Real estate investment trusts have been a favored asset class of many due to enabling property ownership without enslaving oneself with mountains of debt and without betting just on one horse. Other factors like liquidity, the ability to sale fractions of your ownership and often great shareholder returns have been other arguments. I was avoiding them on purpose – but there’s a sub-sector that could be interesting just right now.
Continue readingCategory Archives: economics 101
A silver lining for Argentina? A look at YPF + new research report
Argentina is mainly known as a nation being in perpetual crisis mode. Besides beef, wine and tango, among the first thoughts that likely come to one’s mind are debt, economic hardship and hyperinflation. Needless to say that in such an environment you won’t find a booming economy. However, many Argentine stocks or those with a vast exposure to this market, have been rising over the last months. Is a (massive) turnaround in sight?
Continue readingThe Panic of 1907 – a financial chain reaction
With this Weekly, I am finally writing my first book review. The book I now finished, is about the financial panic of 1907. However, it is not just a short-lived event with a simple crash in stock markets, limited to that particular year, as the title might suggest. Furthermore, it is about a sequence of events that caused a chain reaction of significant relevance, laying the foundation for the creation of the Federal Reserve Bank (although not what you know today).
Continue readingWhat you should know about the SVB collapse – my premium members were warned
As I am publishing this Weekly, already a week has passed after the collapse of not just one bank dealing with startups – that was the 16th largest bank in the US – but indeed three banks. After emotions calmed down a bit, we can have a look at what went wrong and what you should be aware of. My Premium Members already knew about the risks “hidden” on the balance sheets of banks, as I’ve closed an investment case on a profit a month ago due to these risks. And no, this is not a buy-the-dip occasion!
Continue readingBeware the next hype – Helium Producers
In recent months, I’ve been reading more and more about a hot new topic: helium production. Helium is an essential gas in medical as well as industrial applications. The key message being spread is that this so far opaque market is about to become more transparent, as many small exploration companies seem to be embarking on promising projects. Is this really the next sector you should bet on, or is it too much hot air that will deflate, bringing headaches like too much inhaled helium?
Continue readingDebt and high inflation – money for nothing or looming meltdown?
Who would complain being relieved of their debt burden? With inflation reaching a 40-year high in many regions, it seems that not only is the purchasing power of money eroding, but so is the burden of debt, measured in real terms. But is it really wise to buy stocks of companies with a lot of debt and hope they pay it off with cheaper money?
Continue readingThe massive power of monopolies – and why Warren Buffett likes them
Who doesn’t know the boardgame Monopoly? What is either boring or very exciting to its players, has an important message for real life investors, like us. In today’s Weekly, we look at the origins of this game, what you can learn for your investment journey and why Warren Buffett likes such structures. By the way, as an investor you should, too!
Continue readingBuy now pay later or financial independence retire early?
In the last few years, two opposing philosophies about how to manage personal finances have been making the rounds. What’s the difference between the two? What should you learn as soon as possible to find peace of mind, now that the economy is declining while simultaneously interest rates are rising fastly (not falling)? How could they influence your mindset and investment allocation?
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