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- 🦉 Snap Out of Complacency!
🦉 Snap Out of Complacency!
Kodak's $31B nosedive: A cautionary tale of clinging to old habits. Is your portfolio at risk of becoming a faded memory? Discover how to stay sharp in today's market.
Jeff
August 23, 2024
Hi there… Today, we're developing our investment negatives with Kodak's cautionary tale, powdering our portfolios with Buffett's beauty bet, and finding inspiration in Anne Frank's timeless wisdom. Grab your financial viewfinder and let's focus on some picture-perfect insights!
— Jeff
Wisdom of the Day
Chains of habit are too light to be felt until they are too heavy to be broken.
Kodak, the photography giant that went from capturing our memories to becoming a memory itself. It's a story that brings to life Warren Buffett's wisdom: "Chains of habit are too light to be felt until they are too heavy to be broken."
Picture this: Kodak, once as recognizable as Coca-Cola, invented the digital camera in 1975. But instead of embracing this new technology, they shelved it, clinging to their film-based business model like a security blanket. It's like inventing the automobile and then deciding to stick with horse-drawn carriages because that's what you're used to.
The lesson? Success can breed complacency faster than a rabbit breeds... well, more rabbits. In investing, as in business, it's crucial to question your habits and assumptions regularly. Don't let your portfolio become a Kodak moment – stay flexible, stay curious, and remember that in the market, the only constant is change. After all, you don't want your investment strategy to go the way of the film roll.— Jeff
The Inverted Lens
Invert, always invert: Turn a situation or problem upside down. Look at it backwards. What happens if all our plans go wrong? Where don't we want to go, and how do you get there?
Buffett's Beauty Bet
Warren Buffett's Berkshire Hathaway has taken a stake in Ulta Beauty, sending the cosmetics retailer's shares soaring 12% after hours. But before we all start powdering our portfolios with Ulta stock, let's flip this compact mirror over and see what's really reflected.
First off, let's consider the size of this beauty bet. At $266 million, it's barely a blush on Berkshire's $700 billion cheeks. Are we making a mountain out of a makeup molehill? Moreover, what if this isn't a vote of confidence in Ulta, but a hedge against Berkshire's massive Apple stock sales?
And let's not forget, Ulta's stock has lost a third of its value in 2024. Could Buffett be betting on a turnaround, or is this a sign he's struggling to find places to park Berkshire's $277 billion cash pile?
Remember, in investing, as in beauty, what looks good at first glance isn't always what stands the test of time. So before you rush to copy Buffett's beauty routine, ask yourself: Is this a makeover for your portfolio, or just lipstick on a pig?
MULTIDISCIPLINARY WISDOM
Anne Frank, a young Jewish girl whose diary has become a beacon of hope in a sea of despair. Her words, penned in the cramped confines of a hidden annex during World War II, continue to illuminate the human condition with a clarity that belies her tender years.
A teenager grappling with questions that would stump philosophers, all while hiding from a regime bent on her destruction. It's like trying to solve a Rubik's cube in the dark, with the lights of humanity as your only guide.
Anne's story isn't just about survival; it's a masterclass in resilience, self-awareness, and the power of the human spirit. She found beauty in a patch of blue sky and wisdom in the ticking of a clock. Her unwavering belief in human goodness, despite evidence to the contrary, is a challenge to our modern cynicism.
So, next time you're facing a tough situation, channel your inner Anne Frank. Look for the light in the darkness, find strength in your words, and remember – even in the worst of times, the best of humanity can shine through. After all, if a young girl in hiding can change the world with her diary, imagine what you can do with the freedom you have.
REC
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Dive into this timeless testament to human resilience. It's not just a historical account; it's a masterclass in maintaining perspective during tough times. As investors, we can learn from Anne's ability to find hope in the darkest moments. In today's volatile market, her wisdom reminds us to look beyond short-term setbacks and focus on long-term potential.
🎥 Video: Munger on Kodak's Downfall
Watch Charlie Munger's final CNBC interview where he dissects Kodak's bankruptcy. It's like getting a free masterclass in avoiding investment pitfalls. Munger's insights on innovation without adaptation are particularly relevant in today's tech-driven market. A must-watch for anyone investing in rapidly evolving industries.
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MY WATCHLIST
$SBUX, $GOOGL, $CELH, $DIS, $CHWY, $CROX, $ULTA
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