Wrapping things up... Marrying technical analysis with fundamental research... Our grading criteria... The rest of our annual Report Card... Tell us what you think...

Completing our Report Card...

Last week, I (Brett Aitken) introduced our annual Report Card by sharing the story of the ballroom dancer and self-trained investor Nicolas Darvas.

Over six years of trial and error in the 1950s, Darvas developed an investing strategy that married technical analysis with fundamental research. He famously used his system to make more than $2 million over an 18-month run.

Darvas' story attracted the attention of Time magazine, which featured him in May 1959...

In his memoir, How I Made $2 Million in the Stock Market, Darvas said the editors at Time initially disbelieved his sensational results. He had to tell his story and share his trading records with five different writers and editors over four days – including two marathon sessions that lasted four and seven hours.

Darvas described the final session in his book:

Then at two in the morning, [the editor] threw down his ballpoint. "Let's have a drink," he said. His last skeptical doubt had been swept away. He was convinced. He lifted his glass and toasted my success in the market.

As we said, Darvas was no fluke. His principles inspired many successful investors... including William O'Neil, whose CANSLIM system relied on a similar technical-plus-fundamental approach.

Among the themes at work in Darvas' story, he focused on holding his stocks for the long term. He was committed to letting his winning trades run as high as they could. And he believed in protecting his downside, cutting short his losing stocks with stop losses.

Darvas admitted that his successes came when he stuck with his system. His biggest losses happened when his emotions got the best of him and he started ignoring his principles.

Wrapping things up...

I graded our portfolio products and trading services last Friday. Today, we'll complete our annual review, analyzing our monthly newsletters.

As you'll see, we take this seriously at Stansberry Research. We're thrilled with the outstanding success of many of our services. But we're also unafraid to call out performances that don't meet our expectations...

It's a shame that so few other publishers in our industry follow our lead and provide a candid review. It is a fundamental demonstration of our commitment to providing you with the information we would want if our roles were reversed.

It's also critical to our long-term success that we scrutinize our own work... What has gone well? Where have we struggled? How can we serve you, our subscribers, better?

As I always say, the grades are mine alone. Whether you agree with them or not, we provide all the data we use to score our services so you can make your own evaluations. And of course, I invite you to share your thoughts at feedback@stansberryresearch.com.

As you go through today's report, I think you'll see the themes of Darvas' career reflected in our own performance. When we stumble, it's often because we've lost sight of things like cutting short our losses. Where our editors have stuck with their investing principles – whether it's focusing on value, price action, or innovation – they have done well over time.

In the end, we're proud of the work our editors have done. Whether it's generating steady, safe income... profiting from the big forces moving markets... or investing in the next industry-changing technology... we consistently provided research and recommendations that helped subscribers grow and protect their wealth.

With the details out of the way, let's get started...

Now on to our flagship publication...

Stansberry's Investment Advisory: A

In 2024, editor Whitney Tilson and the Investment Advisory team made 12 recommendations – six of which were profitable at year-end. Those 12 picks have returned 3% on average.

That might not sound like much... But keep in mind, unlike the portfolio products we covered last week – which have fully allocated portfolios with start and end dates to measure – the publications we're covering today make individual stock recommendations throughout the year. So it's not possible to compare them to an index or fund the same way.

Plus, 11 of the 2024 recommendations remain open... with their investment theses intact. Given this team's track record, I have no doubt many of these recommendations will see upside in the years ahead.

And the list is diversified. Out of respect for paying subscribers, I don't want to give too much away here. But just know several of these picks currently have double-digit gains already, including a 37% gain in a software company, a 32% gain in a prominent insurance stock, and a 35% gain in a natural gas play.

Again, these are just the 2024 picks. So let's take a look at the overall portfolio...

One of the Investment Advisory's core strategies is finding capital-efficient businesses like software giant Microsoft (MSFT) and premium credit-card company American Express (AXP). As we write, those two picks are up 1,317% and 419%, respectively. The portfolio currently holds 10 stocks that meet the team's capital-efficiency criteria. I'm confident we'll see some of these make high triple-digit gains over the coming years.

Property-and-casualty (P&C) insurance – which we call "the world's best business" – is another cornerstone of the portfolio.

More than a decade ago, the team built a proprietary Insurance Value Monitor to track the entire industry. It identifies the best (and worst) insurance businesses... and perhaps most importantly, tells the team when to buy the best companies at the right price. No other team of analysts in the financial-publishing world understands P&C insurance better. So the Investment Advisory is filled with the some of the best insurance names... bought at the right price.

