The Schwar Report - Issue 2

Monday 26th August 2024

Welcome to this weeks edition of The Schwar Report, your weekly primer featuring three interesting reads, two thought-provoking quotes, and one actionable step to start your week on the right foot.

Three Reads to Inspire Your Week

1. "Fooled by Randomness" by Nassim Nicholas Taleb

   • Why read it: This thought-provoking book challenges conventional wisdom by exploring how luck, randomness, and uncertainty shape our lives, especially in the world of investing. Taleb's insights encourage readers to question the patterns they perceive in the market and to recognize the role of randomness in success and failure. If you're looking to deepen your understanding of risk and the often-overlooked role of chance in financial markets, this is a must-read.

2. “Becoming Berkshire: 1930-1949 An Oracle is Born” by

   Becoming Berkshire

   • Why read it: This article offers a fascinating exploration of Warren Buffett's early years, providing a detailed look at the formative experiences that shaped his future as the Oracle of Omaha. If you’re interested in understanding the foundations of Buffett's investing philosophy and his journey from a young enthusiast to a legendary investor, this piece is essential for gaining deeper insights into his background and development.

Becoming Berkshire: 1930-1949 An Oracle is Born

3. “Evolution AB Q2’24 Earnings” by

   StockOpine

   • Why read it: This newsletter provides an essential update on Evolution AB’s Q2 2024 earnings, offering a detailed analysis of the company's recent financial performance and strategic moves. It also complements our upcoming report on Evolution, coming later this week.

Evolution AB Q2’24 Earnings

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Two Quotes to Reflect On

1. "Risk comes from not knowing what you're doing."

   — Warren Buffett
   Reflection: This quote highlights the importance of knowledge and preparation in managing investment risks. It emphasizes that informed decisions reduce uncertainty and lead to better outcomes.

2. "An investment in knowledge pays the best interest."

   — Benjamin Franklin
   Reflection: Continuous learning is vital in the ever-evolving world of finance. This quote serves as a reminder that the more you know, the better equipped you are to make informed decisions.

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One Action Step: Embrace the Uncertainty in Your Portfolio

This week, take a moment to reflect on the role of randomness in your investment strategy. Inspired by "Fooled by Randomness," consider how much of your portfolio's performance is driven by luck versus skill. Are there any positions that you’ve attributed to skill that might, in fact, be the result of fortunate timing?

Quick tip: As you review your portfolio, think about how you can better account for uncertainty in your decision-making process. Diversification and a focus on long-term resilience can help mitigate the impact of random events. Remember, it’s not just about chasing returns but managing the risks that come with the unknown.

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On a side note, if you haven’t already, check out or recent report on PayPal, our largest holding!

[FREE] PayPal (PYPL) Equity Research Report

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That’s it for this week’s Schwar Report. We’re here to help you stay informed, grounded, and focused on your long-term success.

Have a productive week,
The S.C. Team

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Disclaimer: The content provided in this newsletter is for informational purposes only and does not constitute financial, investment, or other professional advice. The opinions expressed here are those of the author and do not necessarily reflect the views of Schwar Capital. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. The author may or may not hold positions in the stocks or other financial instruments mentioned. Always do your own research or consult with a qualified financial advisor before making any investment decisions.