The post Become a Better Investor Newsletter – 26 August 2023 appeared first on Become a Better Investor.
Noteworthy this week
- Bottom record for China’s GDP
- High rates hit hard when debt is massive
- US money supply continues to fall
- Thaksin returns to Thailand
- If government…
Bottom record for China’s GDP: JPMorgan forecasts the worst GDP growth since Mao Zedong died in 1976. Economists are typically not great at forecasting, but still…
What would be real China GDP growth number if one adjusted it for building idle airports and vacant residential property? Asking for a friend. pic.twitter.com/nEfwwmpfN1
— Michael A. Arouet (@MichaelAArouet) August 20, 2023
High rates hit hard when debt is massive: Given the massive US gov’t debt, it might be hard for the Fed to stay at high rates for an extended period.
“When government debt levels are high, it is more difficult for interest rates to stay elevated for a long time because the negative impact on the economy of higher rates is also working through higher debt servicing costs for the government:” Apollo’s Slok pic.twitter.com/hK19ZGM9Hi
— Lisa Abramowicz (@lisaabramowicz1) August 23, 2023
US money supply continues to fall: Negative money supply growth hasn’t happened since at least 1960, but it has contracted in 2023YTD.
The US Money Supply fell 3.7% over the last year, the 8th consecutive month with a YoY decline. pic.twitter.com/UlV0IrYVrF
— Charlie Bilello (@charliebilello) August 23, 2023
Thaksin returns to Thailand: After 17 years in exile, former PM Thaksin Shinawatra returned to Thailand on Tuesday. On the same day, the PM candidate of the party led by Thaksin’s daughter got the votes to become Thailand’s 30th PM. Thaksin is currently jailed, but this is likely not the end of the story.
First photo of former premier Thaksin Shinwatra waving to supporters at Don Mueang Airport Tuesday morning. He returned to Thailand after 17 years of living in exile. #Thailand #whatshappeningThailand #ทักษิณ #ทักษิณชินวัตร #ทักษิณกลับบ้าน #ทักษิณกลับไทย pic.twitter.com/uD4H4drnXq
— Khaosod English (@KhaosodEnglish) August 22, 2023
If government…: Important reminder and life hack – if the government does something, be on guard.
LIFE HACKS – 2023 edition
If government is involved, avoid it.
If government supports it, reject it.
If government says it’s safe, it’s not.
If government says it’s true, it’s false.
If government endorses it, question it.
If government says you need it, you don’t.…— Dr. Simon Goddek (@goddeketal) August 22, 2023
Careers in Finance – Live Streaming
Sam Gibb – August 30, 15:00 (GMT+7/ICT)
Sam Gibb deeply understands the challenges that all businesses face throughout their private-to-public lifecycle and helps early-stage businesses get off zero. As a cheerleader or coach, he sits shotgun with founders and helps with recruitment, scale-up strategy, exit negotiations, and fundraising where required.
Click attend on the LinkedIn event
CT Chan, CFA – August 30, 17:00 (GMT+7/ICT)
Choong Tho Chan, CFA is an investment professional with 30+ years of investment and industrial experience. Currently CEO of CFA Society Singapore, he is also the Founder of Pine Forest Capital. Previously at Great Eastern Life Assurance in Malaysia and Singapore, he was directly responsible for managing over US$10bn in Malaysia and had oversight of over US$30bn in Singapore.
Click attend on the LinkedIn event
Supakorn Laohapitakvorn, CFA – August 30, 19:00 (GMT+7/ICT)
Supakorn Laohapitakvorn, CFA is a portfolio manager who manages Siriraj Hospital Endowment Fund, investing in domestic and foreign equities, bonds, and alternative investments. He was previously the Head of Investment Strategist at Thailand’s Social Security Office.
Click attend on the LinkedIn event
Christiana Georgiou – August 31, 18:30 (GMT+7/ICT)
Christiana Georgiou is a Junior Associate, Client Operations at MUFG Investor Services. Christiana was formerly working in customer service at a bank but wanted to move into asset management. She joined the Valuation Master Class Boot Camp in 2022 and shortly thereafter got a job at MUFG Investor Services.
Click attend on the LinkedIn event
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Become a Valuation Expert. Valuation Master Class Boot Camp graduates can confidently value any company in the world and possess in-demand industry skills.
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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
“The new ASIR FVMR Thailand is now available.”
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Podcasts we listened to this week
The Morgan Housel Podcast – Intelligence vs. Smarts
“The core here is realizing that people are not spreadsheets. They are emotional, hormonal, misinformed, status-seeking, insecure creatures trying their best to make it through the day. So if you have to choose between understanding how the world should work in theory vs. how it actually works in practice, lean towards the latter.”
Listen on Apple or Spotify.
Readings this week
What we know about the low-risk anomaly: a literature review
“It is well documented that less risky assets tend to outperform their riskier counterparts across asset classes. This paper provides a structured summary of the current state of literature regarding this so-called low-risk anomaly.”
Read the paper
Book recommendation
The Confidence Map: Charting a Path from Chaos to Clarity by Peter Atwater
“What does our desire for certainty and control have to do with our decision-making? According to behavioral economics pioneer Peter Atwater, the answer is simple: everything. In The Confidence Map, Atwater explores the hidden role of confidence in the choices we make, and why events described as being unprecedented are often entirely predictable—if we know what to look for.”
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
Prigozhin dead after plane malfunction pic.twitter.com/CRspw6LYzr
— Not Jerome Powell (@alifarhat79) August 23, 2023
Congratulations to India for landing on the moon!
Here is a picture the aliens took as they touched down pic.twitter.com/aCYVhJ5a6C
— greg (@greg16676935420) August 23, 2023
New My Worst Investment Ever episodes
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.
Access the episode’s show notes and resources
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.
Access the episode’s show notes and resources
Published on Become a Better Investor this week
How do we motivate employees? Traditionally, we offer merit pay, focus on accountability, and use other extrinsic motivators tied to performance. The ideas sound good on the surface, but John and Andrew discuss the many pitfalls and unintended consequences – and what to do instead.
Listen to Tackling More Management Myths: Deming in Schools Case Study with John Dues (Part 9)
Dashang Company Limited (600694 SH): Profitable Growth rank of 8 was same compared to the prior period’s 8th rank. This is below average performance compared to 960 large Cons. Disc. companies worldwide.
Read Dashang – World Class Benchmarking
Tingyi (Cayman Islands) Holding Corporation (322 HK): Profitable Growth rank of 7 was down compared to the prior period’s 5th rank. This is below average performance compared to 560 large Cons. Staples companies worldwide.
Read Tingyi (Cayman Islands) Holding – World Class Benchmarking
Compal Electronics Incorporated (2324 TT): Profitable Growth rank of 9 was same compared to the prior period’s 9th rank. This is poor performance compared to 660 large Info Tech companies worldwide.
Read Compal Electronics – World Class Benchmarking
Taokaenoi Food & Marketing Public Company Limited (TKN TB): Profitable Growth rank of 1 was up compared to the prior period’s 2nd rank. This is World Class performance compared to 410 medium Cons. Staples companies worldwide.
Read Taokaenoi Food & Marketing – 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.
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