Good Morning! Inflation was a little hotter than economists were hoping last month, but stocks closed mixed. Yesterday was the first day you could start trading Bitcoin ETFs, and they posted strong gains with total volume topping $3 billion. Microsoft briefly overtook Apple as the most valuable U.S. company, thanks to the AI boost. Plus tips on when it’s okay to use AI at work, and how to avoid asking bad questions.

Today’s edition is brought to you by MAG Capital Partners, providing you access to industrial real estate investments.

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Tesla Out, Gas In

You might know the rental car company Hertz for being the OG meme stock. But now the company is back in the news - and trying to reverse a bad bet.

Hertz bought 100k Teslas back in 2021 - you know, simpler times like when the company rallied 825% in the weeks after filing for bankruptcy.

Hertz was hoping to drum up interest from customers by launching an EV fleet. They thought they’d have higher margins on their Teslas, but soaring interest rates hurt the company’s business plan. And it turns out that maintaining and repairing electric vehicles is a lot more expensive than Hertz was accounting for.

And the EV hype across the country has definitely died down. Last quarter, general sales growth for the electric vehicle market rose just 1.3%. In a decision likely to spark controversy among ESG activists, Hertz is going to sell its Teslas and then reinvest the proceeds back into gas-powered cars.

Takeaway: Hertz’ stock fell over 5% on the news. The company had a rough 2023, down 32%. But there’s some hope that selling EVs could give the company a much-needed boost of liquidity. Some analysts think that selling the electric vehicles could boost free cash flow by $250M-300M annually.

_{PRESENTED BY MAG CAPITAL PARTNERS}

Investors: Follow This $2.4T Breadcrumb Trail

While most investors toe the line with standard markets, the savvy among us have zeroed in on what some experts call “the backbone of the American economy.”

Welcome to Industrial real estate (IRE). 

The global supply chain disruption of 2020 revealed a clear need for domestic manufacturing solutions, fueling massive demand in the US. 

While inflation riddled other sectors, IRE remained resilient, delivering instant cash flows, inflation protection, and asset appreciation for investors. 

But here’s the kicker: Not all IRE investments are the same. MAG Capital Partners have over 50 year’s experience of accessing off-market investments that deliver consistent yields (while minimizing risk).

To gain deeper insights into their unique approach and success in the IRE sector, you can hear directly from the partners of the firm in this exclusive interview.

Don’t wait–unearth the industrial real estate market with MAG Capital Partners today.

_HEADLINES

Top Reads

• Inflation was hotter than expected in December (CNBC)

• Hedge funds dump tech, consumer stocks at start of the year (YF)

• Bitcoin ETFs posted strong gains on first day of trading (CNBC)

• Morgan Stanley promotes 155 employees to managing director (Reuters)

• Microsoft overtakes Apple as largest U.S. company by market cap (Axios)

• Goldman Sachs is No. 1 in stock trading again this year (BB)

• Private equity, credit needs attention according to regulator (Retuers)

• IBM is in the midst of a cloud renaissance (YF)

• Why investors will find it easier to make money in 2024 (YF)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed mixed after December’s CPI report.

Movers & Shakers

• (+) DocuSign ($DOCU) +9% because of a report the company is nearing a sale to private equity.

• (–) Paramount ($PARA) -5% after a downgrade by Redburn Atlantic.

• (–) Coinbase ($COIN) -7% after analysts think an ETF could hurt the company.

Private Dealmaking

• Chesapeake bought Southwestern, a U.S. gas rival, for $7.4 billion

• LondonMetric Property bought LXI, a British REIT, for $2.4 billion 

• Finn, a new car subscription platform, raised $109 million 

• Harbor Health, a primary care clinic group, raised $95.5 million

• Nalu Medical, a neurostimulation device maker, raised $65 million

• Luma, a 3D capture software maker, raised $43 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

Counting The Cost

Jill and Derick knew a normal life wasn’t possible for them. As a star on the popular TLC reality show 19 Kids and Counting, Jill grew up in front of viewers who were fascinated by her family’s way of life.

She was the responsible, second daughter of Jim Bob and Michelle’s nineteen kids; always with a baby on her hip and happy to wear the modest ankle-length dresses with throat-high necklines.

She didn’t protest the strict model of patriarchy that her family followed, which declares that men are superior, that women are expected to be wives and mothers and are discouraged from attaining a higher education, and that parental authority over their children continues well into adulthood, even once they are married.

But as Jill got older, married Derick, and they embarked on their own lives, the red flags became too obvious to ignore.

For as long as they could, Jill and Derick tried to be obedient family members—they weren’t willing to rock the boat. But now they’re raising a family of their own, and they’re done with the secrets.

Thanks to time, tears, therapy, and blessings from God, they have the strength to share their journey. Theirs is a remarkable story of the power of the truth and is a moving example of how to find healing through honesty.

“Sometimes you have to be okay with other people not being okay with you. And you have to be okay with you not being okay too.”

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Annual Change in Consumer Price Index

_{SPONSORED BY DELTA}

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_{DAILY ACUMEN}

Who You Are

"The world will ask you who you are, and if you don't know, the world will tell you."

These words resonate as a powerful reminder of the importance of self-discovery in a world that constantly seeks to define us.

In a society often quick to impose labels and expectations, knowing oneself becomes an act of resistance. It is an assertion of individuality that transcends societal norms and external judgments.

When we proactively explore our values, passions, and beliefs, we gain the power to shape our own narrative rather than allowing the world to dictate it for us.

_{ENLIGHTENMENT}

Short Squeez Picks

• When it’s okay to use AI at work, and when it’s not

• 5 bad questions to avoid

• How to use the exponential gratitude rule for success

• The most popular iPhone apps 

• 3 leadership habits to start using this year

_{MEME-A-PALOOZA}

Memes of the Day