Hello and welcome. I'm Austin Root, Chief Investment Officer of Stansberry Asset Management. And on behalf of all of us at SAM, thanks for joining. With me today is Deputy Chief Investment Officer Michael Joseph. Michael, thank you as well for joining. That's my pleasure. I've been looking forward to this. I am as well. We've got a fantastic show and event for folks today. As we were building up to this, I think, gosh, this could be the most important webinar we've ever done. This is a three-year anniversary of Tactical Select, but I think it's more timely to use it now than ever. I think that's exactly right. You have the three-year anniversary, which is a milestone in itself, but given some of the market dynamics that we'll certainly talk about in the webinar, very timely to be highlighting the strategy. 100%. Yeah, good. Well, let's get right to it. So big title here, Quantitative Edge, Tactical Select, and the Results of a Discipline Process. Now, Michael, we want to talk about those results. We want to talk about Tactical Select, kind of what we're doing and those results. But as I had alluded to before, I think what's most important for me is not just that we've had good returns and results to date, but golly, the way the world is set up, I think this is the way to think about protecting and growing your wealth in the time to come. I think that's exactly right. It also, frankly, makes me a little nostalgic because I can't believe three years have already passed by since we were initially talking about what the strategy would look like and doing all the back tests. And now here we are. And I remember at the time, the back test results on the strategy were frankly incredible. And we were really excited, of course, but also there's back testing and then there's real world results. And I remember saying, boy, if the real world results are anywhere near this good, that's really going to be something to talk about. And here we are. And I think some results that, frankly, I'm pretty proud of and excited to share with folks. Yeah, I am as well. I am as well. And we're going to get into it. But I actually think that if we get into different types of markets, they could be even better. So let's start there. So what are we going to talk about first? We both alluded to it, but why do we think Tactical Select is so well positioned for today's market? And kind of setting the stage for kind of what we think you need to be doing with your capital in today's market. We're going to talk a little bit about exactly how we actively manage this strategy. What is the quant piece and the fundamental piece and how we put that all together? And then we're going to provide some results and, you know, really kind of poke at those and try to understand, are they really as good as we're saying or we're alluding to them being and why we think potentially, you know, no past performance is never a promise of future results. But we do think that conditions favor this strategy going forward. So does that sound that sounds like a pretty good that's a pretty chock full plate of things to talk about, right? There's a lot. That's part of why the title was so long. But, you know, it's a lot of strategy. A lot's been going on. So, yeah, exactly. So to set the stage for this, we wanted to talk first about one of your favorite investors and mine. And frankly, the world thinks of this person as the GOAT. And we're doing this for two reasons. One, I think it's that on the surface, it would seem that maybe the GOAT, Warren Buffett, would not have necessarily wanted to invest like Tactical Select. But you and I both think after having, you know, been shareholders, been to the Omaha and seen the annual meeting, having read his shareholder letters, that actually if he got into the nuts and bolts of what we're doing, he'd be really excited about how we're doing this. And so the other reason for talking about him is what was important to him is important to us. And it sets up well for why you should be using a strategy like Tactical Select. So let's let's go there and first talk about, OK, people think he's the greatest investor of all time. Why is that? In our eyes, there's really two reasons for that. The first is he unleashed the power of long term compound interest. So there's two pieces of that. There's compounding your returns and your portfolio at high rates, very high rates. But then doing it over very long periods of time. That's the true way to generate, you know, just generational wealth, life changing wealth. And just to benchmark this performance that he had from when Berkshire Hathaway, you know, kind of mainly got started under his control in 64 to the end of 2024 or 61 years of data. The S&P 500 would have gone up quite a bit, 448 times roughly. So if he invested a thousand dollars in the S&P would have made 448 thousand by the end, assuming reinvested dividends. Now, as you and I both know, Buffett did many, many more times better than that. A thousand dollars invested with Buffett would have been fifty five million. So, you know, going to that show in Omaha and there's folks that never sold, we can both guess that they're pretty wealthy individuals. Just a fantastic display of the power of long term compound interest. And so generating strong returns over a long period of time is the first piece. The other piece of this is that he understood the critical importance of not losing money when it comes to long term investing success. Just mission critical. In fact, he's it's so innate in the way he invested that arguably his famous quote of all time, his most famous quote of all time is rule one, never lose money. And rule two, never forget rule number one. These are these are good rules to live by. Right, Michael? A hundred percent. And that that performance against the S&P is obviously incredible. But I think it's worth pointing out that there were a lot of years when Berkshire Hathaway underperformed the S&P. Right. He didn't achieve that by constantly being better than the market. That's part of it in some years. But I think much more important is avoiding those big downturns. That's right. That's right. And, you know, it does beg the question, you know, how why is the greatest investor in the world best known for a quote about not losing money rather than making it? And that is why what you just talked about reducing those drawdowns, eliminating the big losses is so important to long term investing success. Why? Well, you make better decisions when you avoid those big losses. They can be emotionally limiting. You know, you and I have both had had situations and examples where investors have made. They just can't take it anymore. They've they've made a lot of losses. They've suffered a lot of losses. I can