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Welcome back to another week with Renaissance. The newsletter embodiment of this caption (if you don’t read this caption in De Niro’s voice, just get out now) 👇

Each week we give you actionable intel and opportunity to assist you on the journey to financial independence. 🛣

And speaking of dinero (Spanish for money, we love all deniros here) this week’s issue is like a fat kid’s donut. FILLED - with money and investing frameworks for you to truly get better based on facts and stats. 🍩

Today at a Glance:

How To Invest Like Druckenmiller 101

How To Profit From The SEC's Crypto Crackdown

How To Play The Investing Game

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The Board

The Renaissance Over-Under

Business, Money Markets & Financial News

10 Investing Rules: Invest Like Druckenmiller 101 - A Guide & Personality Deep Dive 🤿

- Well………markets are hard guys and this year has been tough. So if this is your first downturn then we say welcomeeeee!

- Reaching excellence in your craft isn’t done overnight. It takes effort, strategy, execution and the right predisposition. This is even harder to do in investing than in business.

- But at Renaissance we’re here to make you not just good - but great - on the journey to FatFIRE (financially independent retire early).

- They say money maketh the man, but it’s the man that maketh the money…….if ye be worthy.

- To be a top echelon investor you have to tune out emotion, practice, find your personal style and risk tolerance, be subscribed to Renaissance……all without losing yourself and your mental health along the way!

- After all it’s not our credo at Renaissance - we’re here to get intelligent and wealthy while living our rich lifestyle. Not to be a shell of a human and a hermit behind a screen. 👀

- So before we dive in, here’s a little investment for the soul…..…

“Nature and books belong to the eyes that see them. It depends on the mood of the man, whether he shall see the sunset or the fine poem.

There are always sunsets, and there is always genius; but only a few hours so serene that we can relish nature or criticism.

The more or less depends on structure or temperament. Temperament is the iron wire on which the beads are strung. Of what use is fortune or talent to a cold and defective store?” - Ralph Waldo Emerson (1937)

- Anywayyyyy, today we’re learning from one of the best - Stanley Druckenmiller! A legend with 50 years experience who headed Duquesne Capital before he closed up shop with over $12 billion under management.

- The most impressive fact of any investor you’ll ever hear - he’s NEVER had a down year. Never.

- He's a long term investor, extremely broad with his investments and very quantitative over intuitive. On the risk scale he’s closer to ‘hold my beer’ than risk-averse, and he loves long walks on the beach………

- He made a killing buying AI stocks 5 months ago, and also lost massively shorting the S&P500 recently. But somehow has still remained wildly profitable because of his diversification style! (a man of many flavours and investments, much like ourselves here at Renaissance🍦).

- Stanley, like the rest of the top 10-15 investors in the world, is of a particular personality type with common traits and attributes - compare yourself honestly here, ‘cause if you’re different……your mom’s probably wrong and you’re not a special snowflake. 👀

- Druckenmiller’s personality type is INTJ: this is the 3rd rarest Myers-Briggs personality type, with only 2.1% of the population.

- What this means broken down: 👇

Thinkers 100%: Logical, they don’t let emotions cloud their judgment.

Judgers 65%: Organised and decisive, they’re ready to pull the trigger on an investment when the time is right.

Intuitive 74%: Highly creative in their strategy & pattern recognition abilities, they’re able to see how the dominos will fall and invest accordingly.

- More interestingly, here’s what all the top investors like Druckenmiller lack on the personality score categories: 👇

Sensors 26%: They’re totally focused in the moment, and for an investor this is bad news as you don’t see the bigger picture of where the market is going. You’re reacting to what’s happening with the prices today.

Feelers 0%: Make decisions based on emotion (stop..…just stop investing if this is you, use this guide to spot your weaknesses and change!)

Perceivers 35%: Open to new experiences, this is the wild card trait of the investing world. But the people who do the best are those with a plan/thesis and they stick to the narrative. If your investing strategy traits looks like your dating profile (open to new experiences), ironically - you’re fucked. 🤷‍♂️

Druck’s 10 Rules: 🤟💥 ‘Booom, mic drop’

#1 Patience:

- Be patient - investing is a long-term game. Don’t try and time the market narrowly and don’t panic sell in a downturn.

