☕ A gold mine that’s not even remotely factored into Tesla’s share price

Good morning! 👋 

Let’s get to it. 

I hope you’re off to a great start today and ready to tackle the markets with our usual gusto. 

Every day brings new opportunities and a chance to make progress towards the financial freedom we deserve. 

Don’t let the headlines fool you. 

Uncertainty eventually gives way to clarity. 

Profits inevitably follow. 

Here’s my playbook.  

**

1 – A raft of great earnings proves my point again 

The last few earnings seasons have been more of the same. 

The naysayers cry, whine, and gripe about debt, politics and a dozen other things that make ‘em sound super smart. Yet, growth and profits are stronger than most expect. 

Just this morning... 

BoA and Morgan Stanley both topped expectations. As did BNY Mellon. Heck, even the notoriously conservative IMF has taken notice, upgrading its global growth forecast calling the economy “surprisingly resilient.” 

Only there’s no surprise, at least not to me anyway. 

Keith’s Investing Tip: I know it’s harder than usual right now to stay focused because of gepolitics but that’s exactly what you want to do... on great CEOs, great companies, and great results. Those are the things that will get you and your money through thick and thin.  

Remember, investing is a journey, not a race. 

**

2 – JNJ: a bigger picture play 

I could care less that the company missed quarterly revenue projections from a bunch of analysts who don’t work there and who are paid by Wall Street to attract clients rather than by investors to produce profits. 

What I’m focused on – and encourage you to think about – is that JNJ boosted profits at a time when business conditions are undeniably tough. 

That’s a sign of great management and absolutely investable. 

MyPOV: Millions of investors think they’re being smart when it comes to quarterly earnings by thinking in increasingly shorter time frames. What they don’t realize is that a choice like JNJ is about the much bigger, broader, and more sustainable trends associated with aging, healthcare, and technology. 

True, I prefer a few other medical stocks because I think they’ve got a better path to profits with greater potential but that’s moot. The important thing is that you connect the dots. 

I’ll be here if you need me or would like a little help. 

At the other end of the spectrum... 

**

3 – Dr. Martens trips up 

When I was growing up, Dr. Martens were the shoe preferred by 1970s British punk rockers (and a certain long haired, earing-wearing, guitar-carrying individual here in the PNW). Then, they went mainstream with the 1990s grunge movement. 

Shares hit a record low this morning and were actually halted in London on news that US wholesale proceeds - which account for about 50% of regional totals - would likely be down double digits this year. (Read) 

So? 

Here’s the thing. 

I constantly stress the importance of investing in companies making “must-have” products and services because they’re the choices that will continue to put up numbers despite it all.  

Dr. Martens – which makes a great product – is a “nice to have” choice which, like Peloton, depends on consumer whim, not need. 

Invest accordingly. 

**

4 – Target's privacy problems = new money on the move 

Arnetta Dean of Illinois has launched a class action suit against Target accusing the retailer of collecting and storing her biometric data, including fingerprints and facial scans without her consent in violation of state law. (Read) 

Is she on to something? 

Maybe. 

There are three challenges, all of which are potentially investable. 

First, biometric lawsuits represent business-wrecking damages. Insurance companies will have a field day. 

Second, plaintiffs are not presently required to show actual harm so they can file based on procedural violations. Compliance will be more expensive and necessary than ever before. 

And third, case law is in its infancy. Data security companies could have an entirely new revenue stream on their hands. 

Investing implications: Huge opportunities often emerge from early legal challenges, particularly when they’re coming from areas of the law that are not yet mature. 

**

5 – A gold mine of epic proportions not even remotely factored into Tesla’s share price 

Unka Elon announced recently that Tesla’s FSD tech has now accumulated more than 1B miles of data. (Read) 

This means Tesla now has the: 

• world’s biggest, most detailed collection of street maps 
• most concentrated repository of driving habits 
• largest single current look at road conditions 

It’s a gold mine that isn’t even remotely factored into share prices. 

Think about it. 

• Tesla could get into the car insurance business and vaporize traditional players.  
• Or create a data model that is then licensed to competitors, virtually all of which are working on some form of FSD.  
• Robotaxis have caught the public’s imagination, but the real uptake will be delivery services and so-called “last mile” logistics. 

This is straight outta Apple’s wearables subscriptions playbook. 

I know what I’ll be doing. 

**

Bottom Line: 

People ask me about hot stocks constantly. 

That's the wrong question.  

Ask yourself which stocks will be there when you need 'em and work backwards. 

 It's a very short list. 

You got this – I promise. 

Now and despite it all, MAKE it a great day! 

Keith 😊 

PS: We are just a few weeks away from the Silicon Valley Investment Masters Symposium. I'm going to be speaking twice and co-hosting. I sure hope you can be there! Click here to reserve your spot now – space is limited