At some point along your journey, you may want to begin acquiring businesses at a discount. A thread from our very own, Co-Founder of Market Movers, Taylor Welch…
This one is juicy and breaks down how he buys & acquires companies, oftentimes for little (or zero) in cash. Click to read.
- This one’s a doozy: (1) US economic growth is dampening, (2) US spending going DOWN, (3) costs of goods increasing (4) Labor wages increasing… Overall picture = not good. We say: Go buy Bitcoin (not actual investment advice, but all the same...).
- Pfizer still has the favor. White House COVID-19 adviser Dr. Anthony Fauci said the Pfizer-BioNTech shot will likely be the only approved COVID-19 booster by Sept. 20. (Pfizer is still sandbagging the competition). Moderna is still waiting on FDA regulatory approval and then the recommendation from the Advisory Committee on Immunization Practices. Boosters - the modern-day medical upsell. Read more here.
- Wall Street can't get enough fixer-upper houses, turning to multi-family. High-interest loans to house flippers are a hot commodity on Wall Street, but inventory is scarce. Companies and investors have been buying loans that fund renovations of small apartment buildings. There is much less competition for these than houses. Many flip loans are repaid even sooner, allowing investors to recycle their capital by lending anew or buying additional loans to boost returns. Great time to be in the market, hard time to find the inventory. Source.
- Speaking of multi-family...Major investors are raising their bets on student housing. With millions of students heading back to college campuses this month, Blackstone Inc., Brookfield Asset Management Inc. and other investors are offering student housing facilities that feature game and video rooms, fully loaded gyms, speedy Wi-Fi, and even swimming pools in some cases. These companies are bullish on the sector as more universities plan to offer in-class learning again this fall. Once again, the multi-family housing rental market is WINNING. Read more here.
- The Federal Housing Finance Agency, (FHFA) is extending the time that owner-occupants can view and purchase foreclosure listings over investor competition. Individuals, families, and nonprofits now have 30 days—up from 20 days—to exclusively bid on real-estate-owned properties under Fannie Mae and Freddie Mac’s First Look programs. This will allow them to bid on foreclosure properties ahead of when these homes will be available for investor purchase. Not so good considering the already existing inventory challenge for single-family real estate investors. Read more here.
WHAT TO WATCH
- The US Securities and Exchange Commission has warned that it will sue Coinbase if it launches a new digital asset lending product (we’ve been waiting for the government to get their hands dirty). The company received a Wells notice from the regulator saying it would pursue legal action if Coinbase introduced a yield product called Lend. Grewal said the SEC had told Coinbase earlier this year that it considered the Lend product a security “but wouldn’t say why or how they’d reached that conclusion” (LOL). Government will always try to regulate for a piece of the pie, but it seems they’re struggling to catch up on understanding the tech. We expect this will be very entertaining to watch as it all unfolds, for sure. Read more here.
- Ford is bullish on EV. Not only are they developing vehicles, but now, they’re making batteries for the vehicles. Sounds a little reminiscent of Elon starting an energy company. I digress. If the manufacturing of the batteries is successful, it will deliver the cells in 2022. The Ford-backed startup, Solid Power, announced plans in June to go public via a reverse merger with Decarbonization Plus Acquisition Corp. III. The company is likely to begin trading in the fourth quarter. Gas is out. EV is the future. Source.
- Are you the bank’s cash-flowing asset? Find out here. Think about it...
- Conor Sen on Twitter says we need some sort of protocol for a cashless world because getting cash/change for valets/tipping is harder and harder to do. This is dumb. Venmo. CashApp. Hell, use a crypto wallet! Why aren’t we already doing this? Valets, waitstaff, and other cash-based jobs should have their QR code ready to scan with a sign that says “Scan to tip me.” Problem solved. Moving on. Also, just more evidence that fiat $ is losing, crypto is winning. The end.
- Will housing inventory follow the normal seasonal pattern (dipping in the fall - not good with the market already 25% down in inventory numbers), or will inventory continue to increase over the coming months? This will be important to watch for house prices and housing activity. Read more here.
What I began to understand is that the greatest investors are intellectual mavericks. They’re not afraid to question and defy conventional wisdom. They profit from the misperceptions and mistakes of people who think less rationally, rigorously, and objectively. - William Green, Richer, Wiser, Happier
Moral of the story - be an intellectual maverick.