Lessons from Investment Gurus

The Most Important Thing

 Successful investing requires thoughtful attention to many separate aspects, all at the same time. 
Omit any one and the result is likely to be less than satisfactory.

The idea of the most important things—each is a brick in a solid wall, and none is dispensable. 

Starting to look at Intel more seriously. Other than TSMC, only Samsung and Intel (both far behind and barely) can even dream of foundry for advanced chips.  

Israel's government has approved a $3.2B grant for Intel's new $25B chip plant in southern Israel, marking the largest-ever investment by a company in the country.

https://www.reuters.com/technology/intel-get-32-billion-government-grant-new-25-billion-israel-chip-plant-2023-12-26/?utm_campaign=%5BTI-AM%5D+The+Informat&utm_content=131&utm_medium=email&utm_source=cio&utm_term=32
#The Most Important Thing

Starting to look at Intel more seriously. Other than TSMC, only Samsung and Intel (both far behind and barely) can even dream of foundry for advanced chips.    Israel's government has approved a $3.2B grant for Intel's new $25B chip plant in southern Israel, marking the largest-ever investment by a company in the country.  https://www.reuters.com/technology/intel-get-32-billion-government-grant-new-25-billion-israel-chip-plant-2023-12-26/?utm_campaign=%5BTI-AM%5D+The+Informat&utm_content=131&utm_medium=email&utm_source=cio&utm_term=32 #The Most Important Thing

I’m Sam, I’m the curriculum director at Gregorio Perfecto High School in Manila, Philippines. I’ve been an educator and administrator for just over 25 years. Our school is spending a good amount on edtech, but I don’t feel like we’re getting the most out of it. I’d love to learn from everyone what is working for them. Thanks!

Sam Mendoza

the idea of the government buying into Intel isn’t so crazy. In 2008 and 2009, the U.S. Treasury got stock in both General Motors and Chrysler as part of a massive bailout of those companies during the financial crisis. (The government sold its stakes a few years later). While Intel isn’t in quite the parlous state the automakers were in, it surely needs the help. Revenue fell 16% between 2022 and 2024, and the company lost $19 billion last year. A report in The Wall Street Journal last Friday said the new CEO, Lip-Bu Tan, was fighting with Intel chair Frank Yeary over whether Intel should stay in the business of making chips—with Yeary wanting to exit. 

An exit would be bad for America’s aspiration to be self-reliant in chips. Remember, while Nvidia contracts out the manufacturing of its chips to Taiwan Semiconductor Manufacturing Co., Intel makes its own. That makes it a jewel asset that the U.S. government should want to retain if possible, particularly given the possibility that China could invade Taiwan, which accounts for much of the world’s chip manufacturing. That’s why Trump’s call for Tan to quit last week was so shortsighted—Tan is exactly the person Trump should be supporting. Fortunately, after Tan went to the White House to meet with the president, Trump’s attitude appears to have changed. 

The problem with a U.S. government investment in Intel isn’t the idea itself, but how Trump would behave afterward. Given his desire to control everything—he’s even picking the honorees for the Kennedy Center—there’s a chance he’ll want to micromanage Intel if the government owns a stake in the company. And given his tendency to shoot from the hip, that could be a disaster for all concerned (except possibly Intel’s rivals). For the moment, investors interpreted news of the possible investment as a good sign, sending Intel stock up 7%. Long term, though, it could be a different story.

the idea of the government buying into Intel isn’t so crazy. In 2008 and 2009, the U.S. Treasury got stock in both General Motors and Chrysler as part of a massive bailout of those companies during the financial crisis. (The government sold its stakes a few years later). While Intel isn’t in quite the parlous state the automakers were in, it surely needs the help. Revenue fell 16% between 2022 and 2024, and the company lost $19 billion last year. A report in The Wall Street Journal last Friday said the new CEO, Lip-Bu Tan, was fighting with Intel chair Frank Yeary over whether Intel should stay in the business of making chips—with Yeary wanting to exit.   An exit would be bad for America’s aspiration to be self-reliant in chips. Remember, while Nvidia contracts out the manufacturing of its chips to Taiwan Semiconductor Manufacturing Co., Intel makes its own. That makes it a jewel asset that the U.S. government should want to retain if possible, particularly given the possibility that China could invade Taiwan, which accounts for much of the world’s chip manufacturing. That’s why Trump’s call for Tan to quit last week was so shortsighted—Tan is exactly the person Trump should be supporting. Fortunately, after Tan went to the White House to meet with the president, Trump’s attitude appears to have changed.   The problem with a U.S. government investment in Intel isn’t the idea itself, but how Trump would behave afterward. Given his desire to control everything—he’s even picking the honorees for the Kennedy Center—there’s a chance he’ll want to micromanage Intel if the government owns a stake in the company. And given his tendency to shoot from the hip, that could be a disaster for all concerned (except possibly Intel’s rivals). For the moment, investors interpreted news of the possible investment as a good sign, sending Intel stock up 7%. Long term, though, it could be a different story.