think of a lot of people in the great financial crisis where, you know, portfolios went down 50, 60 percent. And it ended up being a perfect time to buy and at least hold. But many investors felt like I just can't do it anymore and pulled out of the market. It's amazing how that happens. We have sort of peak capitulation at the exact wrong time. And it happens over and over again in the market. Right. You know, there were many times that happened even with during the covid drop in the market, too. It can also be financially limiting. And that is and I've seen this, too. Sometimes investors and institutional investors. This happens as well are forced to liquidate investments because they have a call of capital or some need when. And and what do they sell? They sell the most liquid investments or the most available for sale. And that pushes the price of those assets down, even though those may end up being the most valuable ones. So if you didn't suffer those losses, you wouldn't have those margin calls or those. And you could you know, you can you can you can you can be buying when other people are panic selling or forced selling. The other piece of this, and this is what I really want to get into, because I don't think people fully understand this is to the extent that I'd love them to. It is mathematically very hard to recover from large losses in your portfolio. And so I provided this example one other time, but I want to for those who didn't see that. And even if you did, it's worth repeating in an example. So let's imagine two investors. Investor A is, you know, up and down investor. And let's imagine that in the odd years, they generate 40 percent returns, strong returns. And in the in the even years, the bad years, they drop 10, 20 percent. But on average, that means a 10 percent simple average return over an investment period. And we're talking about 20 year investment period. Investment B is steady. Investor B, excuse me, is steady Eddie 10 percent, clip 10 percent a year every year. If we look at the return profile then of investor A, it's not bad. Over those 20 years, they triple more than triple. Let's say it's their money. Investor B, on the other hand, the steady Eddie approach actually does much better. It more than doubles that performance or makes nearly seven times their money over the period. Look at now. It's hard sort of for some people to appreciate that. Here's another way to look at it pictorially or graphically. You know, early on in that in this series, that up and down is not having as much of a perceived effect. But the compounding that the overtime not losing money is really benefiting investor B. So up to this point, I've been talking about simple average. What you and I care about and what every investor should care about is your compounded average return. Or what annual average rate does your output equate to? Because what you really care about is what you end up with. And so investor B's compound average annual return is simple to calculate. It's 10%. It's the same as the simple average because there is no variation from that. Investor A, however, is only generating a 5.8% compound average return despite the simple average of 10%. In other words, if they were to avoid those down years and just generate a steady eddy 6% return, they would have been better than their current stream of up and down massively. Any thoughts here, Michael? Yeah, this is an incredibly powerful concept. Actually, I haven't done the math on this, but I'm guessing if we extended this chart out to 60-odd years or so, you start to get somewhere close to those Buffett versus S&P numbers that we looked at. It definitely starts to go like that. Yeah, that's the other piece of this. You're right. You know, the question then is, okay, we have to make sure we limit our downsides. So that's good. But the market is really expensive right now by most measures. This is one Schiller PE ratio, which is the trailing earnings ratio. Current multiples are expensive. You know, and what we've said to acknowledge this, and we wrote this to investors earlier this year, is look, valuations and expectations of future growth are both already high. So as a result, we must see meaningful growth in the economy and earnings this year for asset prices to move higher from here. And that's just it. Like, this is not a market that will accept growth disappointments gracefully. We need to see that strength. And so if we have, if we're in an environment where we don't want to lose money, asset prices are super expensive or pretty darn expensive, and the market won't take disappointments gracefully, it begs the question, should we stay invested? Or, in fact, why should we stay invested? And our answer actually emphatically is yes, you should stay invested. And the why is in two parts. The first is we believe that the growth required to push the market higher will, in fact, happen or is likely to happen. Why is that? Well, we're actually set up because in a number of factors that favor asset prices, risk asset prices moving higher. The first is that both monetary and fiscal policy is accommodative. The Fed has rates lower. The Treasury is spending in efforts to boost growth beyond their deficit spending, so beyond their revenues. Those two things are not necessarily good, and particularly the deficit spending for the value of the dollar. But they do tend to be good for the value of financial assets priced in dollars, like stocks and the like. Oil and bond prices are both, bond yields are both relatively low. That's constructive for investment in the economy and just economic productivity in general. We have a broadening bull market. Now, look, we've seen some chops in certain parts of, in certain asset classes, to be sure. Recently, there's been a SaaSpocalypse. I don't know if you've heard about that, Michael, but software as a service's businesses are definitely getting sold off. But in general, the bull market has broadened, which is to say that the S&P Equal Weight Index is massively outperforming the S&P 500 Index itself, which is weighted and predominantly, it's market cap weighted and heavily impacted by those top companies. And the small cap index is actually outperforming both of those. A market that has breadth or more companies participating in the rally than not is actually a sturdier rally and more constructive for future gains than one that's very narrow. So that's good. We're having a lot of capex investment. And in fact, that's on an increasing pace. Yes, a lot of that is related to the AI build out, but not all of it. It's frankly a lot of onshoring. It's the depreciation benefits from the one big beautiful bill where a lot of companies are deciding to invest in their businesses. That's not just