#76 - Stonks Only Go Up, Howard Marks Memo and Jobber Raises 60M
Happy Inauguration Day! In this week's episode of Reformed Millennials, we're talking about Value vs. Growth stocks, the Howard Marks memo, and the crazy success of Edmonton based Jobber.
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👉 For specific investment questions or advice contact Joel @ Gold Investment Management.
Every major index finished green as the Nasdaq Composite closed 0.04% within its all-time high. The Russell 2000 continued its rally. $RUT is up 117% since March 18, 2020.
Energy was the strongest sector. $XLE surged 2%. Communications and technology both gained 1%. Real estate, consumer staples, and utilities all closed lower.
Ethereum etched a new all-time high as Bitcoin continues to bounce between 42,000 & 30,000. Where will the cryptos crack next?
The China Technology ETF gapped up to another all-time high. $CQQQ cruised 5.77%.
🎈Podcast Favorite $SFIX continues to RIP. $SFIX is up 68% since the company reported earnings in early December.
Janet Yellen’s Treasury confirmation hearing was today, and she’s on track to become the first female Treasury Secretary in US history. 👑 🙌
During her hearing, she honed in on 3 key points:
1. Stimulus, ASAP. Yellen told Senators today that without a new stimulus package, the economy could face a “longer, more painful recession now... and a long term scarring of the economy later.”
2. Higher taxes, later. During her questioning, Yellen acknowledged that Biden plans to raise corporate and high-income personal taxes, but she suggested we should focus on getting the economy through the pandemic and recession first.
3. Strong dollar, always. In sharp contrast to Trump’s opinion on a weak dollar, Yellen said she wants to focus on maintaining a strong and stable currency impacted by the market, not the Treasury.
🐣Howard Marks Memo🐥
Something of Value - see here
Warren Buffett likes to say that growth and value are joined at the hip. Growth is always a component in the calculation of value. Howard Marks’s latest (18 pg) memo is an excellent deep dive into this idea.
Our favorite quote from the memo:
Big congrats to the Edmonton based Jobber Team - It’s so cool to see something local do so well.
from the above Financial Times hyperlink:
“We founded Jobber with a mission to help small businesses and the people behind them be successful,” said Sam Pillar, CEO and co-founder of Jobber. “Home service businesses are facing ever-increasing consumer expectations for a more seamless, digital experience while at the same time working to meet unprecedented demand. We are proud of the positive impact the Jobber platform has had on so many small businesses and the service professionals who lead them. We’re excited to be partnering with Summit as we continue to pursue our mission and build on Jobber’s leadership position in the home service category.”
🌊Best Links of The Week☔
Amazon's 'Just Walk Out' tech (cameras and an app instead of staff) will be trialed by Hudson, a US airport store chain. A good controlled-environment use case and, of course, no crowds right now
The US added Xiaomi to its list of Chinese companies sanctioned and unable to buy specified US tech. I don't follow the thinking here - any Chinese company is obliged to do whatever the Chinese state says, so what's the point banning Chinese phone OEMs one at a time? Of course, a consistent ban on any exports at all of this class of tech to China would cause chaos. More coherent thinking needed from next week, perhaps?
Amazing Twitter Thread on understanding binomial thinking!
Rich As I Say, Not As I Do - Watching people leave $250k/yr+ big tech jobs because they're making *way more* than that on Substack, YouTube, Teachable, etc. part-time is incredible to watch. - Link
Twitter Thread on how to understand the US prescription drug market a little better. From Ryan Reeves
Bumble S-1 BABY - Bumble has 1.1M subs paying $26/month because millennials will not pay for dating apps. But they did not manage to get "sodomy" into an SEC filing so they automatically trade at a 5 turn discount. Those are the rules.
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