Hello reader, welcome to the latest issue of HX Weekly!

Each week we bring you a new edition of HX Weekly that includes three distinct sections.

In the first section, Thoughts on the Market, we'll offer insights into current economic and market news.

In the second section, HX Daily Redux, we'll revisit investing concepts, tactics, and more from past issues of HX Daily.

And in the third section, Market Wizard’s Wisdom, we’ll share thoughts, quotes, and theories from the greatest investing minds of all time.

Now, let's dive in!

Thoughts on the Market

Reader Feedback FWONK

The other day, we received an excellent note from one of our subscribers.

His name is Brain S. and he wrote in asking about one of our favorite positions, Formula One auto league racing company, Liberty Media Corporation – Liberty Formula One (FWONK).

While specific to FWONK, his line of questioning was an excellent one, and also a common one.

For this week’s HX Weekly, we have decided to share his note along with our direct commentary.

We hope you enjoy the note and analysis…

“Good Saturday Mornings Fellas! Didn't get to ask the question during the meeting yesterday. Your thoughts on why FWONK is trading down after all their good news of acquisitions, AND great EPS beat earnings. They beat EPS by like 58%!! Isn't that awesome?? FWONK had GOOD News AND NUMBERS!” -Brian S.

FWONK reported on February 26 and as Brian said, they reported good numbers.

Here is the chart of the stock over the last year…

In the specific case of FWONK, the timing of the report certainly made a difference as the stock market overall has been under pressure given the Middle East conflict.

FWONK also has direct exposure via several extremely profitable races that will likely now be cancelled.

If anything, the price action of the stock since the report in light of the overall market is decent.

The issue is that the stock had been selling off since late September going into the number. 

“So then you have to think, was FWONK overbought beforehand and people take their profits after earnings with the war or other non-factors in their mind. We can't read peoples' minds, but we can notice patterns over time. I've not been around long enough to understand those factors. (And maybe this is a future HX Weekly article or talking point).

There was something I read about them maybe splitting the business into another ticker and wondering if that is why it's trending down? If the "good" part of the business was leaving "FWONK", then that would make things worse, would it not?” – Brian S.

In this case FWONK was not actually overbought going into the number, it was pretty over sold. 

The negative response after the report is likely simply being driven by the market. 

The spin-off reference here already happened in December 2025 and the only business that is left is the “good” one.

“I know not every stock pops on good or bad news alone, but I never can tell from just the chart what all I need to know. Do I need to go to factors like:  Is price to sales high, or industry/ competitor P/E ratio lower than the stock you're analyzing?  Are there big names supporting the stock at the price range by large investors (Like Blackrock, etc.) so it's not going to fall more? I don't always simply trust just the RSI, because I've seen things go way lower and stay in a 20-30 RSI for a while. (GWRE...Boston Beer back in the day for a couple of examples).” – Brian S.

This is the part of Brian’s note that really interested us and why we wanted to write this response.

Investors, retail and professional, are often inundated with a huge amount of analysis.

The Wall Street analysts look at any number of metrics to try to sound “smart” on the stock. Brian references too examples here like a high “price to sales” ratio or it being expensive to comparable companies.

These relative measures are almost never at all relevant. They are simply put forth to explain movements that don’t really have any more explanation necessary than the normal “waves” of buying and selling in a stock.

Likewise, trying to figure out the movements of large investors is impossible. 

For FWONK, we come back to one simple thesis.

Formula One is viewed by 827 million fans worldwide and those viewing rights produce $1.2 billion of fees for FWONK per year.

The NBA has about one quarter as many viewers but makes almost $7 billion per year. The NFL has even fewer viewers and makes almost $12 billion per year.

Now, the majority of the viewers for the NBA and NFL are in the highly profitable USA, but our view is that this gap is too large. Over the coming years it will close and that is 100% profit to FWONK.

THIS is the only variable that really counts for the stock.

As long as you think that this happens, then the relative “price to sales” doesn’t matter much.

Neither does whatever happened over the last six months in the stock price. 

“There has to be a recipe of factors with which I'm not familiar. Or if the stock had enough momentum hitting highs, and the big dogs recognized taking profits. Which isn't the case here, it's somewhat level RSI before earnings, I think around 40 to 50. So definitely NOT overbought by the chart history or the RSI. It was in a downtrend before earnings, almost hitting previous year's lows. Smaller, relatively unknown stock, maybe just doesn't act "normal" or have a predictable pattern. Volume is usually capped around 4 million?? Correct? (Relatively low compared to larger caps?) But going down was not expected. Level or up would be the expected outcome.” – Brian S.

Not be repetitive but we go back to our point above – FWONK is a single variable stock in our view.

As long as you believe in that thesis, then the short-term movements are not important.

These are the kinds of long-term ideas we like to identify for our readers. 

