- Renaissance
- Posts
- Bed, Bath & Bags 💰
Bed, Bath & Bags 💰
Join us on the journey to financial independence. Like barstool sports but for business and tech people.
Renaissance Man
April 28, 2023
Welcome back to another day with Renaissance - the newsletter equivalent of a psychic reading meeting an earnings report breakdown. 📰 It doesn’t get any clearer than this…… Let’s Begin.
We’ve got it all this week - great stock picks, real estate analysis, investment advice, crypto breakdowns and more!
You asked for more, and like a mailman with tourette’s - we fucking deliver. 📬
Here’s what you need to know today:
Bed Bath And Beyond Short Sellers Made Billions And Renaissance Were In On It!Analysis Of The Best Midcap Stocks And Real Estate To Make You Rich In 2023Every Crypto Hedged Bet You’ll Need From Now Until Next Year! The Most Fun Physical Assets To Park Your Cash.......And Of Course. Your Daily Source Of Alpha The Board
The Renaissance Over-Under
Where do you think the markets are going next week?
Business, Money Markets & Financial News
Bed, Bath And Beyond, One Of The Meme Stock Legends, Filed For Bankruptcy This Week While Short Sellers Walked Away With Billions 😎
There was no need to be selling all those towels anyway - because there’s been a clean-up!
The shares are 99% down this year! And the short sellers have been following it all the way to the bottom. Making over $1.3 billion since the stock peaked in 2021. 📉
The stock was trading at $0.18 on Monday (it was $52 in January 2021……..Jesus😬)
The data shows that even retail investors who got in during the mania of 2021 are under water by around $4140 million, and there’s been over $730 million recorded inflows in the past 2 years! Insanity! 🤯
They sell baths and towels people!
And the worst news of all…… they’re not accepting coupons after April 25th. It’s practically a wasteland out here, void of all rules!
For all of us, we should know this is an easy short. And we love a short here at Renaissance💪 - we get to be right and make money. This is the classic market cycle that comes from mania and a short squeeze, followed by fading excitement for meme stocks in general (when’s the last time you bought Gamestop again??).
Don’t get us wrong, ride the wave up when you recognise yourself salivating over a stock, but take profit, and most importantly ask yourself - are the numbers sane for the stock you’re buying! If they’re not - short it on the way down! 📉
We’re here to stop you from being stupid retail investors, be Renaissance investors……and most importantly, ‘have a nice little Saturday with some profits.’ 💰
Seven Stocks For Your Mid-Cap Portfolio (An Expert Wall Street Analysis) - We Call Our’s The Midcap Margarita Fund 🍸
Why bark if you have a dog right? Mid-caps are elusive, risky, sexy, weird - like the girl with blue hair you bring home to meet your mother. Hard to find and even harder to hold onto.
- Why care? Mid-caps are often undervalued, grow faster than large cap stocks, and don’t have the risk of small caps. If you can pick well in this category, it’s great returns and blue hair all round. 💙 They’re primed for risk-adjusted returns!
- What you’re looking for: the kill zone. A clean balance sheet, responsible management team, and nice steady growth. But most importantly - low debt-to-EBIDTA ratios.
The rule of thumb is less than 35% debt compared to their market capitalisation.
For the right investment, bear in in mind to look out for the breakout growth potential. Not just high profitability right away! The margin has to be there so that it can come with growth - we say to hit your benchmark of 50% margin! 💰
To get from this point A (growth and low debt), to point B (high profitability) - you need that reinvested and therefore you should look for cash flow yield to be very high and not have cash tied up inside the business. Free cash is everything in this space! 💸
TLDR: Learn to read balance sheets and research midcaps! Here’s seven we like 👇
1. CoStar Group: CSGP
2. Dexcom: DXCM
3. Monolithic Power: MPWR
4. MarketAxess
5. Pinterest
6. Microchip Technology
7. BorgWarner
Commercial Real Estate Is On Fire 🏡 (Not In A Good Way). How To Play The Real Estate Market Safely For The Next Decade - An Analysis By Us
So, Brookfield has just defaulted on it’s portfolio of $161 million and earlier in the year already defaulted on Los Angeles sky-scrapers loans worth $784 million. Defaults are now at a 14-year high! 📈 The stock market is chaos at the moment, with speculation this might well be a lost decade like the 80s.
So what do you do to make long term gains for the decade in front of us? Enter…….. Renaissance.
