Plenty of Well-Deserved 'A' Grades

Continuing our annual review... Income investing isn't a thing of the past... Managing risk is the key to success... Beating the benchmarks... Plenty of well-deserved 'A' grades...

Our annual tradition continues in today's Digest...

I (Brett Aitken) revealed the first part of our 2021 Report Card on Friday. If you missed it, you can catch up right here.

In Part I, we covered The Capital Portfolio and five monthly publications – Retirement Millionaire, Stansberry's Investment Advisory, True Wealth, Commodity Supercycles, and Stansberry Innovations Report. Plus, we spotlighted the "Crypto Corner" section of the Innovations Report.

The Capital Portfolio earned an "A+" this year... For the five-year grading period, it produced a 156% return. That's nearly 32% in annualized gains... And it outperformed the S&P 500 Index by a wide margin.

The grades for the other publications on Friday ranged from "A" through "F"... So again, I encourage you to start there before you go any further.

Today, we're diving in to Part II of the 2021 Report Card...

We're grading The Income Portfolio, Income Intelligence, Stansberry's Credit Opportunities, True Wealth Systems, True Wealth Opportunities: China, True Wealth Real Estate, Extreme Value, Stansberry Venture Technology, Stansberry Venture Value, and DailyWealth Trader.

And then, in Part III on Friday, we'll cover everything else.

One more thing... If you're curious about how we come up with the grades for each publication, you should first read "Our Grading Criteria" box from Friday's Digest.

Now, before you get into all the Part II details below, here's the quick breakdown...

The Income Portfolio: A

Some folks believe that investing for income is a thing of the past...

After all, most savings accounts in the U.S. pay a lousy 0.4% today. You might get double that interest rate on a certificate of deposit ("CD") over a three- to five-year term. And the U.S. government will pay a whopping 1.9% per year for locking away your money with it for the next decade with Treasury notes.

Yet over the past five years... with the right advice... you could've averaged double-digit gains per year. I'm talking about our Portfolio Solutions team...

Our investment committee has earned its subscribers a total return of 80.2% and an average annualized return of 16.3% since inception in early 2017. Those returns are extraordinary for a portfolio that focuses on earning income.

The secret to success, of course, lies in risk management... The investment committee did a splendid job putting together a portfolio that included income-producing stocks, discounted bonds, and some hybrid and real estate-type investments. The income alone produced more than 6.2% last year – not to mention the gains generated on the initial investment.

Investment bank JPMorgan Chase (JPM), health care provider and retail pharmacy CVS Health (CVS), and chemical giant Dow (DOW) were among the best-performing stocks in The Income Portfolio over the past couple of years. They each produced high-double-digit gains for subscribers.

As I said, the investment committee also recommended buying discounted corporate bonds and specialized real estate investment trusts (REITs) that delivered double-digit gains.

While this is generally a safe, steady portfolio with less volatility, it doesn't mean it's immune to losses. But again, the key here is risk management... The investment committee has done a superb job in keeping any losses to a minimum.

Since these Portfolio Solutions products are managed in the same way as a fully allocated fund, no single position puts the portfolio at risk of a catastrophic loss. For example, even a 30% loss on a stock that has a 3% portfolio allocation ‒ which is about the average ‒ is less than a 1% drawdown on the overall portfolio. Every investor should be able to tolerate that tiny amount of volatility.

The Income Portfolio beat its benchmark, the Vanguard Balanced Index Fund, by nine percentage points over the five-year grading period.

Its performance has exceeded even our own ambitious goals and expectations. And it earns The Income Portfolio an "A" for this year's Report Card.

Income Intelligence: A

A lot can happen in a year...

In our last Report Card, editor Dr. David "Doc" Eifrig earned a "C" for this publication. I knew that grade would disappoint Doc... but I also knew that it would fire him up.

Here's what I said at the time...

Now, before I move on, I want to say that I've seen what happens when Doc gets anything below a "B" in our annual Report Card. And I wouldn't bet against him this time, either...

I believe we'll see Income Intelligence return to the "A" level next year and beyond.

