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Hatch Weekly: Invest like the best - Warren Buffett

Invest like the best

We’re launching a series of blogs to profile well-known investors’ strategies because we believe it’s important to learn from others. Starting with the masters – Warren Buffett, Nassim Taleb, Seth Klarman, Geraldine Weiss, Muriel Siebert, and many more – we think sharing is caring. So, how can you be the ‘Oracle of Omarama or Oamaru’? Be like Buffett.

Rejected from Harvard
And yet still the 3rd wealthiest person in the world. With a net value of US$84.9 billion, Buffett is playing for keeps. You can look to his investment strategy of value investing for reasons why he’s so successful. What is it? We’re glad you asked: The basic concept behind value investing is super simple, so much so you probably already do it. The idea is that if you know the true value of something you can save a lot of money if you buy it on sale.

We love billionaires
Well, we love this one. Why? Because Warren’s big fat wallet matches his heart. He’s an avid philanthropist who gives a lot of money to charity. He still lives in the $30K house he first bought with his wife! And he doesn’t spoil his kids rotten. Read our blog to find out why Big B is so lovable.

What is Hatch?

With Hatch, you can now buy and sell shares in over 2,900 companies & 500 exchange-traded funds, all listed on the US share markets. Invest dollar amounts to buy as much or as little of a company or ETF as you like, even if it’s a fraction of a share. Powered by Kiwi Wealth. See how it works

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Elon Musk’s bot armageddon

Elon Musk’s nonprofit, OpenAI has developed a text generator so good at creating “news” that it's too dangerous to release to the public. Um, what? Okay, while OpenAI’s copy won’t be available to you anytime soon, robo-writers are already helping other companies write, causing some issues around fake news. (P. S. #wearenotbots)

Who needs real writers anymore?
Not us since 2015 when Sam Altman and Elon Musk launched the nonprofit with a mission to make “safe” artificial intelligence available to the public. But they made a big mistake: they made the program, called GPT2, too good. It produces writing that’s practically indistinguishable from real journalism, kicking the door wide open for fake news.
Because it could be used for disinformation or propaganda, the text generator will be kept under lock and key until its creators understand what it can and can’t do.

All hail the bots
Robo-writers are already among us though. For instance, Bloomberg news uses a bot-writing program, cleverly called Cyborg, in one-third of its articles. The Guardian and The Washington Post are getting all Terminator on their content producers too. Machine-assisted writing is a thing, and it’s going to become more and more common – so, get on board or get offline. Wait, does that sound like something a bot would say? Whatever, human.

Pot hot to trot

Last Thursday Canopy Growth (CGC) revealed its earnings and showed the world that the cannabis business is booming thanks to the legalisation of recreational marijuana in Canada last fall. Canada, stop being so wonderful – first with the maple, then the poutine, now this.

That’s some earnings, eh?
Revenue for Canopy Growth’s fiscal third quarter surged 282% compared to a year earlier, but also reported a more extensive loss from a year ago as expenses increased. That’s fair. It costs a lot to corner the market in both medical and recreational marijuana with all that green being spent on marketing, research and development. Investors (that’s you?) don’t seem to mind. Canopy Growth's (CGC) stock rose 4% last Friday and is now up close to 80% this year.

Seeing green
Rival Aurora Cannabis (ACB) also posted a surge in sales during its latest quarter with shares up 40% for the year. Pot prices might be falling even as prices for medical marijuana are rising. Aurora claims that that prices for dried cannabis and extracts plunged more than 20%. Recreational pot is cheaper because it’s a much more competitive market. Still, there’s a lot of room to grow – both companies hope to make more money on new consumer products like drinks and vape pens. Constellation Brands (STZ) controls nearly 40% of Canopy Growth, a stake now worth more than $6 billion, and they’re getting into the hemp business too.

Other interesting stuff

A Study on Driverless-Car Ethics Offers a Troubling Look Into Our Values

As Uber Prepares for I.P.O., Its Losses Pile Up

Workplace Theft Is on the Rise

The Five Families of Feces – The porta-potty business is as dirty as you’d think

The U.S. government and Facebook are negotiating a record, multibillion-dollar fine for the company’s privacy lapses


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