Texas Pacific Land

TPL

Market cap $22.5B

I reflect on my early dividend portfolio, which included PEP, HD, PSA, UNP, and DUK, and why it was too defensive for my age. Focusing on growth over yield in the early investing years is critical, as aggressive compounding outpaces immediate income for long-term wealth building. I advocate the 5% Rule: target a 5–6% average yield in retirement by leveraging high-growth, lower-yield stocks early and transitioning to higher-yield later.

The market appears expensive, with historical precedent for long periods of low returns after peaks. Consensus expects 15% S&P 500 earnings growth and rising margins, driven by AI innovation, supporting a steady long-term outlook. Analyst forecasts for 2026 should be viewed skeptically, as actual outcomes often diverge from consensus projections.

Energy badly lagged this year, and I underestimated how severe the supply glut would be. I was early - but the long-term thesis remains firmly intact. Today's oil prices aren't sustainable. Low prices are forcing discipline, squeezing supply, and creating a rare setup where sentiment and fundamentals are deeply misaligned. With positioning extremely bearish and costs rising, I see energy setting up for a powerful reversal - offering both income and upside for patient investors.

I examine how the market mislabels certain stocks such as Texas Pacific Land Corporation, highlighting the need to see what they truly are beneath the surface. TPL's vast Permian holdings offer high-margin, inflation-protected opportunities beyond oil, including water and land value. Emerging trends, like AI-driven data centers, could reshape its potential, making the market underestimate the upside I see ahead.

Texas Pacific Land is a high-margin cash cow. Its land is valuable because it's located in the largest oil-and-gas-producing region in the United States.

Texas Pacific Land stock jumped more than 8% after it struck a deal with the data center startup Bolt to build computing facilities meant to power the AI boom on its land.

Shares of Texas Pacific Land Corporation surged on Wednesday after the company announced a strategic partnership aimed at developing large-scale data centre campuses across its extensive land holdings in West Texas, reigniting investor interest in the company's potential role in the artificial intelligence infrastructure boom. Texas Pacific stock climbed as much as 8.

Texas Pacific Land announces a deal with Bolt Data & Energy to develop data-center campuses in West Texas.

DALLAS--(BUSINESS WIRE)--BOLT AND TPL ANNOUNCE STRATEGIC AGREEMENT TO PURSUE DATA CENTER DEVELOPMENT IN WEST TEXAS.

The S&P 500 has delivered an 80% return over the past three years, significantly outperforming energy stocks. Despite a 7% year-to-date gain, energy remains an underperformer compared to the broader market's 18% rise. Energy sector volatility, driven by weak demand and OPEC supply actions, has challenged investors throughout the year.