Will Waterhouse (a millennial investor) attempts to demystify the world of saving and investing for young people. "Make it Stack" consists of chatting breeze, passive indices and discussing the philosophy of other investors who are looking to build wealth in a sustainable way.
*Despite my confidence and enthusiasm, our content should not be misconstrued as financial advice. If you are unsure of making any investment decision, please contact your financial advisor.
Make It Stack #25 - Money printing: is there a problem?
In this episode, I talk about "fiat" currencies and the problems that arise with money printing.
Key summary:
History tells us that currencies face chronic debasement over the long term with the USD losing 95% of its purchasing power over the last 100 years.
When you hear "Quantitative Easing", think "central bank money printing".
Money printing causes: i) misallocations of capital ii) reduced affordability for consumers and iii) increased wealth inequality due to higher asset prices.
Sound money has the following properties: scarce, portable, divisible, durable, fungible, acceptable, censorship resistant.
Bitcoin could represent a better form of money with its algorithmic scarcity, portability and censorship resistance
Call to action: watch "Whats the problem? (https://www.google.com/search?q=whats+the+problem+youtube&rlz=1C5CHFA_enGB1110GB1111&oq=whats+the+problem+youtube&gs_lcrp=EgZjaHJvbWUqBggAEEUYOzIGCAAQRRg7MgsIARAAGAoYCxiABDIICAIQABgWGB4yCAgDEAAYFhgeMggIBBAAGBYYHjIKCAUQABgKGBYYHjIKCAYQABgKGBYYHjIICAcQABgWGB4yCAgIEAAYFhgeMggICRAAGBYYHtIBCDkyMjVqMGo3qAIAsAIA&sourceid=chrome&ie=UTF-8#fpstate=ive&vld=cid:8f223951,vid:YtFOxNbmD38,st:0)" by Joe Bryan on Youtube.
Want to get in contact with me? Use the following channels:
Instagram: @_makeitstack (https://www.instagram.com/_makeitstack/) TikTok: MakeItStack (https://www.tiktok.com/@makeitstack?lang=en) Website: https://makeitstack.co.uk (https://caytonanalytics.com/) Email: william.waterhouse@cayton-analytics.com
Disclaimer: All views are my own. This podcast is for educational purposes only and should not be construed as financial advice. If you are unsure of making any investment decision, please contact your financial adviser.
9 Nov 2023
Make it Stack #24 - how to protect cash savings from inflation?
In this episode, I talk about how you can protect your cash savings from inflation.
Key summary:
Inflation in the developed world has increased substantially due to a variety of factors including the war in Ukraine, supply chain issues, the expansion of the money supply and the global economy emerging from COVID-19.
Inflation is an insidious force which reduce the value of cash over time if you aren't careful. The value of money has fallen by c15% since the beginning of 2020.
Call to action: protect your cash from inflation by depositing it in an account with the highest possible risk free interest rate. Competitive interest rates for savings accounts are currently >4.8% p.a.
When depositing money in a savings account, please also consider:
Is your money safe? i.e. FSCS protected.
Is admin/monitoring simple? Active Savings (https://www.hl.co.uk/investment-services/active-savings) is a good tool which I use.
Deposit limits? Make sure you are eligible to receive the headline rate.
Your liquidity profile? Use easy access accounts for your “rainy day” fund. Consider fixed term accounts if you want to try and lock in a “better rate for longer”.
Other useful links to competitive cash savings accounts:
Money Saving Expert (https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/)
Money.co.uk (https://www.money.co.uk/savings-accounts/instant-access-savings/results)
Want to get in contact with me? Use the following channels:
Instagram: @_makeitstack (https://www.instagram.com/_makeitstack/) TikTok: MakeItStack (https://www.tiktok.com/@makeitstack?lang=en) Website: https://caytonanalytics.com/ (https://caytonanalytics.com/) Email: william.waterhouse@cayton-analytics.com
Disclaimer: This podcast is for educational purposes only and should not be construed as financial advice. If you are unsure of making any investment decision, please contact your financial advisor.
25 Oct 2023
Make it Stack #23 My investment blunder with Beyond Meat!
In this episode, I talk about my investment blunder - which was buying Beyond Meat shares.
Key summary:
In August 2020, I purchased £1000 worth of Beyond Meat Inc - a then trendy company in the plant-based meat industry which looked to be capitalising on the demographic shift in the Western World to a more environmental/ethical diet.
Since investing, poor company management, industry headwinds and rising interest rates have caused the stock price to fall from $131/share (my entry point) to c.$8/share. I'm sitting on a paper loss of 93%.
Whilst this has been a bitter pill to swallow, I have taken three stock picking lessons from this:
Beware of confirmation bias
Have a clear exit strategy
Calculate a target price with discounted cashflow analysis and don’t overpay
Whilst buying Beyond Meat was a large error, I’m glad that it’s happened early on in my career. This reduces the change of making similar errors in future with more meaningful sums of money.
Link to discounted cashflow model video here (https://www.youtube.com/watch?v=gLULdxrS-CU).
Want to get in contact with me? Use the following channels:
Instagram: @_makeitstack (https://www.instagram.com/_makeitstack/) TikTok: MakeItStack (https://www.tiktok.com/@makeitstack?lang=en) Website: https://caytonanalytics.com/ (https://caytonanalytics.com/) Email: william.waterhouse@cayton-analytics.com
Disclaimer: This podcast is for educational purposes only and should not be construed as financial advice. If you are unsure of making any investment decision, please contact your financial advisor.
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