I know that most people consider insurance stocks boring. And they are if you're comparing them to high-flying growth stocks. But for wealth-compounding gains... boring works. Just look at W.R. Berkley (WRB)... Including dividends, the position is currently up more than 540% since the team recommended it in March 2012. That's roughly 14.5% annualized gains in this "boring" – yet outstanding – business. And, as we said earlier, the P&C business the team added last year is already up 32%. The model portfolio currently includes seven of these wonderful businesses. All are winning positions, with average gains of 222%.

Other areas of the portfolio include "gatekeepers of the financial markets," Software as a Service companies, energy firms, "next boom and speculations" plays, as well as chaos and inflation hedges.

One of the team's largest winners over the five-year grading period includes booking a 440% gain in two years on oil and gas royalty play Texas Pacific Land (TPL). The portfolio also currently has more than two dozen double- and triple-digit winners. Most importantly, it doesn't have any major losers. As you know, we can't stress risk management enough. The most successful investors know that they don't need to get every trade right... but they must manage risk.

With a five-year 56% win rate and average gains of 27%, Stansberry's Investment Advisory edges out its benchmark, the S&P 500 Index, and earns an A for this year's Report Card.

True Wealth: B

Homebuilders... energy... and technology.

Editor Brett Eversole has shown his True Wealth subscribers how to make triple-digit gains in each of these sectors over the past five years.

Brett looks at the markets from the "top down" to find assets that are generally out of favor (and sometimes outright hated)... but which are already starting to recover. It could be a country or currency play like European stocks, Chinese technology, or the Japanese yen. Or it could be a sector like small-cap stocks, gold, semiconductors, or aerospace. Then Brett homes in on the best and easiest "one click" ways to play these ideas – often through exchange-traded funds ("ETFs"). That way, his subscribers get exposure to the sector or trend he identifies without having to narrow it down to a specific stock. It's a great low-risk way to play the broader trend.

For example, in 2022, Brett locked in a 107% gain in homebuilders via the iShares U.S. Home Construction Fund (ITB)... and a 102% gain in tech stocks via ProShares Ultra Technology (ROM). And the model portfolio is currently sitting on a 118% gain on the VanEck Oil Services Fund (OIH).

But Brett also recommends individual stocks when he finds compelling stories. For example, he recommended leading homebuilder NVR (NVR) in 2022. It went on to double in value.

Naturally, not all investments go as planned. As I've mentioned before in these annual Report Cards, Brett's strategy works best in trending markets. The big trends he identifies need time to gain traction. So volatility from choppy or sideways markets like we saw in 2022 can sometimes knock him out of a trade early. But Brett understands the importance of risk management as well as anyone. So he cuts his losses quick... and lets his winners run.

Brett's 57% win rate and average gains of 12% over the past five years is steady and solid. But because it lags the benchmark S&P 500, True Wealth earns a B for this year's Report Card.

Commodity Supercycles: A

Booms and busts are the norm for commodities...

This sector will test the nerves of the most avid investor. As you can see in the chart below, it has been a roller-coaster ride since commodities peaked in 2008.

From 2008 to 2020, every boom in commodities was promptly followed by a brutal bust – lower and deeper than the one before. We finally saw a bottom in 2020. And an uptrend followed in 2021... only to stall in 2022. The Invesco DB Commodity Index Tracking Fund (DBC) – which includes exposure to a variety of commodities – is down about 30% from its 2022 peak.

Still, the Commodity Supercycles portfolio holds several double- and triple-digit winners across different parts of the energy space, including nuclear, liquefied natural gas, and infrastructure plays.

And as editor Whitney Tilson pointed out in his free daily newsletter last week, the Commodity Supercycles team – which also includes editors Brian Tycangco and Bill McGilton – has been adding stocks well-positioned to benefit from the future energy demands of artificial intelligence ("AI"). The team is currently up 89% on power generator Vistra (VST) and 28% and 46% on two other stocks set up to benefit from the trend.

Whitney, Brian, and Bill have also recommended several industrial, mineral, and mining plays with the potential for big upside.

One area that hasn't performed as expected is gold stocks. Even though the metal has climbed roughly 70% over the past five years, gold stocks haven't participated in the bull market like in past cycles – at least, not yet. Still, the portfolio holds several profitable positions that are well-positioned for when gold stocks eventually catch up to rising gold and silver prices.

Managing risk is super important in this sector. So it's critical to adjust your position sizes and follow your stops. But if you get on the right side of even just one of these supercycles... the rewards can prove life-changing. And even though the Bloomberg Commodity Index is at double its 2022 lows, many experts believe we're still in the beginning of the next supercycle.

