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Become a Better Investor Newsletter – 1 July 2023

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Noteworthy this week

  • 80% of YouTube ads are subject to refunds
  • Bankruptcies on the rise in the US
  • T-Bills return the same as equities
  • Time to buy some bling?
  • REMINDER: Stocks are still best in the long run

80% of YouTube ads are subject to refunds: A report claims about 80% of YouTube ads have violated their own terms of service — and are therefore subject to refunds. This could mean billions of dollars in refunds and lawsuits.

Bankruptcies on the rise in the US: Another indicator of the coming US recession is that bankruptcy filings are rising to similar levels as in the covid crisis and the GFC.

T-Bills return the same as equities: The S&P 500’s earnings yield is currently on par with the yield on US 3-month Treasuries. Hence, you’re not getting rewarded for risk at the moment.

Time to buy some bling?: Prices of popular luxury watches have fallen >20%. Still damn expensive.

REMINDER: Stocks are still best in the long run: It’s an important reminder that for long-term investing, stocks are the best investment.

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Weekly market performance

Click here to see more markets and periods.

Chart of the week

Discussed in the Become a Better Investor Community this week

“We have updated our FVMR Global strategy.”

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Podcasts we listened to this week

The Joe Rogan Experience | #1949 Russel Brand

“Russell Brand is a comedian, actor, author, activist, and host of the podcast ‘Stay Free with Russell Brand.’”

Listen to/watch the episode on Spotify

Readings this week

The Dark Side of Financial Technology Tools

“Do ‘digital engagement practices’ actually benefit investors?”

Read the article

Book recommendation

The Devil’s Chessboard: Allen Dulles, the CIA, and the Rise of America’s Secret Government by David Talbot

“Based on explosive new evidence, bestselling author David Talbot tells America’s greatest untold story: the United States’ rise to world dominance under the guile of Allen Welsh Dulles, the longest-serving director of the CIA.”

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

New My Worst Investment Ever episodes

ISMS 26: Larry Swedroe – Are You Subject to the Endowment Effect or the Hot Streak Fallacy?

In this episode of Investment Strategy Made Simple (ISMS), Andrew and Larry discuss two chapters of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this seventh episode, they talk about mistake number 11: Do you let the price paid affect your decision to continue to hold an asset? And mistake number 12: Are you subject to the fallacy of the hot streak?

LEARNING: Look at everything you own from an economic perspective and decide whether to keep holding or selling. Avoid FOMO (fear of missing out) and stock picking; build a diversified portfolio.

Access the episode’s show notes and resources

Ep705: Vishal Bhardwaj – Do Not Let Emotions Run Your Business for You

BIO: Vishal Bhardwaj is a serial entrepreneur and founder of Predictions For Success, Engineer By Mistake, and Passionate Management Services.

STORY: Vishal gained immediate success when he started his company and had about 100,000 followers. He thought this indicated that people loved what he was doing, so he decided to sell a corporate gift for Diwali 15 days before the festival. He didn’t do any market research, so when he went to sell the product, no one would buy it as they had ordered their gifts months in advance.

LEARNING: Do proper research before you jump into anything. Don’t let emotions run your business for you. Timing is as important as pricing.

Access the episode’s show notes and resources

Ep704: Harjeet Khanduja – Work Smarter Not Harder

BIO: Harjeet Khanduja is an international speaker, author, poet, visionary, inventor, influencer, and HR Leader. He is an alumnus of IIT Roorkee and INSEAD. He is currently working with Reliance Jio.

STORY: Harjeet regrets wasting so much of his life working hard instead of working smart. Though he succeeded in his career, he completely ignored his family and led an unbalanced life.

LEARNING: Learn how to delegate so you can have time to focus on other things in your life. You must care for your family and inner self to be more productive.

Access the episode’s show notes and resources

Ep703: Laurens Swinkels – Stay Liquid Even When Investing Long-Term

BIO: Laurens Swinkels is an Associate Professor of Finance at Erasmus University in Rotterdam and Executive Director and Head of Quant Strategy at Robeco’s Sustainable Multi-Asset Strategies team.

STORY: Lauren bought a house in Rotterdam. Just five years later, he had to move to Norway. Laurens managed to sell the house in the Netherlands many years later at a loss.

LEARNING: Liquidity is very important even when investing long-term. Remove emotions from your decision-making.

Access the episode’s show notes and resources

Published on Become a Better Investor this week

Dr. Deming encouraged lifelong learning for everyone, but particularly for managers and leaders. In this episode, David and Andrew talk about Deming’s fourth point in his list for The Role of the Manager of People After the Transformation.

Listen to Learning to Learn: Role of a Manager in Education (Part 4)

UMW Holdings Berhad (UMWH MK): Profitable Growth rank of 5 was up compared to the prior period’s 6th rank. This is average performance compared to 960 large Cons. Disc. companies worldwide.

Read UMW Holdings – World Class Benchmarking

PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO IJ): Profitable Growth rank of 1 was same compared to the prior period’s 1st rank. This is World Class performance compared to 440 medium Cons. Staples companies worldwide.

Read Industri Jamu dan Farmasi Sido Muncul – World Class Benchmarking

Saras SpA (SRS MI): Profitable Growth rank of 3 was up compared to the prior period’s 8th rank. This is above average performance compared to 320 large Energy companies worldwide.

Read Saras SpA – World Class Benchmarking

Metallurgical Corporation of China Limited (601618 SH): Profitable Growth rank of 8 was same compared to the prior period’s 8th rank. This is below average performance compared to 1,440 large Industrials companies worldwide.

Read Metallurgical Corporation of China – 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.

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