Sunday Finds + 3 Thoughts From Last Week
Podcasts on Bill.com and the Trade Desk
Welcome to Chit Chat Money’s Sunday Finds + 3 Thoughts From Last Week. In this newsletter you will find three topics I thought about last week, links to shows we’ve recently released, and links to some interesting articles, podcasts, and tweets. Check out the archive here.
Chit Chat Money Podcasts From Last Week
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1. Small-cap value vs. QQQ
The end of the quarter is boring — especially the second quarter — so I don’t have much to say this week. Also, we are all at a wedding this weekend so this is being written early. Everyone wish Brady (our man behind the glass keeping this hamster wheel running) a long and happy marriage!
However, I did see some interesting stuff this week. First, the results of this poll:
A close race, but most people think QQQ outperforms the Vanguard small-cap value ETF over the next 10 years. Today, QQQ trades at a P/E of around 30 while small-cap value trades at a P/E below 10.
I would bet on small-cap value. I think it will be a close race though.
2. The housing market stays solid
Home affordability still is off the charts and nobody seems to care:
Monthly payments are up 109% for new homebuyers! I guess we are all just dealing with this now, but I still think it means a tough road ahead for a lot of people not doing the math here.
3. What sectors/themes should we research in Q3?
We are finishing up our June payments theme with Visa next week. Spoiler alert: good business (listen wherever you get your podcasts).
At this moment we are deciding which sectors to cover for Q3. We do one per month so have three slots to choose from which will determine what companies we cover on the podcast next.
Personally, I want to cover airlines and “fallen angel” SPACs.
However, if you have a great idea for a theme we should cover, give us a shout in the comments or by shooting us an email.
See you next week,
Brett
***Our fund, Arch Capital, may own securities discussed in this newsletter. Check our holdings page and read our full disclosure to learn more.***
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3 Intriguing Reads
If I ask an AI text prompt a question like “are you sentient,” it’s going to dive into its database — trained on a corpus of material fed into it over time — and pull out a series of words related to the question being presented. Since there’s a lot of science fiction incorporated into that corpus, the AI-that-isn’t can be made to sound like a science fiction story character AI. It isn’t, not really. There’s no thought behind it at all. You know why it sounds human?
Because of you.
An Overview of Visa - Mine Safety Disclosures
Visa sits at the center of more than half of the world's credit card transactions, connecting cardholders (and their banks) on one side, with merchants (and their banks) on the other. Because there are thousands of banks, millions of merchants, and billions of consumers, it would be far too complex for every entity to have a direct relationship with every other entity. So Visa acts as a centralized operator, developing technology, maintaining infrastructure, and setting operating standards for all parties.
Packaging as Innovation — Lawrence Hamtil
Without doubt, the revolutionary flip-top hard pack was instrumental in driving Marlboro from a niche filtered cigarette brand intended for women to the dominant premium cigarette around the world.
1 Good Podcast
Smart, Insightful, and Funny Tweets:
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