The Latte, Christmas Edition

Hey fellow investors, 👋

Can you believe the year is almost over? I just wanted to take a minute to say thank you for being part of the Latte family. You’ve been amazing, and your support means the world to me. ❤️‍🔥✊

This Christmas, I hope you get to slow down, enjoy some quality time with your loved ones, and maybe even treat yourself a little—I’ll try to spend at least some time with fam, but will certainly not slow down much! Let’s make 2025 our best year yet—both financially and personally. 💯

Wishing you all the joy and good vibes this season has to offer!

Cheers,

George

Top 3 Things We Learned About Stocks in 2024

1. Trust The Process:
The market selloff in 2022 and the continued volatility in 2023 made many investors question the stock market and doubt its future potential. Remember the SPAC merger bubble, inflated IPOs, and the wanna-be next Teslas? Most retail investors who chased quick profits got burned, while institutional investors and insiders got rich. The moral message? Short-term gain is a Wall Street game, while everyone else ("outsiders"), even Warren Buffett, can benefit from long-term investing. The market near all-time highs proves why we should trust the process.

2. There’s Still Market Inefficiencies:
Hims & Hers Inc. ($HIMS) has been one of the year’s best-performing stocks, up more than 3x YTD. Back in 2023, this stock used to trade in the mid-single digits, even though the business was booming. When something looks too good to be true, it probably is, and investors should be alerted. For example, when shares of a booming business trade at unjustifiably low levels, it might mean that Wall Street doesn’t trust the financials, which is a major red flag. However, sometimes Wall Street investors are deadly wrong. In $HIMS' case, the stock was severely undervalued for no particular reason—perhaps because it was just flying under the radar. As the company continued to overdeliver quarter after quarter, the big guys started to pay attention and sent its shares soaring.

3. B2B Stocks Might Be Better Long-Term Holds Than Retail Names:
Starbucks, Lululemon, Nike—just a few retail names that have massively underperformed the market over the past five years and missed out on this year’s rally as well. Meanwhile, look at some high-quality B2B stocks—Shopify, The Trade Desk, Samsara, Crowdstrike. They have all delivered market-beating returns. Why? While the economy is booming, retail names are struggling because many consumers are dealing with a cost-of-living crisis that accelerated during the pandemic. And with so many options out there, competition over consumer wallets is higher than ever. Combining this with constantly changing consumer preferences and priorities, selling to individuals has never been more challenging and unpredictable, impacting even retail behemoths. On the other hand, selling to businesses, especially large ones, is quite lucrative since large enterprises have deep pockets and are willing to spend money on solutions that make them more efficient or competitive.

Something Exciting is Coming in 2025...

I can’t share all the details just yet, but I’ve been working on something super interesting for 2025. It’s designed to help you better understand the stocks in our coverage universe. Keep an eye on your inbox—I’ll be dropping hints soon!

For now, just know that great things are on the horizon, and I can’t wait to share more with you.

Spread the Holiday Cheer 🎅📣

Know someone who’d love being part of this community? Forward them this email! Let’s grow this little family of ours and make 2025 the year we all thrive together.

Hope your holidays are filled with love, laughter, and everything that makes you happy!

George