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Inflation makes this stock an even better buy!

Apr 08, 2022

Good morning!

The markets have sold off enough that the computers may try to make a stand today. Barring that, the S&P 500 is on track for what will be the first weekly loss in a month.

Here’s my playbook.

1 – Inflation makes this stock an even better buy!

Costco Wholesale has been a favourite stock of mine for the past few years. Between Covid and inflation, millions of consumers want every dollar to go further.

No surprise … it’s one of the few stocks you can own where inflation helps. Same-store sales jumped 17.2% while sales tacked on 19.1%. (Read)

And on a related note …

2 – This is why autonomous trucks are such a hot topic

Walmart is reportedly offering upwards of $110,000 a year for new truck drivers. (Read)

Tells me the supply chain problems everybody is worried about are a) very real and b) very profitable.

People are talking about the cost of automation but what they fail to grasp from an investing perspective is that humans cost a LOT of money.

Truckers ROCK but the real tie here is chips … automated trucking, transport, warehouses … that’s the holy grail.

3 – Peter Thiel on Buffett: “a sociopathic grandpa”

I am big on manners and civility because I believe those things are important, so this really catches me by surprise.

Billionaire investor Peter Thiel calls Warren Buffett a “sociopathic grandpa from Omaha and bitcoin’s #1 enemy.”

Thiel made several pointed remarks while speaking at a bitcoin conference yesterday. He also called out JPMorgan CEO Jamie Dimon and BlackRock CEO Larry Fink. (Read)

What this tells me is two things: a) that it’s probably a great time to buy both Bitcoin and Ethereum because the fight just got personal and b) that the rules of money really are being rewritten, a theory I firmly posited in 2009 on the heels of the Global Financial Crisis.

I hope I’m smart enough to buy more!Are you in?

One word of advice … pick your entry carefully. Stick with established exchanges and purchasing channels.

**I outlined my choice in the April 2021 issue of One Bar Ahead™, my investing journal, and encourage everyone in the OBA Family to take a quick spin through the archives for all the particulars!

4 – Real or not?

OpenAI, a cutting-edge AI research lab started by Elon Musk and backed by Microsoft just unveiled their newest project called Dall-E.

You’re not alone if you haven’t heard of it but here’s why you should care.

Dall-E (named after surrealist artist Salvador Dali) is a neural net that takes a prompt and can turn it into a drawing or a picture. Seems silly enough but the implications are profound and, frankly, a little frightening.It’s about to get a whole lot harder to figure out what’s real and what’s not! And, I would hazard to guess that the team who created this AI sort of knows why it works – but not completely. That’s the frightening part. (here’s a great collection of some Dall-E generated images)

5 – Mining is every bit as important as renewable energy

NextEra is one of the largest renewable energy providers and now, apparently a killer. According to court documents, more than 150 bald eagles have died in collisions with wind turbines at its locations in eight states according to federal prosecutors. (Read)

This is the kind of stuff not a lot of people think about, but which will absolutely drive alternative energy going forward. Like nuclear fusion, dams, or other innovations in the name of progress, there will be costs.Not many people realize this, but clean energy requires more minerals than the fuel sources it will replace. Just making the batteries required by the Paris Climate Agreement, for example, would require 1,000X all the metals in batteries today.

Similarly, meeting the wind and solar requirements in those same agreements will double the demand for the metals needed.

From an investment perspective, this means mining is every bit as important as alternative power which is why any energy company stock you purchase must have its eyes on both.