← Money Rehab with Nicole Lapin
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Imagine trying to become a pro athlete without having a coach. It sounds crazy, right? We all need help leveling up in areas that matter to us. And that's why one of the smartest financial moves you can make is working with a certified financial planner. Domain Money CFP professionals don't just hand out generic financial advice. They help people get on track for early retirement, fix messy investment allocations, and figure out the perfect timing for major purchases like buying a home. What I love about their approach is that they don't do cooking cutter financial plans. They actually dig into what you're trying to achieve and optimize everything around your specific goals. Here's what you need to do. Book a free strategy session to see if they're a good fit for your situation. Zero pressure. Just real advice tailored to where you're at financially. You can get started today@domainmoney.com moneyrehab and here's what I totally respect about them. They use transparent flat fees so you know exactly what you're paying upfront. No sneaky percentage fees eating into your returns or surprise charges that derail your financial progress. Your financial plan isn't some one and done document as your life changes, they're right there helping you adjust your strategy so you stay on track towards your money goals. Domain gives you something most people never have. A step by step financial plan that actually makes sense and doesn't make your brain hurt. So get started today and book your free strategy session@domain money.com moneyrehab I am not a real client of Domain Money via Money Rehab. I receive compensation and have an incentive to promote Domain Money. See Important Disclosures at DMNMNY co X here's one piece of advice that I've given for years. Build an emergency fund. Aim to stash away enough to cover at least three months of expenses in case your income suddenly drops. Sounds simple, right? But let's be honest, it's not. Saving even one month's worth of living costs can feel impossible. Just when you're making progress, that check engine light blinks on and derails your plans. Life already throws enough curveballs you don't need your bank adding to the chaos. That's why it's so important to choose one that makes savings easy and doesn't nibble away at your hard earned money with ridiculous fees. Chime understands that every dollar counts. That's why when you set up direct deposit through Chime, you get access to fee fee features like free overdraft coverage getting paid up to two days early with direct deposit and more with qualifying direct deposits. You're eligible for free overdraft up to $200 on debit card purchases and cash withdrawals. To date, Chime has spotted members over $30 billion. Work on your financial goals through Chime today. Open an account in just two minutes@chime.com MNN that's chime.com MNN Chime feels like progress. Chime is a financial technology company, not a bank. Banking services and debit card provided by the Bancorp Bank NA or Stride Bank NA members FDIC Spot Me eligibility requirements and overdraft limits apply. Timing depends on submission of payment file. Fees apply at out of network ATMs. Bank ranking and number of ATMs according to US News and World Report 2023 Chime Ch I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand it's time for some money rehab. I know in this cuckoo crazy economy, it is so tempting to look at what the big investors in the game are doing because it can feel like copying their moves means getting the cheat code to the market. But here's the truth. It is not cheat code. It is just one more data point. You still need to do your own homework and your own research, but watching the market moves of seasoned investors can be a smart way to spot themes, trends or even just sense check your own strategy. So today I want to walk you through the recent moves of three heavy hitters, Warren Buffett, Bill Ackman and Cathie Wood. Let's start with Bill Ackman, CEO of Pershing Square Capital Management and one of the more concentrated investors in the game. He runs a super tight portfolio. His top holding right now? Uber. Ackman is looking at Uber as a capital light business that finally is hitting its financial stride. Revenue from ride sharing is up more than 18% year over year, and Uber just authorized a $20 billion share buyback, which is typically a sign of a strong cash flow and management confidence. And by the way, this isn't a tech play anymore. Uber is trading at a price to earnings ratio of around 17. And if you want to dig more into price to earnings ratios, I linked an episode where I decode that jargon in the show notes Ackman's second biggest position, Brookfield Corporation, a diversified alternative asset manager. That might sound very boring, but here's an interesting angle. Brookfield gives you exposure to infrastructure and private markets that are tough to get into as a retail investor. When Ackman buys Brookfield, he's not just getting a typical financial stock, he's getting indirect access to markets that most retail investors can easily get into, like private real estate. Brookfield, by the way, is one of the largest real estate investors in the world with commercial buildings, infrastructure, office towers and data centers. Also, Brookfield is a private infrastructure player, so think toll roads, ports, power plants and utilities. And more recently, Brookfield has been expanding into private credit markets and reinsurance, another HU growth area where institutional capital has been moving. So Ackman's angle here seems pretty clear. Having exposure to private markets can be a major differentiator with strong earnings growth projected and its position defensively in case markets get choppy. Ackman is looking at this as a solid, relatively lower risk play in a high risk environment. And in the number three spot Restaurant Brands International. That's the parent company of Burger King, Popeyes and Tim Hortons. Ackman's had this one for over a decade, so why is he still in it? Well, because of its huge margin franchise model, a 3.9% dividend yield and a new $500 million revamp for Burger King locations around the globe. Plus, in this economy, fast food could see a boost from consumers trading down. One note he still holds Chipotle, but the stock has been down this year due to weaker traffic and rising