I was 22 years old when the dot-com bubble burst, and although I was not an investor at the time I remember watching all these tech companies lose between 80 to 90% of their value. For most young investors today, they have not seen a bear market or watched companies have their market value go up in smoke. For value investors they have no tolerance for businesses with poor cash flows and a leadership team who is careless with the cash they have on hand.
At the end of the day it always comes back to fundamentals and most investors have never analyzed a set of financial statements, looked at a cash flow statement, or read through a MD&A. Patience is key when investing for the long term. There is nothing wrong with an individual who realizes they do not have the technical skills and knowledge. The problem is when an individual who doesn’t have the skills or knowledge thinks they know what is going on.
Wednesday morning news drop
”Day Trader Army Loses All the Money It Made in Meme-Stock Era ‘Diamond hands’ mentality fuels dip buying and now faces test Capitulation from the crowd may help signal a market bottom. (Bloomberg)
Why Success in Canada Means Moving to America Canada’s modest institutions have lowered the ceiling on creative professionals. Is leaving the answer? (Walrus)
Paradise at the Crypto Arcade: Inside the Web3 Revolution The new movement wants to free us from Big Tech and exploitative capitalism—using only the blockchain, game theory, and code. What could possibly go wrong? (Wired)
Apple, Google, and Microsoft will soon implement passwordless sign-in on all major platforms: The tech giants want to roll out FIDO passkey technology in the coming year (The Verge)
Ultra-fast fashion site Shein has captured the wallets of young shoppers. But at what cost? Shein is said to be valued at $100 billion, now one of the largest fashion retailers globally (CBC)
Tesla Autopilot Stirs U.S. Alarm as ‘Disaster Waiting to Happen’ Regulators are scrutinizing Tesla’s driver-assistance system more than ever, pointing to a potential crackdown that could alarm investors and consumers. (Hyperdrive)
How Putin’s invasion returned Nato to the centre stage For the first time in years, its role has become a topic of furious debate. But what do we talk about when we talk about Nato? (Guardian)
The One Parenting Decision That Really Matters Almost none of the choices you make are as fraught as you think they are. (Atlantic)'
Inside the Paddock at Miami's Insane, Over-the-Top, Speed-Crazed F1 Weekend Is America ready for Formula 1? You freakin' bet it is. (GQ)
Into the Chaotic World of the American F1 Boom Every step of the American Formula One journey has been right on time, and the Miami Grand Prix was another perfect step (Ringer)