Devin Friedman, Sarah Rieger, Kyla Scanlon, and Matthew Karasz discuss the importance of a few key days for investing, the approval of spot Bitcoin ETFs, Boeing's financial struggles, public response to the Boeing debacle, Bill Ackman's controversial actions, and tips for avoiding panic selling.
The SEC's approval of spot Bitcoin ETFs indicates a growing acceptance of cryptocurrency by institutional investors.
Boeing's reputation and financial performance suffered due to a series of problems with their 737 MAX planes, highlighting the importance of product quality and consumer trust.
Deep dives
Bitcoin ETFs Approved by SEC
The US Securities Exchange Commission (SEC) approved spot Bitcoin ETFs, allowing large institutional investors to easily access cryptocurrency as a portfolio diversifier. Canada has had spot Bitcoin ETFs since 2020, but the SEC had been cautious about approving them due to concerns over volatility and market manipulation. However, a hack of the SEC's Twitter account caused confusion as a false tweet claimed the ETFs had been approved. Eventually, the approval was granted, and the ETFs took in $4.3 billion on their first day.
Boeing's Troubles and the Rise of Airbus
Boeing experienced significant financial losses after a Boeing 737 MAX plane had a part fall off mid-flight. This incident adds to the series of problems the 737 MAX planes have faced in recent years, including software malfunctions and crashes resulting in deaths. The company's focus on cost-cutting rather than product quality has harmed its reputation and financial performance. In contrast, Airbus, Boeing's main rival, has seen a $6 billion increase in profits while Boeing's stocks plummeted by nearly 40%. This highlights the public's heightened focus on airplane safety and the potential impact on consumer trust and business decisions.
Bill Ackman's Hedge Fund Success and Controversy
Billionaire hedge fund manager Bill Ackman gained attention for his vocal activism and notable investment successes. While he made headlines for his campaign against university presidents and his anti-diversity stance, his hedge fund, Pershing Square Capital, performed exceptionally well with a 27% return in 2023. Ackman's adaptive approach to investing, whether in single-name stocks or macro positions, has brought him significant gains. However, his controversial views and influence raise concerns about the power held by influential figures in the financial industry.
This week on TLDR: Why good investing comes down to a few days a year. Plus Bitcoin gets boring, Boeing gets a little too exciting, and is it time for an American Psycho reboot?
This episode was hosted by Devin Friedman, business reporter Sarah Rieger, finance educator Kyla Scanlon, and former hedgefunder Matthew Karasz. Follow us on other platforms, or subscribe to our weekly newsletter: linkin.bio/tldr
The TLDR Podcast is offered by Wealthsimple Media Inc. and is for informational purposes only. The content in the TLDR Podcast is not investment advice, a recommendation to buy or sell assets or securities, and does not represent the views of Wealthsimple Financial Corp or any of its other subsidiaries or affiliates. Wealthsimple Media Inc. does not endorse any third-party views referenced in this content. More information at wealthsimple.com/tldr.
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