The first rule of money management is never to have to say you are sorry. That’s why money managers never tell you in real time what their holdings are. It’s why they don’t hold monthly meetings. It’s why they don’t take questions. To which I say this: We run a club. We are open about what we do. How can you learn if you can’t even admit your mistakes? With our “Monthly Meeting” for December now in the books, here’s a look at how we misstepped in 2022 — and what we learned along the way. What we learned 1. Market cap matters. Some of our best stocks got out of hand. At one point Nvidia (NVDA), a very good company, was worth more than $820 billion, or more than 29 times sales. It didn’t matter that Nvidia is one of the finest, most innovative companies around. Just like there is a buy price for pretty much everything there is a sell price, too. When you have a very high price-to-sales ratio, you must ask yourself if there’s too much enthusiasm and not enough that can still take it higher? You must scrutinize whether the company has something up its sleeve in the next 12 months, not the next 12 years, that backs up the premium. If you’re creating answers to justify a valuation that has become unjustifiable, then you have to exit the position — as we should have done with Nvidia. 2. It’s key that a company be communicative with shareholders. Or does it dodge you and treat you unfairly? That’s been our experience with Bausch Health (BHC). No matter what we do they will not talk to us. They will not call us back. They won’t validate the thesis they laid out on “Mad Money.” So we are frozen, we don’t know what to do. This belligerence is unacceptable and puts us in limbo, a terrible place to be. 3. Don’t fall for the grand tour, or the grand lunch for that matter. You have no idea how many executives I go out with each week. Of course, each has a good story. Same with the executives who come on “Mad Money.” It’s always sunny. That’s why meeting with an executive can be fatal. CEOs are salespeople for their institution. They are incredibly effective. You have to be skeptical and resist the sirens. 4. Beware of stories based on the total addressable market size. You can get all bulled up for nothing. So often a company says an opportunity is so huge you have to get in on it. I didn’t fall into this trap with SmileDirectClub (SDC), the braces company, which told us that the worldwide total demand for its products was $500 billion. That may have been true when the stock was at $15 a share two years ago. But it also may be true at 53 cents a share, where it is now. Remember these more pertinent words: show me the money. 5. Don’t fight the Federal Reserve. No matter how rock solid your story might be, no matter how much the earnings could ramp up, if the Fed is trying to knock down inflation, it will knock down your stock, too. A hawkish Fed is your enemy. When we forgot this, we lost a lot of money. In a bear market, capital preservation trumps all. And, now… What we got right 1. Make things and do stuff. Last November, we made a determination that we were going to buy stocks of companies that ‘make things and do stuff’ at a profit. This one phrase saved us hundreds of thousands of dollars because the world changed from being in love with companies that may, one day, make stuff, but certainly not at a profit. Those all turned out to be losers. 2. And don’t be expensive. As the Fed grew more vociferous we had to add a new corollary to our favorite statement: the company had to make things and do stuff profitably, and not be expensive. The Fed’s actions shrunk the multiples of stocks that grew sales and earnings but the price to earnings was just too high to own. The more we sold of these kinds of stocks the more money we saved. 3. We never fell for fads. The market went gaga for all sorts of themes this past year that we felt had little validity — everything from charging stations to green hydrogen and electric vehicles and car parts. We never took the bait. We never trusted the street. We knew not to buy what Wall Street was selling. 4. Boring is good. As the year went on, we found ourselves being drawn more and more to companies that simply weren’t interesting. They were just cheap relative to their peers in ways that made no real sense, so we held them and their values came out over time. They paid out dividends every quarter and reduced their share counts through steady repurchases, thereby increasing our ownership. They were consistent and dependable with their earnings. The job of a money manager is to make as much money as possible with the least amount of risk. Boring reduces risk and volatility, but also increases reward. 5. Don’t panic. If you’ve done your homework and are confident that the story of a company is a good one, don’t panic even if the market says you’re wrong. Some of the best buys we had this year — buys like that of Estee Lauder (EL), Devon (DVN) or Honeywell (HON) — were opportunities because we knew the story and would not let the market shake us out of them. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
A trader watches as Federal Reserve Chair Jerome Powell speaks on a screen on the floor of the New York Stock Exchange (NYSE), November 2, 2022.
Brendan McDermid | Reuters
The first rule of money management is never to have to say you are sorry. That’s why money managers never tell you in real time what their holdings are. It’s why they don’t hold monthly meetings. It’s why they don’t take questions.
Rivian will power its DC fast-charging network with renewable energy company RWE’s Champion Wind farm in Texas.
The two companies just signed a 15-year power purchase agreement (PPA) for electricity from RWE’s repowered Champion Wind in Nolan and Mitchell counties, west of Abilene.
The 127-megawatt (MW) Champion Wind is getting new turbine nacelles and blades, which will extend the wind farm’s lifespan. Originally commissioned in 2008, the wind farm is expected to be fully upgraded by mid-2025. When the wind farm is back online, it’ll be capable of generating enough electricity to power nearly 1 billion miles of renewable driving every year for Rivian, or the equivalent of powering 36,000 homes annually in Texas.
This wind power is set to support Rivian’s DC fast-charging Adventure Network with renewable energy. Rivian has set a specific goal to enable 7 billion miles of renewable driving.
