#60 - GenZ Is Coming, Don't Be Mad At Trump for His Tax Returns, and The Psychology of Money

  
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In this week's episode, we're talking about the Importance of understanding GenZ for businesses of all types, Morgan Housel’s new book The Psychology of Money and we dip our toes into Trump’s Personal Tax Return scandal and why you shouldn’t blame him for not paying his “fair share”... This is a quick episode but its action-packed and the insights into GenZ are worth the listen.

Listen on Apple, Spotify, or Google Podcasts.

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👉 For specific investment questions or advice contact Joel @ Gold Investment Management.

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🧾Trumps Tax Returns - Stop blaming the man and blame the system🧾

No opinion other than: read this

https://www.nytimes.com/interactive/2020/09/27/us/donald-trump-taxes.html


📖Greatest Financial Writer Of Our Generation - Morgan Housel📖

A quick story from the book where Morgan discusses Tail Events:

At the Berkshire Hathaway shareholder meeting in 2013, Warren Buffet said he's owned 500 stocks during his life and made most of his money on 10 of them.

Munger followed up: "If you remove just a few of Berkshire's top investments, its long-term track record is pretty average.

In 2018, Amazon drove 6% of the S&P 500's returns. And Amazon's growth is almost entirely due to Prime and Amazon Web Services, which itself are tail events in a company that has experimented with hundreds of products, from the Fire Phone to travel agencies.

Apple was responsible for almost 7% of the index's returns in 2018. And it is driven overwhelmingly by the iPhone, which in the world of tech products is as tail--y as tails get.

And who's working at these companies? Google's hiring acceptance rate if 0.2%. Facebook's is 0.1%. Apple's is about 2%. So the people working on these tail projects that drive tail returns have tail careers.

When we pay special attention to a role model's successes we overlook that their gains came from a small percent of their actions. That makes our own failures, losses, and setbacks feel like we're doing something wrong.

When you accept that tails drive everything is business, investing, and finance you will realize that it's normal for lots of things to go wrong, break, fail, and fall. If you are a good stock picker you'll be right maybe half the time.

If you're a good business leader 50% of your product and strategy ideas will work. If you're a good investor most years will be just OK, and plenty will be bad. If you're a good worker you'll find the right company in the right field after several attempts. That’s if you're good


🌊🤠GENZ: If you want to sell to 10-25-year-olds you need to read this report🤠🌊

We like to pretend to understand what is hot and what is not for Millennials. But we all need to be more active in figuring out what Generation Z wants. Joel’s youngest brother is an operating GenZ person. He's more courteous, tech-savvy, and brand awareness than we could ever hope to be. He lives in a virtual world, he's more self-aware and socially engaged than anyone my age... Gen Z is 20 going on 40.

GenZ is an impressive bunch.

I've broken out some important points from the attached GenZ report:

1/9/90 (1% of your users create content, 9% engage, 90% view)

WHO IS GENZ?
  • Born between 1995 and 2010

  • 3billion of these people worldwide

  • 35% of the global population

  • 143billion in spending power

  • The mobile-first generation

VIDEO FIRST GENERATION
  • 65% of Gen Z prefers Facetime to keep in touch with friends

  • Mobile video is how they keep up with news

MESSAGING
  • Sarcastic and self-deprecating.

  • Very emoji driven

  • Short-form and get to the point quickly

WHERE IS THEIR 3RD HOME?
  • Fortnite - Travis Scott Concert 27.7 M unique views and 45.8 total

  • Discord

  • Twitch

  • Instagram Live - Lil Yachty held a talent show where people shaved their eyebrows and hosted 25k people live at one time

FASHION
  • 1990-2000 styled

  • Artist/influencer merch

  • enviro-friendly apparel

  • exclusive drops and collabs

  • Charli D'amerlio - 86 million TikTok fans and now does Superbowl ads

  • Wisdom Kaye - 19-year-old who started a TikTok account to show off his range of male fashion and now has 4 million fans and is signed to IMG models

🌊Some Hot Links and Ideas from the Past Week:

Tiktok data on take-down of harmful content. Link

This year's global industrial robotics statistics. Link (PDF)

International AI talent migration. Link

BBC Horizon documentary from 1981 on electronic graphics: 'Painting by Numbers'. Ed Catmull, Nolan Bushnell and lots of CRTs. Link

In the 1950s, RAND Corporation made a book with a million random numbers (how they did it is fascinating). Someone just discovered that they're not as random as they thought. Maybe. Link ($)

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Enjoy the rest of your week!


DISCLAIMER

Gold Investment Management Ltd. (“GIM”) is registered as a portfolio manager in the provinces of Alberta, British Columbia, Saskatchewan, Manitoba, Ontario and Quebec and as an investment adviser with the U.S. Securities and Exchange Commission. This material is provided to you for informational purposes only. For greater certainty, the information contained herein should not be construed as a recommendation of any specific model portfolios or investment actions. Any third-party information contained herein has been compiled from sources believed to be reliable, however, GIM makes no representation or warranty, express or implied, as to its accuracy or completeness. Any market prices and estimates in this report are for informational purposes only. The opinions contained herein are effective as at the date of the report and GIM does not assume any responsibility for advising the reader of any subsequent change of opinion. Any indications of past performance contained herein is not indicative of future results and any information with regard to the performance of GIM’s investment portfolios is presented gross of fees which will vary from mandate to mandate. For additional information please visit our website: https://gold-im.com/legal/.