Nevstar Links 07 March 2025
Welcome back to the Nevstar Links, your guide to some of the best articles on markets and investing available on the internet.
Today is Friday 7th March and it was on this day in 1952 that one of the Nevstar’s all-time favourite cricketers was born. On this day, on the small island of Antigua, a certain Isaac Vivian Alexander Richards was born, better known as Viv Richards or the “Master Blaster”. Viv (later Sir Vivian) was the simply the best batsman in the dominant West Indies side of the 1980s. He had a famous swagger, never batted with a helmet and destroyed all manner of bowling attacks with contemptuous ease. Take a moment to enjoy him bashing Australia to all parts of the MCG here in 1984.
Onto the links for the week including articles on predictions, robbers, and returns.
Two Important Questions About The Trade War
It was hard finding articles to link to this week as most business and investment sites were dominated by talk of trade wars and tariffs. This is an excellent piece from Vox on how the developing trade war may impact economies and markets. Its clearly top of mind for most investors at the moment.
“At times, Trump has seemed to view tariff threats mainly as a negotiating tactic, to win policy concessions in deals with other countries. This is what investors have generally hoped — that the tariffs are short-term posturing, and that Trump will ultimately declare victory and move on, signing ‘big beautiful deals’ that he can brag about while returning to something like business as usual.”
Shameless Robber Barons?
Great piece from Klement on Investing comparing the rapacious Robber Barons of the late 19th century with the tech moguls of today. Some really interesting observations about scale of wealth inequality, the reasons for it and what people do with that wealth. Highly recommended.
“The largest US businesses make monopolistic profits that in the past were unachievable because in competitive markets, profit margins are eroded over time. But in the US, many markets are no longer competitive. As I have explained before, US mega-cap tech companies are creating a kill zone to protect their markets and they can do so ever more effectively, the more money they make.”
UBS Global Investment Returns Yearbook 2025
This is an annual release from UBS showcasing analysis of the long term performance of global investment assets. It always contains some fascinating insights into the world of investing and this year’s edition is no exception. Click on the link and then download the PDF Summary.
“Markets at the beginning of the 20th century were dominated by railroads, which accounted for 63% of US stock market value and almost 50% in the UK. Meanwhile, of the largest industries in 2025, energy (except coal), technology and healthcare (including pharmaceuticals and biotechnology) were almost totally absent in 1900.”
Scams, Damn Scams and Investors
This is a really helpful piece from Dollars & Data which outlines are few of the tricks used by some of the financial industry’s less savoury characters to help separate investors from their money. One of the first important wealth lessons to learn is – do not lose your money. Essential reading.
“’If you don’t know where the yield is coming from, you are the yield.’ This is true of Ponzi schemes, like the one run by Bernie Madoff, and many other scams perpetrated on individual investors. If you can’t spell out exactly how something makes you money, then you shouldn’t be investing in it. Period.”
The Dangers of Predicting A Financial Crisis
This is a great piece from our friend Ben Carlson looking at the predilection of hedge fund manager Ray Dalio to predict an imminent economic crisis. These types of predictions are catnip to headline writers and generally garner lots of press coverage. But as the blogpost suggests, his track record is actually pretty poor and these doomsday predictions can safely be ignored.
“Dalio predicted a depression at the outset of what would become one of the biggest bull markets in history. There are plenty of other instances where Dalio’s predictions were on the wrong side of history.”
Quote of the Week
Rather than a quote this week, I have my favourite Viv Richards anecdote to share.
“In a county match in England, Greg Thomas was bowling to Viv Richards and getting a few past the bat. After Richards played and missed another one, Thomas said: ‘Viv, it's red, round and weighs about five ounces, in case you were wondering.’ This obviously got Richards fired up, who then proceeded to hit the next ball out of the ground and said to Thomas,
‘You know what it looks like, now go and get it.’
That is all for the Nevstar Links this week.
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Have a great weekend.
The Nevstar
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Neville Giles
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