You are a free subscriber to Me and the Money Printer. To upgrade to paid and receive the daily Capital Wave Report - which features our Red-Green market signals, subscribe here. Beyond Warren Buffett: The New Recipe for Wealth Building and Income ProtectionDon't think about the 13Fs... think about the strategy...
Dear Fellow Traveler: In his latest 13F filing (as of June 30, 2025), Berkshire Hathaway… under Warren Buffett… boosted its position in Pool Corporation (POOL) and Domino’s Pizza (DPZ), the latter being one of my favorite companies in the world... but I don’t eat their food. Pool Corp. is fascinating too… It’s a niche yet dominant distributor in the pool maintenance space. It fits the sort of capital-efficient, high-moat business within Buffett's playbook. He wants strong recurring demand, pricing power, and durable cash flows. This move reminds us that Berkshire Hathaway wasn't just built on stock-picking genius. Berkshire Hathaway has always been a structural masterpiece. Buffett created the ultimate permanent capital vehicle. It’s funded by low-cost insurance float and leveraged at roughly 1.6x, according to AQR research. Then his entire machine was turbocharged by tax deferral, a topic he’d regularly discuss in his shareholder letters and showcase in the financials... Buffett hasn’t needed to chase alpha… Instead, he controlled time, liquidity, and compounding mechanics. Every dollar would be recycled into long-duration, high-cash-flow assets. The goal was never to maximize growth, but to maximize efficiency, control, and durability. The New Players, Same GameToday, a lateral version of Buffett's original model is emerging… Thing is… It's not happening in Omaha. It's unfolding in Riyadh, Abu Dhabi, Singapore, and Oslo. Sovereign wealth funds have adopted a different version of Buffett's playbook. They utilize permanent capital with little redemption risk and focus on long duration. But they're applying this capital to different kinds of assets…. They’re buying up the physical and digital infrastructure of the modern economy. While Berkshire reinvests in railroads and pipelines, sovereign funds are acquiring and building server racks, AI data centers, LNG terminals, grid access, power rights, and toll infrastructure. They're not betting on capital appreciation… They're buying rent. They're acquiring long-duration, cash-flow-producing assets with contractual income, leasing the future through multi-decade agreements… all with higher yields and stronger alignment between capital and time. Saudi Arabia's PIF is investing billions into U.S. data centers through DataVolt. Aramco is building stakes in U.S. LNG infrastructure. Capital from Singapore's GIC, Norway's sovereign fund, and Qatar's QIA is diving into fiber, digital storage, and power grids. (If you’re looking for a stealth play on the fiber… see Shenadoah - SHEN as an insider darling… that’s doing just that… It’s not big. It’s only $625 million in market capitalization, but insider money is FLOODING into it through the back door… Kudos to Scott Dunn, who works with me, for picking up on this…
I’m just saying… this is the type of thing that I’m looking for… Dollar-denominated, capital-efficient, tax-advantaged, and increasingly vital to the functioning of the American economy. Let’s find more of them… The Infrastructure of CompoundingThe evolution beyond Berkshire isn't just about owning great companies. It's about owning capital-efficient assets with permanent capital, structured to generate income with minimal reinvestment, long-term contractual durability, and insulation from equity market cycles. This last point matters a lot… Even the best companies get crushed during liquidity events… years like 2008, 2011, 2015, 2018, 2022, and 2025. The boom-and-bust cycles driven by global liquidity flows, credit creation, and liquidity crises hammer even the best businesses. But infrastructure assets with contractual cash flows provide a different kind of durability. The New Permanent PortfolioBuffett never lost his touch as a stock picker. The problem - and why Buffett likely struggled against the market in recent years - is that he moved away from what made it great in the first place (and the fact that we keep dropping money from the sky while he’s still focused on fundamentals…) They stopped deploying float into world-class names like Amex, Coke, and Apple… they had redirected capital into capital-intensive, wholly owned businesses like BHE, Kraft Heinz, and Precision Castparts. This, initially, made sense from a tax efficiency standpoint. But it’s weighed down their capital allocation and overall return profile. This recent 13F goes back to basics… Domino’s… Pool… etc… But I think long-term investors have to worry less about Buffett’s 13Fs and instead turn their attention to a sovereign-style allocation. The focus should be on assets that share key characteristics… They need to be capital-light post build-out, generate contractual dollar-denominated cash flows, resist or even benefit from inflation, and be backed by sovereign or institutional demand. Some places to start your research… Digital Infrastructure & Storage… Consider names like Digital Realty (DLR), Iron Mountain (IRM), and American Tower (AMT). They all represent the "rack-rent" infrastructure of the digital economy, with built-in inflation protection and growing interest from sovereign funds. Energy Royalties & Pipelines Turn your attention to Viper Energy (VNOM) and Williams Companies (WMB). These names offer yield with minimal reinvestment… cash flow per barrel, cubic foot, or export volume. These do require maintenance… but I trust the business model. Streaming & Royalty Models Next, look to Franco-Nevada (FNV), Wheaton Precious Metals (WPM), and Black Stone Minerals (BSM). These are structured to buy cash flow, not operate assets. They’re, in my opinion, the purest expression of the Buffett-adjacent model applied to commodities. Infrastructure REITs & Yield Platforms Next, look at Brookfield Infrastructure Partners (BIPC) and Clearway Energy (CWEN). They offer core infrastructure exposure with varying degrees of capital intensity. Logistics & Storage Assets And - of course - names like Prologis (PLD), Safehold (SAFE), and Americold (COLD). These control essential nodes in the physical economy. Private Credit & Specialty Finance Finally, I like the private credit side as always… with a focus on KKR Real Estate Finance (KREF) and Ares Capital (ARCC), which the Federal Reserve will always back in our financialized economy. These are the real buy-the-dip names when the Money Printer goes BRRRRRR…. Sovereign Wealth… Sovereign ManThis approach isn't about beating the market every year. And, it’s not “original.” Companies like Brookfield deploy a similar strategy. This is just more of a hybrid. But the entire concept is about owning durable, yield-rich assets that compound over decades, largely independent of sentiment. These assets help avoid the worst parts of liquidity cycles while owning critical infrastructure that will always have the backing of the Fed and the dollar. The continued financialization of the economy will lead to further compounding. And any serious problem in these sovereign-side assets will trigger bailouts… that's baked into the system. This is the reimagined next-generation float machine. Not a hedge fund, not a venture book, but a pure institutional-grade yield engine engineered for compounding. A synthetic sovereign wealth allocation for the individual investor. The next edge isn't in chasing the next great company. It's in owning the infrastructure of compounding itself. While Buffett built his empire on insurance float and American businesses, the new permanent capital is being deployed into the rails and rent of the digital age… and that matters because individual investors can participate in this transformation. In the wake of Berkshire's latest moves, perhaps the question isn't what Buffett is buying, but what the next generation of permanent capital allocators is building. I think that answer is the blueprint for the next fifty years of wealth creation and the return of the Political Economy and 18th-century thinking on the role of a nation in building and sustaining wealth. So, please do me a favor… go get the bag, investors. Stay positive, Garrett Baldwin About Me and the Money Printer Me and the Money Printer is a daily publication covering the financial markets through three critical equations. We track liquidity (money in the financial system), momentum (where money is moving in the system), and insider buying (where Smart Money at companies is moving their money). Combining these elements with a deep understanding of central banking and how the global system works has allowed us to navigate financial cycles and boost our probability of success as investors and traders. This insight is based on roughly 17 years of intensive academic work at four universities, extensive collaboration with market experts, and the joy of trial and error in research. You can take a free look at our worldview and thesis right here. Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.
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