#60 - GenZ Is Coming, Don't Be Mad At Trump for His Tax Returns, and The Psychology of Money
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.
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👉 For specific investment questions or advice contact Joel @ Gold Investment Management.
🧾Trumps Tax Returns - Stop blaming the man and blame the system🧾
No opinion other than: read this
📖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
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
Instagram Live - Lil Yachty held a talent show where people shaved their eyebrows and hosted 25k people live at one time
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 ($)
Enjoy the rest of your week!
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