The Secret to "Found Money" Wealth

We call it our “Found Money Fund.”

It started as kind of a lark — an inside joke between my wife Robin and me, not long after we started dating.

When you consider that we celebrated our 25^th wedding anniversary last Tuesday — and that we’re each extremely serious about money (Robin as an accountant and me as a financial journalist and stock picker) — that inside joke has enjoyed a rather long life.

But maybe that’s because what started out as a lark grew into a strategy.

Here today, I’ll not only share it. I’ll tell you how to use it. And I’ll even give you some stocks that’ll get you started.

So let’s have a little bit of fun here today.

Consider it an “anniversary present” — from Robin and me to you folks.

After all, here at Stock Picker’s Corner (SPC), you’re family, too …

So let’s start with a little bit of table setting context …

It Started in Jest, but Soon Became Fruitful

Like I said, our “Found Money Fund” was started in fun. Robin and I were both in finance, both still getting our careers rolling so, even as a couple, we were kinda poor. Making things even tougher was the fact we were both working by day, and attending school by night as we worked on our MBAs: Her company was helping her, while I was essentially paying my own way.

We had to “count our pennies” — for everything: Date nights out to a nice restaurant, a week away at the beach, or our first “big” vacation trip to San Francisco — required careful planning. The same was true for big occasions — like the white gold crucifix with a diamond chip that was the first “big” gift I got for Robin; it was a “someday” gift that I knew she wanted, so I “saved my pennies” and surprised her with it for her birthday.

I remember how one day, during the lunch hour, Robin called to say “hi” — and, at one point, joked “Oh, I found a penny.”

Our “fund” was born that day. We’d drop in pennies, dimes, quarters — whatever we found. At first, we’d save the money toward a “date night” dinner. Then a very special dinner during the vacation we saved for.

Somewhere along the way — after we’d done this three or four times — the “Found Money” infusion was earmarked for a savings/investment infusion. I started using the proceeds to buy stocks through direct-stock purchase plans or through my low-cost E*Trade account.

As the money in a bowl photo I shared with you earlier shows, we still do the collected cash of the Patalon “Found Money Fund” today — though more as a fun throwback to those early dating days.

I mean, with the diminished reliance on cash, “finding” dropped change ain’t what it used to be. The fact that the penny will sunset early next year will certainly elevate the challenge of the hunt.

Still, the current version of our “fund” has $71.64 in it. And that includes lots of pennies, 32 quarters and a $5 bill Robin found in a parking lot. Two $20 bills I found blowing down our street one windy Sunday afternoon last year were the big “discoveries.”

(I actually had to change the fund “total” over the weekend: After Robin checked out the rough draft of this issue, she returned home from a trip to Target with a big smile and one hand tucked behind her back. “Guess what I found,” she said — before opening that formerly hidden hand to display a crumpled Abe Lincoln she’d discovered in the store’s parking lot.)

Robin and I still take the concept of money very seriously. Indeed, we’re more serious about it than ever.

But as our careers found traction — and our salaries and bonuses grew — the concept of “found money” was elevated in a major way.

No longer are we just only talking about coins or bills we “found” somewhere: Now we’re looking for the “beyond-the-paycheck” windfalls that came our way: Tax refunds, big cash gifts, bonuses at work, freelance/consulting revenue or even inheritances.

Indeed, “Found Money” is now the JATO (Jet-Assisted Takeoff) rocket that adds power to our already ambitious investment blueprint that includes maxed-out 401(k)s, tax-protected savings from self-employment income, with stocks and income investments added on.

That’s the Wealth Builder take on “Found Money.”

Don’t get me wrong. Life is meant to be enjoyed. If you find yourself with a windfall, by all means … enjoy it.

At least … some of it.

But save/invest some of it, too.

There’s no reason you can’t do both.

Wealth Builders find balance in life. When it comes to “found money,” Wealth Builders absolutely enjoy some of it. But they also put some away.

Wealth Killers see it as a windfall — and spend it all.

Wealth Builders save and invest.

Wealth Killers spend.

Wealth Builders enjoy today — but still find ways to build for tomorrow.

Wealth Killers only live only for the moment.

So let’s shift gears …

Let’s talk about some “Found Money Stocks.”

Let’s Talk Stocks

Here are two critical points to understand before we get started:

1. It’s Never Too Late to Start: My Dad had a saying about procrastination — one that seems appropriate here. He used to say to me: “The thing about procrastination, Willy, is that tomorrow never comes.” If you aren’t saving enough, having started saving, or are investing but aren’t investing in a Wealth Builder manner, you need to pick a starting point — and today is as good a point as any.

