"Wakey wakey; eggs and bakey. Whatever Pai Mei says obey" - You’re already wondering what this is!. Keep your shirt on, we’ll get into it. For now let’s agree that we can’t really escape the fact that what happens to our money, happens to us. It’s been a year now since we completed our first course on Supply and Demand basics to investing and trading in the stock market. I’ve met many of you in virtual settings and I am humbled in our interactions regarding money matters. The business of teaching and educating is quite satisfying. If you expect too much of me, I’ll expect too much of you. Now let’s cut to the chase.
What is a business? Simply put, it’s a money making machine. Businesses either make a profit or a loss. Even when businesses experience a loss, it doesn’t stop them from being a business. As an investor, you want to own great companies. As a trader, you're focused on rewards and managing risk. The challenge every year is to obtain rewards greater than the average stock market return of about 10% per year. That's why fund managers will take profit in early September and hedge their positions until end of October.
1 yr Anniversary!
“A platform where a beginner or a pro can learn something new!”
We're celebrating our first year anniversary of providing a platform where a beginner or a pro can learn something new about the securities markets. We keep prodding just like Beatrix Kiddo did when learning Mai Pei's "Five Point Palm Exploding Heart Technique and the Three Inch Punch." If this illustration doesn't mean jack diddly squat you may want to refer to Quentin Tarantino's 'Kill Bill."
←Back | Looking back I wondered how businesses celebrate their milestones. It's good to know that know that other than balloons and champagne, there are other ways to celebrate. Starbucks celebrated it's 40th year by a brand new logo; Coca-Cola celebrated their 100th year by showing off the evolution of their packaging designs in an interactive, chronological gallery; Marvel Cinematic Universe released Iron Man in 2008.To mark a very prolific decade, Marvel hosted a 10-Year Sweepstakes; UNICEF celebrated 70 years of changing the world with a thought provoking then-and-now photo essay.
Forward→ | Looking forward I wondered how business keep growing and almost becomes unstoppable. Take the instance of James Bond franchise. This past weekend my daughter and I paid AMC, (a total of $28.54) to watch "No Time to Die." James Bond has become one of the most enduring franchises in Hollywood. The films have grossed ~$7B at the global box office (~$18B accounting for inflation). In the past 59 years, a total of 27 James Bond films has been made. A half century is a very, very long time for a brand to endure with a level of popularity. Can you imagine securing a cut of the Bond rights in 1961? Well Cubby Broccoli did and now the Broccolis will net ~10% of global box office revenue. In the past, that amounted to ~$100m off a single Bond film.
“Good businesses should balance purpose and profit!”
Good business isn’t just making money – it’s also doing good | Good businesses should balance purpose and profit – it means not only having a social conscience but also putting your money where your mouth is. Companies should commit themselves to reducing inequality and poverty, contributing to a healthier environment and treating their workers with “dignity and purpose.” They also commit to using their profits and growth to a “greater end.” Many financial institutions and organizations have launched sustainability initiatives related to its governance, because there are critical questions to ask. For every Enron, there are 10,000 good companies. And most companies, like most people, are trying to do the right thing. I recently asked a member of our investor community whether they would buy POTX - an ETF with straightforward exposure to cannabis equities in developed markets. She emphatically said 'No." I'll in turn ask you - would you?
Goals | Our main mission, is to help people become better investors and to build wealth that they can pass along to the next generation. If you've taken a class with us or need help in a trade setup you know that we're accessible. We host community activities and events that go beyond dollars and cents. We believe that most people tell the truth and keep their promises and act responsibly most of the time. And we need to encourage that behavior.
We'll keep it simple: You can take a class (and build onto your investing skills) or become a member and join other investors. The Bond movies have ratchetted up a bit — but aren’t very different from 1961. They stick to a simple formula: fast cars, good-looking girls, outrageous villains and spectacular stunts.
We'll keep prodding away. Every brand has bad years. There are always going to be low points in the evolution of any brand. Imagine yourself trapped underground, in a coffin, alive. The wood is creaking as the dirt settles on to what could be your final resting place. That's one of many tight spots Uma Thurman's Bride (a.k.a. Beatrix Kiddo, a.k.a. mommy) gets into. If in the last year your portfolio has been reading red, get back into the basics, re-re-evaluate and re-balance. Think about it, if you had only rebalanced your portfolio every time Bond released a film, that would count for only 27 times in 50 years.
1 year means a lot to us, which is why we came at this from all angles. We can only say thank you to the unfathomable amount of people that have made PeteandPete Investors possible, and cheers to the next 10 years!
Disclaimer
This blog is written for educational and informational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. They author may or may or may not have positions in Financial Instruments discussed in this blog. Future results can be dramatically different from the opinions expressed therein. Past performance does not guarantee future results. Reprints allowed for private reading only, for all else, please obtain permission.