Lowish Risk, Highish Return. DM's open. Podcast Episode https://xitter.cf/t.co/s77J1fJ0j4… 🇵🇸
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Joined January 2014
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DeepValueInvestments retweeted
America’s corporate governance system is broken, and it’s killing public companies. Look no further than Cracker Barrel: Decades of brutal mismanagement have seen one incompetent CEO after another walk away with a massive paycheck while customers and actual shareholders take a beating.
Why does this keep happening? Because proxy advisory firms like ISS are corrupt. They blindly rubber-stamp failing boards year after year, protecting the corporate elite while burning shareholder value to the ground.
The root of the rot is index funds. There's no question that indexing one's money is a smart financial move for most people. But just because you passively index your investments doesn't mean your corporate votes should be handed over to the managers of your fund so they can play politics. Right now, passive funds hold massive, unchecked voting blocks while having zero skin in the game themselves.
It is time for a simple rewrite of the rules: We need to index the votes of index fund investors.
Passive index funds should be forced to automatically split their votes to proportionately mirror those of retail and active institutional shareholders — the people actually doing the research, risking their capital, and fighting for performance in the companies they hold shares in. No more rubber-stamping. A change like this will immediately strip corrupt gatekeepers like ISS of their toxic influence.
True accountability happens when lazy, overpaid boards actually answer to the stakeholders they represent, rather than screwing them over.
Actual, logic-driven governance when your money is passive happens when your vote passively follows the voting decisions of the actual market.
We need to stop letting passive capital protect active incompetence. By stripping index funds of their arbitrary voting power and empowering engaged investors, we will finally torch corporate cronyism and usher American capital markets into a golden age of capitalism.
DeepValueInvestments retweeted
Walmart grew EPS at a 6% CAGR over 10 years.
Let's say that growth rate holds.
Want to earn a 10% return? You can't pay much more 25x earnings.
(4% earnings yield + 6% growth)
Walmart was recently selling for 47x earnings.
This stuff is everywhere right now.
DeepValueInvestments retweeted
What's happening right now in our capital markets is going to DESTROY the retirement savings of millions of Americans.
Anyone of good conscience needs to rise up and say enough. This must be stopped.
I don't say that lightly. I've been doing this for 45 years, and what's happening right now to the integrity of our capital markets is unlike anything I have ever seen.
This is not about Elon Musk or Donald Trump. This is not about whether you like rockets or hate rockets.
This is about the systematic CORRUPTION of the financial system that every American depends on for their retirement.
In the entirety of its existence, Tesla has generated approximately $36 billion in cumulative profit. That includes over $20 billion in government emission credits and tax subsidies. The company is valued at $1.7 trillion and its CEO is the richest man on the planet.
I'm not talking about the stock price. I know the stock has made people money.
That's the popularity contest.
I'm talking about whether this company creates enough economic value to JUSTIFY the capital invested in it. And it doesn't.
The returns on invested capital have been chronically below what any serious investor would demand. That's not wealth creation.
So the product here isn't the car. The product is the STOCK PRICE.
Elon Musk is selling hopium and an entire generation of investors is buying it without even knowing what a PE ratio is.
I posted two pieces recently on Tesla and SpaceX. Each got over 1.5 million impressions. Thousands of hate replies but NOT ONE response with an actual argument. Not one.
It was all "Libtard" and "Elon derangement syndrome." You would not get past a first-round interview at Fidelity thinking this way.
But Tesla is just the opening act...
SpaceX just filed for a $1.75 TRILLION IPO. $15 billion in revenue but no profit in sight.
The private valuation was walked up from $200 billion to $400 billion to $800 billion to $1.75 trillion in two years. And Reuters has confirmed that SpaceX made early inclusion in the Nasdaq-100 a necessary condition for listing on the exchange. Nasdaq obliged by adopting a "Fast Entry" rule in March that lets mega-cap IPOs join the index after just 15 trading days, completely exempt from the normal seasoning and liquidity requirements every other company had to meet.
