The hottest Investing Substack posts right now

And their main takeaways
Category
Top Finance Topics

The new divestment trend

Klement on Investing • 2 implied HN points • 11 Nov 24
💰 Finance Investing
  1. Most investors in Germany are not interested in sustainable investments. More than half of them prefer traditional investing and don't plan to change that.
  2. Social influence plays a big role in investment choices. If friends and family are into sustainable investing, it’s likely others will be too, but the opposite is also true.
  3. Many people who divest from sustainable investments do so because they aren't seeing good returns. They feel like their money could earn more elsewhere.

Five Revealing Pictures

What's Important? • 7 implied HN points • 07 Jul 23
💰 Finance Investing
  1. Even professional investors sell stocks worse than randomly.
  2. We pay more attention to what makes us different than what makes us alike.
  3. The shorter your time-horizon, the more people you're playing against.

How I buy crypto at the best price

Steve Kirsch's newsletter • 4 implied HN points • 03 Mar 24
🔮 Crypto Investing
  1. The author shares a technique to buy and sell crypto on Coinbase with ease, which could be advantageous in the current market.
  2. With new money entering through Bitcoin ETFs, the price of Bitcoin is predicted to increase significantly.
  3. Paid subscribers will receive exclusive access to the author's method of buying crypto, potentially giving them an edge in trading.
Get a weekly roundup of the best Substack posts, by hacker news affinity:

The growing partisan divide in US investor portfolios

Klement on Investing • 2 implied HN points • 28 Oct 24
💰 Finance Investing
  1. Many US investors change their opinions about the economy depending on who is President. When their party is in power, they tend to feel more positive about economic conditions and vice versa.
  2. The partisan divide affects actual investment decisions, like how credit analysts rate companies based on the President's party. This can increase the costs for businesses if the opposition party is in charge.
  3. ESG investing shows a clear divide, with Democratic fund managers favoring these investments more than Republican ones. Mixing politics with investing can lead to missed opportunities.

0 to 10 Billion

Venture Prose • 19 implied HN points • 29 May 19
💼 Business Investing
  1. French entrepreneurship has shown significant growth in market maturity and capital raised, leading to ambitious founders and valuable companies.
  2. Venture capitalists are supporting entrepreneurs with high ambitions to create companies worth over $10 billion at exit or IPO, fostering growth and innovation.
  3. Entrepreneurs should surround themselves with individuals who push them to unlock their full potential and think big, aiming for ambitious goals rather than settling for mediocrity.

IPO Lessons for Public Market Investors

Musings on Markets • 19 implied HN points • 11 Oct 19
💰 Finance Investing
  1. IPOs are more about pricing than true value. Investors often focus on trends and momentum rather than the real financial health of the company.
  2. Estimating how much to pay for a new public company can be tricky. Many lack a solid peer comparison and only have past funding rounds to guide them.
  3. Many young companies have unstable share counts, which can lead to major miscalculations in their market value. Always double-check the number of shares when valuing an IPO.

Stocks (and bonds) for the long run: Part 1

Klement on Investing • 4 implied HN points • 14 Feb 24
💰 Finance Investing
  1. The book 'Stocks for the Long Run' by Jeremy Siegel may present an overly positive view of equities as a fail-proof long-term investment. It's crucial to understand that investing in stocks comes with risks and uncertainties, even over longer periods.
  2. Historical data corrected by Professor McQuarrie reveals the importance of considering a wider range of factors like failures, defaults, and market conditions when evaluating equity investments' returns.
  3. While equities can be a rewarding long-term investment, they are not risk-free. International diversification is crucial to balance potential negative outcomes and ensure successful equity investing in the long run.

These oil shareholders are not for the turning

Fund Marketer • 3 implied HN points • 29 May 24
💼 Business Investing
  1. Many oil shareholders are not changing their views on climate proposals, even amidst protests. They tend to vote for management's put forth resolutions rather than the more aggressive ones suggested by other investors.
  2. The 'silent majority' of shareholders may not actively voice their opinions, but their votes can heavily influence outcomes at shareholder meetings. This often leads to management proposals winning significantly.
  3. Recent studies suggest that 'nudging' people toward certain decisions might not work as well as thought. Those nudged may not stick with their choices as much as those who decide independently.

How embedded finance works: Square Banking Case; Google aims to bulk up wallet; Key Drivers behind the rise of Asian super apps;

Fintech Wrap Up • 1 HN point • 07 Jun 23
💼 Business Investing
  1. MENAP fintech market defying global trends with strong economic fundamentals and continued growth in the banking sector.
  2. Rise of Asian super apps driven by mobile-first internet users, cost-efficient mobile phones, and building trust through offering multiple services on a single platform.
  3. Stripe introduces charge card program to provide businesses easier access to credit and generate revenue through interest on deposits, interchange fees, and financing revenues.

