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Hi Reader, here's what you need to know for November 27th in 3:09 minutes.

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Today's big stories

Spanish oil company Repsol announced a new five-year plan
One Chinese stock market specialist has picked which of its stocks are set to outperform the rest – Read Now
New data showed that Tesla is the most popular company with European investors

1.

Fossil Fuel

What’s Going On Here?

Spanish oil company Repsol unveiled a new five-year strategic plan on Thursday. Step one: make oil a thing of the past...

What Does This Mean?

After a brutal year for oil companies the world over, Repsol is doubling down on its transition away from the slippery elixir: it’ll spend around $6.5 billion growing its renewable energy business fivefold by 2025 (tweet this). At the same time, the company’s planning to cut spending on exploration and production by 15%, and instead focus its efforts on a few countries where production offers more value for money. It’ll then funnel whatever it earns straight back into segments like wind and solar – with the aim of making its renewable business a more, ahem, sustainable one in the long term.

Why Should I Care?

For you personally: Hipster oil.
Repsol was into renewables before other oil companies thought they were cool: the company pledged last year to cut or offset its emissions, and said last month it’s already spending more on renewable energy than on oil-drilling. That early move has had ripple effects across the industry, with bigger European rivals including Total, Shell, and BP all following – if not one-upping – its example. And if that pioneering mindset is the kind you want to invest in, you might be able to very soon: Repsol’s thinking about listing its low-carbon business on the stock market in the next two years.

For markets: Holy fail.
Repsol also announced it’d be reducing its dividend from €1 a share to 60 euro cents next year, but said it expects payouts to start growing again from 2023. Still, that might not go down well with its investors, who see dividends’ steady income as something of a holy grail. BP and Shell’s decision to do the same thing earlier in the year certainly didn’t: investors made their stock prices pay dearly for the move.

You might also like: How to spot profitable opportunities in oil and gas.

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2. Analyst Take

How To Pick China’s Next Big Thing

What’s Going On Here?

China’s economy is emerging from the pandemic stronger than ever, and Baillie Gifford’s Roddy Snell thinks that’s turning up some great opportunities in the country’s stock market.

See, Roddy points out that China’s on course to take the mantle of the world’s biggest economy from the US in a decade or so – and he reckons its healthcare, ecommerce, and electric vehicle stocks are going to do especially well out of it.

Still, for all the exciting companies that’ll emerge, Roddy reckons there’ll be plenty of trash to sort through too.

So we asked Roddy to run us through the stocks he’s backing, as well as explain how to make sure you don’t pick the duds. It’s all in today’s Premium Insight.

Get the full story with Finimize Premium

3.

Popularity Contest

What’s Going On Here?

Tesla would like to thank its mom, its dad, and its BFFs, because fresh analysis this week showed the electric carmaker is the most popular company with European investors.

What Does This Mean?

Invezz.com looked at 31 European countries’ Google habits to work out which stocks investors are searching for most – and, by extension, which they’re most interested in investing in. And it was Tesla that took the top spot, winning the day in 26 of the 31 countries and featuring in every top ten but one – a feat only Apple and Amazon could match.

European companies, meanwhile, were nowhere to be seen in the overall top ten, even though it included Chinese companies like ecommerce giant Alibaba and electric vehicle maker NIO. That might be because investors seemed particularly interested in fast-growing tech companies, which humdrum European stock markets are notoriously short on.

Why Should I Care?

Zooming in: Say nomo to FOMO.
It’s easy to see why investors would want in on the Tesla action: the carmaker’s share price is six times higher than it was the start of 2020, not to mention the growing trend toward more climate-friendly companies. But there’s also a real risk of so-called “performance-chasing”, which can lead FOMO-fueled investors to buy stocks at their highest levels. They’d probably be better off just following Warren Buffett’s advice: “Be fearful when others are greedy, and greedy when others are fearful”.

For you personally: Broader is better.
You can pick individual stocks like Tesla to invest in, but even professional investment managers struggle to choose stocks that consistently outperform the overall stock market. So it’s perhaps no surprise that the simple and low-cost solution of exchange-traded funds – which can track indexes as a whole – have become such a hit with investors. By buying a slice of the Teslas, Apples, and Amazons all in one, you reap the rewards of their successes without getting dragged down too much when they make a mess of things.

You might also like: How to find lesser-known stocks with big potential.

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🙋 Ask a question

💬 Quote of the day

“I am lucky that whatever fear I have inside me, my desire to win is always stronger.”

– Serena Williams (an American professional tennis player)

Tweet this

🤔 Q&A · RE: Workplace Banter

“If economic activity statistics are based on how busy purchasing managers have been, couldn’t higher activity levels just be down to understaffed teams as a result of layoffs?”

– Ansley in New York, USA

“They absolutely could, Ansley. A major drawback of these economic surveys is that they don’t always accurately represent the actual strength or weakness of an economy. A September report from investment bank Goldman Sachs argued that multiple months’ economic survey data is much more meaningful than one month’s, where managers might be incentivized to sound busier than they are (in case their bosses are listening). It also said survey results that initially suggest an expanding economy could actually translate into a shrinking one when the final numbers are tallied up. That works the other way too: weak eurozone activity data last year was followed by stronger-than-expected economic growth figures. So just like you, most investors take survey data with a pinch of salt.”

🙋 Ask a question

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😭 In case you missed it…

Here’s some of our most popular stuff this week…

📈 Ackman: How to replicate Bill Ackman’s next 9,500% strategy

🏠 Home-buying: Why you might want to wait if you’re buying a home

💸 US Stocks: Why your passive investments are in a risky place

📉 Investing Hacks: Three recession-proof ways to invest your money

🚩IPOs: How WeWork can help you spot an IPO red flag

📚 What we're reading

Cigarettes are healthy, right? (Gizmodo)
How to hunt a monolith (The Verge)
The case for ugly hiking trails (Outside Online)

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Finimize - 🚀 China's stocks are taking off

Today's big stories

Fossil Fuel

What’s Going On Here?

What Does This Mean?

Why Should I Care?

How To Pick China’s Next Big Thing

Popularity Contest

What’s Going On Here?

What Does This Mean?

Why Should I Care?

👋 Say hello to our CEO

😭 In case you missed it…

Older messages

🎉 Your Free Pass to the Next Gen Investor Summit

🎉 Last day of Black Friday sales, Reader...

📈 Blimey, British stocks

💸 The dollar's flying high

😨 SPACs aren't worth the fuss

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