Monthly Newsletter: November 2022

👋 Hey there, welcome to the WalletBurst monthly newsletter for the month of November 2022.

Market Update

As of November 30, 2022 close-of-business.

Around the web

🧨 Reflections on Crypto in the Wake of the FTX Collapse: The Casino and the Genie by The Generalist

  • The collapse of FTX is getting to be old news at this point, but given its significance I wanted to share this really well written piece that critiques the current state of the crypto industry - both the good and the bad.
  • “Recognize the place you are in and the games you are playing. Recognize that for now, at least – until we can build something better – this is a casino, and it is more likely than not that you will lose money, you will make mistakes and bad bets, and you will look like a fool.”

📉 Discounting Belief by Packy McCormick

  • Interesting Substack about how for the more speculative, future-looking tech companies on the stock market, prices are a function of the discount rate of future cash flows and investors’ belief that those future cash flows will ever materialize, what Packy calls the Belief Rate.
  • “Companies are theoretically valued based on the sum of their discounted cash flows. If the company expects to generate $1 million in cash flow every year for the next twenty years, then the company is worth $20 million today at a 0% discount rate, or $3,953,883 at a 25% discount rate. The same exact business is worth one-fifth as much today if you change nothing about it except for the discount rate.
  • “The discount rate impacts growth stocks more than others, in both directions, because their cash flows are further in the future.”
  • “And just as the discount rates hit companies with a higher percentage of their cash flows further in the future harder, the Belief Rate hits companies making bigger, more speculative future-looking bets harder, too.”

🏝 How I Retired Early With $3 Million At 36 In San Diego - Fired Up by CNBC Make It

  • Some FIRE inspiration for your week! Jeremy's story really resonated with my FIRE lifestyle goals, although my numbers are quite a bit lower.
  • Jeremy reached FIRE in his mid-30s after selling his internet business and bought his townhouse in San Diego in cash where he currently lives. Now he spends his time staying in great shape, traveling, and running a personal finance website that he started.

The current housing cycle landscape by US metros

Source: John Burns Real Estate Consulting

The 50 US cities where home prices have risen the most since the pandemic began

View all 50 cities | View thread on reddit

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