Intel gets new shareholders – Softbank and the US Government

SoftBank has invested $2 billion in Intel.

SoftBank Group Chairman and CEO Masayoshi Son said in a statement that the “strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”

This is mixed with the US Government also announcing that they will take a 10% stake in Intel.

How does the current price of XIACF compare to its 52-week high and low

Based on the search results, I can provide the following comparison of XIACF’s current price to its 52-week high and low:

The 52-week range for XIACF (Xiaomi Corp Class B) stock is $1.40 – $2.64.

As of the most recent data available:

  1. The current price is $2.36.
  2. The 52-week high is $2.36, set on May 03, 2024.
  3. The 52-week low is $1.26, recorded in June 2023.

Comparing these figures:

  • The current price of $2.36 is at the 52-week high, just 0.00% below it.
  • The current price represents a 87.3% increase from the 52-week low of $1.26.

This indicates that XIACF is currently trading at its highest point over the past year, suggesting strong recent performance or positive market sentiment towards the stock.

Amit Interviews Robinhood CEO and Co-Founder, Vlad Tenev. Robinhood Gold Economics and more.

The other day I just came across Amit on YouTube and noticed that he sat down and interviewed Robinhood CEO and Co-Founder, Vlad Tenev.

It’s a great interview and really worth the watch.

My favourite part is them talking about the new Robinhood Gold and the economics behind the product.

Vinod Khosla – 90% of VCs Add No Value to Startups

90% of VCs add no value to startups, 70% even harm them.

Just the fact that you got an MBA and joined a venture fund doesn’t mean you can give useful advice to an entrepreneur

If you never built an actual business, you’re not qualified to give advice.

Vinod Khosla is the lead of Khosla Ventures and has invested in some of the worlds largest companies when they were young and in venture capital mode.

Here is the full interview:

How Can I Buy Shares in Xiaomi (XIACY or 1810) on the Public Stock Market?

Buying Xiaomi American Depositary Receipts (ADRs):

  • This is the simplest and most common way for US investors to buy Xiaomi stock.
  • ADRs represent shares of a foreign company (in this case, Xiaomi) that are traded on a US stock exchange.
  • Xiaomi’s ADR trades under the ticker symbol XIACY on the OTC Markets.

Buying Xiaomi shares directly on the Hong Kong Stock Exchange (HKEX):

  • This method allows you to buy actual shares of Xiaomi (stock code: 1810), but it’s a more complex process and not recommended for all investors.
  • It typically involves opening an international brokerage account that allows trading on the HKEX and navigating potential currency conversion and other fees.

Webull Prepared to Go Public at $7.3 billion Valuation (SPAC deal) – Xiaomi and Alibaba as Early Investors

The News: Online brokerage Webull is planning to go public via a $7.3 billion merger with a special purpose acquisition company (SPAC), after previous initial public offering (IPO) attempts were unsuccessful, partly due to its past crypto offerings.

Details: The New York-based company, which launched its trading platform in the U.S. in 2018, has agreed to merge with SK Growth Opportunities Corp. The company plans to start trading on the Nasdaq in the second half of 2024, giving Webull an estimated enterprise value of roughly $7.3 billion.

Webull’s U.S. CEO, Anthony Denier, stated that the company’s previous attempts to IPO were hindered by its cryptocurrency trading offerings, a practice the SEC has frowned upon. To eliminate this regulatory uncertainty and clear the path for its public listing, Webull sold its crypto asset business in late 2023.

Why SPAC?: Denier explained that the SPAC route provides a more certain valuation upfront compared to a traditional IPO. The blank-check deal is expected to raise approximately $100 million for Webull, which it intends to use for international expansion and new product development.

Webull experienced significant growth during the pandemic, with registered users reaching 20 million worldwide. The company has targeted more active traders than competitors like Robinhood, offering tools for technical analysis.

It’s important to note that this impending public listing occurs as fintechs proceed cautiously due to increased regulatory scrutiny of companies with ties to China. Despite early backing from Chinese tech giants Xiaomi and Alibaba, Denier emphasized that Webull is not majority-owned by Chinese entities.

What are the Benefits of Dividend Investing Over Capital Growth Returns?

Dividend investing can be considered better than standard long-term investing for capital growth returns due to several reasons:

  1. Regular Income: Dividend investing focuses on investing in companies that pay regular dividends to their shareholders. This provides investors with a consistent stream of income, which can be reinvested or used for other purposes.
  2. Compounding Effect: Dividends can be reinvested to purchase additional shares of the company’s stock. Over time, this reinvestment can lead to the compounding effect, where the dividend income grows exponentially.
  3. Stability and Consistency: Companies that pay dividends are often mature and stable, with a track record of generating consistent profits. This stability can provide a level of confidence to investors, especially those seeking reliable income.
  4. Lower Market Volatility: Dividend-paying stocks tend to be less volatile compared to growth stocks. This lower volatility can provide a smoother investment experience, particularly for those who prefer a more conservative approach.
  5. Inflation Hedge: Dividends have the potential to increase over time, which can help investors keep up with inflation and maintain purchasing power.

