Why We’ll Finally Say Adios To Medicore Human Managers

Limited Time Opportunity ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ Hello investor Have you heard of the book – 7 Powers: The Foundations of Business Strategy? Hamilton Helmer, the author of that book, is a business strategist who was an early investor in Netflix. In the book, he listed seven “Powers” that give a business a competitive advantage – even against industry leaders with virtually unlimited capital. One of them is called “Counter-Positioning.” Here’s how the author defines it: - “A newcomer adopts a new, superior business model which the incumbent does not mimic due to anticipated damage to their existing business.” In other words… A competitor chooses not to copy a startup because it would mean disrupting their own business models. Take Netflix for example. BlockBuster could have copied Netflix’s model, but it didn’t want to disrupt its lucrative brick-and-mortar business. Indeed, Reed Hastings wrote in 7 Powers that he has observed how fatal it can be to fail to “adjust to a new competitive reality.” - “Throughout my career I have often observed power incumbents, once lauded for their business acumen, failing to adjust to a new competitive reality. The result is always a stunning fall from grace,” said Reed Hastings, the co-founder of Netflix. However, Hastings pointed out that companies like BlockBuster may be acting in an “economically rational way.” It would be almost reckless for a billion-dollar company to try and disrupt its lucrative cash flow – especially when Wall Street expects short-term results from the company. - “A superficial thinker might pin this on lack of vision and leadership ... Rather than lacking vision, Hamilton established, these incumbents are in fact acting in an entirely predictable and economically rational way. Our earlier battle with Blockbuster bore out this notion.” We believe that the same thing is going to happen on Wall Street – especially the asset management industry. It is not a secret that wealth and investment management is one of the most lucrative segments in the banking sector. In the graphic below, you will see that return on equity was only 4.4% for classic banking activities, such as lending, checking accounts and deposits. However, fee-based businesses (which includes asset management/insurance) generated a whopping 20% ROE. But do you know what’s funny? These asset managers often don’t know what they are doing. Hence the famous Warren Buffett quote: - "Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway,” said Buffett. Let me give you an example. Nationwide, a big mutual fund, has an index fund product that simply tracks the S&P 500. This fund has total assets of $1.2 billion… …and believe it or not, it charges 0.45% for expenses. (The 0.45% fee adds up to millions of dollars when you consider how huge total assets are.) Now, listen: It has only one job – tracking the S&P 500. And yet, it underperformed the actual S&P 500 year to date. The S&P 500 was up by 13.06% for the year… Doesn’t this make your blood boil? Wall Street earns outsized fees for doing jobs that even a monkey could do… …and they still underperformed. Here’s the bottom line: Wall Street doesn’t earn profits by making you money. Nope. They are in the business of generating fees off your back. Hence the reason why I believe one of the greatest business opportunities is to leverage the power of artificial intelligence to offer trading services (essentially an automated trading platform). Wall Street makes too much money from mediocre human managers, and they are unlikely to embrace a new business model that would disrupt its lucrative cash flow. This means our automated trading platform is likely to grow without major attacks from big banks… …and it may well be like Netflix toppling BlockBuster all over again. So, I am inviting you to become an investor in TradeAlgo just before we launch the new automated trading platform. How it works is simple. Our engineers have developed AI models where it would scan through historical data to uncover trading patterns. And the goal is to turn these insights into “super-intelligent” trades. Meaning? Artificial intelligence will trade stocks for the members of our platform. We believe it is the future of the asset management industry. But I must warn you – the responses for owning private shares in TradeAlgo have been robust. I don’t know how long shares will remain available. So, hurry and reserve a time with our team to learn more about owning private shares in TradeAlgo: Jon Stone CEO [TAKE ADVANTAGE OF THIS EXCLUSIVE OFFER](~/AASl5QA~/RgRnCBZPP0RhaHR0cHM6Ly90YWxnby5saW5rL2FpP19reD1USkZ4LTA2cmJ4eDZVYUpjX0xnX2ppclNiUTAyNDN3M1hQSXpxdkhoZHljR1c2VzVaWVFrWkw4SU9aWk9mQVRvLlc1cEFaV1cDc3BjQgplIE-RJWUeudGxUht0cmlzdHJhbWJhbGR3aW44N0BnbWFpbC5jb21YBAAEC1Y~) No longer want to receive these emails? 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