Your Survival Guy is no fan of cryptos especially with actors like Matt Damon cashing in where you invest, but they win. Now the price of bitcoin has dropped below $40,000 as it becomes increasingly correlated to the performance of tech stocks. The Wall Street Journal's Caitlin Ostroff reports: It is becoming a more common occurrence: When stocks fall, so does bitcoin. Bitcoin, the world’s largest cryptocurrency by market value, fell below $38,000 Friday to its lowest dollar value since August 2021, according to CoinDesk. It later regained some ground and was trading at $38,705.70, down … [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.
Chinese investors are still being paid for their investments in Evergrande, thanks to the Chinese government. But can foreign bondholders count on the communist government to save them as well? Never underestimate the vengeance a government will take against the investor class where you invest and they win, or at least don’t lose. Foreign bondholders have claims to a number of Evergrande’s offshore assets in the event that the company cannot repay them, including the company’s property management arm and an electric vehicle startup that Evergrande founded in 2018. Some analysts have said … [Read more...]
Your Survival Guy doesn’t invest in SPACs, which carve out a fortune for the founders, where you invest and they win. SPACs became very popular during the COVID-19 pandemic, but seem to be losing favor fast. Amrith Ramkumar reports in The Wall Street Journal: SPACs, or special-purpose acquisition companies, burst onto the scene in 2020 as the hip way to take Silicon Valley’s hottest startups public. Unlike traditional initial public offerings, SPACs were seen as modern and accessible, allowing any investor to put money into the companies of the future at the same time as professional money … [Read more...]
BlackRock now manages over $10 trillion in assets. Its funds are among the three largest shareholders in more than 80% of the companies in the S&P 500. In speaking about CEO Larry Fink, David Rubenstein, the co-founder of the private-equity firm Carlyle Group Inc. said, “Treasury Secretaries and finance ministers come and go. They work for someone else who can fire them tomorrow and have to build what others want them to. When you are the CEO of the biggest asset manager, you don’t have to do that.” So when you become THAT BIG, doesn’t life get boring? What’s next? Another jet, or a … [Read more...]
When interest rates are nailed to the floor, business must go on. Hence the creation of ESG funds, and a whole new market is created to generate more fees for fund companies. WSJ reports: Few private citizens wield more power in America today than Larry Fink, the chief executive of BlackRock Inc. In pushing companies to embrace climate-friendly policies, that has made him a lightning rod. The firm he runs manages some $10 trillion for pension funds, endowments, governments, companies and individuals, equal to more than 10% of the world’s gross domestic product in 2020. Its funds are among … [Read more...]
Your Survival Guy uses a combination of firewood and propane to heat his New Hampshire log cabin. Prices for both are way up, as I told you about firewood here, and as you can see below, propane which has jumped compared to last winter. Energy prices are being pushed up by incessant regulation and restrictions on the energy industry by European and American politicians. Their actions are not lowering overall worldwide emissions, but instead just relocating them, and the jobs and GDP that go with them, to China. Holman W. Jenkins writes in The Wall Street Journal: Hard to believe, but … [Read more...]
“How to Lose $2 Billion in 10 Years: Unpaid Bills Pile Up for Former Hedge-Fund Star: Philip Falcone is in a decadelong battle with the many people he owes money. They include ex-employees, a law firm and limo companies,” explains Rachel Louise Ensign in The Wall Street Journal. You see up close how quickly things unravel and shockingly, this guy was trusted to manage investors’ money. Ensign writes: Mr. Falcone became a hedge-fund billionaire betting on the subprime mortgage crisis. Then investors pulled money from his firm, Harbinger Capital Partners LLC, after a stretch of spotty … [Read more...]
You aren't dreaming. When it seems like BlackRock is pushing a woke "green" message here in America, but then investing in the world's worst environmental miscreant country, China, you're right. That's exactly what's happening. You may remember that time I was forced to agree with George Soros. While BlackRock sells investors its ESG funds with the promise of helping the planet, it's also investing heavily in China with no regard to the environment. Jon Michael Raasch reports at Fox News: A consumer watchdog criticized the largest asset manager in the world, BlackRock, for "going woke" in the … [Read more...]
Originally posted on November 2, 2020. “Well, writing to you now, five decades later, from our outside kitchen/living space in the heart of Old Town, Key West, I can’t help but think how much water has gone under the bridge through the many decades,” wrote Dick Young to you in the June 2017 issue of Richard C. Young’s Intelligence Report. “But if you have been with me over the years, you are keenly aware that it is indeed the combination of dividends, compound interest, perspective and patience that frames the message I deliver to you month after month. I do not change course. You can count … [Read more...]
You have heard that Zillow is desperately trying to offload the inventory of homes it built up throughout the pandemic buying spree. It turns out, Zillow's plan to dominate the real estate market with data-driven algorithmic buying and selling was "too risky, too volatile," and "too narrow." Those aren't adjectives investors want describing the operations of the businesses they own. With more detail on what happened at Zillow, Will Parker and Konrad Putzier report at The Wall Street Journal: When executives at Zillow Group Inc. Z -4.01% pored over the company’s earnings in the spring, they … [Read more...]