It’s important to note that the choice between dividend investing and standard long-term investing depends on individual preferences, risk tolerance, and investment goals. Both approaches have their advantages and drawbacks, and it’s essential to consider one’s specific financial situation before making investment decisions.

How to Find Fidelity Funds with Dividends

Investors seeking reliable income and potential capital appreciation often turn to dividend-paying funds. Fidelity Investments, a renowned financial services company, offers a range of funds that provide regular dividend payouts. Here’s a step-by-step guide on how to find Fidelity funds with dividends:

  1. Visit the Fidelity Investments website or log in to your Fidelity account.
  2. Navigate to the “Research” or “Investment” section of the website.
  3. Use the search or filter options to narrow down the fund choices. Look for options that specifically mention dividends or income generation.
  4. Check the fund’s profile and prospectus for details on dividend history, frequency, and yield. This information will help you evaluate the fund’s dividend-paying capabilities.
  5. Consider the fund’s investment objective, risk profile, and expense ratio. It’s important to choose funds that align with your investment goals and risk tolerance.
  6. Review the fund’s performance over different time periods. Look for consistent dividend payments and a track record of generating returns.
  7. Pay attention to the fund’s dividend distribution dates. Some funds distribute dividends annually, while others pay out quarterly or monthly.
  8. Take into account any fees or minimum investment requirements associated with the fund. Ensure that the expenses are reasonable and fit within your investment plan.
  9. Consider seeking professional advice from a financial advisor or consultant who can provide personalized guidance based on your financial situation and goals.

Remember, investing in dividend-paying funds involves risks, including the potential for fluctuations in market value and changes in dividend payments. Conduct thorough research and consider your own investment objectives before making any investment decisions.

Fidelity offers a wide range of funds with dividends, catering to varying investment preferences and risk appetites. By following the steps outlined above, you can find Fidelity funds that align with your investment goals and provide a steady stream of income through dividends.

5 MUST-read Books on Psychology and Decision-Making

Here are 5 MUST-read Books on Psychology and Decision-Making:

1. Rationality by Steven Pinker

2. Psychology and the Stock Market by David Dreman

A classic from 1977. One of the first books to explain the relationship between psychology and investing.

3. Thinking, Fast and Slow by Daniel Kahneman

The bible of human decision-making covering all sorts of Biases, Heuristics, and Decision-Making Flaws.

4. The Art of Thinking Clearly by Ralf Dobelli

We lose track of the essential things and focus on unimportant shiny news all the time. Learn how to avoid that.

5. Think Again by Adam Grant

You’ll make mistakes in investing. It’s important to recognise them early. This book teaches you how to pursue reconsideration and question your existing beliefs.

In 1983, Buffett wrote down 13 owner-related business principles explaining Berkshire’s Approach – what are they

In 1983, Warren Buffett wrote down 13 owner-related business principles outlining Berkshire Hathaway’s approach to investing and business management. These principles, which remain relevant today, provide a framework for making sound decisions that prioritize long-term shareholder value.

  1. Own a diversified group of businesses that generate cash and consistently earn above-average returns on capital.

This principle emphasizes the importance of diversification to reduce risk and the pursuit of businesses that can generate consistent and sustainable profits.

  1. Avoid management that is obsessed with meeting short-term earnings targets.

Buffett advocates for a long-term focus, prioritizing decisions that enhance the intrinsic value of the company over short-term financial gains.

  1. Avoid companies with bloated balance sheets and excessive debt.

Financial prudence is essential, and excessive debt can hinder a company’s flexibility and ability to withstand economic downturns.

  1. Seek managers who are passionate about their businesses and put shareholders’ interests first.

Effective management is crucial, and aligning the interests of management with those of shareholders ensures long-term value creation.

  1. Don’t make acquisitions to simply increase size or diversify into unrelated businesses.

Acquisitions should be driven by strategic opportunities that enhance the overall value of Berkshire Hathaway.

  1. Don’t overpay for businesses, even if they appear to be attractive.

Disciplined valuation is paramount, and acquiring businesses at inflated prices can erode shareholder value.

  1. Be patient and willing to wait for the right opportunities to arise.

Investing requires patience and discipline, and rushing into decisions can lead to suboptimal outcomes.

  1. Communicate openly and honestly with shareholders.

Transparency and clear communication foster trust and confidence among shareholders.

