Just keep reading

Market scorecard

Yesterday, the US markets closed on a high note, with both the S&P 500 and the Nasdaq Composite hitting fresh all-time highs. February marked the fourth straight month of gains for both these benchmarks, reflecting ongoing optimism among investors. The S&P 500 and Nasdaq Composite are up 7.45% and 8.98%, respectively so far this year.

In company news, Nvidia (NASDAQ:NVDA) set its highest closing price on record, putting its market capitalisation at $1.98 trillion. AMD (NASDAQ:AMD) rose 9.1% in concert, passing $300 billion in market cap. Elsewhere, Chemours (NYSE:CC) plunged 31% after the chemical maker deleted its audited financials and put its CEO and CFO on administrative leave pending an accounting probe.

At the close, the JSE All-share moved higher by 0.73%, the S&P 500 rose 0.52%, and the Nasdaq was 0.90% in the green.

One thing, from Paul

Jonathan Clements at Humble Dollar is one of my favourite financial writers. His posts are mostly about the transitions people make later in their lives, from working to retirement to death. He has an understated, practical approach to these matters.

In a recent piece, he asks the following question: "What will be your legacy?". The answer: "The whole notion of a legacy is a tad delusional, and very likely a trick played on us by our genes, which want us to care deeply about future generations. The reality: most of us will leave scant marks on the world, and we won't be remembered for very long after we're gone."

I read elsewhere that the number of remembered people throughout history is about 1 000 per year. They got to that number by counting the number of people in the living persons category on Wikipedia and dividing that into the world population. Doesn't sound very scientific, but you get the idea.

Clements suggests that if you are unlikely to be famous, or even remembered for very long, it's better to ask yourself what are the things you really want to get done before you die. Do those things today, or make a plan to do them soon, and you'll be leading a worthwhile life.

Byron's beats

Last night, I went to a talk about reading at my 6-year-old son's school, and it reminded me of reading's wonders. Reading is surely one of the greatest inventions in the history of civilisation and pretty much forms the core foundation of modern-day society.

That is why it is so important to read as much as possible, regardless of your profession. When it comes to investing, reading gives you access to a wealth of knowledge from previous, current and future legends of the game. You can learn from their mistakes, walk in their shoes and filter out important lessons that might apply to your career. You will not get ahead when it comes to investing without reading, full stop.

I also do not think it is wise to just read about one topic. The broader the better. For example, I am reading three books at the moment. I am listening to Elon Musk's latest biography by Walter Isaacson on audio, I am reading about David Livingstone's adventures called Into Africa on my Kindle app and I have just finished Rassie Erasmus' autobiography on paperback.

Michael's musings

US fast-food chain Wendy's was in the news this week for the wrong reasons. The company recently mentioned that it planned to start dynamic pricing in some of its stores, which customers took to mean surge pricing during lunch and supper times. People took to social media to show their dissatisfaction. In reaction Wendy's released a statement saying that they didn't plan to raise pricing during peak times, but rather give discounts during traditional quiet periods.

Given my background in economics, I like the idea of dynamic pricing to account for fluctuations in demand. If customers know ahead of time, that going to a Wendy's during off-peak times will see a slight discount in prices, it encourages some people to shift their eating habits, and that is a win for everyone.

Dynamic pricing is a delicate balancing act though. You don't want customers to feel like they are being taken advantage of. Coke about 20 years ago had vending machines charge more on hot days for soft drinks. As you can imagine, that wasn't well received either.

Bright's banter

In 2023, Rolex hit a major jackpot by pulling in a record 10.1 billion Swiss Francs ($11.5 billion) in sales. This achievement wasn't just luck - it came from a surge in retail market share, which shot up by over 30%. It seems the demand for Rolex timepieces just keeps ticking!

With over 1.24 million watches produced last year, Rolex's hits like the Daytona, Submariner, and Datejust models were flying off the shelves. What's even more impressive is that Rolex outsold big names like Cartier, Audemars Piguet, Omega, Richard Mille, and Patek Philippe combined. Talk about flexing some serious watchmaking muscle!

Richemont-owned Cartier came in second place with sales of CHF 3.1 billion ($3.5 billion), while Omega, Audemars Piguet, and Patek Philippe rounded out the top five. Cartier's classic Tank and Santos De Cartier watches, along with Omega's ever-popular Seamaster and Speedmaster models, helped them hold their own in the market.

Rolex wasn't the only one making waves. Another Richemont (JO:CFRJ) brand Vacheron Constantin joined the Billion-Franc Club for the first time, scoring sales of CHF 1.097 billion - a sweet 18% increase. Richemont's watchmakers made an impressive CHF 7.386 billion in 2023, becoming the second largest watch company by sales.

Under CEO Louis Ferla's guidance, Vacheron Constantin is making a name for itself with its rich history and meticulous craftsmanship. They've been around for over 260 years, and they're not slowing down anytime soon.

While other luxury watch brands are making moves, Rolex is still king of the hill. Its record-breaking sales prove that when it comes to watches, the Crown still reigns supreme.

Signing off

Asian markets are all up this morning with the rally led by Japan which hit a new all-time high after a two-day losing streak. Benchmarks also rose in India, Hong Kong, and mainland China. South Korea was closed for March 1st Movement Day.

In February, China's factory activity contracted for the fifth consecutive month, indicating persistent challenges stemming from sluggish demand in the economy.

US equity futures are up again pre-market. The Rand is trading at around R19.18 to the US Dollar.

Happy Friday and have a wonderful weekend.

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