“More importantly, are y'all going to tell us when there's a can't miss BTFD moment in any of the Legacy picks? I'm watching SMCI (well that's not y'alls pick but a Louis Navellier, Eric Fry, and Porter Stansberry one), VOYG, NU, and FWONK for a good bottom to load up calls. I guess no one has a magic crystal ball, but it seems NU and FWONK are BOTTOM bottoms, no?  Am I missing the website telling that info, because I rely on What'sAPP and our Friday zooms? (What'sAPP has been an AMAZING addition, kudos for that!!) Excuse my ignorance if I need to be periodically checking the Legacy page, I'll need to start making reminders to go in there every month or so.” - Brian S.

With any of our products we will also be very vocal about any movements. So, when we think there is a REAL buying opportunity we will step up.

…and thank you for your kind comments on the WhatsApp group. We are very proud of how that has developed!

“Side Note: I know Enrique watches a little ball since you mentioned Suns games, but don't know about you, Mark. During March Madness... be sure to watch my Arkansas Razorbacks. We have this PG named Darius Acuff. He's going to be a top 5 NBA draft pick. This kid is HIM!!! We won't ever have another PG come through here again like him. He does EVERYTHING! HIGH IQ -- sees the court and can feel the court instantly for open teammates, 40% 3 bombs, can take anyone to the rack like Marbury/ Iverson. Handles for days. Invites contact and finishes. He can't be stopped! We finally got a decent coach in Calipari after years of mediocrity since Nolan Richardson left. AR b-ball is BACK!!” - Brian S.

Will be pulling for the Razorbacks as I continue to watch my Phoenix Suns’ awesome season!

 As always, we appreciate all of your feedback!

For HX Weekly today we are publishing one of our most controversial articles we have ever published. It is a note we published the week after Donald Trump won the election back in November 2024.

When we wrote it, we tried to both capture our own views and feelings but also do so in a way that we thought would stand up over time. Well, mission accomplished.

We are now more than a year into his administration and we feel pretty spot on with our views. You may agree or disagree, but we still strongly support everything in here. Enjoy.

HX Daily Redux

Emotions and Markets

We are sure that this week has elicited a lot of emotions from many of our readers.

Scrolling through our social media, we have seen both the triumphant and the incredibly despondent.

When it comes to significant events like the election, we approach them dispassionately.

Not because we don’t have feelings about what is happening but because our focus is on MAKING YOU MONEY.

We need to focus on what is happening rather than what we want to happen. Then we prepare and react.

Plan the Trade, Trade the Plan.

With a couple of days gone by, though, we have had some time to reflect on the election outcome.

It elicits a couple of strong emotions.

Before we discuss those feelings, though, we want to tell you why we are writing this particular issue of HX Daily.

This is not a political statement. This is a note where we share our personal feelings.

Like many of you, we have mixed feelings about politics and the election. Our feelings would be mixed regardless of the outcome.

Discussing our thoughts is the most productive way to move forward. It is also the best way for us to refine our process and figure out how to navigate the markets, which is our ultimate goal.

Our first feeling is one of DREAD.

To be honest, we don't like Donald Trump. His bombastic and antagonistic personality is the type we actively avoid in our personal lives, and it is also not what we would like to see in the office of the President.

We do, however, see how this type of personality could be useful in that position, especially given the types of folks we have had in that office over the last few decades.

We don't like him, but we can see how these unsavory personality traits would be useful.

Our bigger issue is that Trump is a narcissist. He cares about himself and his ego above everything else.

In real life, a couple of ten-minute conversations with him would feel like a lifetime. That would be an inconvenience but not a problem.

With him as President, though, you have to ask yourself at one point if he is making decisions for himself rather than the country.

Interestingly, we DO think the country is important to him—VERY important. We believe it is a close second to himself.

This is similar to many politicians. Perhaps the biggest difference with Trump is simply the magnitude.

Ultimately, our "dread" is less about the outcome of what is going to happen as a result of his unpleasant personality and more about having to sit through four more years of the constant noise—his rants and the media attacking him.

We are NOT looking forward to that at all.

Our second emotion is RELIEF.

While we dislike Trump as a person, we agree with many of his policies.

His first term was chaotic. We do not think he thought he would win and – as a result – wasn't prepared.

Being President and running the government is also a very different job than anything else he had ever done. It was always going to take time to figure it out.

Additionally, we think some of his appointees were not "team" players. They saw Trump as a threat to be managed instead of working to fulfill his vision and the voters' support.

Despite this terrible setup, we think the first term had very good policy results.

The economy grew nicely, investment and innovation prospered, and (importantly) global security improved significantly.

We question some of the methods to get us to the results, but the results were pretty good.

Our view is that a second Trump term will do better.

He now has a much better understanding of how everything works. He will also put in place a team that will work with him rather than against him.

The previous four years have felt like a slowly closing vice regarding economic policy and global security. It got worse slowly every day, and there wasn't much chance it was going to get better.

Like a ball rolling down a hill into a ditch, it didn't feel like it could ever roll back up.

This isn't to say that all the results will be great. The implementation method of some of these policies is tricky, and there are no easy fixes.

After a day of reflection, though, it feels like the ball has been moved off the hill and – at least for now – put on flat ground.

That brings me back to my final and most powerful emotion – HOPE.

