Skip to content
Learning that drives better investment decisions

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.

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.

Time to buy Alibaba?: Like the Chinese stock market, Alibaba’s share price is seriously depressed. Still, free cash flow has recovered. Interesting.

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.

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.

Join the world’s toughest valuation training

Become a Valuation Expert. Valuation Master Class Boot Camp graduates can confidently value any company in the world and possess in-demand industry skills.

Click here to learn more.

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 just uploaded the performance review of our Global Asset Allocation Strategy.”

Try 1 month of the Become a Better Investor Community for FREE today!
You can cancel at any time. Click here to learn more.

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.”

Listen on Apple or Spotify.

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.”

Read article.

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

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.