Shock and Awe in the seemingly “safe, boring and high-yielding” world of Western Consumer Staples last week: as the S&P500 gained 0.6%, Kraft-Heinz lost 26.6% of its market value, thanks to a dividend drool followed by a big squirt of asset write-downs...
Good old "bottom-up" stock-picking may feel unrewarding right now, but it also creates opportunities to hang on to holdings with solid investment thesis and attractive fundamentals, as these will reassert themselves as soon as markets stop oscillating between opposing "top-down" views about where the world economy is headed.
While the article could have just as well been describing Butterwire’s journey since the global financial crisis, its conclusion does trivialise the issue of Augmented Intelligence as a man vs. machine stand-off and misses the bigger picture aptly captured in two recent McKinsey reports.
Over confidence, over trading, and over reaction to market noise, are unrelenting enemies of successful, long term active investing. Butterwire resolves these by encouraging an unwavering focus on what matters for long term wealth, helping investors find opportunities with less effort, take risk without speculating, stay ahead without over trading, and get an edge without overpaying.
RobinHood, Dabbl, Revolut the rise of (near) free trading... and uninformed investing?