Become a Better Investor Newsletter – 20 September 2025
Noteworthy this week
- Gold miners’ operational leverage
- Inflation is a monetary phenomenon
- The rich drive consumption
- US$1.2trn in interest
- Risk of US recession rises
Gold miners’ operational leverage: Gold miners typically have a relatively fixed cost per ounce of gold produced. As the gold price reaches new ATHs, miners benefit from their operational leverage.
This is what operational leverage looks like
Gold miners are literally printing money:
▪️Gold at $2,900 → $1,500 profit per oz
◾️Gold at $3,650 → $2,250 profit per ozTheir margins just went up 50% while gold rose 26% pic.twitter.com/d2Ukf0EVA2
— Katusa Research (@KatusaResearch) September 13, 2025
Inflation is a monetary phenomenon: Comparing the change in US M2 money supply and home prices, it appears that Milton Friedman was right when he said, “Inflation is always and everywhere a monetary phenomenon.”
“Inflation is always and everywhere a monetary phenomenon.” – Milton Friedman pic.twitter.com/v7hCO084fl
— Peter Mallouk (@PeterMallouk) September 14, 2025
The rich drive consumption: The top 10% of income earners in the US now account for nearly half of all consumer spending, a record high.
The top 10% of income earners in the US now account for nearly half of all consumer spending, a record high. pic.twitter.com/iOS7ltNOMw
— Charlie Bilello (@charliebilello) September 17, 2025
US$1.2trn in interest: The US government has paid a record US$1.2trn in interest on its public debt over the last 12 months. This makes up nearly a quarter of the government’s revenue.
🚨This is INSANE:
The US government has paid a record $1.2 TRILLION in interest on its public debt over the last 12 months.
This makes up nearly a QUARTER of the government’s revenue.
All while the total federal debt is rising by ~$1 TRILLION every 100 days. pic.twitter.com/lLQLnoKYtk
— Global Markets Investor (@GlobalMktObserv) September 14, 2025
Risk of US recession rises: There is now a 48% chance of a recession occurring in the next 12 months. However, each prior instance of the odds hitting 48% did result in a recession.
There is now a 48% chance of a recession occurring in the next 12 months 🚨 However, each prior instance of the odds hitting 48% did result in a recession 🤯 pic.twitter.com/JrLXQCo6Jg
— Barchart (@Barchart) September 16, 2025
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Weekly market performance
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Podcasts we listened to this week
The Grant Williams Podcast Ep. 107 – David Fergusson
“In this episode of The Grant Williams Podcast, I’m joined by David Fergusson, CEO of Atlas Consolidated in Singapore, for a fascinating look at the disruptive rise of digital banking.”
Readings this week
Little Rules About Big Things
“A few things I’ve come to terms with: There is rarely more or less economic uncertainty; just changes in how ignorant people are to potential risks.”
Book recommendation
The Art of Execution: How the world’s best investors get it wrong and still make millions by Lee Freeman-Shor
“Over seven years, 45 of the world’s top investors were given between $25 and $150m to invest by fund manager Lee Freeman-Shor. His instructions were simple. There was only one rule. They could only invest in their ten best ideas to make money.”
Get the book on Audible or Kindle.
Audible is great; have you tried it? If not, click here to get 2 books for free.
Memes of the week
— litquidity (@litcapital) September 12, 2025
Met a 17-year old making $300,000 a month with an online business
and he only works 2 hours a day
Incredible
Lesson: Anything is possible when you lie about your income to impress strangers on the internet
— Chase Passive Income (@chasedownleads) September 15, 2025
Published on Become a Better Investor this week
Discover how Andy Novins turns business challenges into big wins! Andy shares with host Andrew Stotz how he uses Deming strategies to outsmart competitors, watch for market shifts, and win loyal clients in one of the toughest industries around.
Listen to A Deming Approach to Real Estate
YungShin Global Holding Corporation (3705 TT): Profitable Growth rank of 3 was same compared to the prior period’s 3rd rank. This is above average performance compared to 360 medium Health Care companies worldwide.
Read YungShin Global Holding Corp – World Class Benchmarking
Britannia Industries Limited (BRIT IN): Profitable Growth rank of 1 was same compared to the prior period’s 1st rank. This is World Class performance compared to 560 large Cons. Staples companies worldwide.
Read Britannia Industries – World Class Benchmarking
PTT Public Company Limited (PTT TB): Profitable Growth rank of 8 was same compared to the prior period’s 8th rank. This is below average performance compared to 310 large Energy companies worldwide.
Read PTT – World Class Benchmarking
Meituan (3690 HK): Profitable Growth rank of 1 was same compared to the prior period’s 1st rank. This is World Class performance compared to 970 large Cons. Disc. companies worldwide.
Read Meituan – World Class Benchmarking
DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.