2026 | Q2- The ultimate underdog story

“America was built on courage, on imagination and an unbeatable determination.”

~ President Harry S. Truman

Americans’ love for an underdog story is practically baked into our DNA. This affinity likely traces back to the nation’s origin story. Two hundred fifty years ago, a ragtag group of 13 colonies successfully rebelled against the British Empire — then the world’s dominant superpower. That improbable victory became one of history’s great underdog tales and helped shape a national character defined by resilience and the belief that determination can overcome long odds. That same spirit continues to resonate deeply in American culture today.

Fittingly, one of the most iconic underdog stories in modern American culture emerged 50 years ago, in the summer of 1976. As the country celebrated its bicentennial, Sylvester Stallone’s Rocky came out of nowhere and captivated audiences across the nation. The movie poster’s tagline — “His whole life was a million-to-one shot” — even described the making of the film itself. Written by and starring the then little-known Stallone on a modest $1 million budget, it became the year’s highest-grossing movie and one of the most beloved films in cinematic history.

Rocky Balboa captures the unrelenting, resilient, and tenacious spirit at the heart of the American underdog story. A struggling fighter with little money and even less support, he refuses to shrink from a rare opportunity. Facing a far more powerful and celebrated opponent who could seriously hurt or even end him in the ring, Rocky steps into the fight against seemingly impossible odds. Driven by ambition, he trains relentlessly and proves he can go the distance — showing that grit and perseverance can overcome long odds. Sylvester Stallone brought that same spirit to life both on and off the screen. A struggling actor with only bit parts to his name, he turned down a substantial offer for the screenplay so he could play the lead role himself. He refused to let the project move forward without him as Rocky, and his determination eventually convinced the studio. In doing so, he turned his own career into a genuine underdog story.

Rocky Statue, Philadelphia

“Underdog” investing

At MPMG, we invest with the same opportunistic, unwavering, and tenacious spirit that Rocky embodies. Rather than chasing the most popular stocks that dominate headlines and trade at lofty valuations, we focus on strong, high-quality businesses that are overlooked or out of favor with the broader market. These companies often possess significant potential that has not yet been reflected in their stock prices. While momentum-driven names can generate short-term excitement, their elevated valuations often carry greater downside risk. We prefer to identify less heralded, “diamond-in-the-rough” opportunities where attractive valuations provide a margin of safety, and like Rocky, we are willing to go the distance — giving these businesses the time needed to realize their full potential.

We don’t view the companies we select as “million-to-one” long shots. Instead, we identify opportunities by focusing on factors such as balance sheet strength, competitive positioning, and the ability to generate sustainable growth. In short, these are the types of businesses we believe form the foundation of long-term wealth creation. By paying the right price for quality companies, we aim to deliver steadier growth with limited downside risk.

The Ultimate Underdog Story: America

Just as Rocky Balboa refused to accept the limits others placed on him, America itself began as the ultimate underdog — and has remained one of history’s most remarkable success stories.

Outnumbered and under-resourced, the 13 colonies lacked a standing army, stable government, or reliable supplies when they rebelled against Britain. Facing overwhelming military and economic might, their victory through courage, ingenuity, and unyielding resolve created one of history’s greatest underdog triumphs and launched a bold new nation.

In 1776, three extraordinary developments occurred within months of each other that would forever change the trajectory of human progress. The signing of the Declaration of Independence launched a bold political revolution based on the radical idea that people could govern themselves. Around the same time, James Watt’s steam engine began operating on a commercial scale, setting the Industrial Revolution in motion and dramatically increasing humanity’s ability to produce goods and generate wealth. Just days later, Adam Smith published The Wealth of Nations, providing the intellectual blueprint for free-market capitalism.

More than two centuries later, the results of that system are still clearly visible. The United States continues to lead the developed world in economic growth and is home to many of the world’s most innovative companies. It also dominates in scientific achievement. Today, nearly 40% of the world’s leading scientists—or those in the top 200,000 globally by citations—are based in the U.S., with no other country exceeding 10%. Perhaps even more impressive is the fact that roughly half of the Nobel Prizes in science awarded since 1905 have gone to researchers working here.¹

This level of sustained dominance cannot be explained by luck, randomness, or temporary advantage. One can be lucky once or twice (or even more), emerge as an unexplained outlier, fake success, or benefit from a favorable regime for a while—yet none of that can hold up for 120 years. This reflects America’s unique, enduring ability to attract and empower top talent from around the globe.

The opportunity created by this system is equally striking in economic terms. Last year alone, the United States added approximately 1,200 new millionaires a day and is now home to approximately 23.6 million millionaires—more than the next nine countries combined.² This level of wealth creation is not accidental — it is the product of a system that has, for 250 years, encouraged risk-taking and allowed entrepreneurs to benefit from their success more fully than almost anywhere else in the world.

It is this same underdog spirit — the belief that determination, hard work, and a fair shot can overcome long odds — that has defined America from its founding and continues to define it today.

The New Underdog Fight

Just as Rocky Balboa had to battle not only his opponents in the ring but also his own doubts, limitations, and physical exhaustion, we must now fight against our own biology if we are to fully capitalize on the extraordinary opportunities before us.

