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
- Great news about American wealth
- Five tax breaks for paying your student loan
- Seven things you need to know about the largest wealth transfer in history
- What are the world’s fastest-growing economies?
- The four intersecting risks that may hit the global economy
Our most popular story last week was from The AverageJoe
At Alts, we’re so into investing in music rights that we’ve written not one but two different guides to how it works.
It’s more complicated than this, but when you own the rights to a song, you get a few cents every time it’s played. If it’s a popular song, that can add up quickly. So investors will pay hundreds of millions for the rights to an artist’s entire catalog, aiming to earn a 5% to 15% perpetuity.
Loads of musicians, including Bruce Springsteen, Katy Perry, ZZ Top, Motley Crue, Bob Dylan, and Whitney Houston, are cashing in their catalogs for a big payday.
The best stuff is usually expensive (and out of reach for most of us), which is why I was interested to see Public offering the rights to Shrek the other day.
[Disclosure: I requested an allocation.]
They’ve acquired the rights to the music from all four films and the related TV specials. That’s generated around $83k over the last twelve months for an ROI of 8.5%.
This feels like a more interesting and possibly profitable alternative to the 5.5% treasuries everyone is buying right now.
The risk is that people will stop watching Shrek films and stop going on the rides, but perhaps surprisingly, search volume for the green ogre is actually increasing year over year.
Check out the offer if you’d like.
It’s only available to Americans, unfortunately.*
Table of Contents
Great news about American wealth
via Noahpinion
Noah Smith published a counterargument to the growing conventional wisdom that the American consumer is in deep trouble.
The data is from 2022, which is why I think he’s wrong, but it’s a good counterbalance to the zeitgeist.
Read his piece if you want to feel better.
Five tax breaks for paying your student loan
via Sidepiece
Student loan payments are back, and a lot of Americans will struggle to pay them off. This week, Sidepiece shows us how to apply for tax breaks to help offset the burden.
Seven things you need to know about the largest wealth transfer in history
Baby boomers are retiring, and many of them own small businesses. Many of those have no plan in place for what to do when they retire.
SMB Deal Hunter pointed us to a super comprehensive thread to take advantage of this dynamic.
We're in the 1st inning of the largest wealth transfer in history
— Chandler Reed (@ChandlerReedSMB) October 25, 2023
(Yes I'm serious)
Want to make life-changing money?
Here are the 7 things you need to know:
Subscribe to SMB Deal Hunter
What are the world’s fastest-growing economies?
via The AverageJoe
Most of the world’s fastest-growing economies aren’t exactly household names, with seven of the top ten in Africa and the top three spread between Southeast Asia and South America.
The AverageJoe shares the surprising reasons why Macao and Guyana are doing so well.
The four intersecting risks that may hit the global economy
via Short Squeez
AKA, how geopolitics is going to f*ck you.
Short Squeez points us to a terrifying Axios article tying together four seemingly unrelated things that could combine to set the world (and your portfolio) on fire.
📚 What I’m Reading
Everyone always asks how I stay up-to-date, so here are a few of my favorite newsletters. Click on the links to subscribe (all free):
The Informationist simplifies one economic concept every week. Lightweight and high value per minute spent.
A fantastic source of pre-IPO startups, news, and exclusive access to private startup auctions.
Aussie-focussed market news that gives a solid non-US perspective on global finance.
🧠 Stock ideas
This week, we’ve got three reasonably mainstream (no penny stocks) high-dividend-paying ideas for you. I found them using the stock screener at Public.com.
Remember to always DYOR.
Vodafone Group ($VOD)
Bull Case:
- The prospective merger between Vodafone and CK Hutchison’s Three UK unit, valued at £15 billion, is poised to bolster the 5G infrastructure in the UK, potentially enhancing consumer experiences and driving revenues.
- Strategic partnership with Amazon’s Project Kuiper aims at extending the reach of Vodafone’s 4G and 5G networks in Europe, indicating an innovative approach to expanding connectivity and possibly increasing market share.
Bear Case:
- Despite some promising moves, Vodafone’s share price has significantly declined in 2023, which may reflect underlying concerns about the company’s financial health or competitive position.
- The stock’s volatility is lower than other UK stocks, which might be seen as a lack of dynamic price movement or investor interest, possibly indicating a bearish sentiment1.
Stellantis N.V. ($STLA)
Bull Case:
- Stellantis invests in its workforce by offering share plans to 87,000 workers in France and Italy, which may enhance employee loyalty and productivity.
- Significant expansion in battery capacity to 400 GWh to support growing electric vehicle (EV) production, demonstrating a strong commitment to the EV market.
- The share price has risen by over 25% in 2023, indicating positive market sentiment and financial performance.
Bear Case:
- Despite overall growth, the increase in the number of shares outstanding by 54.76% within a year could potentially dilute earnings per share, which might concern investors.
NatWest Group plc ($NWG)
Bull Case:
- Strong Q3 2023 performance with an attributable profit of £866 million and a robust return on tangible equity (RoTE) of 14.7%, indicating solid financial health and effective management.
- Historically, NatWest has demonstrated relative growth in share price, signifying potential for future appreciation.
Bear Case:
- The bank has recently downgraded its profit outlook due to tighter competition for savers.’
That’s it for this week.
If you write amazing content and would like 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 through.
- I don’t hold positions in any of the investments above.
- Nothing above is financial advice. DYOR, you filthy animal.
