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- More Junk in the Small Cap Trunk
More Junk in the Small Cap Trunk
Africa’s Demographics, Quality, Small-Caps, Nuclear Revival, Jay Bowen & More
The Idea Farm
October 20, 2024
Together With
“If the bozos know about it, it doesn’t work anymore.”
Research
Citi explains how AI will impact the future of work. Pages 4-19 give a great history of how the introduction of new technologies have impacted the labor market.
Source: Citi
Sub-Saharan Africa’s population is projected to account for a quarter of the world’s working-age population within a few decades. Bridgewater looks at the different possible trajectories for the region and the implications of this on the global economy.
Source: Bridgewater
Morningstar shows investors may reduce portfolio risk by customizing their stock portfolios to account for the unique risk embedded in their non tradable wealth (firm-level human capital and restricted stock units).
Bonus Content
Joachim Klement explains why quality stocks have systematically outperformed companies with lower profitability. Link
When playing in the small-cap space, you may want to target companies with lower valuations and higher profitability. Link
Read the incredible story about a cash-for-carbon hustle, which the French police call “the heist of the century” and cost tax authorities five billion euros. Link
Kevin Kelly shared 101 bits of advice (not in recent book) he wished he had known earlier. 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.
Podcast
 9/30/24 - 45 minutes | The head of the Loan Programs Office at the Department of Energy talks about the policies and economic conditions behind the recent the nuclear renaissance. |
 9/1/24 - 132 minutes | Bowen explains how he & his late father generated an annualized return of 14.4% over 50 years & a cumulative return of more than 81,000% for their biggest client, the Tampa Firefighters’ & Police Officers’ Pension Fund. |
What Else Is Happening
Meb Faber spoke with Bryan Taylor about financial history and market concentration. Apple | Spotify | YouTube
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