Latest / The Curve / TCW7: Another inflation update and what some of the BEST investors are investing in

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TCW7: Another inflation update and what some of the BEST investors are investing in · The Curve

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  Hi and welcome to the Curve Weekly, the podcast that keeps you up to date with all the money,
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  business and stock market tea.
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  Everyone should experience for us class at least once in their lives and Annie shouldn't
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  miss out just because she can't afford it.
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  Help me, I don't even remember what day of the week it is or what week we are.
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  It feels like a long one.
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  Doesn't it?
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  Yeah.
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  I think it's because the Curve Classroom, this has been a big month for us, lots of Pratt.
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  Yeah.
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  I was like, what have you done today?
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  She's like, the Curve Classroom Pratt.
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  It's honestly like the number of times I've said, you know, Vick, this is just a period
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  of like real intense work and then, and then we can take a break.
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  And March will be chilled.
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  March will be chilled.
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  And then something comes up in March.
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  And then March isn't chilled.
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  Where is Apple Major in July?
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  I know.
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  I know.
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  But you have been working very hard on the Curve Classroom.
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  I'm quite excited to take it for a second time, I must say.
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  Yeah.
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  Because I think the first time round, I mean, if you do buy the Curve Classroom and you're
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  joining us in March, you get access to it forever, which is kind of ideal.
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  So you can do it again and again if you want to.
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  And I'm feeling quite good about a second time round.
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  I think it's like when you watch a movie that you liked, but then you watch it again
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  and you missed some of the best jokes.
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  I'm hoping that that happens where I have some more like real aha moments.
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  Yeah.
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  No, and there's lots of good jokes in the Curve Classroom.
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  To be fair, it's a good joke.
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  The podcasts I reckon are quite fun.
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  We've reported podcasts at the end of each module, I reckon those are fun.
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  Yeah, those are fun.
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  If you are interested in joining us, this is the last week.
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  We've had a few messages from people saying, is it going to be open?
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  And at the end of February, I was like, to be honest, we're actually nearly sold
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  all of our seats.
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  So if you are keen, I would say hop to it.
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  Hashtag ad ad ad ad.
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  Okay, don't talk too much about it.
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  Spots are now, I'm sorry.
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  Yeah.
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  So the week that was, what's been happening in the market?
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  So the US stock market had another bad week last week.
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  So I was down, I only imagine that it was down about 0.4%.
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  Which in the scheme of things is that big or not?
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  No, that's pretty, that's pretty small, but this is the second week in a row now.
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  So it's been, it's up 7% for the year, for 2023.
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  Which is quite good, yeah.
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  Considering we say, you know, the stock market generates 10% return per year over the long
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  term.
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  And in Australia, the market was actually down 1.2% there.
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  Well that's more, yeah, so pretty.
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  Is there still interest rate situation?
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  Yes, yeah.
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  And we've actually had results season there.
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  So that's when corporates, corporates and companies release their financial results.
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  So we've had that in the US, and in the US we have that four times a year, and we've
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  just kind of finished that in the US, and in Australia we have a twice a year.
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  Right.
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  So this is for companies whose balance date, or the, or their financial year?
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  Inz and June.
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  Disember.
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  Of course.
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  Well, inz and June, sorry, no you are right, inz and June, and so there's six month period
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  is to the end of December.
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  So that report, twice a year, in August and in February.
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  So it's a few months after the end of the year.
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  And what would be the biggest companies of notes that people would know about in the
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  ASX 200, the Australian stock market, that have reported results that were good or bad?
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  Yes.
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  So a lot of the banks, so we've got a bank, not with all the banks that are very well
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  not.
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  Westpac, ANC, commonwealth bank, they're all publicly succumbed.
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  I'm so excited now.
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  I'm so excited.
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  Yeah.
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  I'm so excited to do, but Woolworths, for example, that's a big company, Coles, you know,
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  if you live in Australia, these are very household names, but we also had some really important
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  inflation numbers come out of the US as well.
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  And so we call that CPI, which stands for consumer price index, which is a fancy word for inflation.
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  And inflation there is now at 6.4%.
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  So...
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  Is that gone up or down?
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  I can't even keep track of these.
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  I know.
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  Gosh, neither.
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  Yeah.
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  This is the seventh straight month of inflation falling, but it's only...
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  That's good, right?
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  But it's only falling, like, really, really small amounts.
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  So we need it to come back to two to three per cent.
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  And it's on six.
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  And it's on six.
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  So it's going to be a long time.
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  And when you say long time, are we talking a year, five years, like what, what, it's
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  hard to know, but it's kind of like the more, the more the faster the interest rates increase,
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  the quicker it comes down.
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  But that creates a lot of pain for people because if you've got a mortgage and all that
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  kind of stuff.
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  So you've got to do it.
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  We've got to tread quite carefully.
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  You can't just be like, you know what?
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  We're going to increase interest rates from three to ten per cent to get inflation now,
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  because everyone will just feel like, shit.
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  So you've got to kind of move slow, but you also want inflation to come down.