Paul Frey, Rivian’s VP of propulsion, charging & adventure products, said, “Champion Wind is a powerful enabler for Rivian drivers to become active participants in building a cleaner grid every time they charge their vehicle. This project shows the potential to meaningfully decarbonize the grid and support a more circular economy through reuse and recovery of existing infrastructure, all while maintaining highly competitive economics.”
Siemens Gamesa is supplying 41 turbines with new nacelles and blades on existing towers. The nacelles and blades are being manufactured in the US. In addition, as part of the repowering project, six new Siemens Gamesa turbines rated at 3.1 MW each will also be added to the wind farm.
The decommissioned wind turbine blades from Champion will be repurposed. RWE is working with REGEN Fiber, an Iowa-based company that recycles wind turbine blades to make reinforcement fibers for the construction industry. Those fibers are then used in concrete to add strength and durability, extending the lifespan of infrastructure.
RWE is the third-largest renewable energy company in the US.
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Rivian is bringing back its “All-Electric upgrade offer” from now until November 30th, but with some changes to the program.
Earlier this year, Rivian offered $1k-$5k off a new Rivian if you trade in an old gas car, from April to June. The offer was available for specific vehicles, and with a sliding discount scale based on which Rivian vehicle you order.
Now the program has come back, but with quite a few changes from the previous version.
As of today, October 31, if you buy a new Rivian R1T or R1S new inventory vehicle from the R1 Shop, you can get a $3,000 discount if you also prove that you own or lease a qualifying gas-powered vehicle.
This is simultaneously simpler, more lenient, and more restrictive than the previous offer, in various ways.
First, the discount is a flat $3k (or $4,100 CAD), rather than having a scale based on what model you order, which is more streamlined.
Second, the discount applies to every gas or hybrid vehicle owner – you don’t have to trade in your vehicle, and you’re not limited to a specific list of vehicles. Just prove that you own or lease a gas car (copy of registration, proof of insurance, etc), and you get the discount.
However, third, it’s more restrictive as to what vehicles you can purchase. The current offer applies only to Rivian new inventory vehicles in the R1 Shop, and excludes demo vehicles, pre-owned vehicles, or custom build vehicles. It also does not apply to Rivian’s base Dual Standard models, but everything else is fair game.
In order to qualify, you need to place your order between today and November 30, and you must take delivery of the vehicle before December 31. Check out all the specifics of the offer on Rivian’s site here.
Electrek’s Take
Rivian is clearly trying to round out its yearly numbers with this offer, as the market for pricy cars is somewhat soft with increased interest rates. It just slightly lowered its annual delivery guidance, now planning to see roughly similar deliveries this year than last.
But its R1 vehicles just got a huge refresh to help the company with costs and to offer new features. The R1S is still one of the most popular high-priced vehicles in the US, and the company’s products earn universal acclaim from owners.
The interesting thing is that Rivian had a similar offer earlier this year, before the refresh, to help clear out inventory of older vehicles. It didn’t see it fit to offer the discount last quarter, perhaps buoyed by the updated model, but after a rough Q3 of deliveries it now brought the offer back.
Rivian is still guiding to reach a slight gross profit in Q4, though we’re sure we’ll hear more about that in its upcoming quarterly earnings next week.
If our coverage of Rivian has helped inform you about the brand, feel free to use our Rivian referral code to get 6 months of free charging or 750 Rivian Rewards points with your purchase.
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Hyundai’s new low-cost EV is getting a bold design upgrade. The Hyundai Casper EV Cross was spotted for the first time in public, revealing new design elements.
Although we knew a rugged “Cross” variant was headed to Europe, this was the first time the domestic model was spotted with an upgraded design.
The Inster EV is Hyundai’s overseas version of its domestic Casper Electric model. In Korea, Hyundai’s Casper EV starts at around $20,000 (27.4 million won). Hyundai said its new EV can be bought for under $8,000 (10 million won) with subsidies.
In Europe, it starts at under $27,000 (25,000 euros). The Cross variant is built for “those looking for an EV with a more adventurous look,” Hyundai said.
Although it offers the same versatility as the standard model, the Inster EV Cross gains rugged design elements, including new front and rear bumpers, black claddings, skid plates, a roof rack, and more.
Here’s our first look at the Hyundai Casper EV Cross
After a rugged new variant with the Casper EV logo was spotted in Korea for the first time, a Cross model is expected to debut shortly.
The new video from HealerTV reveals added design elements, including the roof rack and more aggressive black trim.
The reporter notes that the Hyundai Casper EV Cross has a “much more mechanical and futuristic feel than the existing model.”
It almost appears “robot-like” with an added off-road feel. The Inster EV Cross gets up to 223 mi (360 km) WLTP driving range. In Korea, the Casper Electric is rated with up to 195 miles (315 km) driving range.
Although Hyundai Casper (Inster) EV is not expected to launch in the US, the low-cost model was spotted driving in California for the first time this month.
In the meantime, off-road fans can get in line for Hyundai’s upgraded 2025 IONIQ 5, which will be available with a rugged XRT trim. The 2025 IONIQ 5 XRT model was also recently caught testing ahead of deliveries.
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