Monday 4^th April 2022

Today was a big day. My uncle’s funeral, paddle out and wake in Torquay. The family were expecting 200 to maybe 250 people to attend. Over 800 came to celebrate his life with another 150 with us on the live stream. It was epic to spend more time with my extended family while at the same time it’s sad that it took a death to connect like we did.

There’s a valuable lesson in this…

 

Wednesday 6^th April 2022

Elon Musk bought 9.2% of Twitter after a Twitter poll he posted asking about free speech on the platform. Today he was appointed to the Board of Directors.

In other news, the RBA is now talking about interest rate rises, after signalling no interest rate rises until 2024.

 

Thursday 7^th April 2022

Something I probably don’t do well enough (actually one of the many things I don’t do well enough!) is communicate that this diary isn’t about money. It’s about time and choice. Spending your days as you wish, hence the name Project Passive.

Passive is the opposite of active. Passive income is a type of income that happens with or without us.

It’s also the main reason I choose equities to create this passive income and the choices and freedom that can come with it. I have no desire to attend open homes, deal with agents, negotiate, jump through the hoops applying for loans, talking to property managers, finding tenants, sinking funds into repairs and upgrades, maintenance and the like.

There isn’t too much that’s passive about any of that… Many would disagree, but that’s ok. One the other hand equities are easy; actually they’re too easy which is exactly why they are passive. Ignorance and a lack of emotional intelligence are the greatest barriers in passive investing from what I can tell.

Company earnings are generated and dividends/distributions are paid semi-annually/quarterly whether I’m surfing down in Byron Bay, training here on the Gold Coast or reading a book at home. Plus, transactions are executed via an app on the phone in seconds in most cases, which I love.

Getting back to time and spending your days as you wish, outside peace of mind and great health, time is more valuable than money in my view and therefore should be prioritised. As Jim Rohn once said ‘better to live in a tent on the beach with someone you love than in a mansion all by yourself’.

It’s time that allows us to pursue our real interests in life and deepen friendships and relationships. Money can buy you a house but it cannot buy you a home. Money can buy you sex but it cannot buy you love. Money can buy you medicine but it cannot buy you health. You get the drift…

 

Wednesday 13^th April 2022

US inflation running at 8.5% again the highest in 40 years. The White House warned of extraordinary elevated inflation data. The sanctions against Russia are costing us all. (​​https://twitter.com/disclosetv/status/1513574076383645699?s=20&t=6oSwYURL0r8dtmbrTCLhkQ) 

The RBNZ just lifted the cash rate by 0.5% to 1.5%, but they don’t have a federal election coming up like we do in Australia.

 

Saturday 16^th April 2022

A few days ago Elon Musk on Twitter posted a poll about free speech on Twitter. A few days later it’s announced he owns 9.2% of Twitter investing over $3 billion dollars. Fast forward and Elon rejects a position on the Twitter board and offers to buy the entire company for $54.20/share.

The board rejects this offer (35% above the current share price) responding with something called a ‘poison pill’ essentially making it difficult for Elon to execute this offer and acquire the company.

Elon wants to make changes to Twitter to enable free speech on the platform, via open sourcing the algorithm, taking the product private, among other things.

Outside of websites, newsletters and sometimes podcasts, free speech no longer exists online. So in a way, free speech is for sale. 

What’s crazy about the Twitter boards’ response is how little skin in the game they have. Between all board members cumulatively they own less than 1% of the company! Outside the payments they receive as board members there’s zero incentive to improve/grow the company. 

Whatever way this goes, I’m wrapped that free speech is a central topic of conversation; because the censorship mainstream media has forced upon society is criminal.

 

Wednesday 20^th April 2022

Vanguard distributions received today. Always a good day!

Overnight Netflix reported its first decline in subscribers. Share price dropped 35% the next day. Brutal! 