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  So the other news that we had during the week, and please just let me have, let me talk
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  before you start yawning, okay?
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  Or what is it?
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  I'm like, I'm trying to make this really interesting so it doesn't go this way.
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  I'm so excited to see how you do this.
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  So Warren Buffett, so he, I've lost it.
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  So Warren Buffett, one of the most famous investors of our time, I've actually got a soft
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  spot for him.
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  I've been into it a bit before.
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  He's quite cute.
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  I'm a lot of people follow what he invests in, because he's a very astute investor.
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  Investor and he's done very well.
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  And so last week, he reduced his stake in this company.
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  Apple?
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  No.
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  He reduced his stake in this company called TSMC, which stands for Taiwanese semiconductor
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  manufacturing company.
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  And I'm also...
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  No, I'm paying attention.
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  I'm going to quick, quick, get through it, quick, quick.
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  So this is surprisingly more interesting than your bank account, honestly.
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  And so he reduced his stake in this company.
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  Now, this is the largest semiconductor company in the world.
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  And semiconductor's are used in absolutely everything, laptops, iPhones, electric vehicles.
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  They're kind of like the little microchip, microchip, we'll chipboard the kind of things.
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  Yeah.
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  And so they're used in a lot and a lot of technology.
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  And so TSMC is the largest semiconductor company and its market cap is 13 trillion Taiwanese
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  dollars, which is like 400 billion US.
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  So it's the big companies, the biggest in the world.
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  I'm just going to do a classroom plug here.
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  If you have no idea what that is, we do go into detail in the curve.
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  Oh, that's wrong, don't we?
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  Yes.
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  But you could join us at the curve.co.dnc.
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  Yeah.
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  Yeah.
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  But it's essentially the size of the company.
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  Yeah, the size of the company.
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  So it's massive.
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  Anyway, he bought four billion dollars as a stock.
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  So he doesn't move in small amounts.
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  So he buys big chunks of companies.
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  And he bought three months ago and then he sold 90% of it just last week.
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  So everyone's kind of like, weird from you.
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  You take a lot of time to research companies and you, you know, when you make a decision
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  because it's so big, it's a big deal and you can't really move in and out of companies
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  that quickly.
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  So, ooh, it can kind of like, what are we missing?
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  Ooh.
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  Ooh.
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  And you thought I'd be bored by this story.
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  I'm so here for it.
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  I was just like semi-conductor and you were like, oh, no, no, because I know that this
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  is a guy, a new thing, semi-conductor or whatever they're called.
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  You spoke, also spoke about this and they're kind of classical because there was a few
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  ETFs that have done really well in this space.
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  Yes, exactly.
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  Yeah.
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  I've had attention.
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  And the other thing he did is you were half right.
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  He added to his position in Apple.
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  So he now owns $140 billion of Apple.
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  $140 billion.
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  I know, it's nuts.
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  6% of the company he owns.
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  Wow.
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  Yeah.
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  So that's why a lot of people are like, and that, that means a lot of other people start
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  buying shares because they back his decisions and then it kind of is fuel to the fire.
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  You know, the share price will go up because more people are interested because more
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  and Buffett's bought.
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  So it's, but yeah, it's just kind of interesting movements that he's sort of being disclosed.
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  I'm running on a neat hunt.
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  Yeah.
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  I feel like he had a real good godfather or something.
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  Yeah.
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  Like Fairy Godfather?
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  Yeah.
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  Have a tea in a biscuit.
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  Do you know, he said that he's not leaving any of his wealth to any of his children or grandchildren?
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  People are tea doing with it.
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  I just don't know how to charity or, yeah.
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  My heart.
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  Yeah, it was funny.
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  I went to, I had, it was very fortunate to go to his AGM, which is like when his company
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  holds an annual, an annual, a general meeting.
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  And it's in, in the US, and there was a babysitter crying in the crowd, like it's in this full
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  on atrium.
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  It's like mess.
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  It was like Spark Arena, like it's crazy.
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  How many people would have been there?
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  Oh, like, I would say like 50, 60,000, like, sure.
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  Wow.
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  He's in the table with lights and a microphone.
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  Oh my god.
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  It's like a shock, yeah.
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  Oh my god.
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  And it's funny, like the doors open, like it starts at maybe eight o'clock in the morning,
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  it goes all day.
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  He answers in questions from the crowd.
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  He's on stage all day.
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  Yeah.
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  And it's like, I think it's like five o'clock in the morning, the doors open.
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  And it's like the running of the nerds, honestly, everyone runs.
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  Everyone is sprinting.
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  I have never seen anything like it, like you almost are like, oh, I should start running
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  because everyone else is running.
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  Is there one thing?
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  One, two, that are probably like, but people have, it's like a pilgrimage.
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  People come from all over the world because it wasn't even live streamed.
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  So it was like the only chance you got to meet or got to see Warren Buffett.
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  And he and people would run to get front row seats and it was crazy.
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  Like Bill Gates is there because he's, he was on the board and it's just, it gets all
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  the wealth in that room would have been insane.