With the expected future demand of energy and materials... things certainly look promising. If the index returned to 2008 levels, that would be more than a double from here. But individual stocks could soar hundreds and thousands of percent from these levels.

It's an exciting opportunity. We plan on participating in it... and hope you'll join us. Please just invest wisely. The Commodity Supercycles team has done a great job navigating these markets and managing risk over the past couple of years.

With a 52% win rate and average gains of 12% over the past five years – more than doubling its benchmark, the Bloomberg Commodity Index, over the same period – Commodity Supercycles earns an A for this year's Report Card.

Stansberry Innovations Report: B

This is where you'll find plenty of growth plays.

We launched Stansberry Innovations Report in 2018 to cover growth opportunities in innovation. And in 2020, we added the Crypto Corner.

Editor John Engel covers equities, while crypto expert Eric Wade covers all things blockchain and cryptocurrencies.

The combined result has been phenomenal, with an average gain of 61% over the past five years. That's an A+ performance.

But for the purpose of the Report Card, we'll grade the results independently.

Last year, six of John's 10 recommendations had a profit at year-end – a 60% win rate. One of John's 2024 recommendations is a play on the critical infrastructure of AI. It's up 48% as I write. It's still early for many of these recommendations, but it is great to see such a high win rate out of the gate.

Looking over the past five years, John has recommended stocks in various industries – including software, communications, cybersecurity, space technology, biotech, and AI.

Many of these names have shown huge returns, like cybersecurity giant Palo Alto Networks (PANW). John took some of the position's profits off the table in 2023 to lock in a gain of 284%. The remaining position is still open for a current combined gain of 387%.

He also recommended subscribers lock in a 242% gain on half of space-technology company Maxar Technologies in 2020. He closed the remaining half-position in 2022 for a 415% gain, resulting in a combined gain of 329%.

These are phenomenal gains. Importantly, John manages risk by booking some profits when stocks are up big... letting the rest ride. And he wisely continues to monitor the downside for the remaining position.

Now, investing in growth stories comes with risk. Not all recommendations will play out as expected – especially in a bear market. The 2022 downturn was brutal for most investors. And a few of the recommendations from 2021 took heavy losses. But the portfolio held up well, resulting in a slight gain (4.9%) for those picks.

And the stocks John bought around the bottom of that bear market have done well, pulling up the portfolio's performance. The recommendations made in 2022 have produced a 19% gain, even though only a couple of them were winners.

And 2023 was even better. The 10 recommendations made that year have returned almost 24% on average, with a 70% win rate.

Importantly, John's winners are far outpacing his losers. Including open and closed positions, John has recommended more than two dozen double- and triple-digit winners over the past five years. My bet is that most investors would be thrilled with 30% average gains (and 15% annualized). Still, these impressive results lagged the benchmark, the S&P 500. And for that reason, I've assigned Stansberry Innovations Report a B for this year's Report Card.

Now for Crypto Corner...

As I said, we added the Crypto Corner in 2020 to provide commentary and updates on blockchain technologies and cryptos.

We only hold a handful of positions in this portfolio – mostly larger and well-known names like bitcoin and Ethereum, as well as a few others. No new names were added to the portfolio in 2024. But Eric pounded the table on bitcoin. Investors that followed his advice were rewarded handsomely as bitcoin hit the milestone mark of $100,000 in December last year.

The portfolio average gains are a staggering 281%. Even though we don't show a line in our Report Card for Crypto Corner, this is an A+ performance.

Retirement Millionaire: C

I know you're likely tired of hearing me say it...

But this service is proof that you need a strategy, the discipline to follow it, and patience to find success in the markets.

As I mentioned last week, every investor or strategy hits a rough spot now and then. It's the long-term results that really matter. So before I get to this year's grade, there is an important stat you deserve to know.

Nobody has done a better job than Dr. David "Doc" Eifrig and his team of picking winning stocks that consistently compound wealth over a long period.

Since launching this publication in 2008, Doc has made 158 recommendations with 110 of them booking profits – an incredible 70% win rate. With average gains of 60% over the period, that equates to 18% annualized gains – an impressive feat.

The model portfolio is currently up more than 1,360% on Microsoft, more than 470% on heating, ventilation, and air-conditioning company Trane Technologies (TT), and more than 370% on search engine Google's parent company Alphabet (GOOGL).

Now, I mention these names so you have context of Doc's track record. But please know, these recommendations were all made prior to 2020. So they are not included in this year's Report Card given that they're outside the five-year period.

So let's take a look at the 10 recommendations Doc made in 2024...

