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Hey Investors,

Before I dive into this month’s stock picks, I wanted to give you an important heads-up:

This will be the last dedicated stock pick edition of this newsletter.

Over the past year, my personal investing focus has evolved. I’m now spending the majority of my time buying private businesses and building a portfolio of simple, cash-flowing companies — my own version of a Mini Berkshire Hathaway.

Public markets will always be part of my thinking, and I’ll continue to share investing insights from time to time in my weekly newsletter — whether that’s public companies, industries I’m researching, private deals, or mental models for building long-term wealth.

But going forward, I want to make sure this newsletter reflects where I’m really headed — and where I can deliver the most value to you.

As part of this shift, I’m also building a private list of accredited investors who may want to co-invest with me on select private business deals in the future.

If that’s of interest, you can request to join my private investor list here.

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If you’ve enjoyed the stock picks — thank you. I hope you’ll stick around as I take this next step.

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Now — on to this month’s picks…

Dakota Crisp, PhD

#3 Energy Transfer (ET)

Background:

Energy Transfer (ET) has seen its stock trade in a relatively tight range over the past year. Despite strong earnings and consistent distribution increases, investor sentiment toward the midstream energy sector remains muted — partly due to macro fears about recession risk and partly because many investors still favor growth stocks over yield plays. Recent softness in natural gas prices has also weighed on the sector. Yet, ET continues to quietly generate robust cash flow.

Thesis:

ET is a cash-flow machine with one of the most extensive pipeline networks in the U.S., covering natural gas, NGLs, crude oil, and refined products. Its assets are nearly impossible to replicate (a moat of steel and regulatory barriers). The company has focused in recent years on paying down debt and raising its distribution — now yielding over 7%. Free cash flow after distributions remains healthy, giving room for continued deleveraging and future growth. Energy demand — especially for LNG exports and NGLs — provides long-term tailwinds.

Conclusion:

ET offers an attractive asymmetric opportunity: limited downside due to long-term contracts and essential infrastructure, but upside from yield compression (if rates fall), further debt reduction, and rising global energy demand. In a market starved for reliable income, an 7% yield from irreplaceable assets looks awfully good. While many chase shiny growth stocks, patient capital can lock in cash flows here.