Become a Better Investor Newsletter – 13 January 2024
Noteworthy this week
- Shifting to caution from progress
- DEI at any cost
- Time for EM to shine?
- Rate hikes haven’t hit companies
- Spot Bitcoin ETFs approved
Shifting to caution from progress: An interesting analysis of millions of books suggests that we have become more focused on caution, worry, and risk aversion than progress.
NEW: analysis of millions of books published over the centuries suggests western society is shifting away from a culture of progress, and towards one of caution, worry and risk-aversion.
I think this is one of the most important challenges facing us today. pic.twitter.com/x8GT5lTRIV
— John Burn-Murdoch (@jburnmurdoch) January 5, 2024
DEI at any cost: I’m not saying that DEI is the reason for the Alaska Airlines accident. I’m asking what price people will pay for DEI over meritocracy. And should we even promote DEI? (My answers are zero and no)
Do you want to fly in an airplane where they prioritized DEI hiring over your safety? That is actually happening. https://t.co/FcTyzZD0uW
— Elon Musk (@elonmusk) January 10, 2024
Time for EM to shine?: Buying cheap has typically been a winning long-term strategy. EM now trades at similar levels relative to the US as they did after the dotcom crash. Is it time for EM revival?
Ratio of Emerging Markets to US Equities at a 22-year low. Back to October 2001 levels. pic.twitter.com/CGlvOLb2Y8
— Charlie Bilello (@charliebilello) January 10, 2024
Rate hikes haven’t hit companies: Due to debt duration, it takes time for rate hikes to impact companies’ interest costs. However, one would expect it has already impacted corporate debt issuance.
One of the reasons the most anticipated recession has not arrived yet despite rates hikes. Higher interests impact takes time due to corporate debt duration pic.twitter.com/yroEUh9wMW
— Michael A. Arouet (@MichaelAArouet) January 10, 2024
Spot Bitcoin ETFs approved: US SEC’s account on X announced it had approved spot BTC ETFs, to retract the statement later and say the account had been compromised. To then, a bit late, announce the same approval.
SEC approves first spot bitcoin ETFs in boost to crypto advocates https://t.co/mr1eClrGDm
— Financial Times (@FT) January 10, 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
“Remember who told you first about the ESG nonsense.”
“Black Rock is generally in trouble – So you will see more job cuts. It’s not about ESG- It was just the low-hanging fruit.”
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Podcasts we listened to this week
RWH039: OPTIMAL PERFORMANCE W/ DANIEL GOLEMAN
“In this episode, William Green brings back Daniel Goleman, author of “Emotional Intelligence,” an iconic book that’s sold over 5 million copies. Here, Dan talks about his new book, “Optimal: How to Sustain Personal & Organizational Excellence Every Day.” He explains how to master the skills of emotional intelligence to become more productive, more effective, calmer, & happier.”
Readings this week
2023: The Year in Charts
Check out Charlie Bilello’s summary of last year.
Book recommendation
The Essays of Warren Buffett: Lessons for Corporate America by Lawrence A. Cunningham
“A modern classic, The Essays of Warren Buffett: Lessons for Corporate America is the book Buffett autographs most and likes best. Its popularity and longevity over three decades attest to the widespread appetite for this definitive statement of Mr. Buffett’s thoughts that’s uniquely comprehensive, non-repetitive, and digestible. New and experienced readers alike will gain an invaluable informal education by perusing this classic arrangement of Mr. Buffett’s best writings.”
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
The Bitcoin Spot ETF is approved and I can finally buy decentralized currency from BlackRock, Vanguard and Fidelity!
— John W. Rich (Wealthy) (@Cokedupoptions) January 10, 2024
— Not Jerome Powell (@alifarhat79) January 10, 2024
New My Worst Investment Ever episodes
Ep765: Will Roundtree – Get a Customer First
BIO: Will Roundtree offers the world a unique lens into wealth-building strategies and examines opportunities for his communities to expound on their knowledge and have effective practices to apply it.
STORY: Will invested in a small tax franchise after he bought into the owner’s lavish lifestyle. He didn’t do his due diligence, only to discover that the owner had been stealing from his clients. This saw him lose over $40,000.
LEARNING: Do your due diligence. Study the actual industry you want to invest in and verify its legitimacy. There’s no hack or shortcut to earning trust.
Access the episode’s show notes and resources
Ep764: Kyle Mowery – Invest in Your Circle of Competence
BIO: Kyle Mowery, founder and portfolio manager at GrizzlyRock Capital, has an 18-year career beginning at PAAMCO, where he honed his analytical skills. He later delved into high-yield corporate securities at T.H. Lee Senior Credit Strategies and expanded his expertise at BMO Capital Markets.
STORY: Kyle invested in a business that produced sandalwood trees. He believed they were about to sell at significantly higher prices to buyers across the globe. Unfortunately, some of the sales fell through, management resigned and didn’t report when they sold their shares, and then the whole thing imploded.
LEARNING: Invest in your circle of competence. Make sure the bet size is correct.
Access the episode’s show notes and resources
Published on Become a Better Investor this week
What does it mean that people feel connected and included when something good happens yet dissociate when something bad happens? In this episode, Bill Bellows and Andrew Stotz discuss the human side of integration.
Listen to Integration Excellence: Awaken Your Inner Deming (Part 12)
Great Wall Motor Company Limited (601633 SH): Profitable Growth rank of 7 was down compared to the prior period’s 5th rank. This is below average performance compared to 940 large Cons. Disc. companies worldwide.
Read Great Wall Motor – World Class Benchmarking
Renault SA (RNO FP): Profitable Growth rank of 6 was up compared to the prior period’s 8th rank. This is below average performance compared to 940 large Cons. Disc. companies worldwide.
Read Renault SA – World Class Benchmarking
Equity rebound continued, and bonds were strong as well. Performance review of our strategies in December 2023 – All Weather Inflation Guard gained 3.0%, All Weather Strategy gained 2.2%, All Weather Alpha Focus gained 3.9%. Global outlook that guides our asset allocation.
Read A. Stotz All Weather Strategies – December 2023
Mitsubishi Motors Corporation (7211 JP): Profitable Growth rank of 2 was same compared to the prior period’s 2nd rank. This is World Class performance compared to 940 large Cons. Disc. companies worldwide.
Read Mitsubishi Motors – 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.