Five of the 10 recommendations were profitable at year-end, with an average gain of 7%. That might not sound like much... but these picks haven't yet had time to play out. For example, three of Doc's 2024 picks are showing an average loss of 10%. But that's hardly worth worrying about given the trades are still less than 120 days old – especially in light of the long-term track record.

Still, like I've said, we promise total transparency. So we show you all the numbers so you can assess the results yourself.

More importantly, four of last year's picks are already showing healthy double-digit gains – including a more than 30% return on one of America's leading industrial-tool manufacturers and more than 35% on a promising gold play.

Over the past five years, subscribers have had the opportunity to enjoy several double- and triple-digit gains across several different industry sectors. Among them is a more than 165% gain on W.W. Grainger (GWW) – a firm Doc and his team call the "everything shop" for businesses. Grainger remains an open position in the portfolio. There's also the 103% gain Doc made when closing out oil and gas play Continental Resources before it went private in 2022.

Unfortunately, the past five-years results include the bear market of 2022 which, as it did for most, left its mark on the portfolio. Several double-digit losing positions recommended in 2021 resulted in a negative 13% average return on the recommendations made that year.

Doc and his team rebounded strongly. The recommendations they made in 2022 average 15% gains compared with 9% for the benchmark S&P 500... and 11% gains compared with 10% for the benchmark in 2023. Today's results are based on the 2024 year-end closing prices. So as we expect across all publications, these results can continue to grow.

Which brings me to this year's grade...

Unfortunately, the losses from the 2021 recommendations weighed on the five-year grading period. Even though Doc's win rate of 53% and the 11% average gains are in the positive... the return lags the benchmark by more than half and earns Retirement Millionaire a C for this year's Report Card.

I have said before in these pages that Doc is super competitive, and that he considers anything below an A as a fail. So I know he will take this grade to heart.

As mentioned, 2021 is the only real blemish on the past few years' results. The portfolio immediately rebounded in 2022 and 2023. And 2024's picks are off to a solid start. It's only a matter of time before we see this publication back to earning As in the Report Card.

Select Value Opportunities: A

We launched this service in 2022.

Editor Mike Barrett – who works on Extreme Value with Dan Ferris – pens this weekly publication.

Mike has developed a proprietary value monitor that evaluates 100 of America's leading companies and places a price relative to value for each. Among other factors, it considers cash flow and growth risk. It could show a stock to be undervalued, overvalued, or fairly valued. Many of the stocks covered are familiar names... like Apple (AAPL)... Amazon (AMZN)... and Microsoft.

It's a unique and useful tool for subscribers to tap into before putting their hard-earned money to work in stocks.

Last year, Mike made 11 recommendations. At year-end, five were showing a positive return. But remember, it's too early to judge these results as they will need time to play out.

Some of Mike's winning trades since inception include booking a 120% gain on the global technology leader Broadcom (AVGO) and a 94% gain on leading uniform provider Cintas (CTAS).

Currently, the model portfolio is up 41% on aircraft-components producer TransDigm (TDG), 35% on Facebook parent company Meta Platforms (META), and 26% on American Express, just to name a few.

Since this service doesn't have a five-year track record, we have used the results since inception – August 2022. With a 54% win rate and average gains of 13% compared with 9% for the benchmark S&P 500, Select Value Opportunities earns an A for this year's Report Card.

Stansberry Venture Value: C

2024 was a great year for Venture Value.

Six of the 11 recommendations editor Bryan Beach made in 2024 are showing profits. With a 55% win rate and 12% average gains for 2024, Bryan doubled the 6% returns of the benchmark, the Vanguard Small Cap Index Fund (VSMAX).

Bryan booked a quick 42% gain in about two months on payment-technology company Priority Technology (PRTH), a 59% gain on electronics display-screen manufacturer Daktronics (DAKT) within eight months, and a 42% gain on software company Cantaloupe (CTLP) in about seven months.

Likewise, Bryan had a bumper year in 2022 with 26% average gains on the positions he recommended compared with negative 8% for the benchmark. His biggest winner came from an AI play, a software company that remains an open position in the model portfolio with 465% gains as I write.

So you might be wondering why I haven't assigned Venture Value a higher grade. The 2022 and 2024 results are certainly deserving of an A or higher. Unfortunately, 2021 and 2023 were both tough years on the portfolio.

We launched Venture Value in 2018 to focus on small-cap companies with long runways for growth. While small-cap companies can offer life-changing returns, this space can prove volatile. You need patience and nerves of steel to stomach the gut-wrenching ups and downs that small caps can put you through.