benefiting AI companies. It's benefiting energy, construction companies, industrials, and the like. That's good for the economy. And the last one then is just we've had a lot of fits and starts with tariffs and other concerns. The low-end consumer is challenged. But on the whole, the economy and the average consumer, the median consumer has been resilient. And that's nice to see. A resilient economy tends to stay resilient versus getting shaken by the first hiccup in the market. Before I go on, anything on this list? Yeah, just kind of tying a few points together. You talk about companies that are benefiting from that increased capex. And you mentioned materials and industrials. Those have been the sectors that have really been leading the charge this year. So for a long time, we've just heard about MAG7 over and over again. And it's really broadening out now. And I think part of that is investors realizing this is a much larger story than just a handful of companies taking part in this. It's an incredibly healthy thing to have lots of different sectors, industries, and companies taking part in the bull market instead of just a handful of stocks. So definitely a bullish factor. Absolutely. Absolutely. I just want to caution that we are focused and we believe this is the constructive way to think about the market. But we're also very cautious and making sure we're cognizant of all the market risks. So I want to be sure of that. And frankly, it goes into our other point of making sure you limit your downsides. The other reason that we think it's important to stay invested is it's just so painful to not be invested. As we all know, and as I alluded to before, government debt is going up and to the left, up and to the right, unfortunately. There's just more and more debt being accumulated as we continue to deficit spend. That means, unfortunately, that the purchasing power of our dollars are going down. And so this is not an environment where you can sit idly in cash and hope to protect your purchasing power. It is an environment where we need to play offense. Jack Dempsey, one of the best boxers of all time, was able to defend himself by playing offense. Just punching and punching. And frankly, as an investor, that's kind of the mindset that I want our clients to have, which is to say, you need to own productive assets. We can't sit idly in cash. The core of every investor's portfolio ought to be owning world-class businesses that are capable of both defending and growing your purchasing power by compounding earnings at a high rate for a very long period of time. So how do we do that? Is it possible, Michael, for us to both protect our assets, protect from those downside drawdowns, and also grow our capital and own productive assets? What say you, Michael? I say that both are incredibly important. And you just laid out the case to grow. So it reminded me that we talked on our webinar last month about what a lot of folks will have heard about by now, I'm sure, which is the idea of a K-shaped economy. In other words, some folks are doing better than others. A really simple way to think about it is the folks that are doing well are the ones that own assets, high-quality assets. And so, yeah, if you're not in that group, unfortunately, you're being left behind. At the same time, like you said, market's expensive, price to perfection perhaps, not a lot of room for error. So having that downside strategy, super important as well. So growing is one thing, protecting is another. They're reasonably achievable on their own. But having both at the same time, a little trickier. But we do think that we've found a way to do just that in Sam's tactical select. We'll walk you through some of the nuts and bolts of it and why we think that this is an optimal strategy, given the dynamics that Austin just shared with you. But before we get there, I do know that there's a lot of folks that are tuning into this that are not Sam clients that maybe are not as familiar with this. So wanted to spend just a bit of time talking about who we are and what we do before we jump full into the strategy. So for folks that don't know us as well as others, we are a registered investment advisor. We were founded a decade ago, Austin. We're celebrating our 10-year this year, which is pretty incredible. I joined the firm in 2017, so I've been around for most of the ride and have seen our assets under management go up about 10x to around $1.3 billion today. It's pretty remarkable. And we're, of course, an asset manager. That's right in our name. But we also do holistic financial planning as well. And we do that for individual investors and their families as well as institutions and businesses. We'll be talking about tactical select today. That's one of our strategies, but it's one of 10. We do a lot of different things for different people because folks come to us for different reasons, with different goals and different preferences. So we're not a one-size-fits-all type of asset manager. That includes alternatives. We launched our first alternative strategy in 2023. So that is part of what we do as well. Locations, four primary locations in the U.S. and growing. So nice to see that map start to fill up. This is the assets under management I referred to. This is looking at it on an annual basis. You can see it's a nice-looking chart. And like I mentioned, being on almost at the beginning, it's really been something to be a part of and see it grow. But the other thing that really jumps out to me is we've had some pretty sizable bear markets during that time. Of course, COVID and also the bear of 2022, which is the one we have circled there and highlighting that we actually, despite markets being down, equity market being down 20%. But frankly, just about everything was down that year, whether it's crypto, real estate, bonds, you name it. That year for investors, we still grew. And part of that is the significant outperformance that we had that year. I don't know if folks that aren't in the industry can really, if they think of it the same way as we do. But when you've done this for a while, I have a lot of folks in the business. As I talked to Austin the same, I know that for me, when I mentioned to folks that we actually grew assets in 2022, that's like mind-boggling to them. Because it was a year that not only are a lot of asset managers losing money in accounts, but it's also a frustrating time for investors. It's often when people decide to leave their current manager. Not the case for us. We really performed well, really built a lot of goodwill with our clients, frankly. So been a nice 10 years so far. I mentioned we had 10 different strategies. This is a look at them. And we have the alts in there as well. Really, these