Our readers may have heard me say this before, but I am one of the most optimistic people you will ever meet.

In order for me to survive my difficult childhood and thrive, optimism was a biological imperative. Without it, not only would I not have seen success, but I most likely would be dead or in prison.

OPTIMISM is the lifeblood of America.

If Kamala Harris had won, I would have been very optimistic about America's future. Even though it would have felt to me that we would continue to slide down several paths that I did not think were right, I was confident we would figure it out.

The worst outcome was still going to be pretty damn good.

That is an uncommon way to look at the world, but it is how I look at America. I believe in that concept fully and have seen nothing in my five decades that would lead me to doubt that outlook.

That same view exists with Trump.

My personal preference would be that we were governed differently from a personality perspective, but ultimately, I think the final outcome is not going to just be good for America. It is going to be GREAT.

I also recognize that “relief” and “hope” are the opposite of what many are feeling out there.

It is easy for our minds to go to the most negative potential outcomes. Remember that our bodies are biologically programmed to react to negative stimulus eight times more powerfully than positive stimulus. Evolution has made us pessimists.

There are many dire predictions about what will happen now with a Trump administration combined with Republican control of Congress. I don’t believe they will happen.

The most important reason I don’t believe them is because I believe in American and Americans. There are reasons these dire predictions have not played out in the past. One of those reasons is the very opposition presented by those that are worried the most.

We are the most optimistic about the next four years that we have been in a good long time. We hope we are right.

We all have an opportunity here to move forward together and continue to build “the shining city upon a hill” that is America.

Here is an article we published earlier this week in Truth & Trends. We thought it was important to share it here as well.

First to honor one of my great mentions. Someone who was taken from us all far too soon. Second because his message is so powerful and one that has likely had the most influence on my own life and career.

Thank you Brad.

Market Wizard’s Wisdom

My Last Day at Lehman Brothers

Wall Street professionals get a bad rap.

Most people have an image in their mind of the cutthroat individual with slicked-back hair who plays by their own set of ethics.

But as someone who spent decades working on Wall Street, I can tell you that these types of people are the exception — not the norm.

The reality is that Wall Street is one of the most heavily regulated industries on the planet.

Every single move is under intense scrutiny. And any mistake, even an unintentional one, could lead to a lifetime ban.

That doesn’t mean these professionals are perfect. After all, they’re still human.

In my experience, however, my colleagues on Wall Street were some of the most honest, honorable, and trustworthy people I have ever known.

As we navigate through the recent volatility, I have been reflecting on one of my old mentors.

His name was Brad Jack, and he was a partner at the venerable Lehman Brothers. 

When I got to Lehman in 1993, Brad was one of the senior executives in the all-powerful fixed-income division.

In many ways, the two of us were on opposite ends of the spectrum.

He was a partner in the most important division of one of Wall Street’s oldest and most venerated firms, running one of their most consequential businesses.

I was a 21-year-old Mexican kid finishing my third year at Wharton as an undergraduate and just starting my career.

Like me, though, Brad had a rough upbringing. He was a tough Irish kid from the Bay Area, and I think he appreciated my work ethic and “grind.”

On the last day of my summer at Lehman, Brad asked me to walk him out to his car at the end of the day.

(Funny story, that parking lot we walked through is now the global headquarters for Goldman Sachs!)

As we walked, Brad asked me what I would like to do in the future.

I told him I would very much like to return to Lehman Brothers, and he said that I had a place there whenever I was ready.

Then he told me two things that would stick with me forever.

First, Brad explained to me how this job could change my life.

Even though I had no money or family connections, he assured me that I could still go on to make millions.

He emphasized that it was truly a unique opportunity in the business world.

Then he told me something that I’ll never forget. I’m going to paraphrase, but it went something like this.

“In this business, you’re going to have a year when you think you’ll absolutely crush it. You’ll have the right seat, the right setup, and everything will be all lined up.”

He said this next part with a chuckle. “And then you’ll probably lose your job.”

“But there will be another time when you just expect to have a good year and nothing more. THAT will be the year when you crush it, and it will change your life.”

Then he said, “Kid, the key is just to stay alive. Stay in the game.”

“If you work hard, smart, and honestly, you will eventually succeed and change the future for you and your family.”

Those words have stuck with me for the last 32 years.

What sticks with me most is that Brad’s advice is true for everyone — not just Wall Street professionals.

The opportunity to participate in the stock market is a unique experience for us as Americans.

If you put your mind to it and do things the right way, then you can use this opportunity to change your life.

The key is making sure you stay in the game.

Sometimes this will mean walking away from your favorite bets. Other times, it will mean taking a break for a month.

It will always require incredible discipline.

But if you stay active in the markets, you will have the opportunity for life-changing wealth.

Unfortunately, Brad left us way too soon, passing from pancreatic cancer in 2019 at the much too early age of 60.

His guidance, though, has stuck with me all these years. And hopefully, I can pass on his wisdom to you.

We hope that you’ve enjoyed this week’s issue of HX Weekly…

Do you have any thoughts, questions, or feedback? Tell us more in the comment section or at [email protected].