Now, as we know, the COVID-19 crash hit every investor hard. And it didn't spare Doc's Income Intelligence portfolio, either...

He was forced to close 25 positions amid the chaos in February and March 2020.

But you should know that Doc often uses tighter "volatility based" stops in this publication. So some positions triggered their stops with low double-digit declines from their highs. And the good news is that many of the positions were up a lot from their entry points... So despite clearing out almost his entire portfolio, the gains exceeded the losses.

For example, at the time, Doc officially booked triple-digit gains in software giant Microsoft (MSFT), global burger franchise McDonald's (MCD), and beverage maker Coca-Cola (KO).

But with a nearly empty portfolio, Doc and his team had to rebuild it... And that takes time. Fortunately, as we expected, that time and hard work are paying off for his subscribers...

Since April 2020, Doc has made 17 recommendations. As 2021 closed, 12 were showing gains. That's a 70% win rate. And the average gain equaled 28%. That's outstanding.

Over the years, Doc and his team have found high double- and triple-digit gains in household names – like those mentioned earlier – without taking on huge risk. The portfolio is loaded with cash-yielding stocks, preferred shares, bonds, and real estate plays as well.

I would also argue that the education gained from reading Income Intelligence is worth the cost of admission alone...

While highlighting each opportunity to earn safe, steady income, Doc and his team carefully explain everything. That way, subscribers can understand each sector and any dangers to look out for.

Plus, the "Income Investor Dashboard" in each monthly issue is a must-read for income investors. It's full of information including Doc's Inflation Monitor, the Real Income Index, the Income Market Overview heat map, and the Yield Corner.

In short, it gives you a 10,000-foot view on what's going on... and it takes just a few minutes to read.

Once again, Doc has proven that it's wise not to bet against him... With a 58% win rate and average annualized gains of 13.6% – beating his benchmark, the Vanguard Wellesley Income Balanced Fund, by a few percentage points – Income Intelligence earns an "A" for this year's Report Card.

Congratulations to Doc, his team, and all his subscribers who've followed along. Like I mentioned last year, I'm confident we will continue to see an "A" in the Report Card for Income Intelligence in the years to come.

Stansberry's Credit Opportunities: A+

There's nothing else like it...

In Stansberry's Credit Opportunities, editor Mike DiBiase and Bill McGilton scour the world of distressed debt for opportunities to profit. And they're great at what they do.

That's why I believe it's one of the best research products we publish. And yet, it's probably our least understood product as well. But I think I know why...

Most folks think bonds are boring.

You see, bonds aren't exciting like tech stocks. Whenever I mention "bonds" to friends or family... I get eyerolls, yawns, and a stern warning to either change the subject or leave.

But in Stansberry's Credit Opportunities, Mike and Bill have proven that investing in bonds can be thrilling... You can make a lot of money in this space if you know where to look.

For the uninitiated, corporations issue bonds at a "par value"... It's usually $1,000 per bond. They pay interest payments (usually twice each year) to bondholders until the maturity date – which is typically several years in the future. These payments are a legal requirement.

Perhaps the most important thing you should understand about bonds is that they're binary. That means the corporation issuing the bond must either pay off the bond in full on or before its maturity date, including all interest payments along the way... or it will default on the debt.

While corporate bonds don't trade in the same way as stocks, they do trade... And bond prices fluctuate, just like stocks.

Similar to stocks, investors sell if they get spooked. Because of that, corporate bonds can trade for less than par value... sometimes a lot less.

Likewise, when investors are bullish, they buy. That can send bond prices to par and above.

In this publication, Mike and Bill are only interested in buying bonds at a big discount to par value. But no matter what price you pay for the bond, the company that issued it is still legally required to pay you back the full par value. That's how they can steer subscribers toward big, safe, steady profits in this space.

Now, let's see how they did over the five-year grading period for this year's Report Card...

Given the binary nature of bonds, we only grade the performance on closed positions. Mike and Bill made and closed 42 bond recommendations from the start of 2017 through the end of 2021.

The average annualized return of those recommendations was 16.4%. And 36 of them were winners for an incredible 86% win rate. That crushes the 7.4% return of their benchmark, the iShares iBoxx High Yield Corporate Bond Fund (HYG).