are tailored for our clients. People come to us trying to achieve different things. Sometimes they're focused on capital preservation and maintaining their wealth. Other folks are looking for income or are more growth-oriented. And of course, for a lot of investors, it's a balance between those goals. So depending on what folks are trying to achieve, there's an optimal balance within these strategies. That is part of what we do, frankly, when people join the firm is figuring out which one of these strategies or which combination makes sense for them. It's not something we expect them to know on their own. So we walk them through that, and it's a process that we do together. Let's hop into tactical select. You can see the slide we call the best of both worlds. And what that alludes to is there's this sort of dichotomy in the investment world where a lot of investors consider themselves fundamentally focused investors. And that's the world of income statements and balance sheets and that sort of thing. There's other folks that are more quantitatively driven. And that was always puzzling to us. We, you know, there's opportunities to make money in both. Why wouldn't you use both is the way that we looked at it. And so that's exactly what tactical select does. We start on the fundamental side. So there's nothing that goes into tactical select from an investment standpoint that we don't love from a fundamental perspective. And, again, fundamentals, meaning we're doing the company analysis, we're doing industry analysis, and the broader economy has to check all those boxes for us first to even be under consideration. Then on top of that, we overlay that with a lot of different quantitative tools that we'll talk about shortly. We use platforms that I'm sure some folks tuning in will be familiar with, like Tradesmith and Chicken Analytics. And we also have a robust amount of tools that are proprietary to SAM that we use internally. So we layer all those, and we kind of get the best of the best, Austin. And fundamentally sound companies that we love, but that pass these quantitative screens as well. That is what tactical select is. Yeah, no, I think it's great. And it's a great way to set it up. This thing has grown. So the assets under management continue to grow over those three years. It's now more than 20% of our total assets, which is fantastic. I just wanted to echo your point and just thinking back. So we have three years that we've been investing capital, but we started brainstorming and thinking this through kind of four years ago or maybe four plus years ago. And it was really for that very reason you identified, which is I know in my investment career, there are so many this or that investors. There's growth or value. There's small cap or large cap. There's domestic or international. There's debt or equity. And then one of those is fundamental or quantitative. And we've always and I've always wanted to be a hybrid or a tweener investor. Can't you take the best practices from being a fundamental investor and marry them with the best quantitative intelligence tools that you have on this side? And so, yes, that's what we've done here. But to be clear, it starts with a fundamental analysis. And we just thought we'd go through what it means for us. You mentioned kind of going through the financials and all that. And we do we do a lot of that. And we're talking with management teams. We're we're we're on conference calls. We're going through transcripts and publicly traded financial state or publicly available financial statements. These are the types of attributes that we're really looking for. We are drawn, you know, not neat. None of these by themselves is a sufficient condition, but they all together are add up for a great mosaic of a type of company we're looking for. We're looking for industry leaders. Those that have demonstrated somehow to be able to grow faster and take market share in the market. So emerging industry leaders count in that game. We're looking for secular growth. Growth really is helpful in generating strong returns over long periods of time. We're looking for healthy margins. Businesses that can that haven't a moat. And you see that moat on the bottom, but they have a business that's that people want. And so they can generate not only good margins, but also skipping down one strong returns on incremental investments. So if you have strong returns on incremental investment and you have a strong balance sheet, a fortress balance sheet, then you can invest back in your own business and generate strong returns. We want them to be well run. That means a lot of things for us, Michael. As you know, we care very deeply about management being ethical, having skin in the game, but also being well run. You know, of course, those visionary leaders, those founder led companies are great. We frankly, we both like folks that are operationally efficient and importantly make sound capital allocation decisions. It's our capital and we want them to invest it right. And then, of course, like I said, we want those companies that have a durable franchise, a durable moat around their business. That's the fundamental piece. Why don't you talk about some of the quantitative tools we use? Absolutely. And just to, I guess, end on the fundamental note before we move, I'm just thinking about the compounding interest chart that we looked at earlier. All of those fundamental factors, if you have those working in your favor, you make life a lot easier to achieve returns that look like that chart that we looked at. Yeah. I mentioned there's a lot of different tools that we use. And each one of these next few slides could be a webinar on their own. So I'm just going to touch on them at a high level. But in addition to the internal tools, the proprietary tools that we have, we use others as well. One of them is through Tradesmith. I have the Tradesmith platform up all day long, checking it regularly and just highlighting a few of the things that are on the platform here. We're looking at a stock rating here. This particular stock that we're looking at is rated strong bullish. So they have ratings on the stock itself, but look at a lot of different things from technicals and RSI to the quality score of the business. There's a lot. Austin, we actually had multiple slides because there's so much on the platform and we didn't want it to be overwhelming. But folks that use it know there's health of different market indices. There's greed and fear gauges. There's just so much that we like to look at on here. But just a little sampling from Tradesmith. We use other platforms as well. Chakin is definitely one that we look at regularly as well and value highly. This is a particularly good rating that I