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...]
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.
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...]
You have had a front-row seat on YourSurvivalGuy.com to the ESG investing trend, where you invest, and they win. Now, after years of money managers rebranding their high-fee funds as "ESG" to get in on the action, regulators are beginning to step in and investigate. Frances Schwartzkopff reports in Bloomberg: Asset managers have dramatically reduced the number of new ESG funds they’re rolling out, as a tougher regulatory environment makes it harder to make claims of environmental, social and governance investing. Reclassifications that add an ESG element to conventional funds are down 84% … [Read more...]
Gasoline is one of the most important things Americans buy each week. Access and competition are what make gasoline purchases fast and inexpensive. Now California politicians are banning new gas stations in an effort to achieve their green dreams by taking away one of the most essential commodities Americans buy. Grace Toohey reports for Yahoo! Finance: Without realizing they were starting a movement in green energy policy, leaders of a small Sonoma County city seem to have done just that when they questioned the approval process for a new gas station — eventually halting its development and … [Read more...]
Here's a scenario worth considering. It's not a conversation one would have with Your Survival Guy, because I’d hang up after 15 seconds, but look around the web and all these financial firms are promoting feel-good products like ESG that have nothing to do with return on investment. It’s about vacuuming up money. The phone rings and it’s Mr. Billionaire. He's calling to check on his money and lamenting about the crime, the pollution, and the impoverishment. He says, "I want to invest in companies that do good and make the world better. I can afford it. What’s that guy over at that big … [Read more...]
Don’t look now, but private equity is looking to tap into the retail investor market. Looks like they ran out of money on the institutional side—you know, the pensions for firemen, teachers, and police officers. This is all about the sales pitch. But where do you think they’re investing this “alternative” money? What’s clear as day is the lack of transparency. They lock up your money so you can’t get it, and you basically pay them to make sure you’re a long-term investor. I don’t like it. The best things in life are free. Your Survival Guy is here for you. Stick with me. The WSJ PRO’s Chris … [Read more...]
You've been told that ESG is in the best interests of investors. And you've probably heard that ESG managers are just doing their fiduciary duty to investors. At Real Clear Markets, Scott Shepard exposes the lie in both those theories. He writes: Stakeholder capitalism is not about politics. It is not a social or ideological agenda. It is not “woke.” It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. This is the power of capitalism. As has been discussed before in this space, … [Read more...]
Wouldn't it be nice if you could invest without the ESG virtue signaling? Well, you can if you own your own stocks, not a mutual fund or ETF. How about someone speaks some truth to the waste of money called ESG? Hold the press. That's exactly what HSBC executive Stuart Kirk did in a presentation last week. How'd it go? Not great, as the editors of The WSJ explain. HSBC executive Stuart Kirk gave a presentation at an investor conference last week, taking banking regulators to task for overbaking the financial risk of climate change. What was he thinking? As punishment for his heresy, the … [Read more...]
Your Survival Guy’s never been a big fan of target date funds, where you rely on fund managers to adjust your allocation like a robot based on when you plan to retire. But, unfortunately, these target date funds litter many of America’s 401(k)s (and other defined contribution plans). Many investors just can’t get away from them. Want another option? “Sorry,” they say. Plans that depend on target date funds are like going to Kentucky Fried Chicken and asking for filet mignon. It’s not going to happen. Sure, you can manipulate the allocation by being clever with the target dates. Your … [Read more...]
Is your financial planner, advisor, wealth manager, CPA, CFA, CFP, or whatever else they slap onto their business card on the same page as you? Are you all rowing in the same direction? Have you asked them about ESG, for example? Do they ask you? Because if you don’t know, it’s probably time you do. This is no time to be politically correct when it’s your money on the line. You know where Your Survival Guy stands on ESG. I hate it. And yet, in my conversations with you, a prospective client, you told me you asked your “guy” about ESG the other day, and you didn’t get a straight answer, as … [Read more...]