For this week's newsletter, we talked about how you only need one stock to change your life. And this week itself, we had our largest investment, Wise, demonstrating that. Wise gained about 20% and given that it is about one quarter of our portfolio, this led to significant gains. Imagine that our position was smaller. The gains would have been smaller. Some of you might argue that it can work both ways. That's true. That's why you have to be very choosy what you're buying. I

If you invested 1% of their portfolio in Apple in September 1997 when Steve Jobs returned as CEO with the rest in the S&P 500, you would have 3X more returns than just investing in the S&P 500. Only one investment can change your life. But the issue is that you would have 68% of your portfolio in Apple. Would you be able to sleep well at night? That doesn’t mean that you need to diversify. You can lower your exposure with constant reinvestment. This is the strategy used by Wa

For the past two weeks, I analyzed the auto-insurance industry to better understand a business that I have been following, Root. I'm not sure yet if I'm going to invest in Root or not. I have to look at it again with all the new knowledge I have gathered from the competitors. Whatever my decision be, this study taught me a few things about thinking in bets. Any investment you're making is essentially a bet that the price you paid will be higher in the future. The insurance bu

Trump's Credit Card Cap: Winners and Losers Financial stocks are down today after President Trump announced capping interest rates on credit cards at 10%. While this may look like a good thing for consumers on the surface, it can have unintended consequences, affecting the whole financial market. Winners and losers The most affected companies would be the banks (the issuers) since they are the ones actually making money from interest. There's this idea that card networks such