But we should also point out that their track record on open and closed positions is equally impressive... With 52 positions recommended, they've put together a 79% win rate and a 9.3% annualized gain. Those numbers also crush their benchmark by several percentage points. And we expect the gains to rise from here.

Their best-performing recommendations in recent years include a 113% annualized return in a combined bond and stock position in gold miner Hecla Mining (HL), an 86% annualized return in clothing-brand owner Iconix, and an 85% annualized return in casino and resort operator Las Vegas Sands (LVS).

With all that said, I must point out that it has not been easy for Mike and Bill to find compelling opportunities...

Just like stocks, real estate, and cryptos, bonds have also been in a bull market. So it has been difficult to find good, high-yielding, creditworthy bonds trading at a discount. That's why, in early 2021, Mike and Bill started to recommend some income-producing alternatives – or "mudskippers of finance," as they sometimes call them.

As Mike put it in the February 2021 issue of Stansberry's Credit Opportunities...

At first glance, these hybrids look a lot like bonds... They pay steady, safe income streams to investors. But like the mudskipper, they offer much more than initially meets the eye... In fact, they could potentially deliver even bigger gains than distressed bonds.

It's still early in terms of this alternative strategy... But they closed three of these hybrid positions in 2021 – all within just a few months of opening – for average annualized gains of around 12%.

Just to be clear, though... these hybrid securities are a complementary piece of the Credit Opportunities approach. Their primary focus is still on finding the best investment opportunities in discounted bonds.

And of course, this strategy really shines when chaos hits the market. We saw a glimpse of that in March 2020... Mike and Bill embraced the market turbulence and quickly identified seven safe bonds that were trading at a discount to par.

Over the next three months, they booked 7% and 19% gains, respectively, on two of those bonds... And they ultimately closed all seven positions for an average return of 17%. The average holding period was just 115 days, leading to a 53% average annualized gain.

Despite the bull market in bonds, this strategy is working exactly as we knew it could... And their track record is outstanding. Few stock pickers achieve these kind of results – especially over the long term.

Even better, when we do eventually get turmoil in the market, we know subscribers will be prepared... And I expect Stansberry's Credit Opportunities will continue to outperform – by a wide margin.

While you may need to get some approvals or fill in some paperwork with your broker, almost anyone with a regular brokerage account can follow Mike and Bill's recommendations.

If you're not already following this strategy, I encourage you to try it. As Stansberry Research founder Porter Stansberry used to say... Once you give this strategy a try, you may never buy another stock again.

True Wealth Systems: A

Editor Steve Sjuggerud and his research team's strategies excel in True Wealth Systems...

For the five-year grading period, their average annualized gains blew away the S&P 500 – 33.3% to 19.4%. We love seeing that type of outperformance over an extended period.

And Steve put together a series of triple-digit winners for subscribers, too... His best recommendations included a 257% gain in an online brokerage firm, a 255% gain on a global software company, and a 230% gain on a tech play.

Now, you might be wondering how Steve and his team performed during March 2020. After all, that's when the overall market plunged 34% in a matter of weeks.

It's a fair question. And several positions in the portfolio did hit their stop losses that month.

But here's the thing... Like Doc's team in Income Intelligence, Steve's team kept the losses in True Wealth Systems to an absolute minimum. They closed nine positions during the sell-off... yet the average loss was a mere 11%.

Next, like Doc, they started recommending stocks again in April – just a couple of weeks after the market bottomed. As you know, the major indexes have gone on to double since then.

As we hope you know by now, risk management is crucial to your financial success in the markets. And Steve and his team always exercise discipline to contain any losses.

Plus, they're contrarians by nature... So in many cases, they recommend buying when no one else wants to. They might be a little early getting in on some trends... But they're prepared to take a few small losses along the way before the larger trend kicks in.

And of course, they let their winners run. That strategy has served Steve and his team well for more than 20 years.

These types of results confirm that Steve's strategies are working. I'm delighted with the performance of True Wealth Systems. And I hope you are, too.

