By Brad Thomas, Editor, Wide Moat Daily
Happy New Year!
I know I said it yesterday. However, I have to assume that a number of you never got around to opening anything over the holiday. So let me say it again…
Here’s wishing an absolutely amazing trip around the sun for all of you. And not just when it comes to investing. Though I’m obviously hoping for great things in that regard, too.
In fact, if you’ve read Wide Moat Daily at all the last two months, you probably know that I’m extremely enthusiastic about 2025. I expect so many investment opportunities to open up thanks to falling rates and broadening economic capabilities in the years ahead.
This includes the small-cap field, where so many up-and-coming companies are looking more and more appealing.
Many of you know by now that I launched Wide Moat Confidential last month. This small-cap-focused publication is geared toward locking in gains from publicly traded stocks that are at the beginning of their growth curve.
In other words, they’ve got pretty big potential.
As I explained on Monday, “This is an initiative I’ve wanted to get off the ground for a long time. Most subscribers know I’m a big proponent of reliable, dividend-paying stocks. But I’d argue that a collection of quality small-capitalization companies has a place in any diversified portfolio.”
I already have a handful of worthwhile businesses listed in Wide Moat Confidential, but there are so many more I’m considering even right now…
This brings me to the main point of today’s post: my 2025 New Year’s resolutions. I want you fully onboard with where I want to take Wide Moat Research in the next 12 months and beyond.
So let me share right up front what I’ve set out to accomplish… and how you can reap the benefits along the way.
1. Expand Wide Moat Research Into a Far-Reaching, Profit-Producing Resource
I’ve got big goals for Wide Moat Research. I always have.
But now that I’ve officially got Wide Moat Confidential in play, I feel as if momentum is on our side to really make this company the most dominant stock research firm in the world.
Our coverage universe already consists of some of the highest-quality large-cap businesses in the world, which we cover in The Wide Moat Letter.
But as I’ve said and expect to keep saying… we’re entering into a period of unmatched growth in any number of sectors. Which means there are so many more companies to consider, research, and decide upon.
Rest assured that, despite my enthusiasm, I’m not giving up on my “boots on the ground” investigations. My team and I are always committed to safety first, which means we’re still going to look into every detail possible before we recommend a stock.
This process goes so far beyond reading over spreadsheets. I’ve met with hundreds of CEOs and other top-level executives over the last 10-plus years. And I already have a list of meetings scheduled for 2025.
A list that will, no doubt, grow before the quarter is out.
I want to know not only what a company does but who runs it, how, and why. Management needs to pass my muster before I give my stamp of approval.
2. Stay the Course
Speaking of safety…
I’ve shared many times how I became a Wall Street writer. It was because my real estate business crashed in 2008.
After spending around two decades amassing a property portfolio worth around $100 million, my nest egg disintegrated due to:
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Poor management
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A bad business partner
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The Great Recession
I started writing on Seeking Alpha in 2010 as I sought to build up a new career. And now, 15 years later – through some admitted trial, error, and pain – I’ve authored close to 4,300 articles there as well as hundreds more on The Street, Forbes, The Motley Fool, Investopedia and, of course, Wide Moat Research.
People often ask me what keeps me motivated. But the answer is simple: I love helping others build wealth by providing high-quality research. And I use my past experience to boost that research.
Recognizing how I put everything into a single sector – and a single sector caught up in an artificial bull run at that – I now know how important it is to diversify. The same goes for recognizing that any company or sector needs to be monitored carefully after you bought in.
These are principles that cannot be compromised on, no matter how much success I’ve seen. I will always maintain an extreme conservatism in my stock selection. As such, this resolution might be an old one…
But it’s worth repeating year after year after year.
3. Build on the Legacy of Brilliant Minds
I know a lot of informative people, a lot of companies, and a lot of facts and figures. I can throw names and numbers around in any given conversation at any given time.
But I also know there’s so much more to learn out there. That’s why I’m committed to studying the greats, both of our time and from the past.
For instance, I just bought Alexander Hamilton on Finance, Credit, and Debt by David Cowen.
As you may know, Hamilton was the country’s first treasury secretary from 1789 to 1795. He was also responsible for establishing the securities markets and stock exchanges. So this is bound to be quite an interesting read.
I’m just diving into the book now, but I believe the topics are still relevant. In Hamilton’s day, national debt was reported at $43 million in 1783, an incredible sum for the time. But that looks tame compared to the $35 trillion today.
How are we going to deal with that (because we really do have to)? And how is that “dealing” going to affect our current way of life, investing included?
I want to know the answers to these questions to better help you manage a well-rounded, profitable portfolio.
4. Embrace Technology in Intelligent and Sustainably Profitable Ways
Here’s another crucial subject for our times: technology. It’s imperative that our team stays ahead of the curve when it comes to artificial intelligence and similar pursuits.
You probably know by now that I’m not on the Nvidia bandwagon. I can admire the company itself, but its valuation doesn’t make sense this side of sanity.
Even so, I fully recognize why the market is obsessed with this tech giant and its peers. The tech field has, is, and will continue to change almost every aspect of our lives the more we explore it.
And, as you well know, society is passionate – even obsessed – with doing exactly that. So, it’s safe to say that the most successful companies in the world will be those that can build a lasting “moat” utilizing technology.
Incidentally, we recently released a video called “The Rupture,” which explains how companies are utilizing AI to disrupt the competition. You can watch it right here.
And the appetite for AI spending doesn’t appear to be slowing down. Last summer, Goldman Sachs released a paper where they estimated AI capital expenditures to be in the ballpark of $1 trillion over the next few years. That might turn out to be conservative.
At Wide Moat Research, we want to be part of this cutting-edge research. So that’s exactly what we’ve set out to do – and in innovative ways that don’t cost a fortune to get into.
These are my goals for the year ahead of us, whatever exactly it might hold. And, as I said, I hope you’re there with us every step of the way.
You’d better believe my team and I will be working hard toward making this a happy new year all the way through.
Regards,
Brad Thomas
Editor, Wide Moat Daily
MAILBAG
What are your New Year’s resolutions? Write us at [email protected].