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- Buying The Dip Since 1928
Buying The Dip Since 1928
+ Cyan Banister, Aswath Damodaran, Fred Wilson, Mind the Gap & More
The Idea Farm
September 22, 2024
Together With
“The work of Wall Street often is to introduce people who should not borrow to people who should not lend.”
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 - Mind the Gap 2024 (20 pages)
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
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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
Meb Faber spoke with Tiger Cub Rob Citrone about the macro landscape and huge opportunity he sees in Venezuela. Apple | Spotify | YouTube
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Deal of the Week
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