With one day to go until “Election Day,” as we old timers call it, about 40 million votes have already been cast. We’re getting all kinds of conflicting signals about which way the race is leaning.
So here’s my advice about all this confusing chatter: Ignore it and go vote! Vote as if America itself depends on it.
If you’re still on the fence, let me share this with you…
People criticize Donald Trump for not “draining the swamp” as he promised, but this will give you an idea of how hard that is.
Under a Trump-era law allowing for more accountability of federal workers, 4,000 employees of the Veterans Administration were fired for reasons ranging from negligence and sleeping on the job to “grievous misconduct” such as patient abuse.
Now, an investigation by the America First Policy Institute has revealed that the VA failed to attend arbitration with the public employees’ union.
Under a 2023 settlement, the Biden-Harris Administration agreed to reinstate 106 fired VA employees and pay 1700 of them a total of $130 million in back pay.
It could have been worse: they could have been forced to rehire all of them and pay them $300 million in back pay.
Former Trump VA Secretary Robert Wilkie blasted the Biden Administration for surrendering to the government employees’ union, saying they had let down American veterans and taxpayers.
He said, “Those fired for mistreating American veterans should not even be allowed near the VA, much less reinstated.”
This is the problem with government employee unions: in the private sector, negotiations are between the workers and the people paying their salaries.
In the government, negotiations are between the workers and politicians who benefit from the support of those workers, while the people who pay their salaries — we taxpayers — aren’t even allowed in the room.
Demanding reform of these laws would not be an attack on union workers, as the Democrats and the media would surely frame it.
It would be a long-overdue reform to bring both fiscal sanity and accountability to government. Both veterans and taxpayers deserve no less.
Investors can also be a lot like voters. They have very different mindsets on how to invest. But according to Charles Mizrahi … there’s only one type that will lead to success.
See below…
Director, Prosperity Research
How Avoiding Mistakes Leads to Investment Success
Charlie, Warren Buffett’s longtime partner at Berkshire Hathaway, passed away nearly a year ago, just 33 days shy of his 100th birthday.
Buffett once remarked that Charlie had “the best 30-second mind in the world. He goes from A to Z in one go. He sees the essence of everything even before you finish the sentence.”
When asked how Berkshire achieved such remarkable returns for over 50 years, Charlie’s response was simple yet insightful: “Avoiding stupidity is easier than seeking brilliance.”
Source: The New York Times
Charlie Munger and Warren Buffett in the 1970s.
That wisdom became a foundation for my Alpha-4 Approach. Rather than seeking common traits in stocks that succeed, I focused on understanding why businesses fail.
I started by listing the main reasons companies go under. The top reason? Weak financials. I’ve never seen a company with cash on the balance sheet, ample free cash flow and no debt go bankrupt.
So, I avoid businesses that are heavily indebted and cash-strapped.
The second reason is that it is in a dying industry.
Even the best-managed company struggles against declining trends in its sector. For instance, Jeff Bezos, one of the most successful businessmen of our time, has faced challenges turning a profit at The Washington Post.
The newspaper industry, impacted by dropping ad revenues and rising digital competition, simply faces too many headwinds.
The third reason is poor management. A string of bad decisions can quickly destroy even the strongest businesses.
Take Blockbuster, which passed on the chance to buy Netflix, or Yahoo, which turned down the opportunity to acquire Google.
In both cases, leadership overestimated their dominance and underestimated the coming challenges.
My strategy became clear: avoid the obvious pitfalls — don’t invest in financially unsound companies, those in declining industries, or those with poor management.
By eliminating these risky options, I focused on companies built for long-term growth.
From Lottery Tickets to Long-Term Wealth
Most investors overlook the quality of the business itself, focusing instead on the stock price.
When prices rise, they jump in excitedly, often without any real understanding of what they’re buying — because a stock price alone reveals nothing about the underlying business.
They treat stocks like lottery tickets, chasing quick gains and dreaming of overnight wealth.
Unfortunately, that approach usually leads to losses rather than riches.
Our American Prosperity Report portfolio, on the other hand, is built on outstanding businesses that steadily grow and strengthen over time.
Real wealth in the stock market isn’t about getting rich quickly … it’s about finding exceptional companies that compound returns steadily, year after year.
Regards,
Charles Mizrahi
Founder, Alpha Investor