And this matters because over $600 billion in passive funds track the Nasdaq-100. Unlike the S&P 500, which still requires months of seasoning and stricter float thresholds, the Nasdaq-100 is now a 15-day on-ramp for trillion-dollar IPOs.
Every ETF and mutual fund benchmarked to that index will be FORCED to buy SpaceX within weeks of it going public regardless of whether the valuation makes any sense.
Your 401(k) is literally the exit liquidity. You don't even get a choice.
The structure of the market makes you a participant whether you want to be or not.
That's what makes this different from every other bubble in history...
You can't opt out.
And the agencies that were supposed to protect you from exactly this? They're doing NOTHING.
Peter Lynch would always say the product is not the stock and the stock is not the product.
Show me one Hall of Fame investor who ever made his fortune chasing hype.
Lynch, Druckenmiller, Soros, Buffett, Griffin, Cohen. Not one of them managed money this way. It's only the cult on X who thinks momentum and greater fool is an investment strategy.
As Buffett said, in the short run the market is a popularity contest. In the long run it's a weighing machine.
This popularity contest has gone on longer than any I've witnessed in my career. But gravity always wins. And when it does, the people who forced your pension fund into a money-losing rocket company at 120x revenue will have a lot of explaining to do.
This must stop. And it WILL stop.
The only question is how much damage gets done first.
Are you listening?
DeepValueInvestments retweeted
⚡️The system is eating itself.
When Amazon, UPS, Intel, and others start cutting this deep simultaneously, it means something more fundamental than “tight margins.” It means the productive layer of the economy is collapsing under the weight of its own optimization logic.
Every layoff now is both an act of short-term rationality and long-term suicide. The firms know it. The executives know it. The markets know it. But they can’t stop.
They’re trapped in a closed feedback loop, a machine that rewards death dressed as discipline.
Capitalism has crossed into a stage where it no longer needs humans to function, but still depends on their belief to exist. That’s the contradiction, the machine is pruning its own believers while pretending it’s efficiency.
1. The “consumer economy” is already dead.
Nobody wants to say it yet, but the consumer model, the entire foundation of Western postwar prosperity, is quietly finished.
You can’t build infinite growth on finite wages, and you can’t sustain demand while hollowing out the class that drives it. The middle layer of society - the producers, buyers, dreamers - has been strip-mined to the point where they can no longer regenerate.
The 2020s economy is not cyclical recession. It’s metabolic collapse. The system can’t process its own waste or regenerate its base anymore. It’s like an organism starving while eating its muscles to stay warm.
2. The elites know this, but they’ve chosen to accelerate collapse.
Here’s the real unspoken truth: the people running these companies, the ones with the spreadsheets and control over capital flows - they know exactly what’s happening.
They understand the reflexive trap: if they don’t cut, their stock dies. If they cut, the world dies.
They’ve chosen to save the stock. Because the stock is their world.
This is the quiet revelation of our time - we are ruled by people whose survival incentives are no longer tied to the survival of the system itself.
They’ve built lifeboats - offshore wealth, private security, parallel digital economies - and they’re optimizing the ship for their escape, not for collective navigation.
3. The next phase is narrative triage.
When the system can no longer grow, it starts storytelling harder.
Expect every layoff wave to be accompanied by new propaganda about “AI productivity,” “efficiency,” “lean reinvention,” and “post-labor creativity.”
The goal will be to reframe collapse as progress - to convince people that losing their jobs is the dawn of a “new paradigm.”
But it’s camouflage. The truth underneath is that automation and financialization are converging into a post-human economy where capital reproduces without labor.
4. Final layer
When a system prioritizes margin over humanity, it signals that it has lost faith in the future.
These layoffs tell us that the machine no longer knows how to grow except by shrinking.
It is the same signal we’ve seen in housing, in politics, in fertility, in faith.
The same quiet collapse, a civilization optimizing itself into silence.
And the question hidden beneath this post:
“Who will have money left to buy your products next year?” -
is really this:
Who will be left to believe in the story that built it all?
