Yesterday, I showed you why it pays to listen to my colleague E.B. Tucker – especially if you want to know what’s going on with the gold market.
But what you may not know is that E.B. is more than just a gold expert.
He’s also a world-class stock picker.
I’ve worked closely with him for four years. His investment strategy is rock-solid.
To prove my point, I recently did a deep dive into his Strategic Investor portfolio. And today, I’ll reveal one of his best performers… and why E.B. tells me it’ll continue to dominate in the years ahead.
Before I get to that, let me show you what I mean when I say E.B. is more than just a gold expert…
He helps his readers make money off the world’s biggest megatrends…
Take the legal sports betting boom, for example. Two of E.B.’s top picks to play this market are up 64% and 39%, respectively, year-to-date.
That’s not all. His top stocks to profit from the surge in defense spending are also soaring in 2019 – up 85% and 43%, respectively.
Plus, let’s not forget his gold plays. He’s taking advantage of what he calls the “motherlode of all gold rallies.” One of his recommendations is up 61% this year. Another is up 50%. A third is up 49%.
To put those gains into context, the S&P 500 is up 24% year-to-date.
But right now, one of the best stocks in E.B.’s portfolio is one you might not expect…
It’s a “sleep well at night” stock. One you can buy and hold onto for the long term without breaking a sweat.
I’m talking about discount retailer Dollar General (DG).
It’s up 129% since E.B. recommended the stock in October 2016. Take a look:
That’s nearly three times higher than the S&P 500 during the same time
And yet, it’s hard to think of a stock more “boring” than Dollar General. So why has it performed so well, and what caused it to light up on E.B.’s radar?
It boils down to a simple investing concept…
The fact that Dollar General is boring is one of the key reasons that made it such a great investment idea. It’s a “boring” company because it sells the basics.
But it’s one of the best at doing that.
It’s a low-cost alternative for consumers looking to buy everyday goods like baby formula, bread, soap, and paper towels. And it does this out of small locations that are usually within walking distance of its customers.
Here’s E.B. with more:
While the company competes with the likes of Walmart and Target, its advantage is size. Dollar General’s stores are a fraction of Walmart’s size. That means its overhead is lower. It also means it can drop stores into densely packed neighborhoods where its customers live.
And DG is dropping stores like crazy today…
It’s one of the fastest-growing retailers in America.
According to the company’s third-quarter earnings announcement last week, it’s on pace to open 975 stores this year.
It currently has more than 16,000 stores. And it plans on opening another 1,000 in 2020. That’s 20 a week.
In fact, dollar stores are spreading like wildfire across America.
According to NPR, there are now about 30,000 dollar stores in the U.S. That’s more than the number of Starbucks and McDonald’s combined. And Dollar General owns more than half of them.
DG has also reported 29 consecutive years of growth, according to Business Insider.
That covers three recessions, including the Great Recession of 2007-2009.
Of course, that doesn’t mean the stock has gone up in a straight line.
But one thing is very clear from all of this…
Investing in growing companies that sell the basics is a winning strategy…
Now, Dollar General is currently a hold in E.B.’s portfolio. He’s waiting for it to pull back a bit before changing it to a buy. So be patient.
But Dollar General isn’t the only stock that fits E.B.’s criteria. That is, world-class companies that consistently churn out profits in any type of environment.
Here’s E.B. again:
At this point, many investors have lost sight of what investing is all about.
They’re more interested in Uber’s flying car project than quality earnings. They’d rather buy “flavor of the month” stocks like Fitbit, Snap, and LendingClub than a discount store with 10% net profit margins.
These people are setting themselves up for huge losses… and missing out on a huge opportunity.
Remember, most investors don’t care about basic companies right now. But that will change in a heartbeat when the next crisis arrives.
In summary, if you build a list of overlooked, profitable companies that make basic items, the market will give you a chance to buy them at a great price over time.
In short, if you take E.B.’s advice, you’ll sleep well at night knowing that you’re building long-term wealth with world-class companies that will never go out of style.
Managing Editor, Casey Daily Dispatch
P.S. E.B. just alerted readers to what could be the most lucrative opportunity of his career.
It’s a little-known anomaly that has the potential to rack up gains as high as 52,900% – starting this month.
It’s not a stock, bond, or ETF. And it has nothing to do with options, futures, or cryptos… but it can be bought easily through any broker.
You can watch E.B. explain it all in this urgent online presentation. And he’ll even give you his top pick… 100% free.
Casey In the Media: Doug Casey on Gold, Silver, and the 2020 Presidential Election
Our founder Doug Casey recently sat down with Kitco News and discussed everything from the upcoming presidential election… to one of his favorite commodities to trade today… and his upcoming novel.
It’s a fantastic interview, and a must-watch for all Dispatch readers. Go here to watch it now.