Real estate is a scarcity asset which is underpinned by human behaviour. And we humans are stupid. 🤷♂️ The bank loans are just vehicles to extract interest. Pay no attention to them in finding the best investments - follow human behaviour. ⚡
You’re now dealing with a new generation with different incomes and habits. Over 20% of 25-34 year olds live with their parents (in 2000 it was less than 9%). They can’t afford it, and they’re not getting married. 👫
In the 90s people this age were 60% married. Now it’s only 38.6%! So it’s so long suburbs, hello Mom’s basement. Also, people fucking hate each other so they get divorced (33% divorce rate now vs c.10% then).
Alpha and takeaways ⚡ : this trend and behaviour is only escalating and harder economic times will entrench this. We believe the top investments for the decade are: 👇
- Rental apartments (typically city centre ones)
- Smaller and cheaper homes for just getting on the property ladder
- Parental homes that can have an ADU (a tiny home or garage for their twenty-something man-child…Hi Mom 👋).
Us looking at our rental apartment empire filled with sad divorced millennials…….. it’s beautiful.
LITTLE BITS 😎
Here’s some other little bits for you.
AutoGPT - It can change your life. Here’s the best examples:
ChatGPT is a toy compared to AutoGPT.
This tool performs tasks for you from A to Z without human intervention.
Here are the best ways to use it to save hours of work:
— Paul.ai (@itsPaulAi)
2:04 PM • Apr 23, 2023
No code tools and AI tools you can use to earn more and be more productive - only the best!
Credit Suisse has been hiding Nazi gold 🥇
NOSTALGIA OF THE DAY
Ferrari at the Targa Florio, a public road endurance race in the mountains of Sicily. Founded in 1906, it’s one of the oldest sports car racing events.
Crypto Market & NFT News
My fellow Renaissance comrades. It’s been bumpy. But since last week’s issue when we covered PEPE early, had you invested last Wednesday or before like us, you would have returned around 👇
We hope you followed the tips and are holding strong for the listings!
Bitcoin Following It’s 66% Rally This Year - What Will Happen In The Run Up To The Halving Event Next Year? Here’s The Play 💪
FOCUS! This is important Renaissance readers! It’s like your Dad shouting at you at the kitchen table during math homework. We’re gonna sit here until we get this figured out!
Last year Bitcoin finished up at a measly $16.5k. Now, in April of 2023 it topped $30K.
Analysts all the way from Bloomberg to Digital Asset Firms are reporting that the price could shoot up 📈 as we approach the next halving event (shockkkk, wow what terrific high paid analysts - thanks a lot Bloomberg you crusty old vampire! We’ll take it from here).
Wut iz it? The Bitcoin halving happens once every 4 years and is due this time next year!
I know it sounds like a European cult ‘purge-style’ ritual, but these events are designed to half miner rewards of Bitcoin, and half the rate at which the rewards are given, as we approach the 21 million max supply of Bitcoin!
Historically, after the halving events since 2012, Bitcoin has shot up faster than Alec Baldwin on set. This could see a price increase of 81% if we’re playing the cycle right!
The difference this time - is that we’re still in the Crypto winter that started in 2022 👀 (or potentially coming out of it, helped by hyperinflation of the dollar - or as it’s now known ‘Chinese funny paper’🤷♂️).
This means the usual ascent might not be the same as we’ve seen in the past decade under perfect market conditions!
TLDR: ⚡
- Bitcoin has never halved during a baddddd economic contraction, Bitcoin cycles bottom around 16 months before a halving every time.
-The Bitcoin network is stronger but the economic environment is weaker.
-Past performance is no indicator this time, but we at Renaissance will be riding the wave up and selling the news! 📰 Let it rain!!!
XRP - The Case For A Life Changing Opportunity?
So it’s no secret that XRP’s market sentiment has not been good for a long time due to the unknown outcome of it’s legal case. 👩⚖️
Most have written it off…..which makes it potentially one of the hottest things on the planet - a distressed asset! 🔥 *hair stands up on the back of your neck
The latest: Earlier, on April 6, a former lawyer argued that the case “would have settled long ago” if the SEC didn’t allege that the XRP token was a security, but instead that Ripple sold XRP as an investment contract.
In this case, CryptoLaw stated that Crypto “can’t be an investment contract for those who acquire a token on the secondary market for consumptive use and with no knowledge of, interest in or rights from whoever previously sold it on chain.”
