A Note From Rodney August 7, 2024

Why You Should Listen to John Del Vecchio

You’ve heard this one: if you’re not the lead dog, the scenery never changes. There are a million variations on this theme, but they all come down to one thing. If you are in the lead, you can make your own path. If you’re not at the front, you are an also-ran.

Don’t get me wrong. There are times that it’s great to be a member of the pack or part of a large group that is gaining ground. But this is not one of those times. The financial markets are facing dramatic changes as the Fed works to reduce credit, which will rip apart the economy and push unemployment higher. The central bankers don’t want to do this, but they must if they want to reestablish a normal yield curve. Someone has to eat the pain, and the bankers have nominated you.

But you can decline the invitation.

Instead of running down the hill with everyone else, you can choose not to participate. You can look up to see if someone has a better plan. Once you do, you’ll see John Del Vecchio doing what he always does, following his strategy and thumbing his nose at the crowd.

I’ve worked with John for about a decade. He starts with the premise that you can’t beat Wall Street at their own game, so you should not try. Instead, change the game. Don’t try to outdo every other analyst and estimate Alphabet’s future earnings. Find great, small companies throwing off cash that other analysts have never heard of. Look for the micro-cap firms that at are bursting at the seams. Big investment firms will ignore such companies because they don’t move the needle of their own earnings. Instead of playing in Yankee Stadium, John plays stickball on the street… and he wins.

I’ve invested with John for years, putting my personal money at risk because I like what he does and I like my returns. There’s nothing wrong with indices in portfolios. I use them myself. But when I want to leave the beaten path and look for undiscovered gems, I reach out for John’s latest research. There is none better.

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Rodney

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