Interestingly, Bill Ackman invested a few hundred million dollars into Netflix about three month ago. It was reported he sold, losing many millions of dollars. Goes to show how challenging it is to pick stocks…  

Valuations have shifted to results over potential/narrative. Investors now want to see cash flow and earnings growth. 6-12 months ago cash flow and earrings were secondary to potential or the narrative a company or founder told.

 

Thursday 21^st April 2022

A friend emailed me this: Jack Mallers, the founder and CEO of Strike, gave a presentation at the Bitcoin Conference yesterday. He announced a partnership with Shopify, Blackhawk and NCR to power transactions across something called the Bitcoin payment rail…

This is a long email, suffice to say, incorporating Bitcoin technology into mainstream international payments appears to have some advantages the above mentioned companies are leveraging. 

The Bitcoin price is hovering around $40,000USD at the time of writing.

My friend also sent me communication about the fiat currencies of Sri Lanka and Lebanon failing via their governments defaulting on their debts. Interesting times. 

 

Sunday 24th April 2022

I just heard the Central African Republic has passed a bill allowing Bitcoin as legal tender. As more of the world gains access to the internet, I’m guessing we’ll see more of this.

 

Tuesday 26th April 2022

A big development overnight, the Twitter board agreeing to Elon’s buy out offer. This is sensational news in my opinion. Elon will go into bat for free speech, which is absolutely vital in today’s world. No other online platforms outside of email, personal websites/blogs and some podcasts engage in or allow free speech. It’s mind blowing how censored and narrated mainstream media is. 

The evidence is in the resistance to Elon owning Twitter. Some people are freaking out, when they should have been freaking out by what’s happened to free speech the past two years alone. 

Elon is cut from a different cloth. Out of all the billionaires that could have had the courage to tackle free speech, offered to buy Twitter and attempt to restore some truth in communication, I’m grateful it was Elon who stepped up to the plate. I’d be worried if it was anyone else… 

In terms of the markets, they’ve been going up and down as they always have and always will. The FED in the US signalled a 0.5% interest rate increase meaning we’ve been experiencing a little more red than green the past few days. The Australian market is following suit. 

 

Wednesday 27th April 2022

Speaking of red, overnight the US market had its worst day since September 2020. 

Closer to home, inflation has accelerated at its fastest pace in over 20 years here in Australia, up from 3.5% to 5.1% in the past 12 months. You don’t have to be the sharpest tool in the shed to have noticed this. Somehow though it slipped past the RBA board and yet again they are going to be playing catch up in terms of interest rate rises… 

 

Friday 29th April 2022

The US economy contracted 1.4% in the first quarter of 2022. This raises talk around a recession this year in the USA. How things have changed from just 12-18 months ago. Rising interest rates, significant inflation and a contracting economy. 

Apple and Amazon reported overnight. Apple beat expectations while Amazon is down 10% in after hours trading.

 

Saturday 30 April 2022

Lots of red overnight in the US. Amazon ended the day down 14% missing earnings. 

Apparently it’s the worst first 4 months in the market for 20 years. I don’t know who comes up with these stats but they do reinforce one thing for sure. Bad news sells. 

I take it all with a grain of salt. These idiot financial journalists are incentivised to get clicks, comments and engagement from their articles of doom. Good news doesn’t sell. Delayed gratification is boring as is compound interest.

The fact we can be part owners, in some of the most incredible international businesses in the history of the world, from a few clicks on our phone is such an incredible gift. What a time to be alive. Being able to purchase more ownership of these companies cheaper than 6 months ago is another gift I enjoy.

And what about not having to sweep the floors of the businesses we part own? Nor deal with customers. Work long hours. Figure out international laws and complex computer programming code. Recruiting and firing staff, negotiating supply chain, innovating new products and services… I could go on. It’s all done for us. How frickin incredible! 

Learning to completely ignore idiot financial journalists is worth mastering, because nothing beats having peace of mind while being able to spend your time as you wish with great health.