Longtime subscribers know that we invested heavily – at least $1 million – more than a decade ago into developing True Wealth Systems. And we continue to invest... Steve and lead analyst and co-editor Brett Eversole – an actuarial with a background in applied mathematics and statistics – continue to test, tweak, and improve the publication. They constantly strive to identify new opportunities.

The True Wealth Systems team has expanded a lot in recent years. It now includes Vic Lederman, a tech wizard who focuses on systems, fundamentals, and strategies to support the financial trends... Chris Igou, who uses his degree in finance to drill down into the systems' inner workings and to manage the algorithms... and Brian Tycangco, an Asia-based analyst who has a degree in economics and more than 25 years in the financial markets. Plus, Sean Michael Cummings just joined the team in recent months. He has impressive analytical skills, which enable him to break down important details and explain them in plain English for readers.

In the end, True Wealth Systems earns an "A" for this year's Report Card. Congratulations to Steve, Brett, and the rest of the team.

With these six brilliant individuals crunching the numbers, spotting trends, and identifying the best way to invest in them, I'm confident we'll continue to see stellar results from True Wealth Systems – and the franchise overall – for many years to come.

True Wealth Opportunities: China: A+

If you thought True Wealth Systems did well... these results will blow you away.

For one reason or another, most people won't invest in Chinese stocks. But if that's you, I encourage you to reconsider it... of course using this team as your guide.

With a 72% win rate and 17% average annualized gains since this publication launched in 2016, Steve and lead analyst Brian Tycangco have earned an "A++" or "A+" in our Report Card every year. For context, the average annualized gain of the publication's benchmark, the iShares China Large-Cap Fund (FXI), is just 3.2% over the same period.

With a 69% win rate over the five-year grading period and average annualized gains of 27.2% – crushing the benchmark – the overall results for this year's Report Card are even more impressive.

These results prove more than ever that you need an expert in your corner if you're going to invest in China... Steve has visited the country several times and has strong connections there. Likewise, Brian has spent more than 25 years investing in Asian companies.

The team's biggest winners include a 464% gain on an e-commerce company, a 135% gain on a communications-equipment company, and a 134% gain on a retail company. They also have several other high-double-digit winners that boosted the win rate and average returns.

Still, despite their incredible track record, they can't control market conditions. And with folks fleeing Chinese stocks in recent months, they've been challenged...

A handful of positions have hit their recommended stops. But by containing their losses, Steve and Brian haven't put the portfolio's overall strategy at risk. And I'm confident that with this team's experience, True Wealth Opportunities: China will be able to navigate its way through any market conditions.

We congratulate Steve, Brian, and the True Wealth Opportunities: China team for a well-deserved "A+" for this year's Report Card. And we hope you've joined in their success.

True Wealth Real Estate: A

We launched True Wealth Real Estate in June 2020. And while its track record is only about 18 months, the quality of the research and corresponding results are worth sharing today.

This publication offers two ways to invest in the real estate boom...

First, Steve and his team recommend U.S.-listed stocks that are related to the housing market. These stocks can include homebuilders, land plays, home-improvement companies, and more.

The second way is through private commercial real estate deals. We've teamed up with CrowdStreet, an online marketplace that helps individuals access high-quality investment opportunities across the country. Steve and his team do their own research on the deals. They often visit the sites and meet with developers as part of this process.

Because the private deals don't trade on a central exchange with daily pricing like stocks do, we can only measure the results on closed deals. And given that we're only 18 months into the service, it's simply too early to have any measurable results.

Having said that, the early signs are looking promising...

For example, in September 2020, the team recommended a garden-style apartment complex in Margate, Florida. They initially focused on a five-year timeline.

However, the booming housing market sped that time frame up. The deal's sponsors renovated and sold the property in a little more than a year.

In short, investors earned nearly 40% of the five-year profit target in just 14 months. That ballooned the final internal rate of return ("IRR") for the deal to 34.2% – nearly double the initial target of 17.2%.

Overall, the team has recommended 17 private deals since launching the publication. Most of these deals have an anticipated duration of anywhere between two and five years – with a couple stretching out to 10 years. The average expected IRR – essentially the annualized returns – on these recommendations is around 19%.

