Skip to content
Learning that drives better investment decisions

Become a Better Investor Newsletter – 31 August 2024

|

Noteworthy this week

  • War-like US government deficit
  • Overstated US employment
  • No return investing in bonds
  • Berkshire Hathaway’s market cap hit US$1trn
  • Tulsi Gabbard endorses Trump

War-like US government deficit: The budget deficits seen under the past three US presidents have been larger than under WW1. Only during WW2 was the deficit bigger.

Overstated US employment: The US job data has been questioned for a while, and recently, the adjustment came. 1.1m fewer Americans than reported were employed.

No return investing in bonds: There are quite a few adjustments and assumptions made in this chart, but I’d say they’re fairly realistic of how things are today. Government bonds haven’t returned much over 100 years, while stocks have been phenomenal.

Berkshire Hathaway’s market cap hit US$1trn: Only six US tech stocks and Saudi Aramco have market caps above US$1 trillion.

Tulsi Gabbard endorses Trump: I guess RFK Jr’s endorsement was less surprising. But now, another top Democrat endorses the Republican presidential candidate.

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

“Update: Thai FVMR Portfolio Since inception, it has gained 112% versus the SET 100 Index’s return of 24%.”

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

#35 Thoughts on long-term bonds – The Direk Khanijou Show

“This episode is about the hidden risks in owning long-term bonds.”

Listen to the episode.

Readings this week

A Number From Today and A Story About Tomorrow

“Every forecast takes a number from today and multiplies it by a story about tomorrow.”

Read the article.

 

Book recommendation

Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History by Liam Vaughan

“The riveting story of a trading prodigy who amassed $70 million from his childhood bedroom—until the US government accused him of helping trigger an unprecedented market collapse.”

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 11: Long-Term Outperformance Is Not Always Evidence of Skill

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 11: The Demon of Chance.

LEARNING: Don’t always attribute skill to success, sometimes it could be just luck.

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 10: When Even the Best Aren’t Likely to Win the Game.

Listen to Enrich Your Future 10: You Won’t Beat the Market Even the Best Funds Don’t

Where did your “quality journey” start? In this first episode of a new series on quality, Bill Bellows shares his “origin story,” the evolution of his thinking, and why the Deming philosophy is unique.

Listen to Quality, Back to the Start! Misunderstanding Quality (Part 1)

International Container Terminal Services Incorporated (ICT PM): Profitable Growth rank of 2 was up compared to the prior period’s 4th rank. This is World Class performance compared to 1,430 large Industrials companies worldwide.

Read International Container Terminal Services – World Class Benchmarking

GFPT Public Company Limited (GFPT TB): Profitable Growth rank of 4 was up compared to the prior period’s 6th rank. This is above average performance compared to 420 medium Cons. Staples companies worldwide.

Read GFPT – World Class Benchmarking

Genting Berhad (GENT MK): Profitable Growth rank of 7 was down compared to the prior period’s 1st rank. This is below average performance compared to 940 large Cons. Disc. companies worldwide.

Read Genting – 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.

Posted in Newsletter