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Become a Better Investor Newsletter – 25 January 2025

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Noteworthy this week

  • AI to replace investment bankers
  • Worst US bond bear market ever
  • Everyone is bearish on China
  • Only 29% of S&P 500 companies outperformed
  • The Trumps launch shitcoins

AI to replace investment bankers: Goldman Sachs CEO says that AI can draft 95% of an IPO prospectus “in minutes.”

Worst US bond bear market ever: US bonds have experienced their worst bear market in history: 30-year Treasuries have declined 51% since March 2020, marking the largest drawdown on record.

Everyone is bearish on China: Short interest in China is still near an all-time high despite Chinese stocks bottoming a year ago.

Only 29% of S&P 500 companies outperformed: Only 29% of S&P 500 companies have outperformed the index over the past two years, one of the lowest levels since 1990.

The Trumps launch shitcoins: Just before Donald Trump’s inauguration, he launched a memecoin that reached billions of dollars of market cap. Shortly thereafter, a Melania Trump coin was launched. We sure live in interesting times.

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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

“Yesterday, 12 business owners and leaders joined at The Landmark Bangkok to boost their productivity. We also introduced the all-new IN 3 HOURS Passport, where you can collect 13 stamps for 13 IN 3 HOURS sessions on different topics.”

Try 1 month of the Become a Better Investor Community for FREE today!
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Podcasts we listened to this week

Paul Podolsky: The Uncomfortable Truth About Money: How to Live with Uncertainty and Learn to Think for Yourself – Talking Billions

“Paul Podolsky is an author, podcaster, journalist, and investor who spent time in Russia in the 1990s, and then worked on Wall Street for over two decades, much of it at Bridgewater Associates, the world’s largest hedge fund, with Ray Dalio as his boss. His father worked on the Manhattan Project, with Robert Oppenheimer as his boss.”

Listen on Apple or Spotify.

Readings this week

Mental Models: The Best Way to Make Intelligent Decisions (~100 Models Explained)

“A mental model is a simplified explanation of how something works. Any idea, belief, or concept can be boiled down to its essence. Like a map, mental models highlight key information while ignoring irrelevant details. They’re tools for compressing complexity into manageable chunks. Mental models help us understand the world. .”

Read the article.

Book recommendation

Becoming Nobody: The Essential Ram Dass Collection

“The game is not about becoming somebody, it’s about becoming nobody.”

Get the book on Audible.

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

Ep796: Mitch Russo – Sell It First Before You Build It

BIO: Mitch Russo is a serial entrepreneur who built and sold his first software company for eight figures, scaled a $25M business with Tony Robbins and Chet Holmes, and was twice nominated for Inc. Entrepreneur of the Year.

STORY: Mitch bought several Amazon stores to make passive income, which he did for a while. Unfortunately, the lucky streak ended after Amazon significantly reduced the commissions it paid to its resellers, and Google changed its algorithm. Now, Mitch’s SEO pages were not working, and nobody was finding them.

LEARNING: Never start a business without knowing who will buy the product. Try to sell your product/service before you build it.

Access the episode’s show notes and resources

Published on Become a Better Investor this week

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 22: Some Risks are Not Worth Taking.

Listen to Enrich Your Future 22: Some Risks Are Not Worth Taking

Central Retail Corporation Public Company Limited (CRC TB): Profitable Growth rank of 7 was up compared to the prior period’s 8th rank. This is below average performance compared to 940 large Cons. Disc. companies worldwide.

Read Central Retail Corporation – World Class Benchmarking

HD Hyundai Heavy Industries Co Ltd (329180 KS): Profitable Growth rank of 2 was up compared to the prior period’s 9th rank. This is World Class performance compared to 1,410 large Industrials companies worldwide.

Read HD Hyundai Heavy Industries – World Class Benchmarking

Beijing Zhong Ke San Huan High-Tech Company Limited (000970 SZ): Profitable Growth rank of 10 was down compared to the prior period’s 9th rank. This is poor performance compared to 620 large Info Tech companies worldwide.

Read Beijing Zhong Ke San Huan High-Tech – World Class Benchmarking

DigiPlus Interactive Corporation (PLUS PM): Profitable Growth rank of 1 was same compared to the prior period’s 1st rank. This is World Class performance compared to 940 large Cons. Disc. companies worldwide.

Read DigiPlus Interactive Corp – 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.

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