They've closed two positions earlier than anticipated. In addition to the one mentioned above, another closed right around its expected IRR of 25.2%. And the feedback I've seen from subscribers is overwhelmingly positive. Here's what Stansberry Alliance member Bob M. wrote...

The extremely thorough "due diligence" done by your team and you before recommending in True Wealth Real Estate any CrowdStreet Marketplace offering has given me the confidence to invest already in CrowdStreet Marketplace offerings in Georgia, South Carolina, and Florida. It's, of course, far too early to tell how those deals will perform through their projected lifetimes, but all of them look very solid at this point, and I anticipate much higher returns than even distressed bonds offer and with far less volatility than the stock market, making them excellent alternative investments for my portfolio.

I never would have even considered investing in any of CrowdStreet's offerings without being able to study True Wealth Real Estate's evaluations and recommendations as I don't have the knowledge, time, or desire to attempt to evaluate by myself the merits of any of CrowdStreet's numerous offerings. I really appreciate the great work being done by the True Wealth Real Estate team you've assembled. Thank you, and please keep it up.

As impressive as that is, for this year's Report Card, we'll focus on the stock portion of the portfolio...

In the 18 months since inception, Steve and his team have made 14 recommendations. Ten of them were winners... That's a 71% win rate. And these 14 positions had average annualized gains of 37% as we closed out 2021.

So far, they've produced one triple-digit winner with a homebuilder, a 73% gain on home-improvement retailer Home Depot (HD), and another 70% gain on a home-leasing business.

As with anything this team does, you can expect to see them spot big trends, identify the best ways to play them, manage the risk, and let the winners ride. I expect this publication to be among our most successful offerings in the coming years.

While it only has an 18-month track record, the quality of research and actual results earn True Wealth Real Estate an "A" for this year's Report Card.

Extreme Value: B

Growth stocks have crushed value stocks over the past five years.

Yes, I know that the past three months tell a different story. And the debate remains open as to whether the tide has turned... or whether it's temporary, and that growth has just hit a speed bump. I'll get back to this debate in a minute.

But for now, know that Extreme Value editor Dan Ferris is a value investor through and through... As Digest readers know, in his writing, he often references the value investors' bible – Security Analysis, written by Benjamin Graham and David L. Dodd. The book has been around for 80 years... And I bet Dan has read it several times during his career.

Since launching Extreme Value in 2002, Dan boasts a stock-picking win rate of 56% for average annualized gains of 13.1%.

Digest readers see Dan's October 2008 recommendation of payroll processor Automatic Data Processing (ADP) in the "Stansberry Research Top 10 Open Recommendations" each day... It's up 723% over that span.

Plus, he has booked several other triple-digit gains for his subscribers over the 20 years of this newsletter. For example, he first recommended beverage giant Constellation Brands (STZ) in 2011... And he closed the position six years later for a 631% gain.

As growth stocks have soared higher over the past few years, you might think it has become more difficult for value investors to find bargains... And to some degree, that's true. But there's always mispricing somewhere in the market... And Dan has dedicated his professional career to finding it time and time again.

For example, in 2018, Dan recognized a huge disconnect between the value the market had placed on coffee-house giant Starbucks (SBUX)... and what he thought it was really worth. Dan claimed that Wall Street analysts were pricing the stock for near-zero growth, which didn't make any sense.

Dan highlighted four primary drivers for growth that showed Wall Street was dead wrong about Starbucks. And it paid off... At the end of 2021, subscribers who followed Dan's advice were sitting on a triple-digit winner, with gains of more than 130%.

How does he do it?

Well, only Dan really knows. But he and his right-hand man, analyst Mike Barrett, have developed a proprietary valuation model that helps them identify investing opportunities such as Starbucks.

Another big winner at year end included a 148% gain in a commodity-focused recommendation. I can't reveal the details since that would be unfair to paying subscribers, but Dan believes it still has 10-bagger potential from here.

Dan also recommended bitcoin in February 2020 – not as a short-term speculation... but rather, a long-term store of value. When Dan talks long term, he means at least five to 10 years – and maybe forever. The position showed a 181% gain at the end of 2021.

