A Tale of Tails

On this week’s episode Tom, Jacob, and Dan talk about [suggestion], the job numbers, what central banks around the world are doing, Jamie Dimon’s annual letter shareholders, the broad commodity rally, and a fresh perspective on how to choose people in your life.

Email us at laminatemoneypodcast@fjellcapital.com for questions or suggestions for future topics.

Suggestion

Your best assets should be your biggest assets.

Where your money is invested will tell you a lot about your future. More than that, how much you have invested in that asset will tell you volumes about how much you will have in 5, 10, 15 years down the line.

Statistically, people’s biggest investment is their home. Second to that it is their 401k. Nothing wrong with this, but from a strategy perspective, it’s not ideal. You want your best asset to be your biggest asset. While homes satisfy the core needs of humans, safety, shelter, warmth in the winter, etc., they still consume cash and typically grow at the rate of inflation. What you should strive for is an asset that is growing fast while also safe and provides income for rainy days.

Let’s take a look at Bill Gates, and his biggest assets. In order of size.

1. Microsoft
2. Berkshire Hathaway
3. Canadian National Railway
4. Waste Management

These total $30B. Let’s also acknowledge that Gates can get into any deal he wants on planet earth. No start up, real estate deal, private equity manager or public company would say no to him. These allocations are not by accident. This is where we wants them to be.

Pretty crazy. Mr. Gates is known for his wild investments in clean energy, next gen tech and life changing medical care, but his real money, the core of his balance sheet, are in companies that we fundamentally could not live without, unless you want to use a type writer, insure your own house, go to China to buy your next iPhone, or take your trash to the dump.

What Gates is saying with these holdings is that while yes he believes in start ups and lets-change-the-world technology, he wants his money in places that cannot be easily touched by competitors, software engineers or changing human nature.

These assets are Gates’ best, not the most interesting or perhaps world changing, but this is his priority.

What is your biggest asset and is it your best? Are you on track to buy more of that? What do you need to change to acquire more of your best.

Stay nimble friends.

What Went On

• Where are the jobs going…
• Australian CB > The Federal Reserve… Declining yields should tell investors recession not bull market
• Take a second to reflect on Jamie Dimon’s composure in his annual letter
• Commodities started ripping higher gold and oil
• It’s a funnel not a filter

Quote of the Week

“We [JPMorgan Chase & Co] are champions of banking’s essential role in a community - its potential for bringing people together, for enabling companies and individuals to attain their goals, and for being a source of strength in difficult times.” - Jamie Dimon, CEO of JPMorgan Chase & Co