Musk to BMW: Who’s “ultimate” now?!!

Good morning!

It’s Friday and game time!

Let’s finish the week strong, even if the markets would seem not to like that idea in the early going.

Here’s my playbook.

JPM slays it (again)

What’s happening. JPMorgan beats with earnings of $3.57 and revenue of $35.57 versus estimates of $3.07 and $34.30, respectively. Citigroup reports a 21% decline in Q4 profits (Read) Meanwhile, Wells Fargo biffs it as the bank’s profits are cut in half by higher reserves and settlement costs. (Read)

What catches my attention is that CEO Jamie Dimon now sees a mild recession even though the bank posted a $2.3B provision for credit losses, a 49% increase. And now that’s a good thing, apparently.

Oh, the irony! People jumped Dimon’s schtuufff last year when he cautioned against an economic hurricane... but many of those same folks are strangely quiet this morning.

MyPOV: Dimon is still the single smartest banking CEO on the planet, which is, no surprise, why I want to own shares.

Up 10.5% versus just 3.5%

The A-Team was a corny, campy show when it aired in the early ‘80s, but people loved John “Hannibal” Smith’s tagline: “I love it when a plan comes together!”

I feel like breaking out one of his trademark cigars. My latest recommendation has already tacked on 10.5%, versus just 3.4% from the S&P 500 YTD as I type in the pre-market hours.

Could that change?

Yes, it could go right into the proverbial toilet; all investing involves risk.

But the fact that the dang thing more than doubled the broader index in just a few days proves beyond any shadow of a doubt that cream will rise to the top when markets normalize.

As I noted in my 2023 Annual Outlook and in this Monday’s update… Upgrade to Paid

Ya gotta love Tim Cook

Apple CEO Tim Cook asked for a 40% pay cut and, after a board vote, got it. This year, he’ll make “just” $49 million in total compensation. (Read) 🤦‍♂️

Newsies will inevitably try to read into the story, alleging that Apple is in deep trouble or that the company is somehow struggling. That’s a shame.

The real story is about prudent management. Like JPM’s Jamie Dimon, Tim Cook has a rock-solid grasp on what he needs to do to maintain focus, drive, and company stability.

OBA Application: The world’s best CEOs are visionary thinkers when it comes to their products AND their companies. They are not in it for the quick buck, but are instead in it for the long haul. Actions like Cook’s prove it time and again. Now let’s see who follows and who doesn’t!

Apple will return to $200 before most people realize they’ve missed out (again).

What’s the point?

Climate concerns are apparently second fiddle to challenging economic conditions in Davos this year. So’s the threat of a global recession in Davos this year. (Read)

Good thing: That means less discussion about the hypocrisy of flying in 1,500+ private jets that’ll create more pollution than the rest of us do in several years of traveling.

What’s the point??!!

Seems to me that first-graders at recess have smarter discussions. The world doesn’t need more peacocking from a bunch of self-aggrandizing woke capitalists.

Tesla to BMW: Who’s ultimate now??!!

Tesla has overtaken BMW to become the top luxury car brand in the US last year. Team Musk sold 158,612 more cars than BMW, and it’s the first time in 28 years that a US car-maker has held the #1 slot. (Read)

Naysayers can cry in their charging ports all they want.

Tesla stock is still up 5,531.72% over the past 10 years, even after all the recent selling. That’s a 49.58% annual rate of return.

Oh, and genius move… Tesla just slashed prices to make its cars eligible for a $7,500 US government tax credit. (Read)

Betting against Musk is a fool's errand. You’d think people woulda learned by now.

BTW, history suggests there are 10–15 Teslas out there right now. If you’ve got this covered, cool! If not, I’d love to help. Upgrade to Paid

Bottom Line

People talk to me all the time about how they missed this company or shoulda bought that one, but the lesson somehow never sinks in.

A great investment doesn't mean squat if you don't have the mindset to seize the opportunity.

Start today!

As always, let’s get out there and MAKE it a great day!

Keith 😊