"The big money is not in the buying and selling, but in the waiting."- Charlie Munger
This insightful quote by Charlie Munger emphasizes the power of patience in investing. While many focus on frequent trading, Munger reminds us that real wealth is built by holding quality investments over time.
Munger, a legendary investor and longtime partner of Warren Buffett, advocated for rational decision-making, long-term compounding, and understanding businesses deeply rather than being swayed by short-term market noise.
Market Wrap
U.S. stock markets concluded a volatile week with a notable rally on Friday, February 28, 2025.
Despite these gains, the S&P 500 and Nasdaq recorded weekly losses of 1% and 3.5%, respectively.
Inflation Trends:
The Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose 0.3% in January, maintaining a 2.5% year-over-year increase. Core PCE, excluding food and energy, also increased by 0.3% for a 2.6% annual rise, indicating stable inflation trends.
Consumer Spending:
Despite rising incomes, consumer spending decreased by 0.2% in January, the largest decline since February 2021. This decline suggests potential caution among consumers amid economic uncertainties.
Geopolitical Tensions:
A contentious meeting between President Trump and Ukrainian President Volodymyr Zelenskiy briefly unsettled markets, though they later recovered.
Tesla Inc. shares increased 3.9% to $292.98, snapping a six-day losing streak. The rebound occurred during a broadly favorable trading session, though the stock remains 40% below its 52-week high.
Dell Technologies Inc. shares fell 4.7% despite reporting strong quarterly earnings. The decline was attributed to a softer sales outlook, raising concerns about future revenue growth.
HP Inc. shares dropped almost 7% following mixed earnings reports and the announcement of further layoffs, leading to investor concerns about future profitability.
NetApp Inc. shares tumbled 16% after reporting revenue that missed forecasts and issuing weak guidance due to slowed sales growth, raising concerns about future performance.
Elastic N.V. shares jumped as the data analytics software provider reported better-than-expected earnings, citing strong demand for AI-related products, which boosted investor confidence.
Unlock Exclusive Insights!
You can preview data for the Magnificent Seven now :
