Greedy's Vault - Volume 7

LevWedge Studios Presents

SUNDAY NOVEMBER 26, 2023

WHAT'S INSIDE:

VOL.7

Buffett Buffet Perspective through charts Greedy’s Take - Lessons to consider Market Update

Puppets | Perspective | Finance

Mentors and lessons In Investing Welcome to Issue #7 of Greedy's Vault! This week, in our YouTube series The Greedy Show, we’re serving up a "Buffett Buffet" (Parts 1 & 2), we're exploring the invaluable lessons learned from investing giants like Buffett and how even I, at nearly 43 years young, am still learning new and pivotal lessons on this journey.

Continuous Learning and Growth: One of the most exciting aspects of the Greedy project is the continuous learning process. While I can share decades of experience, the truth is, the learning never stops. The market is an everevolving beast, and each day brings new insights.

Warren Buffett's Journey: This week, I stumbled upon a fascinating piece of history about Warren Buffett. During the tumultuous 1970s, marked by the oil crisis and political strife in America, Buffett experienced a staggering 50% drawdown. This was a revelation to me, and a stark reminder that risk is an inevitable part of the investing journey.

Emerging Stronger from Crisis: The fascinating part of Buffett's story is what followed after this challenging period. It was then that he joined forces with Charlie Munger, forming a partnership that would become the backbone of their future success. Shortly after, they initiated their position in Geico, a move that proved to be one of Buffett's most lucrative investments. By the mid-90s, they had acquired all of Geico, and the rest, as they say, is history.

Key Takeaways Buffett's journey teaches us three critical lessons: Navigating Risk: Risk cannot be outrun; it must be carefully managed and navigated.

The Power of Partnerships: Finding the right partner can be a game-changer in the world of investing.

Turning Points: Sometimes, the most challenging times can lead to the most significant opportunities.

As we continue on this financial adventure, remember that the greatest investors are also lifelong learners. Their experiences, both good and bad, are a goldmine of wisdom for us all. Stay curious, stay hungry for knowledge, and as always, stay Greedy!

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VOL.7 PAGE 2

In this edition of Greedy's Vault, we're taking a unique look at Warren Buffett's almost 80-year investment career through an extraordinary chart that offers a telescopic view of market trends from 1941 to the present.

A Visual Journey: I've come across a fascinating chart that puts Buffett's tenure in the market into perspective. To encompass nearly a century, I used a Yearly Candle chart, where each candlestick represents a year. This long-range view is akin to looking through a telescope into the past of financial markets.

Understanding Parabolic SAR: The Parabolic SAR (stop and reverse) indicator, a brainchild of J. Welles Wilder, is typically used to spot trends and reversals. It features dots superimposed on a price chart, signaling a potential reversal when these dots flip. Although a lagging indicator, it provides valuable insights into trend direction.

Insights from the Chart: In the chart spanning almost 100 years, the Parabolic SAR only triggered three times during Buffett's career – in the mid-1970s, 2002, and 2008, marking significant downtrends or corrections. This means out of Buffett’s nearly 80 years in the markets, only about 16 years were predominantly bearish.

A Reality Check on Market Pessimism: Despite the often doom-and-gloom narratives peddled by various news outlets, this analysis shows that the markets have trended upward approximately 80% of the time during Buffett’s investment career. It highlights that while downturns and recessions are part of the cycle, growth and upward trends are more prevalent.

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VOL.7 PAGE 4

Decoding the Chart for Long-Term Market Success In this segment of Greedy's Vault, let's jump into the art of chart analysis, where each candle represents a year of market activity. This method isn't just about numbers; it's about visual patterns and insights that can help you navigate the market's ebb and flow.

Chart: le d n a C arly g the Ye n i d n a t s Under ach , where e d e id v o r p he chart ne year.

Look at t o s e z li o ick symb candlest a color d in f l ’l u o r, y left corne ch p o t e h t In ages. Ea r e v a g in e mov ving key for th ecific mo p s a s t n ying rese color rep for identif l o o t l a a critic average, trends.

Put the colors to work for you STOCKCHARTS.COM Using Colors to Detect Trends: - The beauty of this chart lies in its simplicity. By using color patterns, you can quickly ascertain whether the market trend is up or down. It's about turning complex data into an easily digestible visual snapshot.

Applying This to Daily Movements: - The same chart can be zoomed in to display daily candles, giving you a closer look at the last 18 months. This near-term view can be crucial for understanding current market dynamics.

Consistency is Key: - As you follow along, it's essential to stick with it. Consistency in observing and interpreting these charts is crucial for long-term success.

Embracing the Learning Curve: - If this all seems overwhelming or peculiar at first, don't worry. Immersing yourself in this analysis is like drinking from a firehose – intense, but incredibly enriching. Over time, these concepts will become second nature.

Remember, the key to smacking Mr. Market upside the head in the long term lies in diving deep into these analytical tools. Stay committed, stay curious, and as always, stay Greedy!

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ET K AR M R. M

Greedy's Take: While we can't predict that the market will continue this pattern over the next 80 years, betting against long-term growth, especially in a land ripe with opportunity like America, seems unwise. At Greedy's Vault, our focus is on identifying the best assets to grow your wealth. But fundamentally, it’s a bet on America's future prosperity. Understanding and believing in this long-term growth trajectory is crucial for anyone aiming to compound wealth.

So, let's not get bogged down by the short-term noise. Instead, let's focus on the broader picture of growth and opportunity, staying optimistic and, as always, staying Greedy!

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Riding the Bullish Wave SUNDAY NOVEMBER 26, 2023

This week, we've witnessed some exhilarating shifts in the market. Let's break down the numbers and see what they're telling us about the upcoming trends.

Market Performance This Week: Dow Jones Industrial Average: Up by 1.27%.

S&P 500 (SPX): Increased by 1.00%.

Nasdaq Composite: Rose by 0.89%.

VIX Is sitting at 12.46 as we closed the week out These figures indicate a robust recovery and reversal from previous trends.

Bull and Bear Mix Update - Derived from Greedy’s Ticker’s* There's been a significant shift in the market's mood. Our Bull Scan is red-hot at 1442, while the Bears seem to have retreated, dropping down to 122. This drastic change suggests a bullish sentiment taking a firm hold.

End-of-Year Trend Analysis: Looking ahead, the market appears to be heating up as we head towards the year's end. We might encounter some choppiness in December, but the overall trajectory seems tilted towards the upside.

How can we be so sure?

ADX Indicator: The Average Directional Index is on the rise, which typically signals strengthening trends.

Rate of Change: Currently, the market is showing a positive rate of change, bolstering our bullish outlook.

PPO Insights: The Percentage Price Oscillator (PPO) is fluctuating above and below zero, currently sitting at 1.5. This might suggest some volatility, but paired with our strong ADX reading and the overwhelming bullish lead in the scans (nearly 12 to 1), it points to more ups than downs in the short term.

Greedy's Take: While not every hour or day will bring good news, the overall market trends are skewing positively.

Remember, it's about playing the long game and reading the signs. Stay vigilant, stay informed, and, as always, stay Greedy for those gains! *Greedy’s tickers is a Google Sheet of Bulls and Bears made available weekly for paid subscribers at Greedyshow.com. The curated lists are developed using Greedy’s proprietary algorithm’s. The lists are Included with Little G and Greedy Mode subscription offerings

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Episode 7 Buffett Buffet (Part 1) Now streaming on YouTube and Greedyshow.com!