My Worst Investment Ever August 2023
Ep724: Mark Neuman – Constrained Capital and ESG Orphans
BIO: Mark Neuman is the CIO and founder of Constraint Capital. He is a CFA charterholder and creator of the ESG orphans index.
STORY: Mark talks about constrained capital, ESG orphans, and his work around it.
LEARNING: We can’t get to the future of energy without present energy. To win the renewable energy fight, we must put facts above feelings.
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Ep723: Ryan Dusick – Invest Yourself in Something That’s Meaningful
BIO: Ryan Dusick is an associate marriage and family therapist, life coach, mental health advocate, and the founding drummer of the world’s most popular band, Maroon 5.
STORY: Ryan’s worst investment ever was spending a decade of his time, energy, and focus believing that he had control over his life. Simply playing God with the reality of his existence.
LEARNING: Happiness comes from connection and purpose. Investing yourself in something meaningful to you establishes purpose.
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Ep722: Thomas Chua – Have a Proper Sell Thesis When Investing
BIO: Thomas Chua is the founder of SteadyCompounding.com, where he writes about business breakdowns, investment concepts, and timeless lessons from super investors.
STORY: Thomas invested in a company that had a gaming and e-commerce business. The gaming business was his main attraction, but over time, it started faltering. Unfortunately, Thomas held on until the stock went too low.
LEARNING: Have a proper sell thesis when it comes to investing, especially for smaller companies. Always write down why you should buy certain companies and what will cause you to sell them. When investing in small to mid-companies, ensure you’re adequately diversified.
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Ep721: Kat Merchant – Do It Today
BIO: Kat Merchant is a Rugby World Cup Champion turned Lifestyle, Nutrition & Fitness Coach. Her mission is to show you how your weight-loss journey and making positive lifestyle and nutrition changes can catalyze improvement in EVERY aspect of your life.
STORY: Kat had to retire early from her successful rugby career. A few years after that, she went through an awful breakup. At the same time, the world went into a lockdown because of COVID-19. She decided to spend all her energy trying to get back control of her life. So, she overtrained. The more she worked out, the more she felt empty inside, even though her outside was transforming.
LEARNING: You can’t help people if you’re not in a good place. Be careful and choose how you spend your energy. People don’t care about you nearly as much as you think they do.
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Ep720: Laurent Lequeu – Sizing Is Crucial When Trading
BIO: Laurent Lequeu is a multi-asset investor dedicated to assisting High Net Worth Individuals and Retail Investors in achieving financial success through actionable investment insights derived from comprehensive global macro trends and meticulous bottom-up analysis.
STORY: Laurent thought he could outsmart all the hedge funds and the most brilliant investors by shorting NVIDIA before the first quarter results. His thesis was that the stock was an extended and overcrowded trade. However, people were still interested in the stock, so the price didn’t fall as Laurent expected. Consequently, he made a loss.
LEARNING: Sizing is crucial, especially in a short position. Apply risk management when investing. Accept that you’re going to be wrong.
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Ep719: David Kass – Don’t Invest in a Company Unless the CEO Owns a Large Stake
BIO: Dr. David Kass received his Ph.D. in Business Economics from Harvard University and has published articles in corporate finance, industrial organization, and health economics. He currently teaches Advanced Financial Management.
STORY: In his early 20s, David invested $2,000 in a company giving out high dividends. Only after he invested did he realize that none of the senior executives in the company owned its shares. Soon enough, the stock went down to zero due to accounting fraud.
LEARNING: Only invest in a company if senior executives, especially the CEO, own a significant stake. The value of the CEO’s stock in his own company to his annual salary should be at least 3:1.
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Ep718: Christopher Panagiotu – Go With Your Gut, but Verify
BIO: Christopher Panagiotu hosts the “CAPitalize Your Finances” podcast and is the original CAPitalizer: one who is obsessed with understanding what there is to know about their passion.
STORY: Chris was suckered into buying Ford and GameStop shares by the high dividends the companies were offering. However, both companies couldn’t afford to pay those dividends. Chris also started a business to steal customers from his father, whom he despised. The business lasted only seven months, and it was a complete failure.
LEARNING: When in doubt, read more. Acknowledge that you made a mistake, and move on. Never invest in a company because of a celebrity CEO, founder, or CFO.
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ISMS 29: Larry Swedroe – The Shiny Apple is Poisonous and Information is Not Knowledge
In this episode of Investment Strategy Made Simple (ISMS), Andrew gets into part two of his discussion with Larry Swedroe; Ignorance is Bliss. Today they discuss two chapters of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this ninth series, they discuss mistake number 16: Do You Fail To See The Poison Inside the Shiny Apple? And mistake number 17: Do You Confuse Information With Knowledge?
LEARNING: Trust, but verify even when working with a financial advisor. Don’t confuse information with knowledge when buying individual stocks.
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ISMS 28: Stocks for the Long Run
What long-term return do you expect for US stocks?
Today, Andrew is talking about a book that has landed on his desk; Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies.
In his book, Siegel tells us to expect a 5% long-term real US stock market return. One of the first charts that he shares in the book shows the US nominal returns.
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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.