#2 DYOR do your own research:

- Do intense due diligence on any investment you make and record your thesis/argument.

- Investigate its business model, financial reports, its MOAT, competitive advantage, the leadership team, product market fit etc. All should be a resounding yes. Or else you’re gambling.

#3 Invest in what you know:

- Never invest in what you do not understand. Only stocks you’re familiar with and believe in.

- Peter Lynch & Warren Buffett also share the same advice - this is a huge 3X indicator of predicted success and this rule is definitely worth reading again from time to time!

#4 Diversify:

- Do not put all your eggs in one basket and have over-concentrated positions.

- Spread your capital to reduce risk whilst still following your narrative. Here’s his portfolio snapshot. He’s clearly diversified, yet 50% of the companies are involved in or benefit from AI!

-  It’s almost impossible to pick the winner, but you can bet on the trend and take the index of those options. And Druck is a master at this whilst still balancing risk.

#5 Rebalance:

-  Never be overweight in one asset or sector for too long, and make sure this aligns with your risk tolerance and goals.

-  Look at Druck’s portfolio weight change over time below: 👇

-  🔴 Red is AI investments. Look at the Q1 2023 difference, he went in hard following the narrative early.

-  🟣 Purple is energy stocks. He’s massively shrunk the positions in these after raking it in over Covid and the start of the Ukraine war.

 -  What a swap based on the world narratives! Totally ignoring the fake bank analyst news. And this is why he’s a master at following the narrative, rebalancing, and being a broad investor with balanced risk all the way. 

#6 Don’t try and outsmart the markets:

-  Don’t try it, you’ll get wrecked. This is interesting from a macroinvestor like Druck as he literally has to find the narrative and move to where it’s going.

-  And don’t make overly risky bets. Conserve capital so that even when you’re wrong you can slink away and recover! He learned this losing $600M shorting Tech stocks in the Dotcom bubble too early…….😨

#7 Think Long-Term:

-  Don’t be discouraged by short term fluctuations, and keep reassessing your thesis to see that it still holds true. Survivorship bias - the best are the ones that last the longest and Druck is no different.

#8 No Panic Selling:

-  You have to stay calm, markets will go up and down. But the overall market will go up over the long-term.

#9 Reinvest:

-  Grow wealth over time. Don’t sell, take your chips off the table and become inactive. To grow and build wealth you need to reinvest and compound.

-  You’ll always have losses but it’s how you recover that matters! Remember, 80% of the gains of the market boil down to around 39 days of the year, and if you aren’t in the market for those days you’re missing out!

#10 Never Give Up:

-  This is a lifelong pursuit. Lessons need to be learned and your style will develop. If you remain diversified and become a good macro investor, then with patience you’ll see great returns.

LITTLE BITS 😎

Sometimes good business can’t be taught, it’s just known……….

The INTJ personality type alongside others: 👇

How this person made $3,063 on the Internet in just 31 Days:

https://medium.com/swlh/how-i-made-3-063-on-the-internet-in-31-days-part-time-2b0f591f09d9

Even though it is from our boring cousins……this Fevertree drinks stock has fallen 59% and has supply chain written all over it!

https://www.fool.co.uk/2023/06/14/down-59-should-investors-buy-fevertree-shares-today/ 

Ken Griffin from Citadel is betting BIG on Credit. Sounds like he’s all in on a recession.

https://www.bloomberg.com/news/articles/2023-06-14/ken-griffin-ramps-up-credit-trades-anticipating-us-recession#xj4y7vzkg

How to make $1million without investing or starting your own business - the corporate ladder!

https://www.thesun.co.uk/money/22665764/earn-one-million-ditch-university-apprenticeship/

NOSTALGIA OF THE DAY

Crypto Market & NFT News

The SEC Causes eToro to de-list MATIC, Algorand And More! Here’s How It Can Benefit You ⚡

- This whole brand ad aged really nicely………..

