Presented By: The Early Bird from MarketBeat

Official Affiliate Partner: The Early Bird from MarketBeat

Just say NO!

After falling ill at his home and being brought to the hospital, Charlie Munger, who was just shy of his 100th birthday, was asked by a nurse how he was.

“I’m dying,” he said. “How are you?”

Charlie passed away on November 28th, 2023, and was cremated.

Two ETFs started trading this past week, likely making Charlie swirl in his urn. On December 10th, Direxion launched "the first leveraged and inverse single stock funds on Berkshire Hathaway, allowing traders to react to Warren Buffett’s guidance and sentiments."

The Direxion Daily BRKB Bull 2X Shares (BRKU) is designed to double the daily moves of the Berkshire B shares. This ETF uses derivatives to provide 2x leveraged exposure to BRK.B - meaning if Berkshire goes up 1%, this ETF aims to go up 2% (and if Berkshire goes down 1%, this ETF will go down 2%).
The Direxion Daily BRKB Bear 1X Shares (BRKD) is crafted to move in the opposite direction of BRK.B's daily performance, but with no amplification. This "bear" or inverse ETF aims to move in the opposite direction of Berkshire Hathaway stock (BRK.B). If BRK.B drops 1%, this ETF seeks to increase 1%, and vice versa.

Direxion says these leveraged ETFs "are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk and who actively manage their investments."

In the 1994 Berkshire Annual Shareholder meeting, Warren and Charlie had something to say about leverage: "Leverage plus the ability to get rich quick usually equals financial disaster."

Yes, they were talking about a different kind of leverage (borrowing money), but this still applies.

These ETFs also carry a high 0.97% expense ratio, which means you'll pay $9.70 in fees each year for every $1,000 you invest.

I'm not sure about you, but there's no way in hell I'd leverage Berkshire at a 1% fee when you can buy BRK.B and be patient. It's free, and you won't have to worry about making Poor Charlie swirl in his urn.

The Bellristas are coming!

Mcdonald's did it with CosMC's
Sonic did it with Flavorista Favorites
Jollibee did it with Signature Sips
Caribou Coffee did it with Fruit Shakers and Energy Drinks

Now Taco Bell is doing it with Live Más Café in Chula Vista, CA.

What is "it," you ask? It's catering to Gen Z's sweet tooth, which they want delivered in a healthy-ish way.

The short of it is that these drinks are customized and created by trained baristas, bellristas, or flavoristas. Make no mistake; they want to compete with Starbucks (SBUX) for Gen Z cash and are trying new and creative ways to get it.

Taco Bell is testing a new concept with specialty coffees, shakes and other beverages called the Live Más Café. (Photo courtesy of Taco Bell)

👆There they are. Drinks that look too sugary for me must mean I'm progressing nicely into old age.

I submit to you a Bellrista preparing a Cinnabon Carmel Iced Coffee.👇

A Bellrista prepares a Cinnabon Carmel Iced Coffee.

It looks like a liquified birthday cake and ice cream in a cup if you ask me.

But it doesn't matter what I think. What matters is that there is a strong demand for these products, and the market is trying to meet that demand.

This is how a free market economy should function: people voting with their dollars and the best mousetrap winning.

As a Starbucks (SBUX) shareholder, I find it amusing and concerning that several competitors are popping up to take Gen Z's market share away.

But this is how it should be in a land of competition. It's challenging to meet the ever-shifting demands of the marketplace, but it's also beneficial to the consumer through better products at cheaper prices.

Let me know your take on the Berkshire leveraged ETFs or if you enjoy these sugary drinks by hitting REPLY.

😁THANK YOU to everyone who responded to the last newsletter!!

Check out the portfolios and podcasts, or see what’s cooking on YouTube.

And now, here is this week's portfolio activity...

Dividends Received This Week ~$324.97

Johnson & Johnson (JNJ) | $140.12
ExxonMobil (XOM) | $43.56
Chevron (CVX) | $24.45
Main Street Capital (MAIN) | $36.75
Realty Income (O) | $54.54
Agree Realty (ADC) | $25.55

Dividends Received Year to Date~

$6,809.21

Stocks Sold (AVERAGE)

None

Stocks Bought (AVERAGE)

4 VICI Properties (VICI) | $31.15
3 Global X MLP & Energy ETF (MLPX) | $60.91
1 Harrow Inc. (HROW) | $36.95

Notable Ex-Dividends This Week + SSD Score

12/16 Disney (DIS), 0.88% | 70S
12/16 Merck (MRK), 3.18% | 90VS
12/16 Extra Space Storage (EXR), 4.10% | 80S
12/16 Prologis (PLD), 3.46% | 61S
12/17 VICI Properties (VICI), 5.56% | 50BS
12/18 Tootsie Roll (TR), 1.21% | 99VS
12/19 British American Tobacco (BTI), 7.89% | 45BS
12/20 Broadcom (AVGO), 1.05% | 67S

🎙️Podcast of the week🎙️

Andrew Bary’s Top Stock Pick...

Dec 13 · Barron's Streetwise

27:18

If you're in the mood for a few year-end stock picks, check out this podcast from Barron's Streetwise. They mentioned an article with Barron's ten favorite stocks to buy for 2025, and luckily for you, I've copied the article and pasted it HERE. SHHH! Don't tell anyone. It's our little secret!🤫

🎦If you missed it, 19 "Strong Buy" Dividend Stocks!!

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🎶Random music from the Dapper Dividends Jukebox🎶

Def Leppard - Bringin' on the Heartbreak / Switch 625