Become a Better Investor Newsletter – 10 February 2024
Noteworthy this week
- China faces deflation
- India gets China money
- Time to buy Alibaba?
- Fidelity adds BTC to portfolios
- Time to get real about green energy
China faces deflation: While the rest of the world is battling inflation, China is fighting deflation. Expect continued stimulus by the Chinese government.
Deflation is such a nasty word, people are afraid to use it pic.twitter.com/kWVdjSVgke
— Michael A. Arouet (@MichaelAArouet) February 8, 2024
India gets China money: Is India the next China? Given growth prospects and geopolitical tensions, India may continue to be a hot destination for foreign capital.
🇮🇳🇨🇳Wall Street Snubs China for India in a Historic Markets Shift
A momentous shift is under way in global markets as investors pull billions of dollars from China’s sputtering economy, two decades after betting on the country as the world’s biggest growth story.
Much of that… pic.twitter.com/aW65ODiEXJ
— Tracy (𝒞𝒽𝒾 ) (@chigrl) February 7, 2024
Time to buy Alibaba?: Like the Chinese stock market, Alibaba’s share price is seriously depressed. Still, free cash flow has recovered. Interesting.
Anyone tempted to go long Alibaba here?
FCF at all time highs versus a depressed actual price action pic.twitter.com/ZoYS4mInlb
— AndreasStenoLarsen (@AndreasSteno) February 7, 2024
Fidelity adds BTC to portfolios: Fidelity has a 1-3% bitcoin allocation in their “All-in-One” asset allocation funds in Canada, using spot bitcoin ETFs. That’s a pretty big acknowledgment for crypto.
Fidelity has a 1-3% bitcoin allocation in their “All-in-One” asset allocation funds in Canada, using spot bitcoin ETFs. The “Conservative” version is posted below.
When and if this become the norm for portfolios in the US, wow… @scottmelker pic.twitter.com/1NgoKhzf2b
— Matt Hougan (@Matt_Hougan) February 7, 2024
Time to get real about green energy: I’m all for ensuring a good environment. That’s why we need to look at the whole picture of green energy initiatives.
Most commercial solar panels use photovoltaic cells (solar cells) made from highly purified silicon (Si). These (Si) factories are a major source of emissions. Sulfur dioxide, carbon monoxide, hydrogen chloride and nitrogen oxides, which cause acid rain. #GreenEnergy pic.twitter.com/IWYDTJ8YOd
— John Lee Pettimore (@JohnLeePettim13) February 7, 2024
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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
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Podcasts we listened to this week
The Morgan Housel Podcast – A Few Thoughts on Spending Money
“How you spend money can reveal an existential struggle of what you find valuable in life, who you want to spend time with, why you chose your career, and the kind of attention you want from other people.”
Readings this week
The Fed’s Wait, Wait, Wait, Then Drip, Drip, Drip Strategy. Can We Achieve a Soft Landing?
“The inverted yield curve indicator that I developed in my dissertation, has been Code Red for 15 months. The indicator has correctly predicted the last eight recessions without a single false signal. The severity of the predicted downturn is uncertain and ideally, we experience a soft landing with only minor stress to the economy.”
Book recommendation
How Brands Grow: What Marketers Don’t Know by Byron Sharp
“This book provides evidence-based answers to the key questions asked by marketers every day. Tackling issues such as how brands grow, how advertising really works, what price promotions really do, how consumers behave and how loyalty programs really affect loyalty.”
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
— Not Jerome Powell (@alifarhat79) February 7, 2024
— Not Jerome Powell (@alifarhat79) February 7, 2024
New My Worst Investment Ever episodes
Ep771: Anthony Greer – Be Patient and Willing to Get Rich Slow
BIO: Tony began a career in equity sales in varying capacities, including running sales and trading at Bank Hapoalim for three years and a team of sales traders at Dahlman Rose for five. In November 2016, Tony launched the Morning Navigator, a macro trading newsletter distributed to over 800 professionals worldwide.
STORY: Tony invested six figures into a small ophthalmic company his friend told him about. He didn’t know much about the company besides what his friend told him. He lost investment when the share price collapsed.
LEARNING: Understand the nuts and bolts of the business you want to invest in. Be patient and willing to get rich slowly. The stock markets are for growing wealth, not creating it. Time is the only surefire thing on your side.
Access the episode’s show notes and resources
Ep770: Kevin Sutantyo – You Have to Back the Right Founders
BIO: Kevin Sutantyo is the Partner for South East Asia investments for Sovereign’s Capital, a venture capital fund focused on early-stage, tech-driven, scalable companies.
STORY: Kevin invested in a company, thinking that he had more influence over the outcome of the company than he actually did. So, he directed the company owners on what to do, making them over-dependent on Kevin’s opinion. As an investor, he wasn’t always in the office, so sometimes he wouldn’t be reachable. The company would get stuck without Kevin’s decision.
LEARNING: You have to back the right founders. As investors, you’re here to guide companies, not to be prescriptive. The founders ultimately have to make final decisions because it’s still their company.
Access the episode’s show notes and resources
Published on Become a Better Investor this week
What are unhurried conversations, and why should managers prioritize them? In this episode, David Langford and host Andrew Stotz talk about the kinds of conversations managers should be having with their team members.
Listen to The Unhurried Conversation: Role of a Manager in Education (Part 13)
Weichai Power Company Limited (000338 SZ): Profitable Growth rank of 7 was up compared to the prior period’s 8th rank. This is below average performance compared to 1,460 large Industrials companies worldwide.
Read Weichai Power – World Class Benchmarking
Titagarh Rail Systems Limited (TITAGARH IN): Profitable Growth rank of 4 was up compared to the prior period’s 5th rank. This is above average performance compared to 1,310 medium Industrials companies worldwide.
Read Titagarh Rail Systems – World Class Benchmarking
Robinsons Land Corporation (RLC PM): Profitable Growth rank of 3 was up compared to the prior period’s 4th rank. This is above average performance compared to 310 medium Real Estate companies worldwide.
Read Robinsons Land Corp – World Class Benchmarking
Capcom Company Limited (9697 JP): Profitable Growth rank of 1 was same compared to the prior period’s 1st rank. This is World Class performance compared to 260 large Comm. Serv. companies worldwide.
Read Capcom – 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.