American Consequences - May 2020

A Step Back From Crisis

Our advice is to own companies whose business models you could explain to a complete stranger. And we also think you should own companies with lots of cash – businesses that can survive a recession and even gain market share as competitors struggle. That’s what we’ve done in our Retirement Millionaire portfolio. We own those types of businesses. And we’re prepared to hold them for the long haul. Dr. David Eifrig has had a varied career, starting on the trading desk at major Wall Street investment banks. After a decade of trading, he chose his “first retirement” and quit Wall Street... going back to school and becoming an eye surgeon. In short, Dr. Eifrig has learned the inner workings of two of the biggest and most important industries in America – finance and medicine. Today, he spends his “second retirement” advising others on improving their health, managing their money, and enjoying a prosperous retirement. If you’re interested in learning more about Dr. Eifrig’s work, he publishes a 100% free daily letter on health and wealth that shows readers how to live a millionaire’s lifestyle for far, far less. Click here to learn more .

It doesn’t have to be any more complex than that. You can find great businesses all around you. Here’s one way to do it... Right now, we are in a time of crisis and what is likely the first month of a recession. Everyone has pulled back on their spending. But what are they still buying? Well, whatever they’re buying... they’re ordering it from Amazon. We haven’t seen revenue numbers yet, but Amazon has announced plans to hire 100,000 workers to help with the surge in orders. And with people online and streaming at home, we suspect revenue for its cloud-computing AWS platform will surge as well.

Our advice is to own companies whose business models you could explain to a complete stranger.

Amazon Prime has more than 100 million subscribers, all happily paying about $13 a month. That’s a recurring revenue stream of $1.3 billion per month . And again, the great thing about Amazon is that you don’t need to be a professional money manager to realize it’s an amazing company. You’ve used its products... And you’ve seen it grow its market share. Companies like Amazon – ones you use and can understand – are the ones you should be buying during market turmoil like this.


May 2020

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