Category Archives: Building Wealth
Long-term Investing Perspective
Warren Buffett once said, “Someone is sitting in the shade today because someone planted a tree a long time ago.”
One tried and true investment philosophy is investing with a long-term perspective. In essence, the time-arbitrage approach gives long-term investors an edge. Most investors are focused on the short term, basing trading decisions on factors that may have little to do with business fundamentals, such as quarterly earnings beat or miss or overall market volatility.
Long-term investors often adopt a long-term perspective while taking advantage of the shortsightedness and noise of the market. They tend to conduct extensive research and conduct a deep dive into the fundamentals of every company in which they are considering an investment.
Their extensive research allows them to develop an informed and thorough understanding of the longer-term secular advantages of these companies. Ultimately, they are more interested in the duration of a company’s growth opportunity rather than being overly focused on its timing.
They like to invest early before a company is on the market’s radar because they believe it’s impossible to pinpoint precisely when the market will notice and start trading the stock up to reflect its growth opportunity properly. This is a vital part of the engine that drives alpha for us.
Low turnover is an outgrowth of this investment process rather than a goal in and of itself. If they find and invest in the right companies, they believe that it makes little sense to replace these companies with new and relatively untested ones. Wsupported remain invested throughout the duration of the growth trajectory of our highest conviction companies. We also believe this is a more tax efficient approach to managing a portfolio and one that is often attractive to company management who are aware of our reputation as long-term holders of stock.
Your primary goal must be capital appreciation, and you should stay involved as companies grow and flourish as long as your investment thesis holds true.
The best risk management starts with knowing the companies in which you invest. By conducting extensive research prior to initiating a position in a company and continuing to conduct due diligence will keep you apprised of the company’s growth story.
Tesla – Electric Vehicles
Tesla is planning to build another factory overseas, There is a demand across the globe by several nations wanting the plant to built.
Tayyip Erdogan, the president of Turkey, would like the next Tesla factory to be built in his country. Erdogan asked the Tesla CEO to put the eighth factory for its electric vehicles in Turkey.
Musk mentioned India as a possible place to make a low-cost electric vehicle. Tesla is currently building a factory in Mexico.
Saudi Arabia is also vying for the new plant. Attracting Tesla would be part of a push by Saudi Arabia to secure metals needed for EVs in Africa as the country tries to diversify its economy away from oil, reports Barron’s.
The Cockroach Theory
At a restaurant, a cockroach suddenly flew from somewhere and sat on a lady.
She started screaming out of fear.
With a panic-stricken face and trembling voice, she started jumping, with both her hands desperately trying to get rid of the cockroach.
Her reaction was contagious, as everyone in her group also got panicky.
The lady finally managed to push the cockroach away but …it landed on another lady in the group.
Now, it was the turn of the other lady in the group to continue the drama.
The waiter rushed forward to their rescue.
In the relay of throwing, the cockroach next fell upon the waiter.
The waiter stood firm, composed himself and observed the behaviour of the cockroach on his shirt.
When he was confident enough, he grabbed it with his fingers and threw it out of the restaurant.
Sipping my coffee and watching the amusement, the antenna of my mind picked up a few thoughts and started wondering, was the cockroach responsible for their histrionic behaviour?
If so, then why was the waiter not disturbed?
He handled it near to perfection, without any chaos.
It is not the cockroach, but the inability of those people to handle the disturbance caused by the cockroach, that disturbed the ladies.
I realized that it is not the shouting of my father or my boss or my wife that disturbs me, but it’s my inability to handle the disturbances caused by their shouting that disturbs me.
It’s not the traffic jams on the road that disturbs me, but my inability to handle the disturbance caused by the traffic jam that disturbs me.
More than the problem, it’s my reaction to the problem that creates chaos in my life.
Lessons learnt from the story:
I understood I should not react in life.
I should always respond.
The women reacted, whereas the waiter responded.
Reactions are always instinctive whereas responses are always well thought of.
Always attempt to respond to situations and never just react !
Be HAPPY not because Everything is RIGHT in your Life.
Be HAPPY because your Attitude and Mindset towards Everything in your Life is Right!
September is National Suicide Prevention Awareness Month
September is National Suicide Prevention Awareness Month.
- Suicide is the 11th leading cause of death in the United States.
- In 2021, there were 48,183 Americans that died by suicide.
- In 2021, there were an estimated 1.70 Million suicide attempts.
- On average there are 132 suicide per day.
Imagine if we could walk together toward a world without suicide. One in which we all have a greater understanding of mental health. One in which we all know how to be there for each other, including ourselves, when someone is struggling.
Artwork by Devon Blow
Together we can make a difference and break the stigmas around mental health, helping to prevent another person from taking their own life. Suicide prevention starts with all of us.
