🍋 LEGOs Outperforming the Market

Together With

Good Morning! The economy grew faster than expected last quarter. But that’s not good news for investors - it means the Fed’s rate hikes were less effective than expected. Some universities are now blocking TikTok access on social media campuses for privacy issues.

SBF was released on a $250 million bail (after claiming he had ~$100k left in his bank account) and will await trial at his parents’ house in Palo Alto. Google bought NFL Sunday Ticket streaming rights for $2 billion. And some companies cancelled New Year weight loss contests after too many people complained. 

Merry Christmas and have a wonderful holiday fam 🎅🎄

Thank you for being a loyal reader of Short Squeez. We'll pick things back up on Tuesday (Dec 27).

If you are looking for a last minute holiday present, check out our "Freak in the Sheets" Mug.

1. Story of the Day: LEGOs Outperforming the Market

It might be time to add some color to your portfolio with LEGO bricks. A recent study found that these childhood toys provide a higher return on investment than most other alternatives. Market prices of retired LEGO sets, when sold on secondary marketplaces, grew by at least 11% annually over the past 25 years.

But why are LEGOs such a good investment? According to the study, the main factor contributing to their high returns is the demand for limited edition and hard-to-find sets. As with any collectible, the rarer the item, the higher the price it can fetch. It seems that the high return on investment for LEGO sets comes down to two things: rarity and the fact that they bring back memories of your childhood. 

Essentially, people are willing to pay top dollar for these toys because they're either hard to come by or remind them of the good ol' days. And with the LEGO brand being around for decades, have the added benefit of being a well-known and trusted brand, with strong and dedicated adult fans who are willing to shell out extra cash for those beloved sets from their childhood.

In addition, LEGOs have a long shelf life. Unlike wine or artwork, which can deteriorate over time, LEGOs can be stored and preserved for decades without losing value. This means that even if you don’t sell your LEGO sets immediately, they will still hold their value in the long term.

Takeaway: Of course, investing in LEGOs is not without its risks. Like any investment, the value of LEGO sets can fluctuate. In fact, returns on this investment can vary from -50% to a whopping 600% annually. But overall, the study suggests that LEGOs can be a profitable and diversifying addition to your investment portfolio. Don’t sleep on investing in LEGOs as you build your portfolio brick by brick.

2. Markets Rundown

If you want access to Wall Street insider interviews, industry deep-dives, premium research/resources and weekly Knowledge Drop newsletter, check out our Insiders membership.

Stocks closed lower as strong Q3 data points to ineffective Fed measures.

Movers & Shakers

• (–) AMC Entertainment ($AMC) -7% after reverse stock split proposal.

• (–) NVIDIA ($NVDA) -7% over low demand for semiconductors.

• (–) Tesla ($TSLA) -9% after low demand concerns and Musk's Twitter distraction.

Private Dealmaking

• Redaptive, an energy-as-a-service startup, raised $200 million

• Gladly, a customer service platform, raised $55 million

• Ngrok, a reverse proxy startup, raised $50 million

• SafeAI, a developer of self-operating equipment, raised $38 million

Shop Our Holiday Collection

Freak in the Sheets Mug

Holiday Sweater Collection

FTX Collection

Top Reads

• How the Fed affected the 2022 stock market (CNBC)

• Buyout firms rethinking deal financing amid debt shortage (Reuters)

• Goldman is banking on Apple partnership in consumer push (WSJ)

• Deadliest jobs in America revealed (Fox)

• You don’t need to give up lattes to get rich - do this instead (CNBC)

• Netflix will open a $900 million facility in New Jersey (Fox)

• Q3 economic growth in one chart (Axios)

• 22-year-old on lessons learned scammed by a fake job (CNBC)

• U.S. regulators allege price manipulation by FTX (Axios)

4. Book of the Day: Humbitious

Arrogant. Charismatic. Narcissistic If you were to name traits that define strong leaders, these are some of the words that likely spring to mind. 

Conventional thinking would have us believe that it’s those filled with hubris and free of self-doubt that make the best leaders. The evidence, however, tells quite a different story.

In Humbitious, professional speaker, executive coach and distinguished Trinity University professor Amer Kaissi shatters the common myths about leadership being an ego-driven game. 

Drawing on extensive research, personal stories, and fascinating historical examples of leadership done right (and wrong), Kaissi reveals why the most effective, high-performing leaders aren’t those with the biggest egos, but who possess humility, coupled with ambition and drive.

“Fortune favors the humble.”

5. Short Squeez Picks

• Tips for getting in the best shape of your life in 2023

• How to become happier according to science

• 6 secrets to handling a big life transition

• Most anticipated books of 2023

• How to build a system for remembering everything

A Message from Bilt Rewards: Start Earning Points on Rent

Y’all sick of paying rent and never seeing anything in return?

You can now earn points when paying rent at any home, whether you pay with a check, an online portal, or by ACH, you can use the Bilt Mastercard. 

You can use your points to book travel with 100+ airlines and hotels, redeem them as credit towards your next rent payment, or even save them towards a down payment on a home. The best part: there is $0 annual fee for the Bilt MasterCard*. 

• 1X Points on rent payments (no transaction fee)†

• 2X Points on travel†

• 3X Points on dining†

Earn points when you make 5 transactions each statement period†.

Apply today and if approved start getting rewarded for paying rent.

Credit card is subject to credit qualification.†Key Rewards Terms *Key Card Terms

6. Daily Visual: Q3 Economic Growth Revised Higher to 3.2%

Percentage change in GDP from previous quarter

Source: Axios

7. Daily Acumen: It's Not What You Deserve, But It Is What It Is

"The time we spend fretting over what just happened is time we’re not spending on addressing the problem itself.

When your client or your boss turns down a great idea, it’s tempting to focus on the idea and how right you were.

It might make more sense to try to find empathy for the fear and status issues that the client has instead. Because those issues probably got in the way of them ever seeing what you had to say.

“Okay, that happened.” Now what?

Interhuman events are often more complicated than we give them credit for.”

Source: Seth Godin

8. Memes of the Day

 Advertise With Us / Merch Store / Private Equity Course

*****

Want more Short Squeez?

Become an Insider. You'll get access to:

1. Industry deep-dives & compelling investment ideas

2. Wall Street Insider interviews breaking down their investment portfolio, strategy & investment picks

3. Knowledge Drop - an exclusive alpha-generating newsletter covering the best weekly research & content (podcasts, articles, blogs)

4. Vault – a collection of investing & recruiting guides, modeling courses, salary / comp data, institutional research (40+ resources added / month)

See you on the Inside.

*****