Good Morning! We might be heading into the golden age of private credit - PIMCO says we're about to see the best opportunities since 2008. Barclays is gearing up to cut thousands of jobs, and investment banking clients.

Amazon dropped Q, an AI chatbot for business, and is doubling down on its relationship with Nvidia. A new study found chatbots are causing a massive spike in malicious phishing emails. And employees have the upper hand in the job market again - it's getting too hard for employers to find adequate replacements.

To get in on the private credit boom, sign up for Percent (weighted average APY of 18.58%) and get a $500 sign up bonus.

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RIP to a Legend

One of the OG investing legends, Charlie Munger, passed away yesterday. He was Warren Buffett's right-hand man and would've turned 100 on New Year's Day. 

Munger started out as a real estate attorney before eventually becoming Berkshire's vice chairman.

He was also chairman and publisher of the Daily Journal Corp., a member of the Costco board, a philanthropist and an architect.

As of earlier this year, Munger was estimated to be worth $2.3 billion. He was famous for his witty humor and thick glasses - he even lost an eye in 1980, thanks to some cataract surgery complications.

Buffett gave Munger props for leveling up his investment game. Buffett started his career favoring those struggling companies on discount, but Munger encouraged him to focus on the high-quality enterprises flying under the radar.

During an interview in 2019, when asked about the key to a long and happy life, Munger said the answer “is easy, because it’s so simple.”

“You don’t have a lot of envy, you don’t have a lot of resentment, you don’t overspend your income, you stay cheerful in spite of your troubles. You deal with reliable people and you do what you’re supposed to do. And all these simple rules work so well to make your life better. And they’re so trite.

And staying cheerful ... because it’s a wise thing to do. Is that so hard? And can you be cheerful when you’re absolutely mired in deep hatred and resentment? Of course you can’t. So why would you take it on?”

For some other Charlie Munger bangers, check out our video here.

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Finding Returns in a High Interest Rate Environment

Higher interest rates and market volatility are making it harder for investors to find above-market returns.

However, private credit investments may outperform traditional markets over the next 5 years, according to research from KKR. In fact, they expect private credit returns to outpace the S&P 500 in the next 5 years¹.

Private credit used to be reserved only for big-name institutional investors, but today, Percent is making these investments accessible to everyday accredited investors.

On Percent, it’s easy to find, compare, invest and track your private credit investments.

You’ll get access to:

• Attractive yields. As of October 31, Percent’s weighted average APY is 18.58%.

• Diversification. Returns are generally independent from public market performance.

• Liquidity. Deals can mature in less than a year, with some offering liquidity after a few months.

• Up to a $500 sign up bonus with your first investment.

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Top Reads

• Amazon announces Q, an AI chatbot for businesses (CNBC)

• Employees have the upper hand again (Axios)

• Chatbots are creating huge increases in phishing emails (CNBC) 

• The simple reason Wall Street is usually bullish (YF)

• Pressure mounts on private equity-backed company finance chiefs as market shifts (WSJ)

• Amazon announces new AI chip, deepens relationship with Nvidia (CNBC)

• Private credit to see best opportunities since 2008 (YF)

• Private equity’s bubble vintage deals may fizzle (BB)

• Team ESG gets a pass from the SEC (WSJ)

• Barclays strategic fix will entrench low valuation (Reuters)

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Markets Rundown

Stocks closed higher as investors bet on rate hikes coming soon.

Movers & Shakers

• (+) PDD Holdings ($PDD) +18% after the e-commerce company beat earnings.

• (+) Crocs, Inc. ($CROX) +5% after the shoemaker was upgraded by Raymond James.

• (–) Micron Technology ($MU) -2% after the chipmaker expects higher operating expenses.

Private Dealmaking

• TJC bought L3Harris’ commercial aviation business for up to $800 million 

• Ardian bought Verne Global, a data center operator, for $575 million

• Alpheya, a wealth tech startup, raised $300 million 

• Berkshire Hathaway sold its stake in Paytm for $164 million

• ZeroAvia, a hydrogen planes developer, raised $116 million 

• Talus Renewables, a green ammonia systems developer, raised $22 million

For more PE & VC deals, subscribe to Buysiders.

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Mixed Signals

Incentives send powerful signals that aim to influence behavior. But often there is a conflict between what we say and what we do in response to these incentives. The result: mixed signals. 

Consider the CEO who urges teamwork but designs incentives for individual success, who invites innovation but punishes failure, who emphasizes quality but pays for quantity.

Employing real-world scenarios just like this to illustrate this everyday phenomenon, behavioral economist Uri Gneezy explains why incentives often fail and demonstrates how the right incentives can change behavior by aligning with signals for better results.

Drawing on behavioral economics, game theory, psychology, and fieldwork, Gneezy outlines how to be incentive smart, designing rewards that are simple and effective.

He highlights how the right combination of economic and psychological incentives can encourage people to drive more fuel-efficient cars, be more innovative at work, and even get to the gym.

“Incentives send a signal,” Gneezy writes, “and your objective is to make sure this signal is aligned with your goals.”

“If you think you understand how incentives work, think again.”

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Short Squeez Picks

• Why is everyone so unhappy at work right now?

• The 10 best books of 2023

• Psychological ways to build trust

• 6 powerful mindset shifts

• How a simple focus shift saved T-Mobile

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Nvidia Going Strong

Nvidia quarterly revenue

_{SPONSORED BY RYSE}

Last Chance to Invest!

⌛ Time’s almost up… to invest in RYSE, the AI powered smart-home tech that’s disrupting the entire smart shades industry.

Retail distribution has been the main driver behind the success and billion dollar exits of the biggest smart home products, and RYSE is currently rolling out in 100+ Best Buy stores.

Backed by prominent Venture Capitalists, including support received from the Canadian Shark Tank, they’ve opened their doors to retail investors, but only for 2 more days. 

The opportunity to become a shareholder in their company closes this week, but you can still invest at only $1.25/share before their name becomes known nationwide.

Reports indicate that early investors in Nest (Smart Thermostat) earned a 20X return at their $3.2B acquisition. 

What if you had the opportunity to invest before they launched into retail, would you?

LAST CHANCE - learn how to invest in RYSE here.

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Consistency

Achieving success is often simpler than we make it out to be—90% of it, to be exact. The key lies in consistently doing the obvious thing for an uncommonly long period.

This means adhering to basic, common-sense actions, persistently and patiently, without falling into the trap of thinking you're smarter than you actually are.

Success is not always about grand, complex strategies; more often, it's the result of disciplined, repetitive commitment to the fundamentals.

So, whether it's in personal or professional endeavors, focus on the straightforward, time-tested practices, and resist the temptation to overcomplicate.

In essence, success is a marathon of doing the ordinary exceptionally well over the long haul.

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Memes of the Day