Morningstar’s 33 Undervalued Stocks
33 Undervalued Stocks for Q3 2023, according to Morningstar
Here’s the list of Morningstar’s top underpriced stock picks for the third quarter of 2023.
- Albemarle ALB
- Berkshire Hathaway BRK.B
- Blackstone BX
- Citigroup C
- Cognizant Technology Solutions CTSH
- Conagra Brands CAG
- Corteva CTVA
- Curaleaf CURLF
- Dover DOV
- Dow DOW
- Duke Energy DUK
- Entergy ETR
- Federal Realty Investment Trust FRT
- Hanesbrands HBI
- HF Sinclair DINO
- Illumina ILMN
- Jacobs Solutions J
- Kraft Heinz KHC
- Moderna Therapeutics MRNA
- NiSource NI
- Park Hotels & Resorts PK
- Pinterest PINS
- Salesforce CRM
- SLB SLB
- Stericycle SRCL
- Teradyne TER
- TC Energy TRP
- Tyson Foods TSN
- VF VFC
- Ventas VTR
- Verizon Communications VZ
- Walt Disney DIS
- Zimmer Biomet ZBH
Source: https://www.morningstar.com/stocks/33-undervalued-stocks-2
Stock picker factors:
- Stock price is cheap relative to intrinsic value,
- Company pays investor to wait
- Company ability to repurchase stock at a reasonable price
- Stock must be cheaply price (ROE, ROIC, P/E, P/Sales, P/FCF)
- Buy something at three-time cash flow and five percent dividend yield.
Source: https://www.morningstar.com/stocks/33-undervalued-stocks-2
China is No Longer Investable
Investing capital in China is both risky and is wildly unpredictable given the country’s lack of transparency, weak accounting standards, absence of the rule of law, and poor regulatory oversight.
Worse, the fate of the Chinese economy and business environment is almost entirely dependent on the domestic and global aspirations of a single man, Chinese authoritarian President Xi Jinping.
China is not a democracy and does not abide by the rule of law. Chinese Communist government’s sweeping control over the economy puts businesses, especially American-based firms, in a delicate position in trying to avoid the ire of President Xi and the Chinese government.
Hedge fund manager Kyle Bass, founder of Hayman Capital Management and long time critic of Communist China, has long proclaimed, “You have to say, each country run by maybe a despotic authoritarian should be re-reviewed and maybe not invested in.”
Bass cautioned against investing in Chinese stocks. He highlighted the risk of accounting fraud due to a lack of financial audits in China, and the prospect of further regulatory crackdowns on Chinese companies in the U.S. and crackdowns on American companies in China.
References:
September is Healthy Aging Month
September is Healthy Aging Month
According to the Centers for Disease Control and Prevention (CDC), Adults aged 65 and older need:
- At least 150 minutes of exercise a week (for example, 30 minutes a day, 5 days a week) of moderate-intensity activity such as brisk walking. Or they need 75 minutes a week of vigorous-intensity activity such as hiking, jogging, or running.
- At least 2 days a week of activities that strengthen muscles.
- Activities to improve balance, such as standing on one foot about 3 times a week.
If chronic conditions affect your ability to meet these recommendations, be as physically active as your abilities and conditions allow.
Examples of Aerobic Physical Activity
According to the CDC, aerobic physical activity or “cardio” gets you breathing harder and your heart beating faster. From pushing a lawn mower, taking a dance class, walking or biking to the store – these types of activities and more count. As long as you’re doing aerobic physical activities at a moderate- or vigorous intensity, they count towards meeting the aerobic guideline. Even something as simple as walking is a great way to get the aerobic activity you need, as long as it’s at a moderately intense pace.
Intensity is how hard your body is working during physical activity. Try a few of these aerobic activities:
- Walking or hiking
- Some forms of yoga
- Some yard work, such as raking and pushing a lawn mower
- Bicycle riding (stationary or outdoors)
- Water aerobics
“Higher intensity exercise had greater improvements for depression and anxiety, while longer durations had smaller effects when compared to short and mid-duration bursts.
“We also found that all types of physical activity and exercise were beneficial, including aerobic exercise such as walking, resistance training, Pilates, and yoga
https://tinyurl.com/mt2j67jy
African American Experience during WWII
African American Experience During World War II
The book provides a historical perspective of the 1.2 million African American service members’ experiences on the unit and personal level serving in a segregated U.S. military and for an American society that denied them equal opportunity and basic civil rights. African Americans served in every military branch (Army, Army Air Corps, Navy and Marine Corps).
Besides serving in segregated units, they were assigned menial tasks, provided inferior training and resources, denied opportunities to serve in combat units, and faced racism despite fighting for liberty, justice and freedom abroad while being denied those platitudes at home. Basically, they battled for liberty and freedom on two fronts? home and abroad.