November 25, 2020

Animal Spirits: Is Bitcoin the New Gold?

This week’s Animal Spirits with Michael & Ben is supported by YCharts: Mention Animal Spirits and receive 20% off your subscription price when you initially sign up for the service. Listener Survey: I know we’re an anti-survey podcast but please take this short survey here so we can learn more about our audience. We’re having a drawing for everyone who takes it and giving away six $50 Amazon gift ca...

Tower Properties Announces Massive Special Dividend ($TPRP)

This was announced last week:
On November 19, 2020, The Board of Directors of Tower Properties Company (“Company”) declared a dividend of $5,000.00 per share on each of the 4,423 shares of issued and outstanding common stock of the Company, totaling in the aggregate $22,115,000.00, payable to the holders of record of issued and outstanding shares of the common stock of the Company as of 5:00 p.m. CDT on November 30, 2020 (the “Record Date”), payable on December 17, 2020 (the “Payment Date”).
Nate wrote up TPRP in Issue 13 of the Oddball Stocks Newsletter when shares were trading for $12,500.

The Bears Get Slaughtered. Again.

Subscribe! On an all-new episode of What Are Your Thoughts, Michael Batnick and Josh Brown discuss the biggest topics on Wall Street this week, including: All the ingredients seem to be in place for a market melt-up into year end – or did that already happen? The Armageddonists – JP Morgan’s Michael Cembalest returns to his chart of the growliest bears in finance. Hopefully they’re not actually i...

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What Happens to Small Caps After a Huge Monthly Gain?

The Russell 2000 Index of small cap stocks is currently on pace for its best month ever. As of Tuesday afternoon, it’s now up more than 20% for the month of November. The Russell 2000 dates back to 1979. The best month ever was in February of 2000 when it rose 16.5%. The ensuing returns following that huge gain weren’t great. Over the next year, the Russell was down nearly 17%. Over the following three years ...

The Fortune 2021 Roundtable

Special thanks to Fortune Magazine for inviting me to participate in the 2021 Roundtable this year. It was great catching up with Savita and the whole gang, talking about what investors should be expecting in the year to come. I have more perspective than I have predictions, but I did go on a fun little rant about the whole “democratization of investing” canard – Robinhood, SPACs, payment for order flow...

The post The Fortune 2021 Roundtable appeared first on The Reformed Broker.

Who are you listening to?

This is a repeated theme I come back to time and again. Who are you listening to? Not who as in what is their intelligence level or what is their pedigree – who as in what are the incentives that drive their commentary? Are they investors answering to clients or just guys doing newsletters, with no skin in the game and no accountability for their extreme opinions? If you don’t face investors who reap the rewar...

The post Who are you listening to? appeared first on The Reformed Broker.

Recommended Reading for the Holidays 2020

It's been a while since we posted a recommended reading list, so here's some ideas as well as recent recommendations from prominent hedge fund managers.


Recommended Reading for the Holidays 2020

Quality Investing: Owning the Best Companies for the Long Term by Lawrence Cunningham, Torkell T Eide & Patrick Hargreaves - Dan Loeb (Third Point) recently recommended this book in a quarterly letter

 

No Rules Rules: Netflix and the Culture of Reinvention by Reed Hastings - Another recommendation from Loeb is the Netflix founder's new book

 

Unknown Market Wizards: The Best Traders You've Never Heard Of by Jack Schwager - Brand new book by the author famous for profiling top money managers


The Other Half of Macroeconomics and the Fate of Globalization by Richard Koo - Li Lu (Himalaya Capital) recommended this to Mohnish Pabrai, per Pabrai's Twitter

 

The Art of Learning: An Inner Journey to Optimal Performance by Josh Waitzkin - Recommended by hedge fund manager Yen Liow (Aravt Global) in a recent talk


Genghis Khan and the Making of the Modern World by Jack Weatherford - Another pick from Liow

 

How to Decide by Annie Duke - The brand new follow-up to her previous excellent book, Thinking in Bets

 

Investing for Growth: How to Make Money by Only Buying the Best Companies in the World by Terry Smith - Newly released from the Fundsmith crew

 

The Psychology of Money by Morgan Housel - Brand new book by the prolific financial writer


Language, Truth and Logic by Alfred Ayer - Recommended by Nick Kokonas (Alinea Group) on Patrick O'Shaughnessy's podcast Founder's Field Guide

 

Lastly, if you're looking for a gift idea for friends, partners, clients, or employees, here's a quick one:

Incerto (Deluxe Edition) by Nassim Taleb - This set of hardcovers is fantastic and includes all of Taleb's great books: Fooled by Randomness, The Black Swan, Antifragile, Skin in the Game, and The Bed of Procrustes


The Youths Are Coming For The Housing Market

Total household debt in the United States now stands at more than $14.3 trillion. That’s an all-time record. By far the biggest chunk of this debt comes from mortgages: This chart alone helps explain why the Great Financial Crisis was so harmful to so many people. Housing plays an enormous role in both the economy and people’s personal balance sheets. It also helps explain why the current crisis likely won...

The Youths Are Coming For The Housing Market

Total household debt in the United States now stands at more than $14.3 trillion. That’s an all-time record. By far the biggest chunk of this debt comes from mortgages: This chart alone helps explain why the Great Financial Crisis was so harmful to so many people. Housing plays an enormous role in both the economy and people’s personal balance sheets. It also helps explain why the current crisis likely won...