Bryan has trounced the benchmark in four of the seven years we have been publishing this service. But 2021 and 2023 weighed on the past five-year period. That gives Venture Value a five-year win rate of 48% and average gains of 2%, which lags the benchmark. For that reason, Stansberry Venture Value earns a C for this year's Report Card.

One final note before moving on...

Small caps have lagged large caps for more than a decade. Many believe they are due for a breakout... a resurgence in trend. A new Donald Trump administration looking to boost the economy combined with the possibility of lower interest rates could put some wind at their back. Plus, valuations look compelling when comparing indexes... with small caps trading at cheaper valuations than larger-cap stocks.

Income Intelligence: A+

This is the portfolio that just keeps giving.

Every year, I review the track record and ask myself why more people don't invest this way.

I know... You probably think investing for income is boring. And you're right that you won't get the excitement of watching a tiny crypto, a junior miner, or even some of today's AI stocks soar hundreds or thousands of percent.

But if you're in retirement – or close to it – and want a "stay rich" approach to investing without too much risk, this strategy is worthy of at least a portion of your portfolio.

The 2024 results are phenomenal. Six out of the eight recommendations Doc and his team made in 2024 are up – a 75% win rate. Plus, several picks already have double-digit returns, including a 29% gain on a communications stock, a 24% gain on a high-yielding virtual bank, and an 11% gain on an essential commodities business.

With average gains of 8% when we closed out 2024, Income Intelligence crushed the benchmark, the Vanguard Wellington Fund (VWENX), which had negative 0.9% returns. This is an A+ performance.

For the five-year results, you won't see any 10-baggers.

But you will see a portfolio with some of America's biggest and safest income-generating stocks and plenty of double- and triple-digit winners.

For example, the model portfolio is currently up 127% in home-improvement retailer Home Depot (HD) and 119% in logistics and transportation company Ryder System (R). Plus, the portfolio is up 66% on an energy infrastructure play with a 6% yield and 29% on an income opportunity fund with a 9% yield. And time will continue to reward investors in these kinds of stocks.

Yes, all investments carry risk. And not even the safest of strategies is immune to the whims of the market. The bear market of 2022 proved to be tough on this portfolio too. But Doc and his team contained the losses on the picks recommended that year to less than 7%. It's a small blemish on an otherwise safe, steady, income-generating portfolio of stocks that will let you sleep easy at night.

As you've heard me say time and again in these pages, the investors with a clearly defined strategy... strict risk-management rules... and the discipline to follow them over the long term are most successful.

With a five-year 62% win rate and average gains of 11% compared with 8% for the benchmark, Income Intelligence earns an A+ for this year's Report Card.

The Ferris Report: C

Editor Dan Ferris is a deep value investor... an advocate of the Benjamin Graham approach to investing. Dan says he rereads Graham's book The Intelligent Investor – especially the chapter titled "Margin of Safety" – every month.

When the 2021 bubble finally burst, Dan wanted to help his subscribers navigate the next phase of market turbulence. If you follow his missives in the Friday Digests, you know his mantra is "prepare, don't predict." So we launched The Ferris Report in December 2022 to do just that.

Unlike its sister publication Extreme Value – where Dan takes a bottom-up approach to investing by doing deep-dive analysis on individual stocks – The Ferris Report takes more of a top-down macro view of investing. Dan looks for the right trends to get into... and which to avoid. He recommends both large-cap stocks and baskets of stocks via ETFs.

So far, Dan has found his subscribers a successful sector play in gold, which is currently up 60%, a silver investment that's up 44%, and an aerospace and defense play that is up 43% so far. Last year, he closed out three separate homebuilder stocks for double-digit gains, including a 61% gain on PulteGroup (PHM).

With only a couple of years of recommendations, many of the positions in the model portfolio will need more time to play out. It's also worth noting that due to the conservative nature of this service, Dan takes a disciplined approach to risk. So while losing trades come with investing, we don't expect to see any large losers here.

Dan has produced a 60% win rate in the little more than two-year period this service has been running. That's a solid performance. And while an average gain of 7% is obviously profitable, it does lag the benchmark S&P 500 by a considerable margin. For that reason, The Ferris Report earns a C for this year's Report Card.

Given Dan's experience, the strategy for this service, and the publication's brief history, I'm confident we'll see these average gains grow dramatically in the future. As you will see in a moment, Dan has an impressive long-term track record with Extreme Value. I'm certain we will see similar results with The Ferris Report over the coming years.

Prosperity Investor: F

It has been a tough couple of years for this service.

