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Become a Better Investor Newsletter – 1 June 2024

Noteworthy this week

  • Tough times for small US businesses
  • Asset managers don’t expect a recession
  • China drives copper demand
  • Oil and gas are here to stay
  • Nvidia dominates the data center compute market

Tough times for small US businesses: The share of loss making companies in the Rusel 2000 has been in an upward trend for the past 30 years. Outside recessions, the rise has been the strongest in the past 10 years. Currently, 40% (!) of companies report losses.

Asset managers don’t expect a recession: 78% of global asset managers currently say that a recession within the next 12 months is unlikely. In November 2022, roughly 90% of portfolio managers anticipated a recession.

China drives copper demand: China has largely driven copper demand in the past 25 years. Pretty much everything related to the “green transition” requires a lot of copper. Copper is also among the best-performing assets in the past six months.

Oil and gas are here to stay: The main fossil energy source expected to be massively reduced by 2050 is coal. Oil is forecasted to remain flat. Nuclear is expected to grow by 60%. Though these forecasts are probably biased in favor of “green energy.”

Nvidia dominates the data center compute market: As Nvidia’s market cap surpasses whole markets like Germany, Korea, and Australia one can also note their dominance. Nvidia’s market share in the data center compute market has expanded to 80% from 15%. Does that motivate the current valuation?

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Weekly market performance

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Chart of the week

Discussed in the Become a Better Investor Community this week

“We have uploaded the new picks for our China A strategy.”

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Podcasts we listened to this week


“Christopher, who’s beaten the S&P 500 over the last 24 years, explains why Tesla is his biggest position; why investors routinely underestimate the impact of disruptive technologies; why it was so challenging to be the son of America’s first celebrity fund manager; what 3 habits help him most; & what he learned from his famed mentors, Peter Kaufman & Charlie Munger.”

Listen to the episode.

Readings this week

The Missing “T” in ESG

“ESG rating agencies, however, are not solely accountable for the tax-related blind spot. As we show, their most prominent clients—ESG funds and their corresponding fund families—also share the blame. We observed a tendency for ESG funds to favor companies implementing aggressive tax strategies.”

Read the article.

Book recommendation

Scaling People: Tactics for Management and Company Building by Claire Hughes Johnson

“Scaling People is a practical and empathetic guide to being an effective leader and manager in a high-growth environment. The tactical information it puts forward—including guidance on crafting foundational documents, strategic and financial planning, hiring and team development, and feedback and performance mechanisms—can be applied to companies of any size, in any industry.”

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

Ep786: Mark Kohler – Take Ownership of What You’re Doing Wrong

BIO: Mark Kohler, M.PR.A., C.P.A., J.D., is a highly respected Founding and Senior Partner at KKOS Lawyers, specializing in tax, legal, wealth, estate, and asset protection planning.

STORY: Mark and his partner bought two properties to put up on Airbnb. The first property needed just a bit of modification, but the second one required far more. It took them more time and money than expected to get it ready for renting.

LEARNING: Take ownership of your mistakes. If a problem occurs, admit it, step up, and try to solve it—don’t run away or stick your head in the sand. The majority of trouble we face in our lives will be caused by ourselves.

Access the episode’s show notes and resources

Published on Become a Better Investor this week

How can you make lasting change at your organization? Recruit your friends! In this discussion, Bill Bellows lays out his experience recruiting and working with a small group to make big changes in a large company.

Listen to Transparency Among Friends: Awaken Your Inner Deming (Part 21)

SK Telecom Company Limited (017670 KS): Profitable Growth rank of 6 was up compared to the prior period’s 7th rank. This is below average performance compared to 240 large Comm. Serv. companies worldwide.

Read SK Telecom – World Class Benchmarking

Tongcheng Travel Holdings Limited (780 HK): Profitable Growth rank of 1 was up compared to the prior period’s 9th rank. This is World Class performance compared to 920 large Cons. Disc. companies worldwide.

Read Tongcheng Travel Holdings – World Class Benchmarking

Glory Limited (6457 JP): Profitable Growth rank of 2 was up compared to the prior period’s 10th rank. This is World Class performance compared to 1,390 large Industrials companies worldwide.

Read Glory Ltd – World Class Benchmarking

Henan Shuanghui Investment & Development Company Limited (000895 SZ): Profitable Growth rank of 1 was same compared to the prior period’s 1st rank. This is World Class performance compared to 540 large Cons. Staples companies worldwide.

Read Henan Shuanghui Investment & Development – 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.