June 2026 - What I Noticed About America by Leaving It

Dear Investors and Friends,

A Question Worth Asking

As our nation approaches its 250th birthday on July 4, 2026, I have found myself reflecting on a simple but profound question: How did a country that did not exist 250 years ago become the most powerful and prosperous nation in history?

Years ago, when the Shah of Iran sent his son to Texas for flight training, he reportedly gave the young prince's instructor an unusual assignment. The Shah was less concerned with teaching his son how to fly than with helping him understand how a nation barely two centuries old had become the world's dominant economic and military power. Whether the story has been embellished over time is almost beside the point. The question itself remains fascinating.

Over the past year, I have had the good fortune of spending time in Argentina, Colombia, Germany, the Czech Republic, Austria, Greece, Italy, and Turkey. While every country possesses unique strengths and accomplishments, traveling abroad has a way of sharpening one's appreciation for home. The Shah's question stayed with me. As America approaches its 250th anniversary, it seems an appropriate time to ask it again.

America at 250

The numbers and facts are remarkable.

The United States represents approximately 4% of the world's population, yet:

• It produces roughly 25% of global GDP.
• It accounts for approximately 65% of global equity market capitalization.

The U.S. dollar remains the world's reserve currency.

• Nearly 90% of all foreign exchange transactions worldwide involve the U.S. dollar on one side of the trade.
• Approximately 58% of global foreign exchange reserves are held in U.S. dollars.
• Roughly 50% of global trade invoices are denominated in dollars.

America remains a global center of innovation and capital formation:

• The United States accounts for approximately half of global venture capital investment.
• The United States is home to roughly half of the world's privately held unicorn companies.
• Seven of the ten largest publicly traded companies in the world are American.
• U.S. capital markets are larger than those of the next several countries combined.

Put differently, a nation representing roughly one out of every twenty-five people on Earth produces one-quarter of the world's economic output, accounts for nearly two-thirds of global equity market capitalization, issues the world's reserve currency, and remains a global center of innovation, entrepreneurship, and capital formation.

No nation has ever created more wealth for more people over such a relatively short period of time. In historical terms, the American economic story is not merely impressive, it is extraordinary. These outcomes are not accidents. They deserve explanation.

The Hand We Were Dealt

Part of America's success undoubtedly stems from extraordinary natural advantages.

• We are protected by two vast oceans.
• We share borders with friendly neighbors.
• We possess abundant farmland, energy resources, fresh water, and mineral wealth.
• Our rivers and waterways created natural transportation networks long before modern infrastructure existed.
• Our geography allowed a continental-scale economy to develop largely free from the conflicts that have repeatedly disrupted other parts of the world.

These advantages matter. History matters. Geography matters. Natural resources matter. America began with an unusually strong hand. Yet history is littered with examples of nations blessed with abundant resources, favorable geography, and strategic advantages that failed to translate those gifts into lasting prosperity. Natural advantages create opportunity, but they do not guarantee success. Geography alone does not explain America's success. Many nations possess natural resources. Many countries enjoy favorable geography. Few have achieved comparable results. Something more was required.

What We Built With It

America's greatest achievement may not be the advantages we inherited, but what we built upon them.

• We built institutions that protect private property.
• We built legal systems that generally enforce contracts and encourage investment.
• We built capital markets that connect ideas with capital and entrepreneurs with opportunity.
• We created an environment where individuals can move freely, start businesses, change careers, and pursue opportunity wherever they find it.
• We developed a culture that rewards innovation, entrepreneurship, and calculated risk-taking.
• We welcomed generations of immigrants who arrived seeking opportunity and contributed their talents, energy, and ambition. For more than two centuries, America has attracted ambitious people from every corner of the globe. In many ways, America's openness to immigrants has functioned as a talent acquisition strategy for the nation itself. Some of our most successful companies were founded or led by immigrants or the children of immigrants.
• For all of the very real and legitimate concerns in our society about past and present inequality in America, we live in a system in which success is not predetermined by family background, social class, or political connections to anywhere near the extent that it has been throughout much of human history.

None of these institutions are perfect. Yet together they have created one of the most productive economic engines the world has ever seen.

Why This Matters to Investors

Investors are constantly exposed to reasons for pessimism. Political disagreements dominate headlines. Economic challenges receive endless attention. Predictions of American decline are never difficult to find. Yet it is worth noting that the freedom to openly criticize our institutions, challenge our leaders, debate our policies, and question our future is itself one of America's great strengths. Many nations demand conformity. America has long tolerated, even encouraged, debate, dissent, and self-examination.

But perspective matters. In many ways, our tendency toward self-criticism reflects confidence rather than weakness. Free societies constantly evaluate themselves, identify shortcomings, and debate how to improve. That process can appear messy, but it is often a source of resilience and renewal. The very fact that Americans are free to openly debate what is wrong with the country is itself evidence of one of the freedoms that has contributed to its success.

Traveling abroad reminded me that while America's problems are often discussed in great detail, its strengths are frequently taken for granted. The institutions that helped create the world's largest economy remain largely intact.

• The culture of innovation remains vibrant.
• The entrepreneurial spirit remains strong.
• American businesses continue to attract extraordinary talent and capital from around the globe.
• The United States continues to produce an outsized share of the world's most successful companies.

As investors, we are ultimately making judgments about the future productive capacity of businesses, people, and institutions. While no country's success is guaranteed, history suggests it is often unwise to underestimate the productive capacity of the American people and the institutions they have built.

A Final Reflection

The Shah's question remains worth asking. How did a nation that was little more than a collection of colonies 250 years ago become the world's leading economic power? The answer is not any single factor. America benefited from extraordinary geography, abundant natural resources, and a measure of historical good fortune. But those advantages alone would not have been enough.

Our success was built upon institutions that encouraged freedom, innovation, investment, entrepreneurship, and the rule of law. It was strengthened by generations of citizens and immigrants who believed that tomorrow could be better than today and were willing to work to make it so.

Investors often spend considerable time evaluating quarterly earnings, interest rates, inflation reports, and election outcomes. Those factors matter. But long-term investment success is ultimately tied to the productive capacity of businesses operating within a broader economic system.

As we approach America's 250th birthday, we are reminded that the institutions, incentives, and culture that helped create the most successful economy in history remain largely intact. While challenges undoubtedly exist, history suggests that betting against American innovation, entrepreneurship, and capital formation has rarely been a winning long-term strategy.

As we celebrate America's 250th birthday next month, that seems worth remembering. For all of our imperfections, the American experiment has been one of the most remarkable stories in human history. And from an investor's perspective, many of the forces that helped create that success remain very much alive today.

With gratitude,

David and Mike

Disclaimer

Roosevelt Capital Management LLC is a registered investment adviser. The information presented is for educational purposes only and is not intended to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. 

Past performance is not indicative of future performance. Principal value and investment return will fluctuate. No guarantees or assurances that the target returns will be achieved, or objectives will be met are implied. Future returns may differ significantly from past returns due to many different factors. Investments involve risk and the possibility of loss of principal.

While all the values used in this report were obtained from sources believed to be reliable, all calculations that underly numbers shown in this report believed to be accurate, and all assumptions made in this report believed to be reasonable, Roosevelt Capital Management LLC neither represents nor warrants the values, calculations or assumptions and encourages each prospective investor to conduct their own review of the audits, values, calculations and assumptions.