The Schwar Report - Issue 10
Monday 21st October 2024
Welcome to this weeks edition of The Schwar Report, your weekly primer featuring three interesting reads, two thought-provoking quotes, and one actionable step to start your week on the right foot.
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Three Reads to Inspire Your Week
"Alchemy" by Rory Sutherland
Why read it: Sutherland's work challenges conventional thinking about problem-solving and decision-making in business and life. The book explores the power of seemingly irrational ideas and the importance of understanding human psychology in creating effective solutions. It offers insights for anyone interested in innovative approaches to complex challenges.
"MSCI: The Financial Powerhouse with $15.6T in Assets" by
Why read it: This article provides an in-depth analysis of MSCI, a leading provider of investment decision support tools. It offers valuable insights into MSCI's business model, including its diverse revenue streams, high retention rates, and strong growth drivers. An essential read for investors interested in the company and understanding the infrastructure of modern finance.
"Indefensible" by
Why read it: This article offers a critical examination of Taiwan's energy security in the context of its geopolitical situation and its crucial role in global semiconductor production. It explores the historical background of Taiwan's relationship with China and the US, and how Taiwan's energy vulnerabilities could impact its semiconductor industry and, by extension, the global economy. A great read.
Two Quotes to Reflect On
"The stock market is filled with individuals who know the price of everything, but the value of nothing." — Philip Fisher
Reflection: This quote reminds us to look beyond mere stock prices and focus on the intrinsic value of companies. It encourages investors to develop a deeper understanding of the businesses they invest in, rather than simply chasing price movements.
"Markets can remain irrational longer than you can remain solvent." — John Maynard Keynes
Reflection: This quote serves as a sobering reminder of the unpredictable nature of financial markets. It cautions investors against betting too heavily on short-term market corrections, even when asset prices seem irrational. The quote emphasises the importance of managing risk and maintaining a long-term perspective in investing.
One Action Step: Conduct a Personal Investment Audit
"An investment in knowledge pays the best interest." — Benjamin Franklin
This week, challenge yourself to critically examine your investment approach:
Review your portfolio: List all your current investments and their allocation percentages.
Assess your knowledge: For each investment, rate your understanding of the underlying asset or business on a scale of 1-10.
Identify knowledge gaps: Choose the investment you rated lowest and commit to learning more about it this week.
Research and learn: Spend at least 30 minutes each day reading about the chosen investment and try to fill those knowledge gaps.
Quick Tip: Knowledge is power in investing. By regularly auditing your understanding of your investments, you can make more informed decisions and potentially identify both risks and opportunities you might have otherwise missed.
ICYMI
Check out our posts from the last week:
That wraps up this week’s Schwar Report. As always, we’re here to keep you informed and help you stay focused on your long-term goals.
Have a productive week,
The S.C. Team
Disclaimer: The content provided in this newsletter is for informational purposes only and does not constitute financial, investment, or other professional advice. While we believe the information to be reliable, we cannot guarantee its accuracy. The opinions expressed are those of the author and do not necessarily reflect the views of Schwar Capital. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. The author may or may not hold positions in the stocks or other financial instruments mentioned. Always do your own research or consult with a qualified financial advisor before making any investment decisions.