Welcome to today's private-only digest —
Reminder: In a couple weeks we are launching a private, paid version of Market Movers. It will send digests 5x a week as opposed to only 2x. It will have an audio version so you can listen to any digest in your car or at the gym.
And — it will include some private research.
Until then, we are going to be sending a few private digests (like this one) each week so you can get a taste & feel for what these will be like. This is, of course, perks of getting in on something while it's a startup. Enjoy while it's in beta — and remember, you can always become a paying subscriber later so you don't lose access to them.
Warren Buffett turned 91 a few days ago. He’s currently worth 103.9 billion USD. If you are at all feeling behind in the investment game, you might find this thread encouraging:
- Shipping containers from overseas will cost you all of your gold, REI, and crypto combined. Ok, maybe that’s a slight exaggeration, but the cost to ship a 40-foot container from Shanghai to Los Angeles is now at $11.4k vs. $3.5k this time a year ago. And if you scroll through this thread, you’ll see patrons touting shipping fees upwards of $27k. These high prices are likely to stay bullish for the US, long-term. Global supply chain crisis is still in full swing, folks (see more in this digest). Smells inflationary to us.
- Airline stocks are in trouble...again. The EU removed the U.S. (amongst others) from its list of countries for which nonessential travel restrictions should be lifted. Not good. 1.) It’s a blow for airline investors who were banking on a recovery fueled by high-margin international travel to Europe and other destinations abroad. 2.) Flight prices will likely go up and flights might become more scarce in order to keep them full. Our thoughts: Maybe just invest in private. Read more here.
- Interesting thread on how a simple change to the tax regime would encourage significantly more construction of for-sale housing. We’re likely to see a continued rise in rentals for a good stretch.
- Bargain Hunting in Britain. Cash-rich American private equity groups are snatching up everything from supermarkets to defense companies because of their price. The price-to-earnings ratio of the FTSE 100 index on the London Stock Exchange is far lower than that of the S&P 500. When the market is saturated or too bullish, get creative and look in other more promising markets, like those abroad. The best investors adapt. Read more here.
WHAT TO WATCH
- This thread states that it's estimated that 70% of wealthy families will lose their wealth by the 2nd generation & 90% will lose it by the 3rd. Why? They stop creating new businesses, services, & products & just consume their own wealth. Then it’s dispersed amongst the new creators. Wealth redistributes itself. Important takeaway: Hedge losses by staying innovative and protecting your assets (from the government’s nasty capital gains taxes) with instruments like whole life insurance and trusts. Keep the long game in mind.
- The Pomp thinks just as legacy investors misunderstood Amazon and Facebook for nearly a decade each, we are watching the legacy investors struggle to understand crypto assets. We’ll continue to reinforce this: Stay relevant and agile, or lose.
- Crypto’s secret weapon? FUN. Visa just joined the “cool kids club” and purchased an NFT for $150k. We agree with Cuy Sheffield, Visa’s head of crypto: “The competitive advantage crypto has that most people haven’t understood yet is that we just have more fun.”
- A reflexive skepticism of traditional careerism is growing among Millenials and Gen Zers. A changing power dynamic in the job market is here - young white-collar workers are realizing they have more leverage (check out this tweet). They’re fed up with their jobs and quitting in droves. They’re starting to ask big questions about the status quo. People in charge ought to pay attention and be moving towards a new value system around labor. Meaningful collaborative work, more balance, less precarity, and better pay will give you an edge.
“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” -Paul Samuelson, American Economist, Nobel Prize Winner, “Father of Modern Economics”
Forget Vegas, buy an NFT! (Shameless plug: we’re currently loving these.) Who says all investing should be boring? While you should have the most % of your $ invested in risk-averse markets, it’s ok to experiment and try something new. The game should be fun. Just be ok to lose when risk is high.