Meet Bobby Little...
There's a bit of summer vacation in this week's Friday Digest.
Normally, as you know, the Digest focuses on money – getting it, keeping it, growing it. And in these pages, I do my best to give you the information and the ideas I'd want if our roles were reversed. I'm doing the same thing today. But because it's the middle of summer... I hope you'll allow a little latitude from our money-or-nothing approach.
I'd like to give you something better than money today... I'd like to give you two things I know will change your life. One is a book. The second is a place. And if you go to that place, you'll see one of the most inspiring men I've ever met: Bobby Little.
Let's start with the book. As many of you may know, I spent the last several days on my boat, Two Suns, with some family and friends. We went fishing in a place called Rum Cay, in the southern Bahamas. I took one book to read. I point out the number because on vacations like these, I typically read several books... at least one each day. But not this time...
Almost 20 years ago, I read a book that profoundly changed my life. It was called The Prize: The Epic Quest for Money, Oil and Power. Written by energy industry analyst Daniel Yergin, The Prize offered me a glimpse of what was possible given a broad enough understanding of an entire industry. It was, for me, a masterpiece. It remains one of the two or three best models of what a great analyst and writer should be able to provide his readers. I've strived for the same quality in my own work ever since I first read it.
Late last year, Yergin released his follow up, The Quest: Energy, Security and the Remaking of the Modern World. At more than 800 pages, I knew it would keep me occupied. And it did. You can read the New York Times review of the book. But I must warn you, the review doesn't compare to the book itself…
What Yergin (and other great analyst-writers) do for their readers is solve puzzles the mainstream media never bothers to explain. In this book, for example, you'll learn why in the 2000s, the major Western nations began doing business with Libya again (because it had acquired a nuclear weapon). You get an insider's view to how the science behind global warming was made (and then fabricated)... which will give you a great understanding of the real questions that remain unanswered. Best of all, Yergin tackles one of my favorite straw men (peak oil) and explains the reality of the new, massive oil supplies now coming online from newly developed shales.
I hope you'll read the book. It's well-worth your time. And even if you disagree with him, I guarantee you'll learn something.
If you haven't read Yergin's first book (The Prize), you should read that first. Yes, both books are immense. But believe me… you'll gain a vastly better understanding of the world you live in if you spend more time reading Yergin and less time watching CNBC.
The other thing I'd like to give you today might anger some readers, as it has nothing – absolutely nothing – to do with investing or economics or making money. I'd simply like to tell you about a very special place... a kind of place I was surprised still exists today...
The place I'd like to share is Rum Cay. It's a tiny island in the southern Bahamas. As I mentioned earlier, I went there on my boat. But you can also fly in from Nassau.
Rum Cay is, hands down, the most beautiful, unspoiled place I've ever been. If you like to fish, dive, surf, windsurf, or snorkel for gigantic lobsters (more than three feet long)... you'll love it. There isn't much to disturb the serenity. (Less than 60 people live on the island.) And it's a long way from anywhere, roughly 200 miles south of Nassau. But I did meet one super-friendly guy who runs a marina, hotel, dive shop, and surf shop. His name is Bobby Little... and he is one of the most inspiring people I've ever met.
Bobby plays host to all of the islands visitors every night, fixing a big, family-style pot luck, where everyone contributes part of their day's catch. His father came to Rum Cay on a boat 30 years ago... and never left. Bobby grew up surfing, diving, and fishing in paradise. And now his teenage son is doing the same. They're extraordinary folks... living a simple life that's filled with camaraderie and stunning natural beauty. It was hard not to be jealous.
If you go to Rum Cay, find a boat to take you over to Conception Island, which sits about 10 miles to the north. It's a national park – a completely unspoiled island that's unbelievably rich in sea life. We spent a day there just enjoying the empty beach and the incredible reef.
Here's a picture…
I hope you're enjoying your summer as much as I am. And don't worry... we'll get back to the serious money grubbing next week.
In the mailbag... a longtime reader has had enough of our duplicity on gold. Are we long or are we short? Let us know your position: feedback@stansberryresearch.com.
"Gentlemen, I appreciate your Friday Digest because I do enjoy learning. Your WDDG philosophy is hard to beat as is your put selling strategy. However (you had to know it was coming), you should not play both sides of the fence. These are the times and email headings from yesterday alone: 'A Rare Buy Signal on Gold,' and 'Why This Former Economics Professor is Selling Gold,' One hour and five minutes apart. Please don't tell me it is your job to disseminate info and mine to digest. You are playing both sides and trumpeting the side that is correct. Your daily wealth trader recommended going long gold mining stocks and a few days later you published an article explaining how gold mining stocks could be in for a beating. Heads you win, tails I lose. Jeff says Heads, Steve says Tails. There it is folks, Heads, just like Jeff said, or Tails, just like Steve said... I created a new email address just for you and it is quite active with offers for more and more conflicting opinions. Perhaps less is more?" – Paid-up subscriber Joe Cain
Porter comment: I admit to being confused by those same headlines, Joe. But as publishers, we don't take a position on the markets. We publish information from analysts who are advocating for their own position. Thus, it does frequently occur that one of our analysts will be long and another will be short. (We even had a situation once where I was short a stock and our bond analyst was long the same company's debt.) I can only tell you that when you read the articles and understand the viewpoints, there's rarely any significant difference of opinion.
For example, Jeff Clark is frequently long or short gold, depending on the week. (He's a trader, so his opinions move with the market.) Steve Sjuggerud simply maintains a longer-term, bullish view. There's really no discrepancy in their positions, there's just a difference in their timeframes and goals.
Where there is a real difference of opinion between S&A analysts, we address it openly and give you both sides of the story. If we slipped up on that goal last week, you have my apologies.
In regards to gold... I've been warning all year that nothing goes straight up forever. I believe gold will pull back this year simply because it's gone up for 11 years in a row, an anomaly in the commodities markets. Also, I think the Fed's ongoing manipulation of the bond market means it's too easy for institutional investors to make money on carry trades (like what's happening with mortgage REIT Annaly). As a result, I think money is going to flow out of gold and into bonds – at least this year.
I've never sold an ounce of my own gold, nor do I plan to do so any time soon. Hopefully that clears up my opinion for you.
"I'm not into economics, and I don't know much about it. However, I think I would vote for a flat tax based on my personal experience. In February 2008, I quit my job to pursue working from home as an entrepreneur. Within six months, I realized that achieving wealth is harder than most people think it is. After one year of trying to earn a living from home, I started looking for a job. It took me about six months to find a job – at $10,000 less per year. In May 2011, I went back to my old job, doing more work than ever, for $5,000 less per year than what I made before. Lesson learned. The majority of wealthy people have worked hard to get where they are..."
– Paid-up subscriber Bonnie
Porter comment: Bonnie, I applaud your efforts! Remember… if you never have any failures in life, you aren't trying hard enough. My mentor in this business – and New York Times best seller – Michael Masterson just published a new book you would find very useful. It's called The Reluctant Entrepreneur. It's the best book I've ever read about entrepreneurship. In fact, my own story is included in the book. And I can tell you from personal experience, Michael's ideas work. Give it a read and let us know what you think.
Regards,
Porter Stansberry
Baltimore, Maryland
July 13, 2012
Meet Bobby Little... A must-read new book... The most perfect island in the Bahamas: Rum Cay... Accusations of duplicity from a longtime reader...