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Become a Better Investor Newsletter – 16 November 2024

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Noteworthy this week

  • Launching DOGE
  • DOGE sends Dogecoin to the moon
  • Bitcoin ETF sets record
  • Buffett holds 28% in cash
  • Milei fixed inflation in Argentina

Launching DOGE: Trump has announced that Elon Musk and Vivek Ramaswamy will lead the Department of Government Efficiency (DOGE). We surely live in interesting times.

DOGE sends Dogecoin to the moon: Since the election, Dogecoin has gained 128%! Overall, crypto and crypto-related stocks have gained massively. The market has turned to risk-on mode.

Bitcoin ETF sets record: Blackrock’s Bitcoin ETF hits US$40bn in AUM and reached this milestone within 211 days. It took the previous record-holder 1,253 days to reach the same milestone.

Buffett holds 28% in cash: Berkshire Hathaway now holds over 28% of their Assets in Cash, the highest % since 2004. Buffett isn’t buying into the post-election rally.

Milei fixed inflation in Argentina: President Milei got the inflation rate from 25.5% to 2.7% in under a year.

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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

“Andrew goes live with FINNOMENA to update you on our All Weather Strategies. October 2024 was another great month for gold. Andrew will also talk more about our global bond allocation and comment on the outcome of the US election.”

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Podcasts we listened to this week

Apollo CEO: Private Markets, Investment Alpha and Risk Management – In Good Company with Nicolai Tangen

“What does it take to stay resilient in a fast-changing financial world? How are private markets transforming the way we invest? And how does Apollo approach risk? Nicolai Tangen meets with Marc Rowan, CEO and co-founder of Apollo Global Management, to discuss the rapidly evolving world of finance and explore what it takes to stay ahead in an industry full of risks.”

Listen on Apple or Spotify.

Readings this week

The golden rule of investing

“While gold is a volatile asset, it is often considered a safe haven that offers protection during bear markets. We study this safe haven hypothesis by analyzing a strategic allocation to gold for a loss averse investor with a 1-year evaluation horizon. A modest allocation to gold indeed helps to reduce downside risk of traditional stock-bond allocations, yet such risk reduction comes at the cost of return. Conversely, low-volatility stocks are more effective in reducing losses without giving up returns.”

Download PDF.

Book recommendation

Nexus: A Brief History of Information Networks from the Stone Age to AI by Yuval Noah Harari

“For the last 100,000 years, we Sapiens have accumulated enormous power. But despite allour discoveries, inventions, and conquests, we now find ourselves in an existential crisis. The world is on the verge of ecological collapse. Misinformation abounds. And we are rushing headlong into the age of AI—a new information network that threatens to annihilate us. For all that we have accomplished, why are we so self-destructive?”

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

Enrich Your Future 19: The Gold Illusion: Why Investing in Gold May Not Be Safe

In this episode of Enrich Your Future, Andrew and Larry Swedroe discuss Larry’s new book, Enrich Your Future: The Keys to Successful Investing. In this series, they discuss Chapter 19: Is Gold a Safe Haven Asset?

LEARNING: Do not allocate more than 5% of gold to your portfolio.

Access the episode’s show notes and resources

Published on Become a Better Investor this week

In this episode, Jacob Stoller and Andrew Stotz discuss the myth that managers need to know everything in order to manage. What happens when you ask non-managers for feedback?

Listen to Top-Down Knowledge Myth: Boosting Lean with Deming (Part 4)

PT Sumber Alfaria Trijaya Tbk (AMRT IJ): Profitable Growth rank of 2 was same compared to the prior period’s 2nd rank. This is World Class performance compared to 540 large Cons. Staples companies worldwide.

Read Sumber Alfaria Trijaya – World Class Benchmarking

Shanghai Pharmaceuticals Holding Company Limited (601607 SH): Profitable Growth rank of 9 was same compared to the prior period’s 9th rank. This is poor performance compared to 360 large Health Care companies worldwide.

Read Shanghai Pharmaceuticals Holding – World Class Benchmarking

Rojana Industrial Park Public Company Limited (ROJNA TB): Profitable Growth rank of 5 was up compared to the prior period’s 7th rank. This is average performance compared to 100 medium Utilities companies worldwide.

Read Rojana Industrial Park – World Class Benchmarking

Gold had another great month. Performance review of our strategies in October 2024 – All Weather Inflation Guard fell 0.8%, All Weather Strategy fell 0.3%, All Weather Alpha Focus gained 0.5%.

Read A. Stotz All Weather Strategies – October 2024

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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