March 2025

The Slice

A Monthly Market Update & Investment News Roundup

Cutting through the noise...so you don't have to.

Good morning,

A "rotation" is generally defined as a time when the market's most recent winners handoff the baton to the next group. This regime change is viewed as normal, and in many cases, can keep the bull market intact.  

Looking at the last 10 days of February, we may be in the midst of one such rotation now. Over that time frame, defense technology firm Palantir is down almost 30%, while Walgreen's is up 10%. That's a pretty extreme reversal when you consider that Palantir gained 340% last year, making it the top performer in the S&P 500, and Walgreen's lost nearly two thirds of its value, making it the worst performer.

And on the subject of inflation, the 96% rise in the price of eggs (over 12 months) has caused breakfast chains Denny's and Waffle House to tack on an "egg surcharge" of $0.50 (per egg). Slice subscribers are advised to fade the Grand Slam, and opt for the IHOP 2x2x2 instead. Prices vary by location.

Here's what you need to know.

Markets

News & Notes

• Trade: Tariffs on China, Mexico and Canada are expected to take effect on Tuesday, March 4. This marks the second 10% tariff on China since Trump took office; small businesses are scrambling. (NYT)
   
• Work From Home (Audio): JPMorganChase CEO Jamie Dimon does not like remote work. In a recent townhall in Columbus, he let his feelings be known [Rated M for Mature]. (Barron's) 
   
• Housing: Pending home sales, which are based on signed contracts for existing homes, are at their lowest level since the National Association of Realtors began tracking the statistic in 2001. (CNBC)
   
• Retirement: Church and religiously affiliated hospitals can opt out of the federal insurance system that protects pension benefits, but that lack of of oversight has left hundreds of thousands of workers vulnerable. (WSJ)
   
• Berkshire Hathaway's Annual Letter: Since 1964, Berkshire Hathaway has returned 5,500,000% vs. the S&P 500's 39,000% for shareholders. Ever humble at 94 years of age, Buffett points out that mistakes fade away, but "winners can forever blossom." (BRK.A)
   
• Taxes: Protect yourself from IRS tax identity theft by setting up a six digit PIN with the IRS. (WSJ)
   
• Florida: More retirees are deciding to rent or go elsewhere as climate change raises prices for homeowners. (Barron's)
   
• Travel & Spend:
  36 Hours: Banff (NYT)
  36 Hours: Guadalajara (NYT)
  36 Hours: St. Petersburg, FL (NYT)

(Pie)Chart of the Month

Tax codes globally have swollen in length over the last 25 years. One result of that complexity is more time spent filling out government paperwork (such as tax returns). This year, the average American will spend 35 hours on government paperwork, up from 27 hours in 2001.  -The Economist, January 30, 2025.

Firm News

Roadshow

I hit the road in February, visiting DC, Philadelphia, Dallas, and the West Coast. While in San Francisco, I attended the Military Veterans Startup Conference put on by my friend (and Slice subscriber!) Tim Hsia of Context Ventures, and I got to meet with ex-military founders who are launching some fascinating new ventures in fintech, consumer, and defense technology. PieCapital hosted a dinner for conference attendees, and I checked off my first Waymo ride! 

Hoops For NC Heroes: 2025 Bracket Challenge

This year I'm excited to announce the first annual Hoops For NC Heroes Bracket Challenge put on by an organization that I love, the North Carolina Heroes Fund. This year's bracket winner will receive 4 box seats and lodging for a Carolina Hurricanes Game. Sign up here to enter for a chance to win this year's tournament AND support North Carolina's veterans and servicemembers. Sign up now!

What is the North Carolina Heroes Fund? We help transitioning servicemembers and veterans who are facing a short term financial hardship by providing a one-time grant to help them get back on their feet. 95% of our funding goes to support our programming. All North Carolina veterans and anyone who served or is serving at the state's six major military installations or guard facilities are eligible for assistance - and your help makes this possible.

Shoutout to Slice subscriber Jack Scott and Dogwood State Bank for supporting the NC Heroes Fund!

3.14.25

Pi(e) Day Giveaway!

It's 11 days until Pie Day! Forward The Slice to someone who you think would enjoy receiving it and ask them to subscribe: 
https://piecapital.com/newsletter/ 

If they do, both of you get a free pie! First 3.141592 sign-ups win.

Disney World

Yes, everyone at PieCapital (which is 2 of us) went to Disney over winter break! No, we didn't plan it that way, but you know what they say about great minds... 

But if you want advice on planning a trip to Disney World, Molly Robertson (below) has got you covered!

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