Compound Startups

notes & upside • 1 HN point • 16 Jun 23
💼 Business Investing
  1. More startups are embracing a "compound" business approach that integrates multiple products in one coherent offering.
  2. Software has shifted from a long period of unbundling to a new era favoring consolidation through compound businesses.
  3. Compound businesses excel in offering integrated products across multiple services and provide flexibility in monetization and customer acquisition.

Letter #71: Brad Jacobs (2011)

A Letter a Day • 1 HN point • 08 Apr 23
💼 Business Investing
  1. Brad Jacobs is a successful entrepreneur known for founding multiple billion-dollar companies and making successful acquisitions.
  2. He transformed Express-1 Expedited Solutions into XPO, a multi-billion dollar logistics company with three separate business divisions.
  3. Jacobs's strategy includes acquisitions, organic growth, and focusing on IT to optimize operations and drive profitability.

#156 - Silicon Valley Bank: An Autopsy

Below the Line from Kevin LaBuz • 7 implied HN points • 26 Mar 23
💰 Finance Investing
  1. Silicon Valley Bank grew rapidly and reached the 16th largest bank in the US, but struggled with managing its growth.
  2. Banks make money by taking deposits and making loans, operating with fractional reserves and managing a balance between liquidity and lending.
  3. SVB's downfall was fueled by a combination of poor decisions, rising interest rates, and a concentrated deposit base that led to a rapid collapse.

Against Cassandras

Klement on Investing • 6 implied HN points • 21 Jun 23
💰 Finance Investing
  1. Many independent forecasters make doom-and-gloom predictions to stand out.
  2. Doom-and-gloom events historically have occurred about once every 40 years.
  3. People tend to forget that major catastrophes are rare and dramatic behavioral changes often precede them.

Why I invested in Substack | #58

Atomic Learnings • 6 implied HN points • 11 May 23
💼 Business Investing
  1. Substack is a great tool for simplifying the publishing process and is easy to use.
  2. Substack helps writers get discovered through its platform and app.
  3. Substack is a valuable network for writers to grow their audience through features like recommendations.

Private equity: Resilient, but not immune

Klement on Investing • 1 implied HN point • 18 Feb 25
💰 Finance Investing
  1. Private equity and venture capital can bounce back from economic shocks over time. If you hold these investments long enough, you are likely to recover any losses.
  2. Shocks in stock and bond markets can affect private equity returns more than investors might think. During a crisis, the reactions are often quick and correlated with these markets.
  3. Despite their resilience, private equity is not totally safe. Investors should expect some volatility during tough economic times, but patience can lead to better long-term returns.

If ESG is in the dumps, what will be the new hotness?

Fund Marketer • 3 implied HN points • 27 Mar 24
💰 Finance Investing
  1. ESG funds are losing popularity, and some companies are dropping the 'ESG' label from their investment products. This shift reflects growing political pressure and changing market attitudes.
  2. New trends in investing might focus on 'net-zero' goals, emphasizing investments in companies working toward reducing carbon emissions. This could be a fresh way to attract investors concerned about climate change.
  3. Tokenization is on the rise, with firms like BlackRock launching tokenized funds. This means using blockchain technology to manage investments, which could change how investors engage with financial products.

January 2019 Data Update 4: The Many Faces of Risk!

Musings on Markets • 19 implied HN points • 21 Jan 19
💰 Finance Investing
  1. Investing in stocks comes with various risks. It's important to see risk as a spectrum rather than just something that is present or absent in investments.
  2. Different types of risks can affect a company, and it's crucial to understand where these risks come from. Making smart investment choices often involves tackling the risks that seem the hardest.
  3. The way you measure risk matters and depends on how you invest. You might choose different metrics for assessing risk based on whether you're a long-term investor or a short-term trader.

January 2019 Data Update 1: A reminder that equities are risky, in case you forgot!

Musings on Markets • 19 implied HN points • 03 Jan 19
💰 Finance Investing
  1. Investing in stocks comes with risk, and it’s important to remember that not every dip in prices is a chance to buy. Stocks can lose value, and there are reasons why they usually offer higher returns than safer investments.
  2. The equity risk premium, which tells us how much investors are being paid to take on the risk of stocks, has increased recently. This might suggest that stocks are undervalued compared to historical norms.
  3. Looking ahead, market conditions could be challenging with potential slowdowns in economic growth and global crises. Understanding these risks helps investors make more informed decisions.

