Shiny Rocks & Diggers: A Modest Proposal

Shiny Rocks & Diggers

SLVP, you see, doesn’t actually hold the silver. It holds shares in the companies that do the digging. Which introduces a delightful layer of inefficiency. They have to pay people, maintain equipment, and occasionally deal with geological surprises. IAU, on the other hand, is simpler. It’s essentially a very large, heavily guarded vault.2 This comparison is less about finding the ‘best’ investment and more about understanding the different flavours of hope and despair on offer.

Cliffs & Calamities: A Steel Story

Now, this here stock had been climbin’ like a monkey up a greased pole – a good 50% rise in the last six months! – so this fallin’ ain’t entirely unexpected. It did rally a bit, mind you, but as of this mornin’, it was still down nearly 20%. A good reminder, if you ask me, that fortunes can change faster than a politician’s promise.

A Quiet Accumulation: CD&R and the Resideo Question

The fund’s holdings now represent 88.4% of their reported portfolio. A substantial weighting, certainly, though one must remember that these firms operate on a scale beyond our comprehension. A holding of $525.96 million, while considerable to us, is but a single brushstroke on a canvas already richly adorned with other ventures – Agilon Health, for instance, accounting for a further $69.00 million. It is a reminder that even the most concentrated positions are relative, and that the true scope of their strategy remains veiled.

Hims & Hers: A Cautionary Tale

They’d announced plans to sell a pill version of Wegovy, for forty-nine dollars. A clever price. Novo Nordisk (NVO +3.36%) makes the original, of course. One hundred forty-nine for the pill, one hundred ninety-nine for the injection. Capitalism, you know? A perfectly reasonable system, if you ignore the suffering.

Lilly’s Little Fortune: A GLP-1 Drama

Waist Measurement

However – and there’s always a ‘however’, isn’t there? – a certain amount of dependency on just two products does give one a slight headache. It’s a bit like building a rather splendid yacht on a foundation of spun sugar. Charming, while it lasts, but hardly reassuring when the competition starts circling. Especially given the price tag attached to the whole enterprise. One wonders if the market is being a trifle optimistic.

A Quiet Comparison: Staples & Sips

Both, of course, offer a slice of the American consumer landscape. But the iShares fund casts a wider net, encompassing the mundane necessities – the soap, the toothpaste, the things one doesn’t particularly think about until they’re gone. The First Trust fund, with its emphasis on food and drink, feels…a little more hopeful. As if a well-made biscuit might somehow resolve the larger uncertainties of existence. It’s a charming notion, but one suspects reality is less accommodating.

PayPal: A Most Unfortunate Decline

From its giddy peak in July 2021, PayPal’s market capitalization has performed a rather dramatic impression of a stone in a pond. It’s gone from a rather boastful $363 billion to a mere $38 billion. Shareholders, naturally, are feeling a trifle put out. Eighty-seven percent off the peak – it’s simply not cricket, is it?

Insurance & The Illusions We Pay For

They started with the usual homeowner and renter stuff, then branched out. Life, pets, cars. More things to insure, more premiums collected. They want ten billion in premiums “in the coming years.” Ambition. It’s a lovely thing, really. A sort of desperate hope dressed up as a business plan.