protein costs. But that said, they are expanding internationally and buying back some stock as well. And then there is Cathie Wood, founder of Ark Invest and maybe one of the most polarizing names in modern investing. She's known for making bold, concentrated bets in disruptive innovation. You've heard her on the show before because she said not so long ago that her prediction is that Tesla would go to 2600 bucks by 2029. It has got a long way to go, but this year her flagship Ark Innovation ETF is up near 50%. But here is the TW she's been trimming some of her biggest winners. She's been quietly selling shares of Roku and Tempest AI, despite both stocks posting double digit gains this year alone. Roku is still a top holding for Ark, but the repeated sales makes it seem like Kathie is exercising some risk management here, or maybe even the beginning of a broader rotation, something to keep an eye on. At the same time, she's been buying shares of Alibaba and Baidu, Chinese tech companies that have been under pressure due to regulatory issues and of course geopolitical risk. That is a bold move, especially since ARC hasn't historically leaned into China exposure. She is still going hard on biotech which is part of her brand. Like Crispr Therapeutics and Beam Therapeutics. They're getting a lot of love in her portfolios, reinforcing her long standing bet that gene editing and personalized medicine are the next big frontier in healthcare innovation. If you're not familiar with crispr, here's the TL doctor. It's a gene editing technology that allows scientists to precisely cut and modify DNA. So think of it like molecular scissors for your genetic code. This tech brings us closer to being able to correct the actual source of genetic diseases, everything from sickle cell anemia to certain forms of cancer. Crispr Therapeutics is at the forefront of tech, with therapies already in clinical trials, and even one Casgevi, has been approved in some regions for treating sickle cell disease and others. Beam Therapeutics, on the other hand, is focused on a next gen version called base editing, which could offer even more precision. So Kathy has been betting on companies not just for their science, but for their scalability. She sees gene editing as one of the five major innovation platforms, right alongside AI and robotics. And if she is right, this could potentially be the health care equivalent of investing in the Internet in the early 2000s. So what's the takeaway from Kathy here? Volatility is part of the package, but she's not afraid to take profits even on her highest conviction. Names and pivot where she sees opportunity. You know, I can't talk about the pros without talking about Warren Buffett, so let's catch up with him next. In Q2 of this year, Berkshire Hathaway made headlines when it scooped up more than 5 million shares of United Health Care Group, worth about $1.6 billion. This is fascinating for a few reasons. Of course, there was the tragic killing of its CEO Brian Thompson this year. Such a literal attack on its leadership really scared investors, understandably. And that, coupled with regulatory scrutiny, has driven the stock down more than 30% since the beginning of the year. But Buffett has a long history of betting on companies when everybody else is scared. And even though he's historically been cautious about the insurance industry, this move suggests he believes in UnitedHealthcare's long term fundamentals, especially its Optum business, which includes data analytics and pharmacy services. I should say Buffett has also done some selling. This quarter, he completely exited his stake in byd. That's a Chinese electric vehicle company that he's held since 2008. BYD has been one of Berkshire Hathaway's most profitable investments ever, at one point up nearly 4,000%. But as the EV space gets even more competitive and geopolitics gets even more messy, Buffett decided to lock in his gains and simply walk away. This is classic Buffett, by the way. Buy when others are fearful, sell when others are greedy. Rinse, repeat. So what should you do with all this? Well, it depends on your own goals, risk tolerance and timeline. Just because Warren Buffett buys UnitedHealthcare doesn't mean that it's right for you. Just because Cathie Wood trims Roku doesn't mean that you should sell. These moves are fascinating. Trust me, I love them and sometimes very informative. But they're not gospel. Investing is not a copy and paste situation. It's a choose your own adventure. But if you are going to take inspiration from the pros, learn how they think, not just what they're buying. Ackman goes concentrated. Buffett waits for fear. Cathie Wood bets big on trends that are still years from mass adoption. That's strategy, not lucky. And remember, you can borrow someone's framework for sure, but you still have to write your own playbook. And if you want to take a peek at these trades yourself, the 13F filings are public and I will link them for you in the show notes for today's tip you can take straight to the bank. I hope you're listening to this conversation and getting especially stoked about investing. And now you want to take action. I love that for you. Let's do it. But you want to make sure you don't forget your motivation when this episode ends. And that's where automating your investments come in. If you want an easy solution for automating your money moves, check out the investment plans offered on public. Public's investment plans are a collection of assets that you can automatically contribute to on a recurring basis. You can create your own plan from scratch with up to 20 stocks, ETFs and more. Or you can choose from their list of plans. If you want some inspo they have something for everyone. They have a plan that invests in the Mag 7, a plan that's focused on stocks that pay dividends. Plans by industry like AI, real estate, tech or health care. They also have a bond ETF plan and different geographic options like a plan that focuses on Europe. So truly something for everyone. An investment plan can help you take the emotion and the mental load out of investing and help you focus on your long term financial goals. It has never been easier than now to spread your investment strategy out across multiple asset classes, regions and industries. So check out public.commoney rehab to get started. Paid for by Public Investing. Full disclosures in Podcast Description.