We launched Prosperity Investor in July 2022 to seek out investment opportunities in health care stocks as medicine and technology continue to merge.

But we launched smack in the middle of a bear market. And Doc and his team got off to a rocky start. Several of their picks declined straight out of the gate. They compounded the problem by not cutting their losers short... and they took double-digit hits on many positions. That will weigh on the results of any portfolio.

The team started to turn things around in 2023, with six out of the 11 recommendations made that year becoming winners and average gains of 14%. Those gains should continue to rise as the trades play out. For example, pharmaceutical giant Eli Lilly (LLY), which the team recommended in January 2023, has already climbed more than 10% so far this year. Total gains on the position are 144% as I write.

The 2024 picks ended the year flat with an average return of negative 0.5% compared with 10% gains in its benchmark, the Health Care Select Sector SPDR Fund (XLV).

It's worth noting that health care stocks in general took a nosedive late last year on the news that Robert F. Kennedy Jr. would join the Trump administration in charge of health care. Kennedy is known for his strong views against vaccines. So shares of several big vaccine manufacturers like Pfizer (PFE) and GSK (GSK) took a hit. This year is showing a slight rebound in some of these names and XLV. So maybe the sell-off was overblown. Time will tell.

Plus, while some of the 2024 positions were showing small losses at year-end, they have now moved higher to be profitable.

The model portfolio enjoys several bright spots. Along with a triple-digit gain in Eli Lilly, the model portfolio has high double-digit winners like a 76% gain in the global fitness business Planet Fitness (PLNT) and an 84% gain in medical products manufacturer Stryker (SYK).

Still, while my aim is to provide you with a little context, we promise transparency... and these results are poor. Since inception in July 2022, Prosperity Investor 41% win rate with an average gain of negative 0.7%. That considerably lags the 22.5% average gain of its benchmark.

I know Doc and his team are disappointed with their performance so far, and I know they will be doing everything possible to turn these results around. As you have seen across Doc's other services, he has an incredible long-term track record. So I wouldn't bet against him. And I look forward to seeing an improved performance for this service in 2025 and beyond.

Stansberry Venture Technology: B

2024 was a bumper year for editor Dave Lashmet.

Dave's 2024 picks saw an impressive average gain of 22% by year-end – more than doubling the 9% returns for the benchmark S&P 500 Index. Six of the 11 trades Dave made were winners – for a 55% win rate.

Dave saw even more impressive results in 2022 – yes, even during the bear market. Dave recorded a 67% win rate on the nine recommendations he made that year (six are up)... with a massive 57% average gain... beating out the 46% gain for the benchmark.

Now, the 2022 bear market did hurt his 2021 recommendations. That's to be expected. While Dave had some great winners in 2021, the losing trades ending up leveling out the year for a negative 0.5% return.

It's important to remember that Dave recommends both biotech and tech stocks. I've mentioned this before... Investing in biotech is not for the faint-hearted. The gains can be astronomical... some might say life-changing. But so can the losses. To find consistent winners, you need an expert like Dave.

In the biotech space, Dave has covered Alzheimer's, cancer, weight-loss, and other drugmakers with impressive results. For example, he recommended Novo Nordisk (NVO) to invest in weight-loss drugs way before anyone else was talking about it. Dave took some of the position's profits off the table in 2022 to lock in a gain of 100%. The remaining position is still open for a current combined gain of 140%.

In the technology space, he has covered aerospace, military defense and security, semiconductors, and AI companies, among others. While outside the period of this Report Card, Dave recommended AI darling Nvidia (NVDA) back in 2016 and booked profits as it continued to rise. He recorded a 1,466% gain on a partial position. And his combined-position returns were an impressive 623%.

Dave has found more triple-digit winners than anyone I know. Since launching Venture Technology, he has made 108 recommendations, and 36 of them have doubled or more. So on average, 1 in every 3 recommendations Dave makes goes on to double or more.

If you look at the Stansberry Research Hall of Fame that appears at the bottom of every Digest e-mail, you'll see Dave's name featured four times. That stat alone should tell you that if you want to invest in this space, you should have Dave in your corner.

Dave's five-year win rate of 52% is sound... and his average gains of 21% are impressive – especially for this difficult sector. Still, the average gains are lagging the benchmark over the same period. For that reason, Stansberry Venture Technology earns a B for this year's Report Card.

Extreme Value: A+

Dan started writing Extreme Value in 2002. It's our firm's second-longest-running publication – after the flagship Stansberry's Investment Advisory.

Together with analyst Mike Barrett, Dan looks for individual stocks trading at a steep discount to their intrinsic value.