2. No Amount Is Too Little to Start With: Going back about six years — with some “Found Money” from a bonus I’d earned at work, I took $2,000 and opened a brokerage account for my son Joey.  We picked the stocks together. When he graduated in June, he was probably the only kid in his class with a $16,000 stock portfolio that he’d helped build. We dropped him off at the Berklee College of Music recently — he just started his freshman semester – and we’re letting those investments ride. The four shares of Netflix Inc. $NFLX ( ▼ 0.13% ) we bought for $1,366 are now worth $4,896; the five shares of Berkshire Hathaway $BRK.B ( ▼ 0.45% )  (cost $1,034) now worth $2,480; and the 8.5 shares of Apple Inc. $AAPL ( ▲ 2.56% ) (cost $430) now worth $1,964.

You get the idea: Even starting small can yield a big back-end bang.

That was six years ago, so for folks who are blessed with a “Found Money” windfall today, what stocks are worth a look?

Here’s a list to get you started:

• Nu Holdings Inc. $NU ( ▼ 0.1% ) — Call this the “Ultimate Found Money Stock.” At $14.86, shares of this fast-growing Latin American banker have zoomed 40% since I told you folks about it in this April 2 report. But at less than $15 a share, even the little bowl of cash that sits on a top kitchen shelf would buy four shares — with cash left to burn. Go back and read my report — and you’ll understand why I like this “money-doubler” for the long haul.

•  IperionX Ltd. $IPX ( ▲ 3.88% ) – At $46, this titanium processor has already zoomed 53% since I talked about it in my second-half forecast report back on July 3. But I see massive potential long-term upside on this “Magic Materials” company, making it a stock that’s a definite “Accumulate” candidate. I just delivered a detailed research report on this stock, which you can access free here.

• D-Wave Quantum Inc. $QBTS ( ▲ 0.41% ) — Want to get a jump on “quantum computing”— potentially the next big tech wave after artificial intelligence? D-Wave is more of a high-risk/high-potential-return candidate than I usually like to highlight in reports like this. But it has been around for quite a bit. And, at $15 a share, it’s in the “found money” price range. There’s another company I like better right now, a special-situation play I detailed for SPC Premium members as “A Call Option on Quantum Computing.”

• Berkshire Hathaway Inc. $BRK.B ( ▼ 0.45% ) — It may be Warren Buffett’s “swan song” at Berkshire, but our team here believes the Big Money crowd is dramatically underestimating how good the team-behind Warren actually is. We like Berkshire today. But we like it even more for “tomorrow” — with a record $348 billion in cash (at the most recent accounting), Berkshire is set up for the greatest stocks shopping spree in history, should there be a correction. That’s why I’ve dubbed it “The Next Bull Market Stock.” At $496, Berkshire is down about 8.5% from its peak. But it’s still in “Found Money” territory. If Joey could afford it, you can, too. And I’d love to share our research report with you.

• The Williams Cos. $WMB ( ▲ 0.17% ) — At $57, with a 3.5% dividend yield, Williams is in that same “found money” sweet spot price point. And its business — as a natural-gas utility — flat out makes it a nice stock to own. It’s not been that long since we gave our paid SPC Premium subscribers a detailed report on this company (are you seeing a trend here? Consider joining our family).

• Vertiv Holdings $VRT ( ▲ 0.17% ) — The AI Era is one of our storylines, which is why we’ve talked a lot about AI power plays and AI Agents (check out our report here) — as well as more-mainstream beneficiaries like Broadcom Inc. $AVGO ( ▲ 1.49% ), which has done very well since we brought it your way last year. But for AI to continue its march to relevance, it needs a strong “backbone” — just as the Internet did decades ago. One AI infrastructure play that fits nicely in our “found money” price range is Vertiv, which provides power and cooling systems, hardware like racks and the operational support services — all critical to the building and operation of the data centers we’re reading and hearing so much about these days. Vertiv’s earnings forecasts look strong — one reason this $130 stock is projected to surge 21% to a target of $157 over the next year to 18 months.

Keep It, Use It, Don’t Throw It Away  

There you have it: A mindset and a handful of stocks that will help you capitalize on any “Found Money” windfalls that come your way.

If they do: Take advantage of them.

Not everyone does.

A while back, someone in my network shared a story that I just can’t erase from my brain.

As the story was related to me, a group of money managers had traveled to a client meeting. That get-together ended — its mission accomplished — and the clients went one way and the money managers the other.

As those investment pros stood in a group just outside the building’s main entrance, the oddest thing happened. One of the pros had reached into his pocket for his keys, or parking voucher, and frowned darkly. Out of his pocket came a fistful of change, which he tossed into the bushes with a dismissive snort — before strolling out to his car.

Better to be a “Found Money” recipient than to “throw money away.”

The former is a Wealth Builder candidate (if they put that money to use). The latter is a definite (lost soul) Wealth Killer.

We’re the former — and we’ll help you be one, too.

See you next time;

P.S. Your next windfall could be right around the corner. Will you be ready?
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