Vol 24 – The Casino & The Cathedral: The Dual Nature of Capitalism
- Ann Yu
- May 11
- 6 min read
May 11, 2025
As we all bounce back from a holiday-packed April, my past week has been nothing short of eventful. From deep dives to friendly reality checks - here's a rundown of the highlights!
Recap of my fruitful week
📅 Tuesday – Met with Sustainable Finance Initiative, exploring how Asian family offices are approaching impact investment projects. Clients are increasingly keen to give back to society while keeping an eye on returns - expect more details after HK Impact Week in two weeks!
🚀 Thursday – Attended the AWS Summit and was amazed by the energy! I checked out the AWS for Financial Services booth - impressive tech (in presentation), but after seeing its current capabilities, I can say my job is safe… for now. 😅
🍽️ Thursday (Again!) – Luncheon hosted by a healthcare hedge fund. One of the rare ones pulling in 10% YTD returns by playing long/short across healthcare spectrum. The biggest contributor this year? Surprisingly boring but steady distributors moving medicines between pharmacies! Unexciting but essential, immune to tariffs, and vital in any economy.
🏛 Friday – Had an eye-opening chat with a prestigious HK family office. Their innovative legacy plans prove once again that, when you have (a lot of) money, secret doors magically open to mind-blowing opportunities. Some of these, I didn't even know existed. 🤯
🤝 Friday (Part 2) – Caught up with an ex-colleague, who honestly pointed out the missing piece in our family office startup: Investment advisory alone won’t cut it. Message received loud and clear! We’re already working on it - expect to see a bolder Jadewell Family Office soon! Keep the feedback coming - we thrive on it! 🙌
What’s in the newsletter this week?
1️⃣ What Did Buffett Say in His Final Shareholder Meeting? A Cathedral Attached to a Casino! After six decades at the helm, Warren Buffett is stepping down as CEO of Berkshire Hathaway. What were his last reminders for everyday investors like us? And how do they align with other key reminders I’ve heard recently?
2️⃣ McRecession & The Middle-Class Squeeze: 🍔💸 McDonald’s confirms what we all feel - being middle class is getting tougher. Personally, I’ve already ditched my morning coffee shopping habit after becoming an entrepreneur, saving HKD 200 a week! What's next? A black market for affordable McNuggets?
Category | Contents for this week |
|---|---|
1) Meeting of the Week | |
2) Market Buzz |
Key things to watch for the upcoming week:
China/HK - Earnings | May 13 (Tue) - JD (9618) May 14 (Wed) - Tencent (700) May 15 (Thu) - Alibaba (9988), NetEase (9999), Geely (175) |
US - Earnings | May 15 (Thu) - Walmart (WMT) |
US - Eco Data | May 13 (Tue) - US April CPI May 15 (Thu) - FOMC Chair Powell Speech |
Other Major Events | May 15 (Thu) - UK 1Q GDP May 16 (Fri) - Japan 1Q GDP |
Meeting of the Week – Buffett's Final Reminders
The Casino & The Cathedral: The Dual Nature of Capitalism
Warren Buffett has a way with words, and his latest metaphor for US capitalism is no exception.
“Capitalism in the United States has succeeded like nothing you’ve ever seen," he said. "It’s a combination of this magnificent cathedral, which has produced an economy like nothing the world’s ever seen, and then it’s got this massive casino attached.”
And let’s be honest - the casino is tempting. But Buffett warns: “At the casino, everybody’s having a good time and there’s lots of money changing hands, but you’ve got to make sure...... that the next 100 years don’t see the cathedral swallowed whole by the casino.
Buffett’s analogy reminded me of a key investing rule this week: Decide which pocket you’re using before you buy - is it for long-term capital gain 🏛️, or just a short-term fun bet? 🎲
📈 If you believe in a company’s fundamentals for the long haul, why check the stock price every hour or every day? If it’s a true long-term investment, short-term swings shouldn’t bother you.
❌ On the flip side, if you placed a short-term event-driven bet, and it flopped, why hold on in blind hope? Casinos don’t refund bad bets, and neither does the market.
The Berkshire Cash Pile - Waiting for the Right Moment
Berkshire Hathaway is currently sitting on a whopping $340 billion in cash, over 30% of its portfolio. So, what’s the plan?
Buffett remains opportunistic, knowing that patience pays off: “If you told me I had to invest $50 billion every year until we got down to $50 billion in cash, that would be the dumbest thing in the world,” he said. "I don’t know when – it could be next week, it could be 5 years off, but it won’t be 50 years off – we will be bombarded with offerings that we’ll be glad we have the cash for."
Japan Investments - Holding Forever?
Buffett is not a hedge fund manager. He's a true value investor. The hedge fund manager I met last week reminded me never to fall in love with the stocks I buy - Everything has a value. When it has reached your price target, you should sell it. But that's not what Buffett plans for his Japan investments!
Asked whether he’d sell if Japan’s central bank raised interest rates, he didn’t hesitate: “In the next 50 years, we won’t give a thought to selling those,” he said, calling Japan’s track record extraordinary.
Buffett also emphasized long-term relationships, saying that the five Japanese companies he’s invested in—Mitsui, Mitsubishi, Sumitomo, Itochu, and Marubeni—have treated him extremely well.
“They have different customs, different business approaches - that’s true around the world -but we have no intention of changing what they do. They run their businesses successfully.”
For your reference only. Not investment/product recommendations.
Market Buzz – McRecession & the Middle-Class Squeeze
McRecession is officially here, and McDonald’s just confirmed it in its latest earnings report.
The fast-food giant posted a 3.6% drop in U.S. sales, its worst performance since the pandemic. Visits from low- and middle-income consumers were down nearly double digits compared to 2024, according to McDonald's CEO.
One clear sign of the shift? People are skipping breakfast or eating at home - except for Warren Buffett, of course. He’s still enjoying his daily McDonald's breakfast, but picks his order based on how the stock market performed the day before. Talk about strategic meal planning.
And McDonald’s isn’t alone - Starbucks has now seen five straight quarters of declining sales, with a 1% drop this quarter. Chipotle posted its first quarterly decline since the COVID lockdowns, and Domino’s reports that more customers are choosing cheaper carryout over delivery.
Meanwhile, budget-friendly brands like Taco Bell are thriving, offering $5 luxe boxes to appeal to cash-strapped consumers.
The trend underscores wider economic worries, including inflation, job security, and slowing wage growth, forcing people to rethink even their most basic spending habits.
Yahoo Finance’s latest chart paints a stark picture: average hourly wage growth is now slower than the Fed Funds rate, a phenomenon rarely seen outside recessions.
Fast food was once recession-proof - but now, even burgers and lattes are getting the cut. How much more will the middle class need to scale back? Maybe it’s time to start trading McNuggets on the black market! 🐔
For your reference only. Not investment/product recommendations.
About Jadewell Family Office
Jadewell is committed to offering proactive, customized services akin to a “single-family office,” yet within the ease of a “multi-family office” environment.
Ann Yu
Co-Founder and CEO
Jadewell Family Office
FOR INSTITUTIONAL & PROFESSIONAL CLIENTS ONLY – NOT INTENDED FOR RETAIL CUSTOMER USETHESE ARE NOT STOCK OR PRODUCT RECOMMENDATIONS
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