The Report Card grades the past five years' results. But Dan's track record since inception deserves mention.

Since launching in 2002, Dan has made 191 recommendations... with 107 of them winners – a 56% win rate over the 22-year period. His average gains are an impressive 36%. And he has held his picks for an average of 992 days... resulting in an average annualized gain of 13%. Most hedge-fund managers would kill for these kinds of returns... especially over such an extended period.

Last year, six of the nine recommendations Dan made were profitable by year-end – a 67% win rate. In 2023, eight of Dan's 10 recommendations were profitable, for an 80% win rate. With the exception of 2022, where the bear market hurt almost everyone's portfolio (Dan's picks lost 4% that year), Dan and Mike have been on a tear over the past five years.

Some of Dan's standout recommendations include a current 274% gain in an infrastructure play recommended in November 2020... a 554% gain in a retailer that Dan called a "classic Extreme Value setup in this innovative fruit stand"... and many other high double- and triple-digit winners across a diversified portfolio that ranges from commodity stocks to retailers, industrials, tech, and global conglomerates.

Importantly, the number of losing positions over the past couple of years has been kept to a minimum. That's the key to Dan's incredible performance over more than two decades.

With a 65% win rate and average gains of 38%, Dan has easily beaten the S&P 500 benchmark over the five-year period. These results earn Extreme Value an A+ for this year's Report Card.

Crypto Capital: A-

It was quite the year for crypto...

As we said earlier, bitcoin – the benchmark for the industry as the largest crypto by market cap – soared past the $100,000 milestone in early December.

Editor Eric Wade has been pounding the table on bitcoin for years – saying it would reach $100,000 early last year, back when it was trading for half that. I hope you took his advice. Now, Eric believes bitcoin is on its way to reaching $1 million in our lifetimes.

Eric covers blockchain technology and larger cryptos like bitcoin in the Crypto Corner section of Stansberry Innovations Report.

But the crypto sector is so much more than just bitcoin. That's why, along with recommending blue chips in Crypto Capital, Eric looks for smaller cryptos with much larger upside potential.

Yes, investing in cryptos can be risky. Thousands of coins are out there, and many of them will turn out to be worthless. That's why it's important to have an expert by your side. And Eric has proved that he knows how to navigate this market better than most. He has a background in finance. But he's also an entrepreneur. So he understands the business case for each of the cryptos he recommends in this service.

Eric has also created a proprietary seven-point system called "UPDRAFT" to evaluate potential crypto trades before making a recommendation. Last week, I mentioned how investing legend William O'Neil developed CANSLIM using seven different fundamental and technical traits of good stock investments. It served him extremely well for decades, and many successful investors still use different iterations of it today. You can think of Eric's UPDRAFT system as his way to define certain traits in the crypto market.

Eric also does a superb job explaining the risks to subscribers and minimizing risk exposure by taking profits off the table as his winning trades soar. His results show his strategy is working.

Eric has recommended so many big crypto winners that we had to create a separate Hall of Fame list for him at the bottom of every Digest e-mail. His top position – Band Protocol – closed for a 1,169% gain. And because he has so many open positions that are 10-baggers or more, we opened a separate table of the top five open recommendations just for his crypto picks.

Last year, Eric made 10 recommendations – five were profitable at year-end. The average gains were 16% compared with 38% for the benchmark (bitcoin). But I'm sure that time will favor Eric's picks... and we'll see these gains grow over the coming months and years.

For the grading period of the past five years, Eric recommended 39 winning positions from a total of 68 recommendations – a 57% win rate. His average gain was a staggering 146%. Yes, that slightly lags the benchmark. Still, given the diversification Eric provides across this extremely speculative part of the market, 146% gains deserve an A- in my book.

Stansberry's Credit Opportunities: A++

There's nothing sexy about this strategy... But boy is it profitable.

Stansberry's Credit Opportunities is one of the most comprehensive services we offer, but it's as easy as buying dollar bills for 80 cents. I know, that sounds impossible – or at the very least, counterintuitive. But rest assured... the returns are very real.

I can only assume the lack of interest in this product is because it focuses on a corner of the market that few seem to understand... or maybe because it's "boring." But boring is usually your best ally when it comes to building real wealth. As investing legend Jim Rogers famously once said... "I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime."

That's precisely the strategy here...

Editors Mike DiBiase and Bill McGilton scour more than 40,000 bonds every month and narrow them down to a short list of potential candidates.

You see, corporate bonds have a "face value" of $1,000. And they are legally obligated to pay the full face value back at maturity... even though they may trade for less in the meantime.