threw in. They don't all look like this, which is actually good. We don't want them all to look like this in terms of the whole universe of stocks. We want a smaller list of the highest quality companies because that's the type of stuff we want to invest in. But a lot of folks are familiar with the power gauge. That's what we're looking at, which looks at, again, financials, earnings, technicals, a pretty robust way of looking at the market, which is exactly what we want to implement in Tactical Select. Another is Stansberry Research. Austin, you know I talk about the Stansberry score a lot. I find it awfully helpful just to get a picture of what sort of stock you're looking at. The one that we have on the screen is actually the number one ranked stock in the Stansberry Watched Universe for their Stansberry score. And even the number one stock didn't get all A's. So this is not an easy A type of class, if you will. But you can see Stansberry score looks at things like the financials, capital efficiency is highly ranked, which is important to us. Valuation matters, of course, and then also momentum as well. So it's another example of a tool that's available to us that we incorporate in our decision making. As mentioned, we look at those, but we also have a lot of internal models as well that we look at many, many different factors. We've listed some of them for you here. Going through all these would probably be a lot, Austin. But the one that I wanted to highlight out of all these, because frankly, we get a lot of questions about it from folks that want to know about our quantitative style. Do you use trailing stops? And for tactical select, absolutely, we use trailing stops. That's why we have it at the front, top row there. You know, we want to highlight that, yeah, that's something that's important. But I do want to have a bit of a caveat there in that when a lot of people think about stop losses, it's sort of this like static number of if the stock drops X percent, then I'm going to sell it. And it's just some arbitrary, maybe it's 10 percent, maybe it's 15 percent, whatever. That's not how we use trailing stops. We consider how the stock tends to behave, how volatile is it, and we adjust the stop loss according to that. And for folks that manage their own money or have in the past, you know, this might sound familiar. I mean, if you invest in some pockets of the market and the ones that come to mind immediately are like maybe like a really tiny mining company or a really speculative biotech company, for example. Those type of stocks can move up and down, you know, 10 percent in a day on no news whatsoever. It's just sort of how they move. And if you were to invest in those because you thought it was a good investment and saw some opportunity, but you had a really tight stop on it, odds are you're going to get kicked out of it before you ever get to realize the upside that you were planning on. So for us, taking into account the typical volatility of the stock is very important. And put simply, if it's a low volatility stock, we tend to have a tighter band on it. If it's typically a more volatile stock, we want to give it a little bit of room so that, you know, we aren't kicked out of it unnecessarily. Yeah, Michael. Yeah, I think it's a great process that we have. We back tested it. And there's many different ways to do this. I'm curious to ask for folks that might have this question. You mentioned that not, you know, what happens if our proprietary tool likes a stock, but Chaken doesn't or Tactical Select doesn't kind of, you know, we're using multiple quantitative tools here. How do you kind of circle the square and how does that work without giving away our secret sauce? Okay. Good that you tacked that on. Yeah, it's a great question. And frankly, it's one of the reasons why we have multiple platforms that we look at and have these factors and a lot of others that we look at because it helps inform our decision. If we only had two metrics that we looked at and one says, this looks awfully good. And the other said, definitely stay away. What do you do with that? It's pretty hard to make a decision. But when you have a lot of different metrics that you're looking at and to kind of touch on that secret sauce part that you looked at or that you mentioned, frankly, we've done a lot of testing on these. We've done a lot of backtesting. We've done a lot of analysis and research. These are all important indicators that we're mentioning and they're all useful tools, but some are more predictive than others. And we've found that, you know, there's others that we want to lean more into. For that reason, as an example, the factors that you're seeing on the screen there, those aren't equally weighted the way that we look at them. There's some that are much more meaningful than others. So that's right. There's no there is no perfect. Everything's green and thumbs up time to buy it. Frankly, as you'll recall, Austin, when we were doing our backtesting, we found that you get better results by having a little bit of leeway there and not only investing when everything is in quotes perfect. Right. Yeah. No, in fact. Yeah. I think that it's a it's a smaller universe. If every tool has already figured out that it's a bullish stock, the stock is probably already moved because because in many in many of these cases. Yeah. So I would just say I agree with you. We've everything starts with our fundamental analysis. That's the top of the funnel. And then this is really a set of tools. Yes, there are ones that we lean on more than others, including our proprietary tools that help us identify. We've already identified what stocks to own. This helps to identify when to own them. And that's really important, including when to exit. And that's really, I think, part of the the story that maybe we don't talk about enough about. But it is important to reduce risk when markets lose momentum and things are starting to go poorly. And if when we when we think about and I'll actually get to that later, but that's partly the helpful way of reducing drawdowns. And so but I'll leave it back to you. Kind of one of the ways we do is we're strongly diversified. So back to you. Yeah, getting back to the backtest and just the early days of talking through what the strategy looked like. And one of the concerns I had was, you know, if we're. If we're going to be momentum focused and leaning into what's working and investing in the strongest sectors and industries. Well, is that going to be like a super concentrated portfolio where there's there's not a lot of diversification? And thankfully, to my delight, we've found that we're able to identify a lot of great opportunities across sectors and across industries. So it isn't