Noteworthy this week
- Borrowing to keep up with the Joneses
- The US gov’t has also borrowed to keep up
- Rich nations continue to pay for others to reduce coal
- ESG rating firm scores a fraud above fossil fuels
- When you spot a virtue signaller, run!
Borrowing to keep up with the Joneses: What do you do when you don’t have money to spend? Apparently, you get a credit card and continue spending. The growth in retail sales has been driven by expanding consumer credit.
— Lisa Abramowicz (@lisaabramowicz1) November 16, 2022
The US gov’t has also borrowed to keep up: No news to most of us, but it’s still staggering to see how the interest costs are now rising as the cost of borrowing increases.
The Interest Expense on US Public Debt rose to $747 billion over the past year, a record high. At the current pace it will soon be the largest line item in the Federal budget, surpassing Social Security. pic.twitter.com/bwuYMGtQNt
— Charlie Bilello (@charliebilello) November 11, 2022
Rich nations continue to pay for others to reduce coal: Maybe not bad to reduce the use of coal, but how much will $15bn move the needle if $600bn is needed?
Rich nations are set to offer Indonesia at least $15 billion to help phase out coal 🇮🇩💰
🇺🇸 US, Japan and others are finalizing the deal
💸 Still, Indonesia needs WAY MORE money to shift its power grid from coal. Some estimate it will cost $600 billionhttps://t.co/sg4kAZoCUL
— Stephen Stapczynski (@SStapczynski) November 11, 2022
ESG rating firm scores a fraud above fossil fuels: It turns out that a rating agency had a better ESG score on SBF’s FTX than on Exxon Mobil. Makes sense?
Crypto-dude Sam Bankman-Fried’s fraudulent company received a higher ESG score on “Leadership & Governance” than did Exxon Mobil. This is of course predictable: SBF donated $30mm+ to Democrats & called for greater regulation. He’s one of the “good guys.” That’s ESG in a nutshell. https://t.co/pE9U3Fggtq
— Vivek Ramaswamy (@VivekGRamaswamy) November 12, 2022
When you spot a virtue signaller, run!: SBF basically admits that he played the woke game to defraud investors of billions. Some people, like SBF, just play the game to get what they want. Others actually think they’re morally superior. It’s hard to determine what’s worst. But I’d stay away from both kinds.
The biggest con man since Madoff just admitted that woke is a virtue-signaling game “where we say all the right shibboleths and so everyone likes us.” How stupid does the NYT feel now? pic.twitter.com/L92CmG1hVJ
— David Sacks (@DavidSacks) November 17, 2022
Poll of the week
— Andrew “The Worst” Stotz (
) November 18, 2022
Results from last week’s poll
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Weekly market performance
Chart of the week
Discussed in the Become a Better Investor Community this week
Andrew: My first thought is that the Republicans did an absolutely terrible job.
But they did win control of the house, which puts the system into a bit of a deadlock for the next two years. Deadlocks have generally been good for markets because people think if the government can’t do anything, it’s better than the government doing something.
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Podcasts we listened to this week
Another great interview by William Greenm gives refreshing perspectives on value investing.
Readings this week
In an article by Vox, SBF tries to explain himself. It’s just horrible to read about this fraud. This is the kind of story that makes people lose trust in the financial system. And the financial system is all about trust.
The Psychology of Totalitarianism by Mattias Desmet
“The world is in the grips of mass formation—a dangerous, collective type of hypnosis—as we bear witness to loneliness, free-floating anxiety, and fear giving way to censorship, loss of privacy, and surrendered freedoms. It is all spurred by a singular, focused crisis narrative that forbids dissident views and relies on destructive groupthink.”
Audible is great; have you tried it? If not, click here to get 2 books for free.
Memes of the week
Forbes really needs to start doing proper due diligence… pic.twitter.com/HpptRl1MIc
— Special Situations 🌐 Research Newsletter (Jay) (@SpecialSitsNews) November 13, 2022
Welcoming back Ligma & Johnson! pic.twitter.com/LEhXV95Njj
— Elon Musk (@elonmusk) November 15, 2022
The Valuation Master Class can help you stand out among your peers. We bridge the gap between you and your future employer.#ValuationMasterClass #valuation #financialanalyst #careergrowth pic.twitter.com/lpfOgYQNo2
— Andrew “The Worst” Stotz (@Andrew_Stotz) November 14, 2022
New My Worst Investment Ever episodes
BIO: Dr. Robert Glover, coach, speaker, and educator, is a relationship expert with over 40 years of professional experience.
STORY: Robert went shopping for a pop-up trailer, and when he found one, he bought it before inspecting it thoroughly. His gut told him this was a terrible idea, but he ignored it. The trailer turned out to be useless to him. He sold it off for half what he’d paid for it.
LEARNING: When you spot a virtue signaller, run!
BIO: Shil Shanghavi is a public speaking specialist, storyteller, and highly regarded speaker coach. He is redefining the meaning of public speaking by demonstrating its value across all forms of communication.
STORY: Shil’s worst investment was paying for ecstasy for over 15 years. However, this also turned out to be his best investment because he discovered house music while high on drugs. He learned to speak to music to control his stuttering and talk fluently.
LEARNING: Find a way to flip your challenges into your success story. Reach out to people around you when you need help. Write your thoughts down but don’t feel compelled to action them immediately.
BIO: Mike Michalowicz leads two new multi-million-dollar ventures as he tests his latest business research for his books.
STORY: Mike made huge profits from selling his second business, and his ego as an entrepreneur exploded. He took the gains and decided to fund multiple companies in different industries where he had no experience. They all failed and left him with zero assets.
LEARNING: Stay in your lane. Take time after selling a business to think before you rush into another investment.
Published on Become a Better Investor this week
In this episode, David and Andrew continue to talk about the thorny problem of tracking student progress – grading – and how to remove it from the classroom.
Daqin Railway Company Limited (601006 SH): Profitable Growth rank of 4 was down compared to the prior period’s 3rd rank. This is above-average performance compared to 1,470 large Industrials companies worldwide.
DTS Corporation (9682 JP): Profitable Growth rank of 3 was the same compared to the prior period’s 3rd rank. This is above-average performance compared to 700 large Info Tech companies worldwide.
Amata Corporation Public Company Limited (AMATA TB): Profitable Growth rank of 4 was up compared to the prior period’s 6th rank. This is above-average performance compared to 340 medium Real Estate companies worldwide.
Titan Company Limited (TTAN IN): Profitable Growth rank of 2 was up compared to the prior period’s 3rd rank. This is World Class performance compared to 1,040 large Cons. Disc. companies worldwide.
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.