📡Saturday Signal 15: The Wealth Creation Equation and my new favorite book

Updates

  • My latest deep dive on Rivian is up. Members can read it here: Rivian — The Irreverent Investor

  • There is now a schedule in the members area of the wesbite showing the tentative schedule for upcoming deep dives. The next dive is on Palantir, which I’m very excited for. Stay tuned.

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  • All editions of Saturday Signal are available here: Saturday Signal

What I’m Writing

The Wealth Creation Equation

It’s not enough to get by with just investing prowess. Learn what it takes to create (and keep) financial freedom. I also dive into the vampires that destroy wealth before its even created. Check it out and let me know what you think!

What I’m Reading

Winning: The Unforgiving Race to Greatness

This book is so damn good it hurts. Tim was Michael Jordan’s trainer for over a decade and then went on to train Kobe during his best years. The guy has a pedigree in winning. Extremely valuable book on mindset.

 

 

This is a fascinating read. The first half alone is worth it, and highly recommended for those who are pushing themselves harder than others are comfortable with. Simon Tryzna got me hooked on this book. You should follow him too. Great guy.

When I’m done with this I’ll do a complete review with favorite highlights. However, this will be for members only.

What I’m Learning

Lately I’ve been diving into Microsoft Excel as a tool for building company models. It’s not something central to what I do, but a useful tool for understanding businesses on a deeper level. This was spurred heavily by Alex Morris, MBI, and others. I’m no excel expert (yet), but hope to move in that direction.

This is the latest YT video that’s helped me quite a bit: Discounted Cash Flow | DCF Model Step by Step Guide – YouTube

I also bought Valuation: Measuring and Managing the Value of Companies. And plan on working my way through that. I’ll keep you all updated.

note: This section of “what I’m learning” is new. I wanted to make sure that I was embracing and conveying the white-belt mentality while navigating the investing journey. It’s important that we continually learn if we are to go far.

Resources and Tools

I ditched Notion for Microsoft Onenote (the full version). The big reason here was the strong support I get from using one of the most robust suite of tools offered by one of my favorite companies. Plus, I love the UI of Onenote on my computer. It just looks clean.

I was talking with a good friend this week about tools and how we can get wrapped up in optimizing or looking for better tools when we can save a lot of time and headache just picking the best tools out-of-the-box. Don’t overthink it. For me, that was Microsoft Office Suite.

Newsletter of The Week

Why Speculation Drives Markets – by kyla scanlon – kyla’s Newsletter (substack.com)

Kyla has a gift for cranking out pretty fun stuff that makes you think and has a pretty wide range of topics. This is my favorite edition from her, and I label auto-categorize her emails as “must read” in Outlook.

From her letter:

So why are we so sad? The few variables that most people point to (beyond a global pandemic, which is definitely a big fuel for the unhappiness shift I think)

  • Social media: We are constantly comparing ourselves to others, and measure self-worth by digital appearance. Our barometers are constantly having to adjust to an unattainable social standards – we will never look like an Instagram filter in real life.

  • Wealth flexing: There is increasing disparity in wealth, and it can feel disheartening to think “Everyone is Getting Rich – But Me” (this is exacerbated by social media)

  • Politics: Because of social media (a theme), we are able to peer into the lens of politics – and it isn’t pretty. We see our leaders up close and personal, see their flaws – and it compounds into a certain friction for feelings of optimism.

  • Consumerism as a band-aid: We often times *buy* things in order to fulfill the gaps that we might think that we have. But this is a vicious feedback loop – because short-term purchases don’t equate to long-term happiness.

Stan Druckenmiller did an interview with Seth Klarman around the idea of bubbles (when the stock market is euphoric), and one of the most poignant takeaways for me was:

“A lot of investors live in the present, which is a disaster long term – it might work short term.”

They talked about the everything-bubble too, which arguably might be a situation that we are in – but it’s more this idea of short-termism that’s important

For Fun

Animated Knots by Grog | Learn how to tie knots with step-by-step animation

This website is pretty fun. Learn how to tie knots with how-to videos. I’ve always wanted to learn how to tie different knots and now I know how! Fun.

Quote of The Week

From Tim Grover in the above-mentioned book.

Winners all understand one thing: There’s a price to pay, and you must pay it.

Interesting Visualizations

This is from Tren Griffin in his thread on the topic.

Some Thoughts

Our minds are pretty interesting. One moment we can be on top of the world, and the next moment we are dissatisfied. What happened to that excitement from winning? The Irreverent Investor is now almost 200 members strong, and I still find myself hungry to be better than I was last month, and to provide more/better value.

You can bet that I’ll be here laying the bricks of the foundation. We are just getting started.

One Question

What are you blind to that’s holding you back?

We all have blind spots, and some of them can be rooted out simply by looking for them.

The End

Have a great week and I’ll “see” you next Saturday!


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