🗞 How to Build an Unfair Advantage in the Next 30 Days

WHILE YOU POUR THE JOE… ☕️

Netflix stock is down 10% today, and there’s only one reason why this is happening..

The company reported an issue with taxes in Brazil, which bankers refer to as non-recurring / non-core items that can be easily added back to EBIT numbers and adjusted EPS.

After this adjustment, Netflix actually performed quite well, considering, so I think this could be a potential dip-buying opportunity. 📈 

However, this isn’t something we’re paying too much attention to.

Rather, we are out hunting for deals that can go up 26% in one day (like our $BE pitch), or whether this $HIMS dip is something to buy right now.

Hours of work go into these opportunities, and there’s one in healthcare that just paid off big time for our members.

But,

If you’re the independent type, none of what you will see today is going to do you any good if you can’t go out by yourself and generate market-beating ideas.

Which is fine,

Because we’ve boiled down our entire idea-generation process into this free 5-day email crash course for you, by Day 3, you will be ahead of 90% of retail traders.

Speaking of market-beating ideas, let’s get on with today’s email 📧…

YOUR MONEY, COMPOUNDED
And Now, We Feast

I want to accomplish two things today with you:

1. Exercise some bragging rights on a 130-point rally in $ISRG after we pitched it.

And,

2. Show you why most of what you’ve been taught about stocks is complete nonsense.

Bragging Rights

Nearly a month ago, I told our WhatsApp Deal Room Members I liked $ISRG as a buy.

Back then the stock traded at roughly $433 per share which was our entry point. You can do the math on the profits we took yesterday. 🔥 

But here’s the important part:

• This is a repeatable process, and it doesn’t require years of value investing to compound your money on responsible deals like this one.

Though before we move on to why we saw this stock as a buy (despite being “overvalued”), I want to invite you into this Deal Room.

In this link, you can choose to be taken to that checkout page (where you will get 7 days free, $50/mo afterward, cancel any time).

Underwriting the Deal

When this deal came to our desk, the $XLV Healthcare ETF was trading at 90% of 52-week highs (correction territory).

Compared to the S&P 500, this was the worst relative performance in history, so we thought it would be a good idea to figure out why.

Turns out, it was all about the GLP-1 scandal, dragging sentiment lower for all stocks associated with anything in health.

Even those who are 0% exposed to the weight loss industry, like $ISRG.

So of course the next step is to figure out where the premiums are and why these premiums are there in the first place.

We found them in robotics, a great mix of AI moats discounted by the GLP-1 volatility:

This stock universe traded at a near 50.0x P/Es on average.

Most of you see the 23.0x P/E on the S&P 500 as a major risk of overvaluation, and you’re absolutely right. 💡 

However, some pockets in the market definitely deserve to trade at what would seem insane valuations.

Here’s why this one commanded such a premium:

• AI can’t replace this technology but rather enhance it

• Moats in FDA regulations will always keep patents and doctor roles protected

• Globalization standards call on overseas surgical talent to be available on call

But out of all of these names,

It was Intuitive Surgical that took the cake:

• 140x P/FCF

• 35x EV/EBITDA

• 61.5x P/E

That is exactly where your biggest lesson today comes in.

You are mostly taught to avoid premium “expensive” stocks, following the model of cheap value investing that made Warren Buffett rich.

However, here’s a breakdown on why value investing is not (and will never be) what it once was:

Understanding premiums is what will actually make you rich, and in a fraction of the time as well.

So, let’s figure out why $ISRG was the most expensive in this case.

The company had announced a few key developments before the earnings announcement. 👀 

Two of which mark the beginning of the rally we just saw:

1. FDA approval for their Ion lung capacity equipment

2. Clearance for EU and Japanese expansion

Under their business model, they didn’t have to ramp up production to see revenue come in from these expanding markets, so chances were they’d report better numbers and even better guidance (which they did).

And we weren’t the only ones who caught this development:

A month before the earnings release, two congressional members were already loading up on $ISRG, and what better way is there to know insider FDA information is coming in than through these government figures?

All told, at this point, you can have a pretty good idea of the type of opportunity we had on our hands.

But,

None of this compares to having the ability to do this on your own and have all your ideas reviewed by a professional.

More than that, what if you could actually get paid for coming up with these ideas in the first place and create more financial freedom to invest?

As we ramp up our InvestiBrew fund into 2026, the need for analysts will be on the rise, and that’s where your education and preparation come into play.

So take the next 6 months to prepare and wow us with a high-level idea.

It can change your financial future forever.

Join The Sovereign Trader Program ✅ 

Our price target was set at $600 per share on a worst-case basis, following stress testing of several potential outcomes for the earnings report. 🎯 

Even with numbers being well below what Wall Street expected, the deal was set at a 25% IRR over the next five years.

We just happened to arrive in less than one month.

So while value investing is a great thing (if you’re young), we’re faster.

Up Next

After reviewing this investing framework with you to take home, I think we have a few things to discuss still.

Gold is coming off, and tail risks are beginning to show for the S&P 500.

So, in the spirit of keeping your money safe and compounding, we will get into a few short-term opportunities in a couple of sectors in our next newsletter issue.

Until then.

To your success,

G 🫰 

GO AND MAKE IT HAPPEN
What’s the Trade?

Here’s how Goldman Sachs answered that question, as the concern of an AI bubble has spread among plenty of market participants.

Earnings volatility expectations have spiked for the consumer sector, and where there’s volatility, there’s opportunity.

This is what they had to say about it ⬇️ 

To your success,

G. 🥃