multimillionaires and billionaires... including a former president. Yesterday, Brad stepped forward to share how he mastered one of the world's most valuable assets... along with his No. 1 opportunity to invest in today. [Click here to learn more](. Further Reading "With markets at a critical point, it's time to check in on the first principles of investing," Dr. David Eifrig writes. Storied investors love to share the wisdom that has brought them success in the markets. And we can break their advice down into several key principles for building and protecting wealth in any environment... [Learn more here](. Some folks on Wall Street are always looking for the next big market winner. However, the smart move is to choose dividend-growing stocks that will help you earn consistent, safe income. But this investing approach isn't as easy as it seems... [Read more here](. --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers' feedback. To help us improve your experience, we'd like to ask you a couple brief questions.]( [Click here to rate this e-mail]( You have received this e-mail as part of your subscription to DailyWealth. 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