This is a cautionary tale of what happens when governments attempt to insert themselves in fast-moving markets. Look how the taxpayer money was spent without considering that market forces are more powerful than subsidies. Julie Bykowicz and Ted Mann report in The Wall Street Journal: BUFFALO, N.Y.—New York spent nearly $1 billion over the past decade on Elon Musk’s ambitious plan for what was supposed to be the largest solar-panel factory in the Western Hemisphere, one of the largest-ever public cash outlays of its kind. “You almost have to pinch yourself, right?” New York’s … [Read more...]
You Invest, They Win
The founder of the largest hedge fund in the universe, Ray Dalio, tweeted this from Burning Man:
Just back from Burning Man. Reminds me of Woodstock with better art (installations) and less good music. What a great vibe and what amazing creativity!
Photo is with my pal and coworker Jeff Taylor at his great music camp Root Society. If you go next year, 1-5am is best.
Are these the guys you want running your money? You invest, they win. But hey, it’s not about the money. It’s about saving the planet man.
Because if it’s about the money (Dalio has a personal net worth of $19 billion) then this hedge fund lost to a boring Vanguard fund that uses a conventional mix of 60% stocks and 40% bonds.
The article doesn’t come out and name the fund, but perhaps you, as a long-time reader of our websites, know the name: Vanguard Wellington.
You might also know what Vanguard founder, the late, great, Jack Bogle, meant when he said: “The grim irony of investing is that we investors as a group not only don’t get what we pay for, we get precisely what we don’t pay for.”
The captains of the investing universe are living their “best life” at whose expense?
Yours, of course. You invest, they win. Read more below.
You may not have guessed it, but Washington State has imitated California's anti-CO2 rules so well that it has become America's new home of the highest fuel prices while making its residents poorer. Imitation is the purest form of flattery, but in the case of California, it's also the fastest way to diminish citizens' standard of living. The Wall Street Journal's editorial board reports on Washington's dubious honor, writing: Congratulations, of the dubious sort, to Washington state. The folks in Olympia have dethroned California to claim the distinction of the country’s highest gasoline … [Read more...]
UPDATE 11.18.2020: Has there been a company better positioned for the pandemic than the Home Depot? If your fire pit is more like your new outdoor living room, you know exactly what I'm saying. It's almost impossible to find those neat outdoor heaters. The same goes for pressure-treated wood. We're all trying to make our involuntary staycation one worth remembering. During a talk with Dick Young yesterday, he recalled graduating from Babson in 1963. Home Depot co-founder Arthur Blank also graduated from Babson that year. Their class has, as a whole, been most active in giving back to the … [Read more...]
You know Your Survival Guy is concerned by BlackRock's ESG push. It's not great when you invest, and they win, using the voting power you bought with your money to push their agenda. Now GOP Attorneys General from 17 states are pushing back against BlackRock's ability to influence policies at utility companies. Eric Revell reports on Fox Business: A group of Republican attorneys general filed a motion Wednesday with a federal regulator to block BlackRock from imposing its environmental, social and governmental (ESG) policies on utility companies. BlackRock, the world’s largest asset … [Read more...]
Joe Biden is facing troubles both abroad and at home. In Europe, the war in Ukraine is extremely expensive, and its outcome remains to be seen. Here in the United States, the banking industry is increasingly volatile. But one similarity in both cases is that the Biden administration is relying on BlackRock to put out the fires like the company is his own personal bucket brigade. In Ukraine, BlackRock is being asked to smooth the way for large-scale business projects that will rebuild the country if the war ever ends. Ukrainian President Volodymyr Zelensky told the world about his meeting … [Read more...]
Did Silicon Valley Bank (SVB) fail because of climate change? Maybe. But not because the sea level rose or the rivers went dry. It may have been that the San Francisco Federal Reserve Bank's hyperfocus on climate change and other progressive issues made its regulatory arm miss the signals at SVB. The Wall Street Journal's editorial board writes: Congress will hold hearings this week on the role of regulators in recent bank failures, and let’s hope they’re instructive. One question that deserves probing is whether misplaced priorities at the San Francisco Federal Reserve Bank caused it to … [Read more...]
Michigan Governor Gretchen Whitmer and the state's legislature are working hard to bring back forced unionization in the Wolverine State. Michigan has been a Right to Work state since 2012, and because of that, companies have been busy investing in the state's future. Now, Gretchen Whitmer, who implemented devastating lockdowns on the state in response to COVID-19, plans to bring back the "bad old days." Julia Musto reports for Fox Business: The Michigan Senate approved legislation on Tuesday to repeal the state's right-to-work law. Senators approved the repeal on a 20-17 vote, sending the … [Read more...]
Can you guess who is cheering on the bailout of uninsured accounts at Silicon Valley Bank? Governor Gavin Newsom. According to Ken Klippenstein at The Intercept, Newsom may have more than a political interest in protecting the California bank: ON MONDAY, California Gov. Gavin Newsom praised the Biden administration’s decision to intervene on behalf of Silicon Valley Bank’s clients after the bank was taken over by the FDIC on Friday amid a bank run. The White House “acted swiftly and decisively to protect the American economy and strengthen public confidence in our banking system,” Newsom said … [Read more...]
You've read that Your Survival Guy doesn't invest in SPACs. The problem is that you invest, and they win. You take on risk, and the founders reap the rewards. Now investors in some well-known SPACs are suffering the consequences. Bailey Lipschultz reports on the recent SPAC failures, writing for Bloomberg: One of the SPAC industry’s most well-known sponsors and a would-be serial backer have seen deals worth $10.6 billion go up in smoke in less than an hour. Alec Gores, one of the most well-respected sponsors, said Monday that Gores Holdings VIII Inc. would not be merging with materials … [Read more...]
Originally posted on February 3, 2021. Are you aligned with a money gathering business, or are you aligned with a money manager? The money-gathering business is all about bigness. They tell you all about how big they are when all you care about is, “how are you going to help me?” Welcome to the world where being big—whether it’s big tech or big money—makes you just a cog in the wheel. Where, for example, you sign up for Facebook or use Google for “free” and come to realize, “anything that’s free means I’m the product.” They’re selling you out. It’s no different from when money guys look to … [Read more...]