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  But anyway, there was this baby that started crying in the crowd and Warren's like, oh,
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  it's probably one of my grandkids crying over the fact they're not going to get any money.
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  It was quite funny.
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  And you're not really, so he's literally not going to leave anything.
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  It's quite well known that, yeah, but, yeah, shortly, he'll leave the future.
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  I know.
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  Just a cheeky million here and there.
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  And then finally, just some news on Alphabet, which is Google, Google, yeah, which was me
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  so I think very badly behaved today, which is this, the stock was down marginally for
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  the week down a little bit.
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  But the CEO of YouTube has resigned.
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  Now she is a female, her name is Oh, no, I was just going to guess that she's a female.
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  Oh, yeah, she's the episode female.
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  Her name is Susan.
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  What, what would you, would you, would, okay, do I try, are you going to book through it?
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  Yeah.
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  Her name is Susan.
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  Okay.
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  Where's she from?
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  Silicon Valley.
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  Oh, yeah.
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  Yeah.
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  We're Google's headquarters.
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  And she's kind of one of the most high profile female execs in Silicon Valley.
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  But so YouTube's about 11% of Google's overall sales, but it's been hit with like competition
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  for Netflix, TikTok, it's about like, it hasn't done well in recent years.
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  I think it's a bigger conversation here, like we've had Cheryl Sandberg, who was the CEO
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  of the Chief Operating Officer at Meta.
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  She left last year, there's been this, this other lady has left Meta, the Chief Business
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  Officer.
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  There's a lot of key female executives leaving Silicon Valley and living high profile tech
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  jobs.
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  And I think it's just like, there's just the pressure all.
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  Yeah, I think there is a lot of pressure, you know, I think for females trying to balance
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  family and really high profile careers, I can't imagine Silicon Valley is the most accommodating
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  with that.
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  Oh, interesting.
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  Yeah.
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  Yeah.
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  And I think you're on the podcast.
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  Yes.
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  Oh my gosh.
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  Yeah.
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  Did you find Gil?
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  Oh, totally.
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  Oh my god, if we got Cheryl Sandberg.
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  Oh gosh.
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  Wait, which is Cheryl?
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  She wrote that book, lean in.
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  Oh, yeah.
• 11:39
  I need to read that.
• 11:40
  Yeah.
• 11:41
  Some people don't agree with some stuff she's here, but I think it's quite, it's quite interesting,
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  just a different point of view.
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  And I'm pretty sure I've got it on my show.
• 11:47
  Can I borrow her?
• 11:48
  Yeah.
• 11:49
  I'd love to borrow her.
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  But I think it's just a bigger conversation of like the support needed for women to ensure
• 11:54
  that they stay in these really senior roles, and it's not just men that can stay at the
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  top and get promoted.
• 12:01
  Well, yeah, because if you think about, honestly, someone sent me this really awesome meme
• 12:05
  the other day.
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  And I was like, don't stress if you're struggling coming home after a 40-hour week and you
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  can't do the laundry and the cooking and the cleaning and blah, blah, blah, because the
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  40-hour working week was designed around men who didn't have to do all of that shit
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  and you would be home doing all the household.
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  I was like, and then you had children, I mean, I just cannot understand how to do it.
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  How women do it, because the world is not built for full-time careers and full-time
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  moms and house carers.
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  It's just a lot.
• 12:33
  I had a journalist interview me the other day around, and she's like, why do you think
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  there's so few female fund managers in the finance industry in New Zealand?
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  And I was like, you know what?
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  To be honest, there's just not the support, like there's not the parental leave policies
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  in place.
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  There's not the markets open nine to five Monday to Friday, you know?
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  Like that's just if you're covering New Zealand stocks, let alone Australian stocks,
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  global stocks, like you kind of have to be at work or on your laptop or computer all
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  the time.
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  And that's just not feasible and so, yeah, it's kind of like making, yeah, like workplace
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  flexibility and working from home is helped.
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  Restructuring the way that is kind of, or just having support in systems in place so
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  that you don't have to be at work all day, every day.
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  Restoring.
• 13:20
  We have talked for so much more than 10 minutes.
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  We always do.
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  So sorry if you wanted a 10 minute episode.
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  We gave you an extra 10.
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  No hope I can eat it some other day.
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  Yeah.
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  Thank you that.
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  No worries.
• 13:36
  Hopefully see you in the car classroom.
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  Yes, the car classroom.
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  Oh, I'm actually really excited.
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  Yeah.
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  I'm excited for the welcome hello on the second of March.
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  Yes.
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  When we get everyone together and do a bit of it like, yes, go the girls.
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  We have some champagne.
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  Yeah.
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  We should.
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  We should.
• 13:52
  If we send everyone away, it still isn't champagne.
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  We have a bunch of that.
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  Don't be gross.
• 13:55
  Yeah.
• 13:56
  Sorry, you're not getting those.
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  Sorry, it's not happening.
• 13:58
  Yeah.
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  Maybe next year.
• 14:02
  Yeah.
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