Market timing, tilting the odds in investing & PayPal Q4 earnings breakdown — 3-Bullet Sunday

Market timing, tilting the odds in investing & PayPal Q4 earnings breakdown — 3-Bullet Sunday

Hey Everyone- Thomas here.

Good day to my fellow compounders!

In 3-Bullet Sunday, I share with you the three most interesting piece of article, video or podcast I came across for the week on investing and growth philosophies.

Enjoy!


Chasing The Next Big Thing

Already February? Time flies. January alone saw a whirlwind of news: DeepSeek's AI impact, tariff threats, geopolitical tensions... Every week brought a new "crisis" and a flurry of hot takes. I'm constantly asked: Who wins? Who loses?

The Truth: It's Mostly Noise

Headlines grab attention, but they rarely tell the whole story. These fleeting trends often have minimal long-term impact on your investments. Remember when the US was slapping tariffs on Canada? That faded fast.

News outlets thrive on urgency, but this constant barrage of information can be detrimental to investors. It creates noise, distracting you from the real drivers of long-term value.

What Really Matters

As Jeff Bezos wisely said, focus on the things that won't change. Ignore the daily noise and look for the underlying trends shaping the future. This lets you cut through the clutter and make clear, informed decisions.

In investing, we're rewarded for our decision-making capabilities, so clear thinking is paramount. By focusing on the constant rather than the fleeting, you'll be better positioned to make better decisions.

Stay focused,

Thomas



I. Timing is not everything, but it still matters by Investment Talk

This article emphasizes that while timing isn't everything in investing, it's still significant.

Many investors wrongly use short-term market fluctuations to validate their investment decisions, often leading to biased interpretations.

Conor argues that entry price significantly impacts long-term returns, even for quality companies.

He also explores why selling is often harder than buying, citing behavioral biases like loss aversion and confirmation bias.

The article concludes that investors are rewarded for both action and inaction, and the key is discerning when to apply each. Reducing exposure to market noise can improve decision-making.

II. Tilting the Odds in Your Favor by Novel Investor

This article argues that successful investing is more like being a casino owner than a gambler. Casinos know the odds are in their favor over the long run.

The key is to avoid speculation and focus on strategies that tilt the odds in your favor. These include saving consistently, thinking long-term (years, not weeks), minimizing investment costs (fees and taxes), strategically allocating assets, and following a disciplined, rule-based investment approach.

>> Click here to read Tilting the Odds in Your Favor by Novel Investor

III. PayPal Q4 2024: A Strategic Shift (Member Exclusive)

PayPal's latest earnings paint a picture of a company in transition. They're cleaning house, shedding unprofitable clients from their Braintree division, and the market's reacting with uncertainty. Is this a sign of trouble, or a necessary step towards a more profitable future?

This exclusive member report dissects PayPal's Q4 2024 performance, revealing the challenges and uncovering the potential for a turnaround. We'll examine:

  • The Braintree Purge: Why PayPal is shrinking this segment and what it means for revenue.
  • The Branded Powerhouse: How PayPal and Venmo fuel growth and user engagement.
  • Financial Deep Dive: Analyzing margins, cash flow, and their aggressive buyback strategy.
  • The 2025 Outlook: What to expect and the crucial metrics to watch.

Members, log in here to access the full report and get the inside scoop on PayPal's future.

Not a member yet?

>> Click here to access the full report, learn about PayPal, and explore my stock research archive

That's all I have for you today!

Till next week.

Thomas Chua at Steady Compounding

[email protected]




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