#36 - Pioneer Your Investments

Author

Graham Schroeder
December 13, 2024

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Your home base for investing, finance, personal growth.

This week Google made some big announcements, Walgreens and NFL private equity investments, and why you should pioneer your own investments.

Market Recap

  • Alphabet’s ($GOOGL) Waymo to Expand to Miami in 2026

    • Waymo announced its plan to expand its autonomous robotaxi service to Miami by 2026, starting with safety-driver trials in 2025. The move demonstrates confidence in its technology's ability to handle challenging weather conditions, including rain and humidity.

    • Waymo is partnering with mobility company Moove to manage fleet operations, facilities, and charging infrastructure in Miami and Phoenix. This aligns with its broader strategy to scale operations efficiently in major metropolitan areas.

    • The company has reported 150,000 paid rides weekly across cities like San Francisco, Phoenix, and Los Angeles. It recently removed waitlists in Los Angeles and partnered with Uber to integrate its robotaxis into the Uber app in cities like Austin and Atlanta.

  • Walgreens Eyes Privatization Amid Financial Reset

    • Walgreens Boots Alliance ($WBA) is reportedly in talks with Sycamore Partners, a private equity firm, about a potential buyout. The deal could be finalized early next year.

    • $WBA has faced significant financial challenges, including losses from its investment in VillageMD, a primary care clinic operator. Its market capitalization has fallen to less than 10% of its peak value a decade ago. Share price for the company is down over 80% over the past 5 years.

    • If Sycamore Partners takes $WBA private and begins closing underperforming stores as part of a restructuring effort, it could have significant implications for Real Estate Investment Trusts (REITs) that own Walgreens-leased properties.

  • NFL Enters Private Equity Era With Bills and Dolphins

    • The NFL has joined other major leagues like the NBA by allowing private equity to acquire small stakes in its teams (up to 10%). The Miami Dolphins and Buffalo Bills are among the first teams to sell such stakes to firms like Ares Management and Arctos Partners.

    • The move is expected to boost franchise valuations and support large-scale projects like stadium renovations, with the added benefit of helping owners manage estate tax challenges.

    • The NFL has maintained a competitive, fan-centric product through strong central governance and a revenue-sharing model. If private equity ownership pushes the league toward profit maximization at the expense of fans, competitive balance, and team identity. The league risks losing the elements that make it a great product. Lessons from the NBA's perceived challenges with PE could serve as a warning for the NFL.

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Freedom Fund Portfolio

  • Friday Freedom Fund Purchase:

    • .4666 shares of $WM - Waste Management

    • 5 shares of $SCHB - Schwab US Broad Market ETF

Freedom Fund Background: 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. 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. The biggest obstacle people have to investing is just getting started so I decided to start a new account at $0 to start from nothing with you.

Quote of the Week

When the market is consistently moving to new all-time highs and stocks are running wild it is easy to follow the crowd and make some gains. But when times are rough successful investing often requires making decisions that go against the current consensus. As an investor you need to continue to identify undervalued opportunities before the market and institutional investors realize an investments true potential.

The value of your investment will only be recognized over time, once others come around to your viewpoint. Such as buying a stock during a downturn when most people are pessimistic, but holding it until the market rebounds and others recognize its value. This strategy requires conviction and patience because you may face criticism or doubt while waiting for the market to align with your analysis. To succeed, as an investor you must rely on research, discipline, and a willingness to go against the crowd, and trusting your judgment until the broader market catches up.

This quote serves as a reminder that investing success often involves foresight and the courage to act independently, even when it’s uncomfortable. When you go about your day keep your head on a swivel and look for the companies that may not be on the national news outlets yet. Observe consumption behaviors by your friends, family, and community and think about stocks you can capitalize on based on the new consumption behaviors. Don’t be a trend follower. Be pioneer in discovering trends.

The purpose of this newsletter is to encourage you and our other 79 Gazette subscribers to start and stay consistent with your personal, professional, and financial journey.

Thanks for investing your time reading this.

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.