During the five-year period used in this Report Card, Dan made 52 recommendations. At the end of 2021, 34 of them showed a positive return – a 65% win rate. And Dan's recommendations showed an average annualized gain of 15.8%.

On their own, those are great results. But the average annualized returns lag the S&P 500. And for that reason, Extreme Value earns a "B" for this year's Report Card.

By the way, I'd be remiss if I didn't mention Dan's latest research...

If you're an Extreme Value subscriber or Alliance member, you can check out Dan's new special report called "The 10-Stock Inflation-Protection Portfolio" on our website right here.

And if you're not a subscriber, I suggest you read the next couple of paragraphs...

You see, Dan just gave what he considers the most important interview of his life – on camera, with our editor-at-large Daniela Cambone. They talked about the ideas behind the 10 stocks in his report, as well as a very specific plan for what to do right now – today – to protect your hard-earned savings...

Trust me, you do not want to miss this opportunity. Click here right now to get started.

Stansberry Venture Technology: B-

Venture-capital investing in biotech and tech is not for the faint of heart.

Over the past five years, the Nasdaq Biotechnology Index has experienced seven double-digit crashes. Yes, that's more than an average of one per year. Among them was a 27% drop in 2018... a 24% sell-off in March 2020... and its most recent decline of 29% since August 2021.

That's tough to stomach. Fortunately, the potential gains often make up for the added risk.

Most investors struggle in this niche sector of the market. It's incredibly difficult... But fortunately, Stansberry Venture Technology editor Dave Lashmet thrives in it.

And I believe he thrives because of his approach...

You see, in normal times ‒ like before the COVID-19 pandemic ‒ Dave travels the world looking for opportunities in small biotech and tech companies. He attends more conferences than any other analyst in our firm. He scours science journals, reads drug-trial results, and interviews dozens of experts in search of the newest technology or breakthrough drug that could be worth billions of dollars.

He has two decades' worth of experience in the space, has built an incredible network, and has developed a strategy that allows him to minimize risk while still making large triple-digit gains for his subscribers.

Take Inovio Pharmaceuticals (INO) as an example... He recommended buying INO in June 2019, then recommended taking some money off the table when the stock nearly doubled a few months later. He took a little more off the table when the stock shot up 10-fold... And he closed the position in December 2020 with the stock up more than triple.

Dave did something similar with graphics-card maker Nvidia (NVDA)... He recommended the stock in 2016 when it traded around $45 per share. He told subscribers to take some money off the table when it doubled... He recommended selling some more when it was up eight-fold... And he was sitting on a 25-bagger on the rest of the position as 2021 ended.

These examples show what's possible when you invest in early-stage companies.

Still, as I said, this strategy involves risk. If Dave recommends a company with a single drug in development, its stock could rise 10-fold after a successful trial result. But on the flip side, a trial failure could send it to zero.

That's why you must diversify... And it's also why Dave spells out the exact risks with each recommendation.

Since launching Stansberry Venture Technology in November 2014, through 2021, Dave has recommended 75 stocks... And 27 of them have doubled or more, meaning on average... one in three of Dave's recommendations has at least doubled. Few investors can make that claim in any market... let alone this volatile, niche sector.

Dave made 50 recommendations during the past five years – and 28 of them were winners. That's a 56% win rate. And his average annualized gain equaled 18.9% over that span.

While I'm happy with these results, a few positions did suffer as 2021 ended. That dragged down the overall performance of the portfolio, leading it to underperform the benchmark by a few percentage points. As a result, Stansberry Venture Technology earns a "B-" this year.

Stansberry Venture Value: A-

Investing legend Warren Buffett once said if he had $5 million, he could double his money every year or two...

His point was that it's much easier to double your money in high-quality small-cap businesses than with the elephants he must consider for his $720 billion juggernaut Berkshire Hathaway (BRK-B).

These small-cap companies are exactly what editor Bryan Beach looks for in Stansberry Venture Value.

Investing in small-cap stocks can test your nerves... Their share prices tend to swing violently. But if you have the patience and mental strength to hang on, the rewards can change your life...