We stand at the threshold of an era of unprecedented abundance. Exponential technologies in artificial intelligence, biotechnology, energy, and robotics are converging to solve problems that have plagued humanity for millennia.

In We Are as Gods: A Survival Guide for the Age of Abundance (2026), MPMG’s 2026 Speaker Series keynote speaker Dr. Peter Diamandis argues that we now possess godlike capabilities — the power to reshape reality at a scale our ancestors could scarcely imagine. Building on this foundation, he envisions artificial intelligence and robotics driving global GDP growth to a 7%+ annual rate, far outpacing the typical 1-2% historical average. He sees exponential technologies drastically deflating costs and ushering in an era of post-scarcity, where many goods and basic human needs could become essentially free. In short, new technologies are paving the way from scarcity to abundance.

The data supports this optimistic outlook: global poverty continues to decline, lifespans are extending, information and computing power are growing at breakneck speed, and humanity’s capacity to innovate has never been greater.

Yet the greatest obstacle to seizing this future is not external — it is internal. Our ancient “Stone Age” brains, evolved for a local, linear, scarcity-driven world of slow change and limited information, are poorly equipped for today’s global, exponential environment. This mismatch creates what Diamandis and his co-author Steven Kotler call “cognitive vertigo.”

Our brains rely on structure-mapping — drawing analogies from familiar experiences — but exponential progress breaks those analogies. There is no easy comparison for miracles becoming routine. As a result, the brain defaults to protective mechanisms: filtering out positive signals, amplifying negativity bias, and slipping into disengagement or learned helplessness. Information overload makes it worse. Attention spans have collapsed, decision fatigue is rampant, and constant connectivity overwhelms our cognitive systems. Many people therefore tune out the very abundance and opportunity unfolding around them — not because the promise isn’t real, but because their hardware hasn’t caught up to the new reality.

This is the central tension of our time: we live in an age of extraordinary promise, yet our minds often struggle to perceive or act on it. The same underdog spirit that built America — and that Rocky embodied — is now required to conquer our own internal limitations. By consciously battling our own wiring through retrained attention, curiosity, and renewed agency, we can align our mindset with the abundant opportunities before us.

These developments clearly have long-term investment implications. The companies held in MPMG’s portfolio are precisely those positioned at the forefront of these exponential waves — innovators solving real problems and creating value, jobs, and wealth in the process. These firms reflect our belief that it is an incredible time to be invested in the market.

© Warren Miller / The New Yorker Collection/The Cartoon Bank

When Underdogs Reign

Rocky’s story of a disregarded contender achieving surprising results has been repeated time and again on the big screen — from Miracle to The Karate Kid to Hoosiers and many more. This recurring theme resonates so deeply because it mirrors a fundamental truth in both American culture and the markets.

In the investment world, value stocks are the classic underdogs. For extended periods, they have been overshadowed by high-flying technology names that dominate headlines and market returns. Yet these overlooked companies continue to deliver steady gains and durable performance. Just as the British Empire underestimated the 13 colonies, many investors miss the potential of high-quality businesses that are quietly building real value but have yet to be fully recognized by the market.

Identifying these opportunities requires patience, discipline, and the ability to filter signal from noise. For investors willing to “go the distance,” the rewards can be significant. Carefully selected value stocks not only offer attractive upside but also provide a meaningful margin of safety — avoiding the sharp drawdowns that often strike momentum-driven names when sentiment shifts. In an environment of rapid change and information overload, this disciplined approach remains one of the most reliable paths to long-term wealth accumulation. A new era of abundance and prosperity is emerging — one that will deliver better lives than humanity has ever known and create compelling investment opportunities along the way. At MPMG, we believe the investors best positioned to thrive will be those who maintain the underdog mindset: focused, patient, and committed to rigorous analysis amid the noise.

~MPMG

1 McKinsey Global Institute, “At 250: Sustaining America’s Competitive Edge,” March 9, 2026.

2 Miriam Gottfried, “The U.S. Added 1,200 New Millionaires a Day Last Year,”: The Wall Street Journal, June 30, 2026.

Established in 1995, Minneapolis Portfolio Management Group, LLC actively manages separate accounts for individuals, families, trusts, retirement funds, and institutions. Our proven value-oriented investment philosophy has created long-term wealth for our clients.

Visit our website at: www.MPMGLLC.com

Although the information in this document has been carefully prepared and is believed to be accurate as of the date of publication, it has not been independently verified as to its accuracy or completeness. Information and data included in this document are subject to change based on market and other condition. All prices mentioned above are as of the close of business on the last day of the quarter unless otherwise noted. Market returns discussed in this letter are total returns (including reinvestment of dividends) unless otherwise noted.

The information in this document should not be considered a recommendation to purchase any particular security. There is no assurance that any of the securities noted will be in, or remain in, an account portfolio at the time you receive this document. It should not be assumed that any of the holdings discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable. The past performance of investments made by MPMG does not guarantee the success of MPMG’s future investments. As with any investment, there can be no assurance that MPMG’s investment objective will be achieved or that an investor will not lose a portion or all of its investment.

Companies mentioned in this document were chosen based on MPMG’s view of the products and/or services offered or provided by the companies in light of current economic and market observations and reported trends.  For a complete listing of MPMG’s recommendations over the preceding 12 months, please contact MPMG at (612) 334-2000.