If you understand the discrepancy between price and valueâwhich is to say that you think that the price understates the valueâand one of the positions is down by 25%... it doesnât change my decision as to what to have for breakfast.
â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â â May 18, 2023 |Â Â [View Online]( |Â Â [Sign Up]( Buying Banks and Chugging Maalox "Don't try to buy at the bottom and sell at the top.
It can't be done except by liars." âBernard Baruch âLet's say you buy a bankâcommunity bank, regional bankâand it goes down 25%,â I pose to Rick Rule in [this weekâs Session](. âWhat do you do? Take some Maalox or something?â Rule: If you understand the discrepancy between price and valueâwhich is to say that you think that the price understates the valueâand one of the positions is down by 25%... it doesnât change my decision as to what to have for breakfast. If the price falls further, if you have the ability to buy more, that's precisely what you do. This ideaâthe double-downâis an interesting one, and could be described as a sort of gamblerâs dissolution. POWERED BY REPUBLICAN METAL CO. Why Are Central Banks Stockpiling
Gold At Record Rates? Central Banks around the world are stockpiling gold at the fastest rate in 55 years. Insiders believe the spike in gold buying is due to "geopolitical uncertainty and high inflation." The same forces that will impact American retirement accounts. In the wake of these events even some of the world's legendary investors â Warren Buffett, Ray Dalio, Lord Jacob Rothschild â are turning to gold. It seems the "Smart Money" knows something most of us don't.
Something they don't want everyone else to know. That's why we released the following FREE Special Report. [The Precious Metals Investment Guide.]( [Click here for your Free Copy.]( CONTINUED... It could also be viewed as incredibly smart, when described in the light of the âtime-value of moneyâ; a difficult concept to understand, and one that requires experience and an appetite for risk. The opportunity arises only in bear markets, when the stakes are high and the threat to lose is real. âGenerally, if you're looking for yard sale prices, you want to find the bottom,â I press. âHow do you judge where we are in the crisis?â Rule, again: There is this wonderful quote from Bernard Baruch to the effect of: âThe only guy who ever bought stocks at the bottom and sold at the top was a liar. It didn't happen.â Sometimes things just have to be cheap enough. Buffett has famously said that. He said that, âPrice becomes irrelevant to him if he believes he's getting a good deal.â A good deal to him is buying a share for a price that he would buy every share in the company for if he could, and have the stock cease trading. In other words, it isnât the price of the stock, itâs the relationship between price and value that matters to him. This becomes even more of play with brokerages offering the ability to buy micro-shares. That said, those are psychologically very tough parameters. âIâve tested Buffett's maxim about buying stocks and seeing them go down, dozens of times in my career,â he smiles. He concludes: While it hasnât been pleasant at the time, itâs usually worked out for me over time. Iâm beginning to deploy in community banks now⦠and the fact that Iâm beginning to deploy in them almost certainly guarantees that theyâre going to go lower, because Iâm looking at [absolute values, not narrative values](. Bank investors, particularly ETF investors, donât look at banks, they look at banking. Michael Burry bought shares in a slew of regional banks last quarter amid the banking crisis fear. âHe has been very quiet in recent weeks,â writes the Street, meaning he hasnât tweeted for a while. Burry, of Big Short fame, acquired shares of 12 additional companies in the first quarter of 2023. Seven of the 12 are banks. The banking sector now makes up a third of his portfolio. Whether Burry still holds those shares is unclear; he may indeed have sold them since his last statement. But if he didnât dump, the great financier is sitting on heaps of unrealized losses. First Republic Bank folded into JPMorgan on May 1, wiping out most shareholder value, for example⦠Canât double-down when the price is zero. So it goes, Addison Wiggin The Wiggin Sessions P.S. Hereâs what Bloomberg says about âWhat it takes to join the top 1%â: In the US, $5.1 million will get you over the threshold. The findings underscore how the pandemic and surging living costs are widening the gap between rich and poor nations. The entry point for Monacoâs richest is more than 200 times greater than the $57,000 needed to join the 1% in the Philippines, which is one of the lowest ranked of 25 locations in Knight Frankâs study. Weâre not sure âjoining the top 1%â is or should be anyoneâs financial goal. But it is a popular idea bandied about by people who use the term as if they know what it means. Better, my opinion, learn the essentials of good investing. Youâll be able to establish your own benchmarks of success. If you are making your goals, you wonât care about how you measure up to other investors. The phrase âtop 1%â is a nebulous phrase meant to compare one set of wealthy fortunes against another. But, to our mind, it doesnât mean anything and isnât really worth thinking about at all. POWERED BY GOLD & SILVER SUMMIT [Alert] The Gold Rally No One Saw Coming The recent banking crisis has triggered a hidden rally in gold. Spiking gold prices close to all-time highs of $2,089 per troy ounce. But if you're like most investors, you might be wonderingâ¦What is the best way to invest in gold? We will give you all the details during the upcoming [Gold & Silver Summit.]( This is how you can hedge against economic headwinds⦠while at the same time⦠growing your wealth with a degree of safety you can't find anywhere else. [Click here to reserve your free spot now.]( The Daily Missive from The Wiggin Sessions is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to The Wiggn Sessions delivering daily email issues and advertisements. 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