My Investing Muse (20Jan2025) - layoffs, supply chain gains from disruptions
My Investing Muse (20Jan2025)
Layoffs & Closure news
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Citigroup plans to cut 20,000 jobs by the end of 2026. - The Straits Times
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Angie’s Transportation and STL Equipment Leasing cite freight market challenges in bankruptcy filings - FreightWaves
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META IS PLANNING TO CUT 5% OF LOWEST PERFORMERS, MEMO SHOWS - X user Investing
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Walgreens will now close 12 more stores in San Francisco. How much more self-inflicted abuse will Californians absorb before they demand change? - X user Charlie Kirk
The above are some snippets of news about layoffs, and closures in the past week.
Supply Chain gains from disruptions
Supply Chain benefits from the shipping disruptions "Cosco says shipping disruptions boosted 2024 net profit by 95%" - Yahoo Finance (FreightWaves)
With peace coming to the Middle East, the Supply Chain industry is likely to benefit & suffer from this. The shipping lead times should be reduced and the shipping costs should drop to pre (Red Sea) crisis levels.
Freight volumes captured by the Cass Freight Index fell 7.3% from November and were off 6.5% year over year. Even excluding the typical November-to-December seasonal dip, the index was off 3.1%, which wiped away November’s 2.8% sequential gain. This was the largest y/y decline for the shipments index since January 2024 and the lowest index reading since June 2020. - Yahoo Finance
When peace comes, the shipping sector should see a drop in revenue. Peace is not always good news for all industries.
My final thoughts
Consumer Watchdog estimates home insurance rates could increase by as much as 40% to 50% as a result. - Yahoo News article
One of the “collateral” costs will be the increase in insurance premiums that affect the whole country (beyond Los Angeles).
Charlie Munger Said His Family Only Owns 3 Stocks – 'Damn Right' They're Rich Because Diversification Is For 'Know-Nothing Investors' - Benzinga
The above has left me in thought as I hold stocks from many companies in my portfolio. Is such diversification getting me adequate returns?
My goals for 2025 are to learn, connect and create value. I look forward to more sharing and learning together.
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