As expected, the Federal Reserve raised the overnight rate by 25bp (.25%). I think this was both the right move and irrelevant. Others disagree. – The Fed cited high inflation, high spending, high employment, and solid economic growth. – The dot plot shows 2 Governors who expect to keep the current fed funds rate through … Read more
ProCap Financial ($BRR) sold about 50 Bitcoin and bought back 2.2% of its shares outstanding at a discount to NAV. Since DKI established a position last month, the company has repurchased more than 4% of its shares outstanding which helped narrow the discount to NAV from 33% at the time of our initial purchase to … Read more
I’m in San Salvador for a few days followed by a longer trip to Montevideo, Uruguay. After that, I’ll have a week in Buenos Aires, a week in Florence, and will spend November in Japan. I’m open to a small number of in-person conversations. If you’re based locally, or know someone in those locations you … Read more
CPI of 3.4% was in line with expectations and consistent with last month’s 3.4%. The monthly change was 0.4% driven by fuel and shelter. The monthly increase annualizes to 4.9%. Core CPI of 2.4% was also in line with estimates and slightly below last month’s 2.5%. The monthly change of 0.3% was above estimates … Read more
Introduction: Decades ago, I took a finance class at the University of Michigan and vividly remember when the professor told us that the proper measure of risk is volatility. While I didn’t have the knowledge at the time to challenge the professor, I instinctively and immediately thought that this was incorrect. The only circumstance where … Read more
On August, 24, I told you I shorted Intel November $80 puts for $7.30. I just covered that short position at $2.80. The position returned 161% in two weeks. Intel is up more than 10% today on news it has produced more wafers using an advanced EUV process than the rest of the industry combined … Read more
I’ll be in Suchitoto, El Salvador for the next week followed by a few days in San Salvador and a longer trip to Montevideo, Uruguay. I’m open to a small number of in-person conversations. If you’re based locally, or know someone here you think it would be worthwhile for me to meet, feel free to … Read more
ProCap Financial sold 50 Bitcoin and bought back 2% of its stock. The company says they repurchased the stock at a 40% discount to NAV. I had the discount slightly lower. The difference is probably due to the treatment of the warrants, but either way, these moves are highly value accretive to shareholders. The stock … Read more
