Hi Multis
It’s Saturday as I start writing this (writing is a lot of work, trust me), and I feel great.
I just rode my bike with some of my best friends. Not too far, 60 km (37 miles) as it was pretty windy.
But Potential Multibaggers is part of the reason I feel so good, too.
Two new picks in the past few weeks and I’m excited about both. I’m also happy to welcome the new Multis. Hi, there!
Let’s look back at the week.
Articles In The Past Week
This is the third article this week.
The first article this week was on the 15th and experienced Multis will know that this is the date for the Best Buys Now.
And of course, the second article was the first article about the new Potential Multibagger stock!
Memes Of The Week
I don’t know if you know The Babylon Bee. They always bring parodies on the news. I had to laugh with this one.
It’s funny because it’s true. Every time there’s new technology, people fear for their jobs. The paper trail goes back to at least the steam engine. But each technology has only brought more jobs. The problem is that the disappearing jobs are obvious, but the new ones are not, because, well, they are new. I often wonder how I’d explain what I do to someone living 50 years ago. It would basically be impossible.
The second meme is under the same theme: it’s funny because it’s true.
Last week Dario Amodei from Anthropic said to slow down the frontier. Sam Altman and Elon Musk said they agreed, but then announced their new model and big shipments.
Interesting Podcasts Or Books
This week, I listened to an interview with Ian Cassel on the Yet Another Value Podcast. Ian Cassel is known for his Microcap Club and an authority when it comes to small caps. He wrote a book, titled Stock Picker, which I intend to buy and this interview only whetted my appetite for the book.
I was also a guest on a podcast this week, but in Dutch, so this will not be for everyone. It was a pleasure to be a guest on De Beursvoyeurs. You can listen to the episode here.
The markets in the past week
What did the indexes do in the week of the interest rate hike? The answer is: it depends which index you mean.
As you can see, the Russell 2000 was by far the biggest loser, with 1.50%. Usually, smaller companies see more impact from interest rates, so this is logical. The S&P 500 was nearly flat, at 0.08% off, and the Nasdaq was up 0.72%, mainly driven by the memory chip companies.
The Greed & Fear Index dropped even further into FEAR territory: from 33 last week to 29 now.
Quick Facts
1. End Of An Era: Buffett Steps Down
This week, we saw the end of an era. Last year, I witnessed live in Omaha that Warren Buffett stepped down as the CEO of Berkshire Hathaway. He remained Chairman. Until this week, when Buffett announced that he steps down as the Chairman of Berkshire Hathaway.
The new Chairman of Berkshire Hathaway is Howard Buffett, the 71-year-old son of Warren Buffett.
Warren Buffett, aged 96, becomes Chairman Emeritus and remains on the Board.
Warren Buffett took over Berkshire Hathaway in 1965 and the stock returned a blistering 6,100,000% (!!) in 61 years. That’s a compound annual growth rate of about 20% per year, versus about 10% for the S&P 500.
Howard Buffett is not just ‘the son of.’ The letter to shareholders sums up his experience:
Howard Buffett has served since 1999 as Chairman and Chief Executive Officer of the Howard G. Buffett Foundation, a charitable foundation focused on global food security and conflict mitigation. He served as a United Nations Goodwill Ambassador Against Hunger for the World Food Programme for nearly a decade.
He has been a director of numerous public and private company boards, including Agro Tech, Archer Daniels Midland, ConAgra Foods, The Coca-Cola Company, Coca-Cola Enterprises, FirsTier Financial, and Lindsay Corporation – including as Chairman of the Board.
While he has not taken up any operational role at Berkshire, he has been on the Board since 1993. That means that he will be important to continue the culture of the company. Buffett in his letter:
Howard has been a Berkshire Director for 33 years. That is a longer apprenticeship than I served before taking the reins at the age of 34. Greg runs the company; Howard will guard its culture and values – both worth more than anything on our balance sheet. Think of Howard as a policy the shareholders own and hope never to claim against.
Berkshire remains a company of old people, to put it disrespectfully. Howard Buffett is 71, the new CEO Greg Abel is 64, and Vice Chairman of Insurance Operations Ajit Jain is 75. So, this will probably not be the last replacement. As Buffett writes in his letter:
Father Time always wins. He has, however, been generous with me.
This is definitely the end of an era for Berkshire Hathaway and for investing in general.
In the part for paying subscribers:
What the rate hike really means for growth investors, the pick that jumped 30%+ this week, two of my picks teaming up in the US, and much more.
Don't want to miss anything?
NOW is the time to subscribe!
There’s a $100 discount attached to your account and you will be upgraded to VIP for free. This will be the very last time ever I do this!
You pay $399 for something that will cost $1,500 in a few weeks.
Only with this link.
Don’t miss this! After this week it’s gone forever.