just, you know, a handful of of whatever's hot at the moment. Mag seven stocks till recently, those SAS stocks you mentioned until recently. It's actually across the board. And so you can see highlighted by by this chart, there's all sorts of different and varying industries to give you a bit of a taste, though, as far as the largest ones here. The materials is the biggest industry. A lot of that is gold. It's not 100 percent gold. But just to give you an idea of the type of stuff that's been in the portfolio, that is an industry that we've been favorable on. Capital goods is the next largest. And that is in itself an incredibly diverse industry. But just to give you an example, like aerospace would be one type of company that you would find in there. But yeah, really, really invested in opportunities across the board. Yeah. Austin, that's. A sense of diversification that I think a lot of people are probably familiar with when you think diversification, it's often sector, industry, maybe different countries. But we look at it from a factor risk perspective as well, which maybe folks aren't as familiar with. Yeah, exactly. And that's right. And these is kind of our own buckets of factor risks. And when we talk about risk, we're also talking about upside reward opportunities as well. So. We want to make sure. So, for example, if you looked at the the classification of something by sector, banks are included with insurance companies and in many cases included with credit like credit card networks like Visa and MasterCard. Those are three very different businesses. And so we like to also look at things by risk factors. Banks, generally speaking, have the same risk factors. We put them around, you know, default risk, interest rate risk. And so versus our insurance companies that are also very similar. So it's a nice way for us to look at risks on a different way beyond just sector concentration. So let's get into the meat of it. How have we done? So over the last 36 months, we think we've done quite well. So if you look at the total returns, we generated fifty five point eight percent returns net of fees over the three year period. That's favorable to the S&P 500 equal weight, which is the benchmark. Mark, nearly 38 percent return. In other words, almost eighteen hundred basis points are 18 percent better over a three year basis. What does that mean on an annualized basis? We talked about that compound annualized growth rate. We're generating a 15 percent compound annualized growth rate versus the S&P equal weight at about eleven percent, a little more than eleven percent. But these next three, though, are what most important to me. We're doing it with lower levels of volatility. So three quarters of the volatility and importantly, you know, about a third, a little more than a third of the drawdown, the negative drawdown. So the if you think back to pre liberation day, the markets have peaked and they drew down by 18 percent. And this strategy was was only down over that period, that max drawdown period, seven percent. That's huge. That means that we're that much closer. In fact, we were roughly flat on the year at that point. And that means that as things get better, it's just easier. We have less of a hole to come out of that, that combination. So generating strong returns, but doing it at lower levels of volatility creates something we call alpha. So i'm sure people on the call have heard of this concept. But really, if you think about your returns from a set of investments, one is your risk, your market risk that you're taking. That's your beta. And the other piece is your alpha, which is your individual, your security selection. It's the excess return that you've created based on picking the right investments for that period or good investments for that period. We're just very pleased that this is generating on an annualized basis so much alpha and that and doing that in a way that's we think, again, very suitable for the market going forward. I want to repeat past performance is no promise of future performance. But this is the type of return profile that I would want to be looking for prospectively, thinking out with markets a little bit shaky, but also wanting to generate sturdy returns. I mentioned earlier, having friends in the business and sharing things with them. This is another one that I'm not sure like folks maybe not are not used to hearing alpha on a daily basis or something. But this is one I'll tell, you know, advisor friends of mine what it's doing and they kind of get them. Really? You know, these are these are difficult numbers to to put together. And you can find strategies that have big returns, but might be taking a lot of risk. You can find strategies that are lower risk, but you're probably sacrificing some some returns with that. We have early in the presentation. Is there a way to grow and protect? That's that's what these numbers are. That's what we're looking at right now. Yeah. Now, for clients, you know, we're so pleased to have delivered this return profile. But, you know, I want to say it's not perfect. It's not like we're going to outperform the market every day or every month, even though we have done well by our clients over the 36 month period. So thus far. And so I just wanted to address that. Like, you know, we go back and forth and we've talked about, you know, under what conditions do we expect tactical select to do the best? And under what conditions do we expect it to do less well? And my answer for that, and I welcome yours as well, is it's really suited for a market, you know, that that is not vacillating between leadership and laggards. So if there are certain markets and some of that is momentum, but it's also just kind of industries and earnings revisions. And so if you're in a flat market, if you're in a continuously up market or if you're in a down market, a market losing momentum, we think tactical select is nicely set up to perform well, outperform, perform optimally in those scenarios. It's actually the scenario that we got in 2025 that's the toughest, which is the market and all of the leaders lost momentum and around April and then snapped on, you know, on, on, on news about on tariff news snapped right back. So tactical select protected us as, as, as the market was going down, but it wasn't as quick to bounce back as the rest of the market. We still finished the year solidly in double digit returns, but that's the kind of environment that is most challenging. And so I just, I just wanted to sort of share that with folks. I don't know. What do you think, Michael? Yeah, that's a hundred percent what I would expect, what we saw in back tests and what it's been like in the real world as well as if you have a market with strong