In fact, the market regularly prices these bonds for less than their full face value... sometimes much less. Often, it's because of a perceived problem with the underlying business. Maybe its related to management, industry headwinds, or myriad other potential problems that may never come to fruition. All we care about is whether the company can afford to make the interest payments and pay the principal at maturity. That's the strategy. Nothing more, nothing less.

That's why you need a team of analysts who know how to analyze financials and legal documents. And Mike and Bill form a formidable team.

For example, they made 19% gains on the casino Las Vegas Sands (LVS), a 15% gain on oil and gas equipment provider Baker Hughes (BKR), a 27% gain on U.S. Steel (X), and a 34% gain on Forum Energy Technologies (FET).

Out of 31 recommendations over the past five years, Mike and Bill have closed 29 of them for a profit – a 94% win rate. The average gains of 15% tripled the benchmark, the iShares iBoxx High Yield Corporate Bond Fund (HYG), which saw average gains of just 5%. Because of the binary nature of bonds (they either pay or go bankrupt), we only grade Credit Opportunities' closed positions in the Report Card. That includes winning and losing positions. (Yes, we do close losing positions.)

My bet is that most stock investors don't have a win rate anywhere close to 94%. And I doubt they book 15% average gains, much less 33% annualized gains. These are fantastic results. Credit Opportunities earns an A++ for this year's Report Card.

Yet no matter how much we try to show people that this service is the safest way to generate safe and steady stock-like returns, few people will even try it... let alone embrace it. If you are not currently subscribed to this service, I urge you to at least give it a try. I can't think of an easier, safer, and more consistent way to book double-digit gains year after year.

This finalizes our 2024 Report Card...

As I mentioned last week, we share our results every year with a grade for each publication. We want you to see the numbers and stats for yourself. That way, you can assess each publication's performance and decide for yourself how you think we've done.

In my commentary, I aim to provide you with some context on each of our services – especially when we're evaluating longer periods that include a bear market. I hope you find it helpful.

As always, I welcome your feedback. I would love to hear whether you agree with my grades... if you have any suggestions on what you would like to see more of... or if there's something we don't currently offer. Most importantly, I want to know your results from following our services.

Finally, thank you for joining us at Stansberry Research.

We're passionate about what we do... and grateful for the continued trust you place in us.

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Recommended Links:

'How I Saved My Retirement and Stopped Worrying About Money Forever' This is a stunning story: Since 2009, a real subscriber from Stansberry Research has used just ONE strategy to retire early and stop worrying about money completely. Through different presidents... wars... crises... market ups and downs – it doesn't matter to him. His income and potential gains are OBLIGATED to him by law (something stocks can never do). See his astonishing story... and your one-step plan to do the exact same thing. Trump's First Currency Shock You've probably heard all kinds of crazy predictions about what President Donald Trump has planned for the financial system – like creating a Strategic Bitcoin Reserve... turning America into "the bitcoin capital of the world"... or even using bitcoin to pay off the national debt. But the truth is, all those wild predictions miss the REAL currency story that's about to define Trump's second term. (It has nothing to do with gold, oil, or the BRICS currencies.) We sent our in-house currency expert to the center of this story for all the details. He's posting his results for the first time right here.

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New 52-week highs (as of 2/6/25): Automatic Data Processing (ADP), Agnico Eagle Mines (AEM), Compass (COMP), Costco Wholesale (COST), CyberArk Software (CYBR), Viant Technology (DSP), Equinox Gold (EQX), Franco-Nevada (FNV), HealthEquity (HQY), Intercontinental Exchange (ICE), JPMorgan Chase (JPM), Kellanova (K), Kinross Gold (KGC), Grand Canyon Education (LOPE), Meta Platforms (META), Markel (MKL), Roper Technologies (ROP), Republic Services (RSG), Sprouts Farmers Market (SFM), ProShares Ultra Financials (UYG), Verisk Analytics (VRSK), and Westlake Chemical Partners (WLKP).

One quick housekeeping note: Since we ran Part II of our Report Card today, Dan Ferris' regular weekly essay will come on Monday.

In today's mailbag, more feedback on tariffs, which new Treasury Secretary Scott Bessent has been talking about, as we reported in yesterday's edition... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com.

"I'm not sure if tariffs are good for the economy or not. If they intend to bring jobs back to the US, won't that be inflationary [due to] the minimum wage (or higher) that needs to be paid? The cost of those items is sure to be more than the cost of what we pay now and maybe we have to pay the percentage of the tariff on top of it." – Subscriber Gary A.

Good investing,

Brett Aitken
Publisher
Baltimore, Maryland
February 7, 2025