I write about investment concepts, business breakdowns and timeless lessons from super investors. Featured on Business Times, Channel News Asia (CNA) and more. Read by over 10,000 investors.
Pershing Square interim report, Howard Marks memo, & GenAI: From Breakthroughs to Bottom Lines — 3-Bullet Sunday
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Hey Reader - Thomas here. Good day to my fellow compounders! In 3-Bullet Sunday, I share with you the three most interesting piece of article, video or podcast I came across for the week on investing and growth philosophies. Enjoy! I. Pershing Square interim reportMany investors are excited about Ackman's recent investment in Nike (and Brookfield). But I thought it's worth pointing out that they're each around one-quarter of Pershing Square's usual full position at around $200m+. A full position for Ackman is around $1b. When he first announced his investment in Alphabet, it was $1.1 billion. For Berkshire Hathaway, it was $700 million, and for Netflix, it was also $1.1 billion. [FYI: he exited Berkshire and Netflix (at a loss) almost as quickly as he bought them, so please don't blindly copy super investors.] It seems like he may not be very confident in the company to Just Do It, or he may have sold some of his position before the 13F deadline. Some people (especially Nike shareholders) think that he might still be buying more shares. It's possible, but I think it's less likely because this isn't an illiquid stock, and he hasn't publicly shared his reasons for investing in it, something he usually does with a lot of enthusiasm (again, some may argue that it's because he's still accumulating). The interim report provides an update on the fund's performance, highlighting key investments, portfolio adjustments, and market outlook. Bill Ackman discusses the fund's strategic moves, including its positions in companies like Lowe's, Restaurant Brands, and Hilton, and the impact of macroeconomic factors on their performance. >> Click here to read Pershing Square interim report II. Mr. Market Miscalculates by Howard MarksHoward Marks took a swipe at investors with fluctuating moods that are wider than stock market volatility. "Mood swings do a lot to alter investors’ perception of events, causing prices to fluctuate madly. When prices collapse as they did at the start of this month, it’s not because conditions have suddenly become bad. Rather, they become perceived as bad." He mentioned the importance of recognizing when market prices deviate significantly from intrinsic values, which Marks believes can create opportunities for disciplined investors. "My point here is that, during big market moves, no one performs rational analysis or makes distinctions. They just throw out the baby with the bathwater, primarily because of psychological swings. As the old saying goes, “in times of crisis, all correlations go to 1.”"
He also emphasized the risks of following the crowd and the importance of maintaining a long-term perspective during volatile times. >> Click here to read Mr. Market Miscalculates by Howard Marks III. GenAI: From Breakthroughs to Bottom LinesThis article discusses the rapid evolution of generative AI (GenAI) and its growing impact on businesses. It explores how companies leverage GenAI for innovation, cost reduction, and competitive advantage. The piece also highlights the challenges of integrating GenAI, such as data privacy concerns and ethical implications, while stressing the importance of adapting to this transformative technology to stay relevant in the market. >> Click here to read GenAI: From Breakthroughs to Bottom Lines That's all I have for you today! Till next week. |
Steady Compounding
I write about investment concepts, business breakdowns and timeless lessons from super investors. Featured on Business Times, Channel News Asia (CNA) and more. Read by over 10,000 investors.
This week's exclusive Steady Compounding Insider Stocks report reveals how Amazon's business model—built on Bezos's timeless customer principles—is positioned to thrive. Below is a preview of my comprehensive Amazon analysis. Deeper insights—including my thoughts on valuation work, insights on Amazon's AI strategies and portfolio changes—are reserved for members. >> Click here to unlock complete by joining Steady Compounding Insider Stocks Compound steadily, Thomas Jeff Bezos once shared a...
Despite 2023’s strong market performance, 2024 has presented compelling opportunities to acquire high-quality businesses at attractive valuations. As we’ve seen repeatedly, investor time horizons compress to zero during drawdowns, and "hopium" stretches to infinity during bull cycles. This phenomenon captures how investors often lose sight of the bigger picture in turbulent times while becoming overly optimistic in bull markets. This recurring behavioral bias creates opportunities for...
Warren Buffett Investing Process, Satya Nadella views on AI, Lululemon third-quarter—3-Bullet Sunday
Hey Reader - Thomas here. Good day to my fellow compounders! In 3-Bullet Sunday, I share with you the three most interesting pieces of articles, videos, or podcasts I came across for the week on investing and growth philosophies. Enjoy! Bought Stocks Recently? If you've snagged some great businesses during this drawdown, a reminder that the big money is made in the waiting. Which also means you have to structure your finances, and portfolio to survive both the financial and emotional...