momentum, clear leadership, it's probably going to do the best there. If you have, you know, a sort of whipsaw market where you get getting a lot of choppiness and then clear which, which way things are heading. It may have a tougher time in that market, but, you know, to be able to put up double digit returns in a, you know, a tougher, you know, perhaps least ideal type of market is, you know, speaks to this, not needing to have any one particular market environment to do well. Right. And again, I point to the max drawdown. I mean, that's, we're going to save our bacon by saving your bacon. And that's really kind of the market that it's going to, on a relative basis, perform the best is, is by reducing those drawdowns. Maybe you could talk about Fiserv. Yeah. I mean, speaking of drawdowns, this is for folks that don't know Fiserv, they are a company that, I mean, it's a broad, broad business, but they offer technology for financial services and payments and was a great stock to own for a long time. And we had it for a while, including in tactical select, but we started to notice some changes, some of those quant measures that we mentioned and, and things that we look at like margin compression and a loss of momentum and earnings revisions at all. Nothing like radical, right. But starting to kind of chirp a little bit, if you will. And so that got our attention and we took a closer look and that encouraged us to, to exit where you see on the chart. And to be clear, what we're looking at, the green line that, that manages to keep going up is the S&P 500. The blue line is Fiserv. Yeah, we, we sold it to be clear on the, where the arrow is pointing to. Dropped 70% after that. So saved our, our clients at Son of Capital in, in not holding that one. Let's, let's talk about a more positive one, which has also been a holding in tactical select and that's Kinross gold. Gold in general. And I mentioned we have a gold exposure in our materials industry allocation. Tactical select signaled to us to own gold pretty early in gold's rally that's been going on for a couple of years now. So we are fans of gold in general. We think it's a fantastic wealth preservation asset. And it's been a heck of a time to own it. And, and frankly, we think that there could be more ahead given a lot of the uncertainty out there, inflationary risk, geopolitical risk. It just makes sense. So it is an asset class that we like. Kinross gold, for those that aren't familiar, is a major producing miner. And reason that we like this over some of the other miners, there's multiple reasons. For one, costs matter. One of the terms you hear in this industry is the all-in sustaining cost or AISC. That's essentially what it costs them to bring the gold out of the ground, right? And their AISC is ahead of most of their peers at under $1,500 an ounce. When gold is, you know, 5,000 an ounce or north lately, that makes for an incredibly profitable business. So they've been enjoying that to be certain. Will it happen going forward? You know, if we knew the price of gold, that would be an easy thing to determine. But what I would point out is that expectations for this stock are not where we think they should be. And you see this in, we talked about earnings revisions for a bit. Analysts tend to be a little slow on these gold companies. And as the spot price of gold moves higher and higher as it has, it can take them a while to adjust. So the expectations for 2026 for 70% growth over the previous year, which is already stellar growth, right? But even at that level, we think it's understated compared to where spot prices are at now. Simply put, can beat expectations, which send stock prices higher. Beyond cost and beyond gold spot prices, you know, when you talk about mining, you are talking about depleting assets, right? You can only dig so much out of the ground. So it's important that these companies have a pipeline of assets to continue to grow, to continue to mine. And they have an excellent production profile in North America already, looking to extend that with some mine life extensions and some other projects. Most notable to me is one called Great Bear, which, you know, we don't usually like the word bear around here. But in the case of Kinross is a good thing. This is going to be a transformational mine for them, producing about half a million ounces of gold a year at just a sort of mind-boggling AISC under $900 an ounce. You really don't see that hardly anywhere, particularly in North America. So this is an incredible asset to own. This one has been good for us, as you'll see on the next chart. To be fair, not every tactical select holding is going to look like this. But from our purchase of Kinross in the strategy, up well over 500%. So we are fortunate, again, to get in pretty early with Kinross and with gold in general in this strategy. That's the idea, right? We're getting an alert on companies that we fundamentally like already that have potential to really take off. And as you can see, Kinross very much took off. If it were only this easy for every investment, Michael. But yeah, no, we're doing our best to try to find other ones like this. Another example of a name that we like quite a bit, not quite the performance of Kinross, but really a strong business, strong, steady, Eddie sturdy, well-run business is Parker Hennepin. So they are the leading player in the motion and control industry across a lot of different market verticals. But we think they're really well positioned for secular long-term growth. So what do they do exactly? Well, they are in the motion and control industry. Their biggest products are hydraulics and pneumatics. So lifting or various types of vehicular and electronic motion, industrial motion. They also do filtration, multiple types of fluid handling, and lots of electronics to put all these things together. I think a cool stat that we talk about is they're so vertically integrated and interconnected across their technologies that two-thirds of their revenues actually come from businesses that buy four or more of their technologies. So they're not just a one-stop shop. Kind of like Sam. I think two-thirds of our clients have at least three or four strategies. I think that's what it is. Now, but listen, we think that they are so well positioned for growth, not just because of the way the business is run. They have a very strong management team focused on operational excellence and strong shareholder returns. They do buybacks and dividends. But the secular growth of their industries is really strong. So we're flying more. More of our world is digital. More of it is electrified. And frankly, all three of those things require big CapEx projects. So they're set up well in those parts of the world and