  1. Behave as partners, not masters, to your shareholders.

Berkshire Hathaway views shareholders as partners in its success, aligning its actions with their interests.

  1. Don’t let your emotions dictate your investment decisions.

Sound investment decisions are based on rational analysis, not emotional impulses.

  1. Remember that the stock market is a tool, not a gambling machine.

The stock market should be used as a means to acquire ownership in valuable businesses, not as a venue for speculative trading.

  1. Understand that stock prices can be irrational in the short term.

Market fluctuations can be unpredictable, and investors should focus on the long-term intrinsic value of businesses.

  1. Always strive to make decisions that will protect and enhance Berkshire Hathaway’s intrinsic value.

Every decision should be evaluated based on its impact on the company’s long-term value and its ability to deliver superior returns to shareholders.

These 13 owner-related business principles provide valuable insights into Warren Buffett’s investment philosophy and Berkshire Hathaway’s approach to business. By adhering to these principles, investors can make informed decisions that prioritize long-term value creation and sustainable financial success.

Value Investing for New Investors – The Warren Buffett Approach

Value investing is a timeless investment strategy that has been used by some of the most successful investors in history, including Warren Buffett. Value investors look for stocks that are trading below their intrinsic value, with the belief that these stocks will eventually revert to their fair market value and provide a profit for investors.

This ebook is designed to introduce new investors to the basics of value investing. It will cover the following topics:

  • What is value investing?
  • The history of value investing
  • The principles of value investing
  • How to identify undervalued stocks
  • How to construct a value investing portfolio
  • Common mistakes to avoid when value investing

What is Value Investing?

Value investing is an investment strategy that involves buying stocks that are trading below their intrinsic value. Intrinsic value is the true worth of a stock, based on its underlying fundamentals.

Value investors believe that the stock market is often irrational and that stock prices can fluctuate wildly, even when the underlying fundamentals of a company remain strong. This can create opportunities for value investors to buy stocks at a discount to their intrinsic value.

The History of Value Investing

The history of value investing can be traced back to Benjamin Graham, who is considered the father of value investing. Graham was a professor at Columbia University and a successful investor. He wrote a number of books on value investing, including The Intelligent Investor and Security Analysis.

Graham’s teachings were popularized by his student, Warren Buffett. Buffett is one of the most successful investors in history, and he has used value investing principles to generate billions of dollars in wealth for himself and his shareholders.

The Principles of Value Investing

The principles of value investing are simple, but they can be difficult to apply in practice. The following are some of the key principles of value investing:

  • Buy stocks that are trading below their intrinsic value. This is the core principle of value investing. Value investors believe that stocks that are trading below their intrinsic value will eventually revert to their fair market value and provide a profit for investors.
  • Invest for the long term. Value investing is a long-term investment strategy. It takes time for the market to recognize the true value of a stock. Value investors are willing to be patient and wait for the market to catch up.
  • Have a margin of safety. A margin of safety is the difference between the intrinsic value of a stock and its current market price. Value investors want to buy stocks with a large margin of safety to reduce their downside risk.

How to Identify Undervalued Stocks

There are a number of ways to identify undervalued stocks. One common method is to look at a company’s financial statements and valuation ratios.

Value investors typically look for stocks with strong financial statements and low valuation ratios. For example, value investors may look for stocks with a low price-to-earnings ratio (P/E ratio) or a high dividend yield.

How to Construct a Value Investing Portfolio

Once you have identified a number of undervalued stocks, you need to construct a value investing portfolio. This involves diversifying your investments across a variety of sectors and industries. It also involves managing your risk by investing in a variety of stocks with different valuation ratios.

Common Mistakes to Avoid When Value Investing

There are a number of common mistakes that investors make when value investing. Some of the most common mistakes include:

  • Buying stocks without understanding the underlying business. It is important to understand the business model and competitive landscape of any stock before investing.
  • Investing in stocks that are too risky. Value investors should focus on investing in stocks with a large margin of safety to reduce their downside risk.
  • Selling stocks too early. Value investing is a long-term investment strategy. Investors should be patient and wait for the market to recognize the true value of a stock.

Conclusion

Value investing is a time-tested investment strategy that has been used by some of the most successful investors in history. By following the principles of value investing, new investors can position themselves for long-term success.

