Buying The Dip Since 1928

+ Cyan Banister, Aswath Damodaran, Fred Wilson, Mind the Gap & More

Together With

The work of Wall Street often is to introduce people who should not borrow to people who should not lend.

— Thomas Donlan

Research

Goldman Sachs says mixed macro momentum and rising policy uncertainty lead them to believe there is the risk of more equity drawdowns from here, and risk-adjusted returns for equities are likely to be lower into year-end.

On pages 3-4, they demonstrate that ‘buy the dip’ has been a successful strategy since the GFC. However, its success has been mixed over long horizons.

As of September 9, 2024

Michael Cembalest covers the impact of AI on the U.S. stock market and what’s needed to justify the hundreds of billions in AI-related capital spending by big-tech.

Morningstar aims to address the question of where investors succeeded in capturing most of their funds' returns. They estimate fund investors earned a 6.3% annual investor return over the 10 years ended Dec. 31, 2023, while their fund holdings earned a 7.3% annual total return, resulting in a 1.1% "gap."

Bonus Content

Should European investors really put 72% of their portfolio in one foreign country? Link

Here’s an overview of wicked asset classes - those that don’t fit into one of the mainstream boxes - and a framework for how to invest in them. Link

Fred Wilson explains how VC firms should handle capital reserves and recycling capital over the life of a fund. Link

Read the story of the biggest ponzi scheme in Hollywood history, which raised $690 million. Link

Where Sophisticated Investors Access Private Markets

For individual investors, sourcing and vetting high-quality, sub-scale private market opportunities poses challenges – information asymmetry, adverse selection, insufficient resources, etc.

Enter 10 East.

10 East, led by Michael Leffell, is a platform where qualified investors can invest in vetted private credit, real estate, niche venture/private equity, and other one-off investments that aren’t typically available through traditional channels.

10 East principals have a 12+ year track record of strong performance across 355+ transactions.

And the best part? 10 East offers the flexibility to invest on a deal-by-deal basis, while co-investing alongside industry veterans who have skin-in-the-game.

10 East is where founders, executives, and portfolio managers from leading firms are diversifying their personal wealth.

Podcasts

8/29/24 - 69 minutes

Prof. Damodaran discusses the importance of wealth preservation, blending academic rigor with practical insights and the dangers of performance chasing.

2/20/24 - 85 minutes

VC Cyan Banister shares lessons from working for Peter Thiel, the power of staying curious in the face of adversity, and investing stories ranging from Uber to Bill Murray.

What Else Is Happening

Deal of the Week

YCharts latest white paper looks at how asset classes perform as inflation is declines. Download it for free click here to receive 20% off of YCharts Professional (new users only).*

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