More Junk in the Small Cap Trunk
Africa’s Demographics, Quality, Small-Caps, Nuclear Revival, Jay Bowen & More
“If the bozos know about it, it doesn’t work anymore.”
— John Rekenthaler
Research
Citi - What Machines Can’t Master: Humans in the Age of AI (108 pages)
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.
Bridgewater - Exploring the Implications of Sub-Saharan Africa’s Demographic Explosion (9 pages)
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.
Morningstar - Should Your Stock Portfolio Consider Your Career? (35 pages)
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
Podcasts
Odd Lots : Jigar Shah on the Three Big Things Driving the Nuclear Energy Revival: 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. [9/30/2024 - 45 minutes] Apple | Spotify | YouTube
The Investor’s Podcast: RWH049: Crushing The Market Over 50 Years w/ Jay Bowen: 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. [9/1/24- 132 minutes] Apple | Spotify | YouTube
What Else Is Happening
Meb Faber spoke with Bryan Taylor about financial history and market concentration. Apple | Spotify | YouTube
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