Here’s what you need to know today

• President Trump has imposed 25% tariffs on Canada and Mexico and 10% tariffs on China. The President’s order also closed a small-parcel loophole that gave tariff exemptions to parcels worth less than $800, a loophole that supported the growth of Chinese eCommerce brands like Shein and Temu. (ABC News)
  
  

• Canada, Mexico and China have responded. Canada has slapped retaliatory tariffs of 25% on $170 billion of US goods entering Canada. China has said it will respond, but is yet to detail how, and will also take the US to the World Trade Organisation. Mexico has similarly said it will “implement Plan B” but is yet to detail what that plan looks like. (Sydney Morning Herald)
  
  

• An early analysis suggests these tariffs may be a mixed-bag for Australian companies: Rio Tinto’s aluminium exports from Canada to the US will suffer (AFR), while sleep device maker ResMed expects to benefit against rivals who make products in China and Mexico. (AFR)
  
  

• The President Trump news doesn’t stop there. The new US President has despatched his Secretary of State, Marco Rubio, to Panama City with a mandate to take back the Panama Canal. Rubio’s visit will be part of his first trip as Secretary of State which will also include visits to El Salvador, Guatemala, the Dominican Republic and Costa Rica. (AFR)
  
  

• Embattled Australian casino operator Star Entertainment has been given a reprieve by the NRL’s Brisbane Broncos. In 2022, Star signed a 5 year sponsorship deal worth $1.5 million a year. Now, as it struggles to avoid bankruptcy, the Broncos have allowed the company to delay payment and pay in four tranches over the year. (AFR)
  
  

• Toyota is the world’s best-selling car maker for the 5th year running. Japan’s largest automaker sold 10.8 million vehicles in 2024, which was actually down 3.7% from 2023, but still well ahead of second-placed Volkswagen who saw sales fall 2.3% to just over 9 million vehicles. (Quartz)
  
  

• Australian software giant Atlassian reported a great set of results and saw shares move rise 20% to a three-year high. Revenue was up 21% to $1.3 billion for the quarter and the company’s loss narrowed from $85 million to $38 million. (AFR)
  
  

• Apple reported earnings late last week, which CEO Tim Cook calling it “the best quarter ever”. The numbers don’t quite bear that out. Overall revenue was up 4% and profit was up 10% but iPhone sales are slowing and came in below expectations and the company was forced to roll back its much promoted Apple Intelligence in some markets. (NY Times)
  
  

• Deutsche Bank’s fourth-quarter profits fell 92% to €106 million, which was well below analyst expectations of €380 million. But you wouldn’t know it from the share price, with Deutsche Bank shares up 48% in the past 12 months. (Reuters)

What the…?

As you would expect, Bill Gates lives a pretty opulent mansion. 6 kitchens, 7 bedrooms, 24 bathrooms, an indoor pool and a trampoline room, today valued at $130 million. (Fortune)

When Gates purchased the house in 1988, it was just $2 million. That works out to be a 12% compound annual growth rate, far outstripping US inflation’s 2.7% compound annual growth rate in that time.

Still, he would have been better off keeping his money in Microsoft shares. Split-adjusted, in 1988, Microsoft shares were $0.40. Today they are $415. That works out to be a 21% compound annual growth rate.

The suggestions are rolling in for 2025!

“Make episodes longer!”

“More content with Luke Laretive”

“Kick the obsession with ETFs”

“dedicated AFL podcast ;)”

These are just some of the suggestions that have come through so far on the Equity Mates 2025 Community Survey. Do you have an idea (or disagree with one of those listed above) then this is the last week to make your voice heard!

Fill out the survey and help us make Equity Mates even better in 2025! (Survey Link).

Investing is a lifelong journey

Here’s what you can learn today.

Best company you’ve seen & why?

This is an excerpt from our conversation with Julian McCormack, titled Expert: Julian McCormack – Platinum believe there is more pain ahead (check it out on Apple | Spotify | YouTube)

Question: What company stands out as the best you've ever seen and why?

Wrigley's chewing gum - it was just a phenomenal business. 

It never had any barriers ethnically or culturally, no one really cares about chewing gum apart from Singapore, so it could open new markets. When the Berlin Wall fell in '89 and Russia opened up from '91, they were one of the first American businesses in. They had to form armed convoys to deliver the gum and take cash payments. 

They had a 20% return on capital profile over 100 years, and never had a dollar of debt. In the war, for example. It began to run into shortages and it just said, sorry, we're not going to sell to anyone in the public. We're going to send all our chewing gum to the troops. Just a brilliant understanding of their own business and the societies they operate in and an incredible return profile.

Then they're constantly innovating around that as well. You know, the stuff that cleans the teeth or the the packaging formats change, but the underlying single thing never changes in price. Just a stick of gum, an incredible business. 

Remember you can now watch Equity Mates interviews on YouTube. Check out the full length conversation with Julian:

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