Become a Better Investor Newsletter – 4 January 2025
Noteworthy this week
- The world is better
- Concentrated S&P 500 performance
- US$ is massively overvalued
- EU regulates
- Keep investing simple
The world is better: It’s been 25 years since the turn of the millennium – a quarter century of wars, crises, and a pandemic. Yet, extreme poverty, child mortality, and illiteracy have all fallen significantly.
It’s been 25 years since the turn of the millennium – a quarter century of wars, crises, and a pandemic. Yet, thanks to human creativity and innovations that helped us navigate hardships, these 25 years can also be considered among the greatest in human history.
Happy new year! pic.twitter.com/uUsbz1M6bo
— Johan Norberg (@johanknorberg) December 31, 2024
Concentrated S&P 500 performance: For the first time since 1998-1999, the market-cap-weighted S&P 500 beat the equal-weighted for two years in a row. This means that bigger stocks are driving the market.
The S&P 500 outperformed the equal weight index by 12% in 2024 after 12% outperformance in 2023. The only consecutive years with a higher combined outperformance than 2023-24? 1998-1999.https://t.co/rQuXrxVXM0 pic.twitter.com/DEnrskqf6I
— Charlie Bilello (@charliebilello) January 2, 2025
US$ is massively overvalued: According to BofA, the US Dollar is the most overvalued in history.
U.S. Dollar is now the most overvalued in history according to Bank of America 🚨 pic.twitter.com/rgLPXgRtWU
— Barchart (@Barchart) January 1, 2025
EU regulates: “The US innovates, China replicates, Europe regulates.”
If it wasn’t so sad, it would be quite funny pic.twitter.com/LxULhOOvl5
— Michael A. Arouet (@MichaelAArouet) December 24, 2024
Keep investing simple: Every investment should be succinct – 3-5 bullet points. You instantly get it. If you have to think about it, then it isn’t obvious.
Every investment should be succinct
3-5 bullet points
Massive tailwinds
Obviously cheap
Obvious upside if it plays out
Range of outcomes is too wide for Excel to matter
You instantly get it. If you have to think about it, then it isn’t obvious
This is the way👇👇 https://t.co/SKFL6qyJsQ
— Kuppy (@hkuppy) January 1, 2025
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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
“@channel please find the above performance chart of the 5 stock strategies and 1 asset allocation strategy you have access to in the community.”
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Podcasts we listened to this week
What I Learned In 2024: A Tale of Tails – The Morgan Housel Podcast
“A look at the big story dominating this year: tails drive everything, and everything from businesses to careers either work extraordinarily well, or not at all.”
Readings this week
My Best Charts of 2024
“As we close out the year I thought it would be good to share some of my charts and calls that worked particularly well this year (and don’t worry, I will be sharing my worst charts next week… there are always two sides to the coin!!).”
Book recommendation
Beyond Diversification: What Every Investor Needs to Know About Asset Allocation by Sébastien Page
“Getting rich is not just about luck; happiness is not just a trait we are born with. These aspirations may seem out of reach, but building wealth and being happy are skills we can learn.”
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
Printus Maximus pic.twitter.com/YTr21uvR4B
— Not Jerome Powell (@alifarhat79) December 31, 2024
🤣🤣🤣 pic.twitter.com/KZ2G0XsbKX
— Not Jerome Powell (@alifarhat79) January 1, 2025
Published on Become a Better Investor this week
Before you start solving a problem, you need to know what, precisely, you’re trying to solve. In this episode, John Dues and Andrew Stotz talk about how to figure out the problem on which you will focus your team’s efforts.
Listen to Define the Problem: Path for Improvement (Part 5)
Taiwan, Singapore, China, Malaysia, India and Philippines were the only markets with a positive return in 2024. Taiwan was the strongest performer in USD and local terms.
Read Taiwan Was the Best Performer in Asia in 2024
In December 2024, we published 3 new episodes of the My Worst Investment Ever podcast. Listen to all of them here.
Listen to My Worst Investment Ever December 2024
Bangkok Dusit Medical Services Public Company Limited (BDMS TB): Profitable Growth rank of 2 was up compared to the prior period’s 3rd rank. This is World Class performance compared to 360 large Health Care companies worldwide.
Read Bangkok Dusit Medical Services – World Class Benchmarking
Games Workshop Group PLC (GAW LN): Profitable Growth rank of 1 was same compared to the prior period’s 1st rank. This is World Class performance compared to 830 medium Cons. Disc. companies worldwide.
Read Games Workshop Group – 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.