-  TLDR: If you’ve been sleeping 💤 - The SEC released a list of Crypto they considered securities. Shock, they dropped in value. Robinhood de-listed them, and now eToro has as well.

-  If you didn’t hear this news and immediately open short positions you haven’t learned yet……..

-  The other great rule if in doubt ⚡- Anything financial that uses questionable celebrities to promote it, gets a no from us here at Renaissance. Call it the FTX rule! But we’ll wait until someone changes our mind!

-  The play is to ride these short positions, or open them up again, past June 27th when the coins are due to be de-listed.

-  The sentiment is extremely negative for Crypto right now despite this being a small bump in the road. Well, maybe not for Crypto in America. It turns out America doesn't really love freedom when there’s no assets to ‘liberate’.……..

-  If you’re too squeamish for a short position even after SOL, ADA, MATIC dropped 📉- we get it. So let’s Druckenmiller this! Money is going to continue to rotate out of these assets and into others.

-  Most likely into other Crypto not mentioned. From the graphs ETH is looking bullish at these support levels and hasn’t been named by the SEC.

⚡

-  Where there’s losers there’s also winners. This won’t be an insane rip - but it will be a safe play and store of capital. Especially with inflation coming down and interest rate hikes stopping. At this intermission, all market sentiment is moving towards more stable plays. 👀

Wealth Building, Personal Finance Hacks & FAT FIRE

- Everyone is playing a game , and this is true even in investing. But it’s usually assumed we’re all playing the same game……….which isn’t the case.

- No one will criticise marathon runners for training differently than Usain Bolt. But when people talk about investing they think everyone is playing the same game on the same field “the markets.”

- You tune into CNBC and a suit comes on to tell you whether Tesla is a good buy or not. They don’t discuss a good buy for who, when, and for how long?

- Surprisingly, a good buy for a algorithmic day trader is different from a good buy for your pops retirement account. They’ve got different objectives, time frames and incentives. They’re playing a different game.

- The 99 year old investing legend Charlie Munger isn’t as interested in buying Crypto as you because guess what……..he’s 99. And that’s fine. This is straight out of the Druck textbook. Invest in what you know.

- Stocks move based of fundamental value and new information available sure. But they also move based on the buying and selling of traders who enter and exit positions quickly to take profit. 💰

- These traders don’t necessarily believe the current price is a good value for the company. But they think the stock will be higher in the next hour, or the next day when they sell.

- Problems arise when other investors, investors playing a different game, take their signals from these traders and jump in.

“This stock must be a good buy look at all the other people buying!”

- Contrary to popular believe - in a bubble not everyone has lost their minds. 🧠

- Let’s take Pets.com. A name with dot com on the end. This company allowed you buy your cat litter online. In February 2000, it raised $82.5 million at IPO. The company had never made profit.

- Nine months later it lost $147 million, the share price was down from $14 to $1 and the company went out of business. 📉

-  Now in this mania not everyone believed Pets.com at $10 a share was a good price. But it was rising so rapidly they saw a money making opportunity. If our game is to make money within a 24 hour timeframe this stock isn’t a bad play.

- But other investors watching from the side-lines see this and misunderstand that people are playing different games. They take their buy/sell signals from people with different risk tolerances and time horizons.

- Now having Pets.com in your retirement account is definitely not a great idea. These are the people who get bit and end up holding the bag. 👜

⚡

- Key takeaway: There are many games being played. Find out your game, know it and understand it based on your goals, time horizon and risk tolerance. Tune out the remaining bullshit.

- So next time you tune into NBC and they’re saying this stock is a buy or sell make sure your timeframe and goals are aligned.

- Unless it’s from this guy and then you know what to do……….

Meme of the Day

That’s a wrap for this week! Meet us on Twitter to talk all about it. Where we’ll send you jokes, tips, and all important news from the world of money, business and crypto and more! (@RenaissanceDly)

aissanc16 June