The easiest way to visualize this point is with e-commerce giant Amazon (AMZN).

If you would've bought AMZN shares in May 1997 when they traded for around $18 and hung on through all the ups and downs ‒ at times it fell more than 80% ‒ you'd be sitting on roughly a 212,000% gain today. Your $10,000 investment would be worth $21.2 million about 25 years later.

Many of the companies Bryan recommends are small – less than $1 billion in market cap... At least in that way, they're just like Amazon was 25 years ago. And sometimes, they're a quarter that size. They're so small, in fact, that a lot of large money managers can't invest in them. Most of these stocks have little to no analyst coverage.

That's an advantage for everyday investors like us... It allows us to invest before the big institutional money starts flowing in from Wall Street.

They don't have to be the hottest thing in tech, with super-growth behind them, to be huge winners... In fact, when this service launched five years ago, more than half of the top 20 best-performing stocks of the previous 20 years were from regular stable businesses.

Bryan has already recommended several triple-digit winners that are what we call "meat and potatoes" types. Subscribers who followed his advice have more than doubled their money on an infrastructure company... more than tripled it in a small landscaping business... and quadrupled it in a specialized health care stock.

As I mentioned, though, these stocks can be volatile... So Bryan doesn't use a traditional stop-loss strategy. As long as his thesis remains intact, he will generally hang on to the stock irrespective of what the share price is doing.

Remember the Amazon example from above... The stock plunged 80% at some points over the years. So in effect, Bryan's stop strategy is more aligned with the business performance than the share price.

This publication debuted in February 2017, so it has been around for all but one month of the Report Card's five-year grading period.

With a win rate of 55% and an average annualized gain of roughly 17%, Bryan beat his benchmark, the Vanguard Small-Cap Index Fund... That earned Stansberry Venture Value an "A-" for this year's Report Card.

DailyWealth Trader: B-

As its name suggests, this publication offers daily trading advice...

DailyWealth Trader co-editors Ben Morris and Drew McConnell share their opinions, commentary, investment strategies, and market insights every day that the market is open.

I've long said the subscription fee is worth the education alone – not to mention the recommendations these two experienced market analysts provide. You don't get a new trade every day... It's more like one or two per week, on average. But believe me, that's plenty.

Ben and Drew recommend long and short trades on stocks and exchange-traded funds (ETFs), as well as option trades.

Their biggest successes over the past five years occurred in 2020... That year, Ben and Drew recommended 79 trades, with 59 of them being winners. That's an incredible 75% win rate... And these positions translated into an average annualized gain of 47.3%.

Those are outstanding results – especially considering the amount of trading activity.

Their biggest winners included bitcoin, with a 419% gain on one position and a 249% gain on another. And they also booked several double-digit gains on more traditional trades using a combination of stocks and options. They contained their losses, too.

In isolation, these 2020 results would earn an "A" grade.

But remember, as with all of our publications, the grading period for this year's Report Card is five years. Over this period, Ben and Drew booked a 68% win rate on all trades – again, an outstanding result.

And while the average annualized gain of 11.5% is more than most traders would achieve with such high trading volume, it comes in below the benchmark. For that reason, DailyWealth Trader earns a "B-" for this year's Report Card.

New 52-week highs (as of 2/8/22): Alcoa (AA), AbbVie (ABBV), Altius Minerals (ALS.TO), American Express (AXP), Bunge (BG), Centene (CNC), CVS Health (CVS), Expedia (EXPE), Hershey (HSY), Coca-Cola (KO), Lockheed Martin (LMT), Mosaic (MOS), Osisko Mining (OBNNF), Raytheon Technologies (RTX), Virtu Financial (VIRT), W.R. Berkley (WRB), and Zeta Global (ZETA).

That concludes Part II of the annual Report Card. Look for Part III on Friday... It will cover the rest of our products and research publications. In the meantime, tell us what you think about the Report Card so far. Do you agree or disagree with our grades? Let us know at feedback@stansberryresearch.com.

Good investing,

Brett Aitken
Publisher
Baltimore, Maryland
February 9, 2022