Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best.
This week, we bring you
- Everyone’s Trying To Steal Your Wealth
- Investment Managers… Skilled or Lucky?
- The Looming Trade War Between China and Europe
- The Perfect Corporate Christmas Party: An Analysis
- Fortnite maker wins antitrust fight against Google
- 3 Pizza Stocks To Consider
Table of Contents
Everyone’s Trying To Steal Your Money – Invest Accordingly
Something called “adversarial thinking” can help protect you against losses (and scams) while boosting returns.
With every opportunity, ask yourself “How can this go really really wrong?”
Most investors focus too much on the upside, while the real goal should always be to stay in the game as long as possible. Never go to zero.
Learn to apply the adversarial thinking mindset.
Investment Managers… Skilled or Lucky?
via Barry Ritholtz
Is your fund manager actually good or just lucky? Understanding this distinction can be the key to making more informed investment choices.
Europe’s trade war with China
via Noah Smith
China’s strategic maneuvering in the EV market, backed by substantial subsidies and supply chain control, poses a challenge to Europe’s industrial strength.
Already at a disadvantage, how can Europe fight back?
This brewing trade war isn’t just about cars. It could define the two powerhouses’ positions in a rapidly changing world.
The Perfect Corporate Christmas Party: An Analysis
Most office Christmas parties are awful. They’re either dreadfully boring or get wildly out of control.
So what makes for a good one?
Hannes Zacher’s academic study on corporate Christmas parties says an open, family-like atmosphere is more important than the specific themes or timing of the party.
Learn how to throw a better Christmas party.
Fortnite maker Epic Games Smacks Down Google
via Marketing Dive
Fortnite’s maker, Epic Games, scored a groundbreaking victory over Google, challenging the very fabric of app marketplace operations.
This win isn’t just about Fortnite; it’s a triumph for developers and consumers against big tech’s grip.
What does this mean for the future of app stores and the tech giants that control them?
What I’m reading
I get a lot of mail asking where I find all this good stuff. Here are a few of my favorite newsletters, all of which are free to subscribe to:
1440 – All your news. None of the bias.
1440 scours 100+ sources so you don’t have to. Culture, science, sports, politics, business, and more—all in a five-minute read.
Data-driven insights into business, tech, entertainment and society. The visual newsletter takes 5 minutes to read and it’s completely free.
The latest news, tools, and step-by-step tutorials of all the latest in AI.
Stock ideas
With Domino’s unveiling a $500,000 “Plowing for Pizza” snow plowing grant, and Papa Johns appointing new marketing agencies, it’s the perfect moment to explore the world of pizza stocks. 🍕
This deep dive, powered by insights from public.com, offers a tantalizing look into the pizza industry’s financial landscape.
Remember to always DYOR.
Domino’s Pizza ($DPZ)
Bull Case
- Growth and Expansion Potential: Domino’s aims for a 5% CAGR in unit count and 7% annualized system sales growth through 2028, with the potential to double global outlets to around 40,000.
- Market Share and Scale Advantages: With <23% domestic market share, Domino’s benefits from scale advantages, including a growing advertising budget.
- Profitable Business Model: Domino’s high-margin business model, including company-operated stores, domestic commissary business, and franchise fees, offers operating leverage, with 5.5% royalty on domestic franchised sales and 3% for international sales.
Bear Case
- Hold Rating and Profitability Concerns: Domino’s has a Hold rating despite high profitability in the restaurant sector, cautioning investors to wait for a better entry point or consider other factors.
- Economic Uncertainties: Economic challenges may affect Domino’s sales and profitability due to consumer spending constraints, especially amid rising costs and pricing pressures.
Papa John’s ($PZZA)
Bull Case:
- Menu Innovation and Digital Enhancements: Papa John’s innovates its menu, introducing successful items like the Garlic Epic Stuffed Crust Pizza and Boneless Wings, alongside a strong focus on digital sales.
- Strong Franchise System and Global Expansion: Actively expanding its franchise system, Papa John’s boasts 5,825 global restaurants in 48 countries, providing a solid foundation for future growth.
- Loyalty Program and Transaction Growth: The loyalty program boosts digital transactions and overall sales growth, offering early product access and targeted offers.
Bear Case:
- Challenging Macro Environment: Papa John’s faces challenges due to negative comparable sales in some markets and geopolitical uncertainties in the Middle East and Asia.
- Financial Performance Concerns: Despite operational improvements, adjusted earnings per share declined, missing consensus estimates. Rising long-term debt of $769 million and interest expenses should be monitored.
YUM! Brands ($YUM)
Bull Case:
- Institutional Ownership and Confidence: Yum! Brands, owner of Pizza Hut, enjoys 82% institutional ownership, signaling strong investor confidence in its future.
- Global Expansion and Innovation: Yum! Brands expands globally, as seen with its acquisition of 200+ KFC restaurants in the UK and Ireland. Ongoing innovation, like the “Reverse Delivery” doormat campaign, keeps it competitive.
Bear Case:
- Recent Earnings Miss: Yum! Brands missed revenue expectations despite beating EPS estimates in the third quarter, raising concerns about consistent financial performance.
- Competitive Market Pressures: In a highly competitive fast-food industry with pricing and innovation pressure, Yum! Brands must continually adapt to maintain market share and profitability.
That’s it for this week.
If you write amazing content and want to be featured, please send it through for consideration.
Cheers,
Wyatt
Disclosures
- There are affiliate links above; we’ll get a couple of bucks if you take action after you click.
- This newsletter was brought to you by our friends at Alto and pdfFiller
- Nothing above is financial advice. DYOR, you filthy animal.