Axial Discovery - Onshoring biomanufacturing

Discovery by Axial • 6 implied HN points • 20 Mar 23
💼 Business Investing
  1. WuXi dominates biomanufacturing through labor arbitrage, scale, and flexible deal structures
  2. WuXi's success is attributed to founder leadership, regulation advantages, and standardization
  3. To compete, US companies can focus on high-value products, tech-enabled services, and regional expansions

Investing Whiplash: Looking for Closure with Apple and Amazon!

Musings on Markets • 19 implied HN points • 03 Dec 18
💰 Finance Investing
  1. When investing, it's smart to set rules to avoid emotional decisions, like using limit orders to fight against personal biases.
  2. Intrinsic value of stocks can change over time, influenced by both company performance and broader market conditions.
  3. Investors should be flexible in their strategies, being willing to sell sooner if prices align with their valuations, even if it means not holding forever.

A historic moment

Klement on Investing • 3 implied HN points • 22 Feb 24
💰 Finance Investing
  1. Japanese stock market's recovery to all-time highs after 34 years is a historic moment
  2. It's a cautionary tale of the risks of equity investments, despite long-term strategies
  3. Adjusting for inflation, the Nikkei 225 recovery is still below its peak

Stocks (and bonds) for the long run: Part 2

Klement on Investing • 3 implied HN points • 21 Feb 24
💰 Finance Investing
  1. Stocks may not always outperform bonds over long periods - research shows that stocks in the US did not consistently outperform bonds, except for specific time frames
  2. Data suggests that even over the longest investment horizons, there is a significant chance that bonds will outperform stocks
  3. Considering global trends, many countries show significant underperformance of stocks compared to bonds over 20 and 50 years, highlighting the importance of diversification

The investor experience with thematic funds

Klement on Investing • 3 implied HN points • 07 Feb 24
💰 Finance Investing
  1. Retail investors tend to switch between thematic funds, leading to a larger behavior gap.
  2. Trendy themes like tech result in a larger behavior gap as media influences investors.
  3. Thematic ETFs are easy to trade but cost more in performance due to frequent switching; the advice is to stick with a fund for many years.

European stocks offer earnings stability in surprising places

Klement on Investing • 1 implied HN point • 08 Jan 25
💰 Finance Investing
  1. European stocks can provide surprisingly stable earnings even in tough times. It's good to look for companies that have shown consistent growth before.
  2. In this uncertain economic climate, having a strategy can help investors feel more secure. Focusing on steady performers might be a smart approach.
  3. Many investors are looking for ways to adapt and manage risks this year. Finding reliable stocks in Europe could be part of the answer.

Did the Fed engineer a soft landing?

Klement on Investing • 1 implied HN point • 18 Dec 24
💰 Finance Investing
  1. The Fed helped lower inflation significantly, reducing core inflation by about two percentage points. However, most of the drop in inflation came from factors outside the Fed's control, like global demand changes.
  2. High-income households have played a big role in keeping the US economy strong during tough times. Their spending helped prevent a recession, even as lower-income groups struggled more.
  3. While the Fed's actions can be seen as positive for the economy, they also disproportionately benefited the wealthy. This raises questions about how well the overall economy truly supports everyone.

Stars are treated differently

Klement on Investing • 1 implied HN point • 17 Dec 24
💰 Finance Investing
  1. Star analysts have a bigger influence than regular analysts because their reports can move markets. They are rewarded for giving high-quality forecasts that help investors succeed.
  2. To become a star, analysts need to make good predictions, but staying a star often means making bold and risky calls instead of focusing on quality.
  3. Once an analyst becomes a star, they are judged less harshly for mistakes. This means they can take more risks and make big headlines, even if it doesn't always lead to good outcomes.

On Jim Simons // "The Man Who Solved The Market"

Parth's Playground • 2 HN points • 11 May 24
💰 Finance Investing
  1. Jim Simons believed that markets have a structure and hired smart people to help figure this out. This teamwork was crucial for his success.
  2. Simons faced many challenges for years before he found success in investing. His breakthrough came from building a strong team and creating the right environment for innovation.
  3. Quant investing was not accepted at first, but with advancements in computing, it became possible to turn data into profitable strategies. Simons capitalized on this shift at just the right time.

How big is the equity risk premium?

Klement on Investing • 1 implied HN point • 11 Dec 24
💰 Finance Investing
  1. Institutional investors are more sensible than retail ones. They adjust their expected returns based on market conditions, increasing them during declines and lowering during rallies.
  2. Pension funds tend to use higher risk premium values compared to other institutional investors. This is likely due to their need to show that their assets can cover their liabilities.
  3. There's a wide range of expected equity risk premiums among different asset managers. Some have very pessimistic views on US equities, while others are much more optimistic.