In the early 2000s, I had graduated medical school and was working at a molecular biology fellowship at Duke. Then one day, I received a phone call that changed my life...
At the time, the biotech industry was really starting to take off. Porter Stansberry, founder of my now-publisher Stansberry Research, asked me to join his company as a biotech analyst.
I turned down his offer...
I hadn't yet decided what I wanted to do after I finished my fellowship. But I was interested in seeing where my medical career would take me.
Still, we talked for so long during that first phone call that both of our phones died. And we kept in touch over the years... talking and telling stories.
After a few years, Porter asked me to write a special health letter for his Alliance members. Every other Sunday, I'd write about a thousand words on various health topics. He paid me $1.25 a word – more than I was making as a resident – and I loved it.
Then in 2007... after I had become an ophthalmologist and was graduating from my residency... Porter again offered me a job as an analyst.
I was wavering. I liked working with Porter, but I also enjoyed medicine, eye surgery, and helping folks see again.
Then Porter said something that changed my mind...
Doc, you'll be a glorified women's shoe salesman if you become an eye surgeon. You'll do quality work, but only for one person at a time. With the power of the pen, you can reach more people and do a whole lot more than you're doing now.
Porter gave me the opportunity to share my unconventional wisdom with hundreds of thousands of folks around the world.
But, in truth, that's not the only reason I decided to join Porter...
Porter is one of the brightest and most interesting people I've met. He's a brilliant analyst. He has an understanding of markets, history, and finance that I've rarely seen.
Porter is a true visionary and is well known for his seemingly outrageous predictions.
He predicted the collapse of:
- General Motors
- Fannie Mae
- Freddie Mac
- General Growth Properties
Porter's calls were controversial at the time, but he doesn't hold back. He gives folks his honest financial recommendations.
A few years back, Porter stepped away from the business he founded. So Stansberry Research subscribers haven't heard from him in a while. But in less than two weeks, he'll be back taking the stage at the annual Stansberry Research Conference & Alliance Meeting.
And I can't wait to hear what he has to say.
It's too late to join us in person, but we're offering a livestream pass that will let you be "in the room" for all the presentations from the comfort of your own home with no travel required.
Now, let's dig into some questions... As always, keep sending your comments, questions, and topic suggestions to [email protected]. My team and I really do read every e-mail.
Q: I subscribe to Retirement Millionaire, Income Intelligence, and Prosperity Investor and am over invested in stocks. How do you recommend limiting my total investment in stocks while adding new positions that you recommend? Thanks. – T.R.
A: This is a great question... And first, it's important to reiterate that your wealth should be spread among different kinds of stocks, as well as different asset classes. I'm talking about stocks, bonds, gold and other chaos hedges, international stocks, and cash.
Cash is vital to any portfolio. It's "dry powder" for when you find a good buying opportunity.
So if you do have a screaming buy that you want to make, including a new recommendation in one of my Retirement Millionaire, Income Intelligence, or Prosperity Investor newsletters... you can always dip into your cash pile to buy.
Now, I'm also a strong advocate of having no single stock represent more than 5% of your overall stock portfolio. So if there is ever a big run-up in a stock that pushes it to more than 5% of your portfolio... it might be time to sell a little bit. That way you can keep your position size around 5% and are not overexposed. Also, you can use that cash to buy any new opportunities you come across.
In general, I recommend going through your portfolio once a quarter to make sure you are maintaining proper position sizes.
Finally, every portfolio needs income... whether you're collecting it through dividend-paying stocks, bond payments, or selling options.
You can always put that income toward any new buying opportunities you find.
What We're Reading...
- Did you miss it? How to turn a crisis into an opportunity.
- Something different: How goats help fight wildfires.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
October 6, 2023