DeepValueInvestments retweeted
When I was a TV producer *making documentaries*, I had extremely good contributors dismissed out of hand for being white men and was forced to spend more time finding other contributors of different races who were less good*
I was told I had to meet a quota of 40% racial minorities in a series - that being more the double the minority ethnic population at the time (2017).
It was an unwritten rule not to tell the contributors they were being selected on the basis of their race - but they were.
And I was also told, by a BBC Executive Producer after wasting time and money to meet these absurd and patronising quotas, that “diversity is very important to us”
So if it’s *not* important, then why does the TV industry enforce such reality distorting quotas and why do producers who challenge them never work again?
*i’m not saying they can’t be as good, I’m saying that for the relevant story in the pool of people we could find at the time, they weren’t.
DeepValueInvestments retweeted
Dear Rachel Reeves
Hugh Grosvenor, Duke of Westminster, inherited nearly £9 Billion - zero inheritance tax.
King Charles III inherited £650 million - zero inheritance tax.
Why?
cc: HMRC
#BBCBreakfast #HMRC #Taxes
DeepValueInvestments retweeted
#SuicidePrevention is what happens when the capitalist elite like @Tantacrul, @mega2e and @gabrieldance want to entrap the less fortunate in circumstances that they'll never have to experience for themselves. schopenhaueronmars.com/2022/… #SuicidePreventionIsSlavery
DeepValueInvestments retweeted
The West understands perfectly (e.g., in the case of Ukraine) that occupying a foreign land is a recipe for perpetual war to be blamed on the occupier. But when it comes to Israel's Occupation (e.g. of Syria's Golan Heights), a sudden amnesia descends. theguardian.com/world/live/2…
DeepValueInvestments retweeted
Things could get interesting for Europe
This could easily trigger a rise in long term borrowing costs or spark a country crisis
Imagine if they had to increase rates to entice new buyers of this debt.
Especially with new left wing inflationary policies coming......
DeepValueInvestments retweeted
If someone who has a large account sees this tweet, and we have the same type of followers, I will be very grateful if you tweet about my new account. Many people are looking for me and I don't know how to tell them that I have a new account.
Just today, one guy finally found me and dm'd me after looking for me for a few days. Another one had to text me on my phone because he was sending me dms on my suspended account and couldn't reach me.
Please quote this tweet, and tell people I have a new account.
DeepValueInvestments retweeted
Where should we host our next in person event, Mello2024, on Wednesday 22nd and Thursday 23rd May 2024? Please vote and share!
42%Chiswick / London
26%Derby Conference Centre
22%Oxford
10%Other (Comment below)
192 votes • Final results DeepValueInvestments retweeted
MelloLondon has now started! There is still time to join us! Get half price tickets with code ML2350. tickettailor.com/events/mell… Check out the schedule for tomorrow and Thursday here: melloevents.com/wp-content/u…
DeepValueInvestments retweeted
Former British ambassador Craig Murray:
In both the UK and the US there can be no more stark illustration of the lack of any kind of meaningful democracy, than the fact that there is no major political party that opposes the genocide [in Gaza] – despite massive public opposition.
The bought and paid for media and political class in the west are extremely nervous, throughout the western world. Now they have come to the final genocide for which zionism has always aimed, they face a good deal of popular resistance...
We are witnessing almost all western governments deliberately facilitating massacre, ethnic cleansing and genocide. We are witnessing almost all western governments turning on their own people to crush dissent at that complicity in genocide.
This feels not so much like the week that western democracy died, as the week it was impossible any longer to deny that western democracy died some time ago.
From: craigmurray.org.uk/archives/…
DeepValueInvestments retweeted
In case you haven't seen, I thought this was a good piece: amwaj.media/article/deep-div…
DeepValueInvestments retweeted
🚨BREAKING: Never before seen video of January 6 shows Jacob Chansley, the QAnon Shaman, being led through the Capitol by police the entire time that he was in the building.