Additional Resources

If you are interested in learning more about value investing, here are a few additional resources:

  • The Intelligent Investor by Benjamin Graham
  • Security Analysis by Benjamin Graham and David Dodd
  • The Essays of Warren Buffett by Lawrence Cunningham
  • The Little Book of Common Sense Investing by John C. Bogle
  • The Bogleheads’ Guide to Investing by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf

Spotify Differences Between their A Class Shares and B Class Shares

Spotify’s A class and B class shares differ in two key ways:

  • Voting rights: Class B shares have 10 votes per share, while Class A shares have one vote per share. This means that Class B shareholders have significantly more control over the company, even though they own a minority of the shares.
  • Conversion rights: Class B shares can be converted into Class A shares at any time, but Class A shares cannot be converted into Class B shares. This gives Class B shareholders the flexibility to convert their shares into Class A shares if they want more voting rights, but it prevents Class A shareholders from converting their shares into Class B shares to gain more control over the company.

Other than these two differences, Class A and Class B shares have the same rights and obligations. This means that they receive the same dividends and have the same right to participate in any liquidations or distributions.

How Many Shares does Michael Cannon-Brookes own of Atlassian (TEAM)

Michael Cannon-Brookes owns approximately 109.44 million Class B shares and 381,836 Class A shares of Atlassian. This represents approximately 43.08% of Atlassian’s outstanding Class B and Class A ordinary shares, taken together, and approximately 87.91% of the voting power.

In other words, Cannon-Brookes owns about 22% of Atlassian’s total shares, but he has control over about 88% of the company’s voting power. This is because Class B shares have ten times the voting power of Class A shares.

Cannon-Brookes is the co-founder and co-CEO of Atlassian, and he is one of the richest people in Australia. His net worth is estimated to be around $13 billion.

(as at May 2022)

What Do Analysts Think the One Year Price Target is for Nu Holdings (NU)

Analysts have a wide range of price targets for Nu Holdings in the next 12 months. The median price target is $7.85, with a high of $11.00 and a low of $4.00.

Here is a breakdown of the price targets from a few different analysts:

  • Morgan Stanley: $10.00
  • Barclays: $8.00
  • Credit Suisse: $7.50
  • Jefferies: $7.00
  • Evercore ISI: $6.50

These price targets reflect the analysts’ view of Nu Holdings’ growth prospects and valuation. The median price target of $7.85 suggests that analysts believe Nu Holdings is fairly valued at its current price. However, the high price target of $11.00 suggests that some analysts believe the company has the potential to grow significantly in the future.

NuBank vs Barclays – is NuBank Overvalued?

NuBank (Nu Holdings) is pushing the banking industry in Brazil, Mexico and Colombia.

I have been wanting to invest in NuBank for some time, but I have thought for the past year or so – that their market cap has become so large that they are simply just un-investable at these levels.

To prove this was the case I thought I would do a very simple side by side comparison with a legacy bank that is predominantly in key markets.

MetricNu HoldingsBarclays
Assets Under Management$10.2B$2.3T
Number of Customers30M48M
Revenues$1.2B$25.4B
EBITDA$-78M$9.3B
Countries350
Market Cap$35 billion$28 billion

I know NuBank is in 3 emerging markets – with at least 200 million people in those countries that are currently unbanked. However, even if NuBank was able to have 100 million customers – expand their product lines and then start to really focus on other markets – do you think they can really grow to the AUM or sheer network size of Barclays?

Or is this a perfect short sell position?

Did Atlassian Ever Raise Any Primary Outside Funding

No, Atlassian never raised any primary funding. The company was founded in 2002 by Mike Cannon-Brookes and Scott Farquhar, who bootstrapped the company with their own savings. Atlassian went public in 2015, and it has been profitable ever since.

Here are some of the reasons why Atlassian never raised primary funding:

  • The company was founded by two experienced entrepreneurs who had a clear vision for the company.
  • The company’s products were well-received by the market, and they were able to generate enough revenue to self-fund.
  • The company’s founders were reluctant to give up control of the company to outside investors.

Atlassian’s decision to not raise primary funding has been a major factor in its success. The company has been able to maintain its independence and focus on its long-term goals. It has also been able to avoid the dilution of its ownership that often comes with venture capital funding.

Private Investing vs Public Investing = Tale of Failed IPOs

I posted this on Twitter, but thought I would also share on here as it really showed the difference between private investing and public investing.

Some companies that have market caps less than the total money they have raised:

Bird ($120M mkt cap vs $1.2B raised)

Wish ($810M mkt cap vs $2.9B raised)

WeWork ($2.8B mkt cap vs $16.2B raised)

Lyft ($5.1B mkt cap vs $7.3B raised)

Im Tired of YouTube Investment “Gurus”

There are so many investment “gurus” on YouTube and it simply just feels like this is now a step above a used car salesman!

Here is a very good example – Investment Advice! When he simply just adds his money into a very basic Vanguard ETF based off the S&P500.

This is probably as far as it gets from someone who should actually be giving investment advice!

What you really should be watching is video interviews from Warren Buffett – and then also spending a huge amount of time reading and working out your own way to value companies and their intrinsic value.