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- The End of an Investing Era
Good Morning!
Greetings! Ready for today’s updates?
👉 Charlie Munger, Buffett’s right-hand man, passes away at 99
👉 Apple to end ties on Goldman credit-card venture
👉Mark Cuban to sell Dallas Mavericks after 15 years
Here we go!
MUNGER: Berkshire’s Icon Investor
Billionaire investing genius Charlie Munger has passed away at the age of 99. Munger was the right-hand man to Berkshire Hathaway’s Warren Buffett and helped build Berkshire into one of the world’s biggest companies.
Munger was also CEO of Wesco Financial from 1984 to 2011 while being a publisher of the Daily Journal Corp., a member of the Costco board, a renowned philanthropist, a real estate attorney, and an architect.
Buffett acknowledged Munger's influence in evolving his investment approach from targeting distressed companies at bargain prices for potential gains to concentrating on undervalued but superior-quality firms.
This change was exemplified in 1972 when Munger convinced Buffett to approve Berkshire's acquisition of See's Candies for $25 million. Despite the California confectioner's modest annual pre-tax profits of around $4 million, the purchase has since generated over $2 billion in revenue for Berkshire.
Source: Yahoo Finance
In an interview with CNBC, Warren Buffett said: “Charlie has given me the ultimate gift that a person can give to somebody else. He’s made me a better person than I would have otherwise been. He’s given me a lot of good advice over time. I’ve lived a better life because of Charlie.”
🎯 GRIT TAKE: Charlie Munger is one of the… upgrade to VIP to read the full GRIT take.
APPLE: Reversal on Goldman Venture
Apple is ending its credit card collaboration with Goldman Sachs, marking a significant setback in Goldman’s efforts to expand into consumer lending.
The proposed plan is for the contract between Goldman and Apple to end within 12-15 months. This will end the entire consumer partnership, including the credit card and the savings account launched this year. This decision represents a rapid reversal for a venture extended through 2029 just over a year ago and was supposed to be a key component of Goldman’s strategy to reach everyday consumers.
Goldman has suffered a plethora amount of losses in their consumer banking division and even informed Apple that they were looking at making changes.
Source: WSJ
Apple is looking for a new partner, but it is unclear if they have found one yet.
Goldman Sachs has been in talks with American Express about transferring the program to them. However, Amex has raised concerns about various aspects of the program, including its loss rates.
CUBAN: He’s Out
Mark Cuban is selling the Dallas Mavericks after owning them for nearly 24 years. However, Cuban plans to keep shares in the team and fully control basketball operations, which is a unique setup. Miriam Adelson, the widow of the casino tycoon Sheldon Adelson, is offloading $2 billion worth of shares in Las Vegas Sands to purchase the team. According to a regulatory filing on Tuesday, the Adelson family has a definitive agreement to purchase the basketball team.
Source: CNBC
Adelson and his team intend to fund this acquisition with the proceeds from their recent stock sale and available cash, pending standard approvals from the league.
Cuban is also widely recognized for his 15-season stint on ABC's talent show Shark Tank, with plans to depart after its 16th season.
Headlines You Need To Know: 🎙
GM shares jump on stock buyback
Bill Ackman bets Fed will cut interest rates in Q1
Elliott takes $1 billion stake in Phillips 66
Mortgage demand from home buyers gets a boost
Foot-locker shares get a boost
Saudi Arabia offers Iran investment to limit war
Barclays bankers on edge
The $7 trillion ETF boom gets blamed again
Road to Riches 🚗
This company turned every single employee into a millionaire!
It all started back in 2007 in Israel. A software engineer named Ehud Shabtai received a GPS system as a gift, but it didn’t have updated road maps. Frustrated, Ehud did what any genius developer would do – he hacked it! He started coding like a mad scientist, adding in new roads and traffic updates. His friends loved it, and that was the beginning of Waze.
Source: MyBillionDollarApp
Waze wasn’t just another GPS app. Google would build their maps by deploying cars all across the world that would take pictures of locations. Ehud teamed up with Amir Shinar and Uri Levine, and together, they created a community-driven app where users could share real-time traffic and road info. The app relied on the users doing the work for them.
Fast forward, and Waze became the go-to app for avoiding traffic, road hazards and even finding the cheapest gas stations, all thanks to users contributing to the app. Five years after its launch, the app had 50 million users and eventually sold the company to Google for $1.3 billion dollars. Waze only had 100 employees, and each employee of Waze received 1% equity, turning their stake into $1.2 million at the time of the sale.
Chart of the Day
📊 Under the leadership of Warren Buffett and Charlie Munger, Berkshire Hathaway has delivered impressive returns for its shareholders over several decades.
Source: Google Finance
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @gavindb79
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