What We Learned This Week

𝗘𝗮𝗿𝗹𝘆 𝗛𝗼𝗹𝗶𝗱𝗮𝘆 𝗦𝗮𝗹𝗲𝘀 𝗕𝗼𝗹𝘀𝘁𝗲𝗿𝗲𝗱 𝗯𝘆 𝗮 (𝗦𝘁𝗶𝗹𝗹) 𝗥𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝘁 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿: Black Friday and Cyber Monday sales kicked off the holiday season with results exceeding expectations. Notably, this comes amid rising interest rates and growing concerns about a potential economic slowdown. The current trends of the modern-day consumer, particularly among Gen Z and younger demographics, reveal a strong preference for current spending versus savings - a welcomed shift for discretionary businesses. For us, it raises questions about consumer preparedness in the event of a recessionary period.

𝗚𝗠 𝗥𝗲𝗯𝗼𝘂𝗻𝗱𝘀 𝗮𝘀 𝗟𝗮𝗯𝗼𝗿 𝗨𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆 𝗖𝗹𝗲𝗮𝗿𝘀: With the resolution of the labor union contract renewal issue, GM has provided an overview of its impact, and the results are encouraging. GM stated that, with updated budget measures, it can fully offset the costs of the new labor union deal next year. Removing this uncertainty also allowed GM to reinstate its full-year guidance, along with announcing a 33% increase to its dividend and initiating a $10 billion share buyback. A welcomed relief for investors.

𝗔𝗺𝗮𝘇𝗼𝗻 𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻𝘀 𝗘𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲 𝗔𝗜 𝗣𝗿𝗲𝘀𝗲𝗻𝗰𝗲: Amazon is reinforcing its commitment to artificial intelligence (AI), as highlighted during the Amazon Web Services (AWS) developer conference. The tech giant announced a strengthened partnership with AI chip leader Nvidia, introduced new chips for use with AWS platforms, and unveiled an AI chatbot designed for businesses to integrate with broader AWS services. This further solidifies Amazon's position as a top player in enterprise cloud offerings.

𝗔𝗽𝗽𝗹𝗲 𝗟𝗼𝗼𝗸𝗶𝗻𝗴 𝗙𝗼𝗿 𝗮 𝗡𝗲𝘄 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗣𝗮𝗿𝘁𝗻𝗲𝗿: Apple and Goldman Sachs appear to be parting ways after jointly introducing the Apple Card credit card solution in 2019. Apple acknowledges the need for new financial partners, signaling the end of its collaboration with Goldman Sachs. We view this positively for Goldman Sachs as it allows them to shed what had become a less fruitful business venture and refocus on their core offerings in the investment banking sector.

𝗥𝗲𝗺𝗲𝗺𝗯𝗲𝗿𝗶𝗻𝗴 𝗖𝗵𝗮𝗿𝗹𝗶𝗲 𝗠𝘂𝗻𝗴𝗲𝗿'𝘀 𝗟𝗲𝗴𝗮𝗰𝘆: The passing of the legendary investor and vice chairman of Berkshire Hathaway, Charlie Munger, at the age of 99 marks the end of an era. Munger, Warren Buffett's right-hand man for decades, was an investing icon known for his endless wisdom well into his 90s. His contributions to value investing and his remarkable life will be remembered as a cornerstone of the investment world. Hats off to a life well lived.