This week you will notice an updated logo for the Gazette. A dive into the Freedom Fund April recap, trash investing, coffee trends, and Gen Z discussion.

Big 3 Market/News Topics

• USA & Saudi Arabia Defense Pact / BlackRock & PIF Investment Firm 🤝

  • US and Saudi Arabia Said to Be Near Historic Pact

    • This would provide the Saudi kingdom security guarantees and lay out a possible pathway to diplomatic ties with Israel.

    • Would also increase defense contracts and defense sales to Saudi Arabia.

  • BlackRock is opening a Saudi investment firm with initial $5 billion from PIF

    • The new platform will be called BlackRock Riyadh Investment Management (BRIM)

    • This will support Vision 2030 and increase international investment in Saudi Arabia’s future.

• Starbucks ($SBUX) Shares Hit Hard Post Earnings ☕📉

  • In Q2 they reported weaker earnings & revenue than expected with declining same store sales.

  • They should create a Starbucks Consumption Consumer Index to track for economics. Maybe less white SUVs at Starbucks due to declining white mocha sales can be an economic indicator for future turbulence?

  • Several economic factors could contribute to poor earnings reported by Starbucks are consumers cutting back on discretionary spending, fluctuation in commodity prices, and increasing labor costs.

• Trash is King ♻️👑

  • Republic Services ($RPG) reports Q1 2024 Earnings with an 8% revenue growth on April 30th.

  • Waste Management ($WM) boost profit margins by modernizing navigation and truck fleet.

  • Waste Management ($WM) prioritizes capturing landfill gasses (LFG’s) and renewable natural gasses (RNG)

  • There seems to be a continued theme for future investment potential in waste management services due to the growing demand, continued efforts for resource recovery and energy generation, technology advancements, and a industry stability.

  • Maybe we are still trending towards the Mr. Fusion Home Energy Reactor?

    

The Freedom Fund Update

I created the Freedom Fund as a public brokerage account back in October of 2022 to share that anyone with a social security # and a bank account can begin their investing journey by investing a couple hundred dollars a week.

April 2024 Freedom Fund portfolio recap:

• Portfolio Value: $12,304.67

• Return Since Inception: 5.94%

  • The total return considers both capital appreciation and reinvested dividends.

  • 5.94% is not a good return rate over 19 months (since fund started). Especially considering the S&P 500 has returned ~36% since October 2022.

  • When you start an investment account it is not always going to look great until you get some $ and time in the market.

  • Just give it some more time 🙃 and keep in mind most contributions accounts should be in Roth IRA & Retirement accounts that are heavily invested in index based ETFs & mutual funds. Do not start with single stock based investing when starting out investing. Start by building a nice base into index funds.

  • Don’t know what index based investing is? Read here: https://www.investopedia.com/terms/i/index-investing.asp

• Dividends Reinvested: $37.01

  • In April 2023 the fund received only $5.06 in dividends. YOY from last April the Freedom Fund April income has now increased 631%.

• This weeks Friday Freedom Fund Purchase:

  • 4 Shares of Apple Hospitality REIT ($APLE)

  • 2 Shares of Shopify ($SHOP)

Every week and month I post on X (@GrahamInvesting) public updates about the purchases, exits, dividends, and growth of the fund if you want to follow in real time.

Gen Z - Capitalism Vs Socialism

This week I listened to a round table discussion from Frank Lutz (FIL, Inc) with a focus group of Gen Z individuals discuss their view on capitalism vs. socialism and equity vs. meritocracy. (Gen Z generation has been educated 'to have resentment and a sense of denial')

• Gen Z is increasingly drawn to socialism over capitalism due to several factors shaping their worldview. Growing up in a post-financial crisis era, much of Gen Z have witnessed firsthand the consequences of economic inequality and corporate greed.

• Additionally, the rise of social media has exposed them to global issues such as climate change, social injustice, and healthcare disparities, further fueling their desire for a more equitable and compassionate society.

• More and more of the population is seeing socialism as a means to address systemic issues and ensure everyone has access to basic rights and opportunities. And it shouldn’t be ignored that this trend exists.

Much of the older generations will try to defer their opinions towards the system and defer to the “pull up your boot straps and get to work” mindset (which is true). However, everyone should admit to a degree that we are in just a very odd time with wealth distribution, housing, and living costs.

• Last week I posted a chart I saw on household assets by age group. Not surprisingly the youngest generation (sub-40) has the lowest amounts of assets. Some of the solution is that we just flat out need to build more housing.

• I think it’s great that people are living longer and are able to live independently in their homes. Although it may feel like the system is rigged against the youth for some I think we are just in a changing dynamic where people are living and working longer and that leads to less opportunity for the next generation only temporarily.

• Part of this is also the victim mentality that has risen with the growth of the comparison tools we use every day called social media. This perception of if we don’t have it all now… we will never have it at all.

Much of this ties back to comparing your own situation to that of others (which never goes well). You have to shift the framework of your mind into comparing yourself to where you were yesterday. If you don’t create specific goals for yourself and support them with a system to get there you’ll never get there. My suggestion to those who feel like they are not starting on an equal ground is to focus on what you can control. Your work ethic/flexibility, financial literacy, spending/saving, and focus. And be sure to zoom out often on the optic of your own situation.

The purpose of Graham’s Gazette and my account @GrahamInvesting is to help others get started and stay consistent on their own personal, professional, and financial journey. I appreciate the time you take in reading & interacting with me and look forward to growing together.

Thanks for investing your time reading this.

-Graham (@GrahamInvesting)

Disclaimer: Graham’s Gazette provides information and resources related to investing, financial topics, and personal growth for educational and entertainment purposes only. The content presented is not intended to be construed as financial advice. Readers are encouraged to conduct their own research and consult with qualified professionals before making any financial decisions. Graham’s Gazette and its creators do not assume any responsibility for the accuracy or completeness of the information provided nor do they guarantee any specific results from such use of information.