industry that we're talking about that should grow well. And the fact that they invest a lot in being market leading in terms of innovation and R&D and that they already have a great distribution process across these different loyal customers means that we have high, strong conviction that this is a great fundamental business. And then important also for its inclusion in tactical select is that they've been one that has been able to increase their, improve their performance over time, steadily make this business actually better each year. And we really like that as a part of the investment process. So I just wanted to reiterate that tactical select, we think is a fantastic product for certain investors, probably most investors, but really the way for you to optimize your investment results, whether it's with us or with someone else, is to make sure that it's tailored for you. We like to say that every investor has some combination of just three goals. They want to get wealthy or get wealthier. They want to grow their wealth. They want to stay wealthy or they want to live wealthy or generate current income on which they can live on. And so our strategies are invested and built with these goals in mind. Every one of our strategies in those first three columns has that goal as a primary goal, although it probably also has secondary goals. And then we have strategies that have more of a balanced mix. We also have different strategies based on your investment time horizon and your appetite or tolerance for risk. If you want to generate higher returns, you generally have to take a little bit more risk. And so our goal is to put together a set of strategies that make sense in the abstract. And then we want you to work with our fantastic wealth managers to understand which of these strategies and which combination of these strategies is perfect for you. Trying to think through, you know, your own goals, what financial success means for you. And in the context of that, let's think about your retirement plan and let's think about your estate. Are you are you investing to utilize your assets over the rest of your life or is it something you're thinking about in terms of legacy and over longer periods of time? So we want to help you with that. We want to sort of identify ways that we can be helpful, sort of rounding out that entire financial picture. And the investment management piece is really just a part of that. That's all I had, Michael. If people want to learn more, our clients, you know, I think the easiest thing for you to do is to talk with your wealth manager. We're all, of course, available. But if you want to learn more about Tactical Select or if you said, doggone it, I heard you talk about it before, but I haven't gotten in. Reach out to your wealth manager. You know, we've welcomed some prospective clients or folks who are not clients yet on this webinar. How can they what do you suggest they do as a next step? Yeah, for folks that really want to determine if this is for them and how Sam might fit into their picture, whether it's Tactical Select or one of the other strategies that we mentioned. And the best thing to do is scan that QR code that we have there that will enable you to set up a complimentary review. It's not something that we'll probably always have the bandwidth to do, but we've made folks available for attendees of this webinar that want to take advantage of that. That would be my number one recommendation. You can see there's other ways to contact us as well. Our number and email are there. You can visit us on the website and contact us that way as well. So, you know, whatever works for you. Just let us know at the end of the day. It's raising your hand, right? Yeah. And listen, Michael, I'll give I'll give one even one easier way to raise your hand. If you go to the up to the questions box on this website, just click in, just type type into that. I'd like to learn more about Sam. We'll be happy to reach out to you and schedule a conversation and get, frankly, a complimentary review with one of our investment professionals. If you'd like to get a financial review. The other thing I wanted to share with folks is for clients and prospective clients alike. If you'd like the these slides, we can send you a copy of these slides. No problem. So just also in that question box, say, hey, I'd like copy the slides and we'll send those those your way. I think that's about it. Any any closing words? Michael, I appreciate your help on this. You know, you help me manage this strategy on a day to day basis. We're excited about how it's going. It's one of these where, you know, we're not this is not a a victory lap. This is a we're just getting started and excited to have more people along for the journey. Absolutely. Now, when you're when you're in the trenches day to day like we are, you don't always, you know, take the opportunity to, you know, take the big view and and see like everything that's accomplished over three years. But it's it has been pretty phenomenal. But to your point, I think there's lots more ahead. And especially given the dynamics of this market, seems like an optimal way to go about it. So hope folks enjoyed this. We're really pleased with what it's doing. And and frankly, getting great returns and lowering risk is kind of the holy grail of investing. It's not easy to find. And that's exactly what we've done with this. So couldn't be more thrilled. Yeah, no, I think that's right. And I would just just add one final comment. And I think our clients know this, but I think it's important. And I would want to know if I was thinking about a Sam or adding to my account at Sam. And that is that we take this job very, very seriously. It's an important, you know, managing your capital and your nest egg is is a great honor and a huge responsibility. But I also want you to know that we have skin in the game even beyond that. That's I think that's a lot of skin in the game. But everyone on the investment team has investment accounts and investment capital sitting along along right alongside you paying fees. So we have decisions. We have skin in the game for every decision investment decision we make. And we're doing what we think is best. This is a tough market where I do think we need to both. Grow and protect our assets to make sure that we're defending our purchasing power and your purchasing power and putting ourselves in a great position long term. And we're excited to do that. And we're we're invested alongside you for that ride. And we hope you you join us and continue to join us for that. So just wanted to end with that. Thank you, everyone, for attending and reach out to us with any questions you have. We really appreciate it. Thanks, everyone. Thanks a lot.