Renaissance’s take ⚡ - this is a pure speculation play, and the above statement is absolutely right! If this case gets thrown out (which it stands a fair chance at doing so), the returns and jump in price would be face-melting!
The risk return ratio here is so attractive if you just look below the media’s bearish opinion and look at the facts. 💰
For example: We had FTX and weeks of bearish news, FTT was worthless. Then just based on the news alone of re-opening, the token exploded! 📈 Even on positive speculative news you could see a big increase!
The date is coming up and people are asleep on this. We would consider allocating capital - but only a small amount!
The summary judgment for the Ripple vs SEC case could be handed down at any time or the ruling could be delayed until June 1 or later.
The 2023 State Of Crypto Report by A16Z Is Out! Here Are The Links And Key Takeaways - Study Up 🤓
Key Takeaways ⚡:
Wealth Building, Personal Finance Hacks & FAT FIRE
Alright here at Renaissance we love making money. But, do you know what we love just as much? Spending money.
And when we do, we love it even more when it appreciates or holds its value. 🙏 It’s great! It’s like a savings account but a million times more fun.
Here’s some of our favourite physical assets to park your cash 👇
Property 🏡
We’ve said it before and we’ll say it again, but this can be a great wealth game. It’s somewhere to live, it’s somewhere to work, it’s somewhere to read Renaissance. And now it’s somewhere to stash your cash.💸 So many people have build their fortunes in this!
As always make sure to do your due diligence to scope out the best locations. But here’s some numbers to get the brain moving. Nearly all of these over a longer time horizon are insane!!
Watches ⌚
Another favourite here at Renaissance. And these can be great investments beyond just making you look like a million bucks! Our top tips here 👇
Look out for watches that aren’t still currently in production
Avoid the most common models of the legacy watchmakers. Seek out the limited releases.
Like anything out here, that scarcity creates demand 🤷♂️
Cars 🚗
Probably the most fun place to (parallel👀) park your cash.
Typically a depreciating asset, these can be trickier to pick. But with the right model you can be zooming round like Steve McQueen while making money! The dream.
Again - supply and demand people! For example the Pagani Huayra Roadster BC released in 2019 nearly doubled in price at a recent auction! 💰
For perspective, Ferrari build more cars in 2 weeks than Pagani have ever built in 25 years! And only 40 of the Roadster BC model were ever made.
Physical & Mental Health
Did you know 72% of entrepreneurs suffer from mental health issues? Here’s why alongside some really great tips 👇
There’s some really good stuff here on the stress release from being financially independent and having multiple income streams. 💵
Also leveraging secondary markets to take some capital off the table. Clubhouse did this after they raised their first round from Andreesen Horowitz. The company raised $10M at a $100M valuation, and each founder took $1M off the table in secondary markets!
Liquidity can be king. 👑 So make sure you have some.
Weekly Negroni
It’s Friday and again it’s time to kick back and look at the great things we can get from our hard work 💪 (or just motivate ourselves further to one day be able to get).
And we don’t know about you, but here at Renaissance we love Succession.
When we saw Kendall’s penthouse apartment had just recently gone up for sale 👀
But when you’re as rich as the Roy’s, it’s usually about quiet luxury. Wearing the most understated unbranded piece of clothing while still being worth a fortune. You know that white t-shirt is guaranteed to be Brunello Cucinelli or Loro Piana.
But one area they can’t keep so quiet. Their watches. ⌚
And we’d blood sacrifice to the watch gods for this holy trinity 🙏
Kendall is often seen sporting a Vacheron Constantin, and Tom, always out to impress, can be seen with his Audemars Piguet Royal Oak.
Then there’s the classic scene in the first episode. Tom, out to try and win the approval of his future father-in-law, purchases him a Patek Philippe.
Tom hands him the watch, opens the box, and says:
“It’s incredibly accurate, every time you look at it, it tells you how rich you are.”
Meme of the Day
Music
Here’s a smooth playlist we’ve been looping this week while working. Throw it on and get in the flow state. 😎
Referrals
You are: 1 referral away from The Next 10x Opportunity in Crypto for 2023 Report
Simply refer your friend using the link below ➡ Reply to this email with the word 'Report' cc'ing in your friend ➡ The report is all yours!
That’s a wrap for today! 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)
Did you enjoy today’s issue as much as Leo did? Let us know below!
What did you think of today’s edition?
🍾🍾🍾 Great!
🍾🍾 Meh, do better
🍾 Weak sauce
Just reply to this email letting us know!