Investing In Quantum Computing -- June 14, 2025

With regard to investing in quantum computing, what would you recommend for a 20-year-old investor with minimal experience in investing? 

From ChatGPT:

Excellent — you’re looking at this exactly right: for a 20-year-old new investor, quantum computing can be fascinating but high risk. Let me quickly frame this for you:

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Quantum Computing: High-Risk, Long-Horizon Play

At age 20, you have the biggest asset: time. Quantum computing may take 10–20 years to fully mature commercially. So, a small speculative allocation might make sense alongside a core portfolio.

Here’s a simplified way to look at the most “investable” companies for a new investor:

My advice for a 20-year-old investor:

1. Core first: (80%)
   

   Build your portfolio mostly around index funds (e.g., S&P 500 ETFs like VOO or SPY).

2. Speculative sleeve: (15%)

   Consider allocating ~1-5% to high-risk speculative plays like IonQ or Rigetti.
   

   Big Tech with quantum exposure: MSFT, GOOGL, IBM (10%)
   Pure Quantum Plays: IONQ, RGTI (5%)
   

3. Diversify your quantum exposure:

   You’re already getting indirect exposure through companies like Microsoft, Google, and IBM.

4. Stay informed:

   Follow quantum tech news — things change fast here.

5. Don’t FOMO into hype cycles:

   Quantum stocks can swing wildly based on press releases and investor sentiment.

   ChatGPT will build three investment strategies:

   • Core (80%): see above
   • Sleeve (15%): see above
   • Moonshot (5%): see below.

   Moonshot, quick example:

   Let’s say you start with $5,000:

   • $2,500 — VTI (US stock index)

   • $1,000 — VXUS (international index)

   • $500 — BND (bonds or cash equivalent)

   • $500 — MSFT + GOOGL + IBM (big tech)

   • $250 — IONQ

   • $250 — ARKQ or similar

   From my perspective: the BND (bonds or cash equivalent) does nothing for the portfolio; the analyst is simply investing using "old school" percentages. If the $500 is simply a place to park cash to build up a position of cash from which to make future equity purchases, the that's fine. But thinking that 10% of an investment in a bond fund will help even out the volatility is crazy. 

   I suppose re-allocating on a monthly basis might be a reason for a position in bonds or cash.

   So, for example, when the larger bucket (VTI) exceeds 50% of total portfolio, see something and re-invest the proceeds in any of the other buckets that are less than their recommended percent (20%, 10%, 10%, 5%, 5%). 

   But, wow, that's still an incredibly conservative equity portfolio.

   How about: 
   

   • VTI: 25% (unfortunately that already included a lot of Big Tech)
   • VXUS: 25%
   • big tech: 30%
   • pure quantum: 20%

   Because VTI already includes so much Big Tech, how about:
   

   • VXUS: 25%
   • VTI: 15%
   • top four of the magnificent seven: 35%
   • pure quantum: 25%

Gary Cohn -- Bio

Gary Cohn from wiki:

Early life and education:

Gary Cohn was born to an Eastern European Jewish family, the son of Victor and Ellen Cohn, and was raised in Shaker Heights, Ohio. His father was an electrician who later became a real estate developer.[13] Cohn was diagnosed with dyslexia at a young age, and attended four schools by the time he reached sixth grade.[14] His childhood experiences with dyslexia were a featured case study in David and Goliath by Malcolm Gladwell. Cohn studied at Gilmour Academy for high school and graduated in 1979.

Cohn received a Bachelor of Science degree with a major in business administration from American University in 1982.

Career:

Cohn started his career at the U.S. Steel home products division in Cleveland, Ohio.[19] After a few months, he left U.S. Steel and became an options dealer in the New York Mercantile Exchange. He taught himself the basics of options by reading about it in the days between meeting the hiring manager and joining the New York Mercantile Exchange.[

Cohn was hired by Goldman Sachs in 1990 and became a partner at the firm in 1994. ] In 1996, he was named head of the commodities department, and in 2002, he was named the head of the Fixed Income, Currency and Commodities (FICC) division. In 2003, he was named co-head of Equities, and in January 2004, Cohn was named the co-head of global securities businesses.  He became president and Co-Chief Operating Officer, and director in June 2006.While at Goldman Sachs, Cohn was also a member of the firm's board of directors and Chairman of the Firmwide Client and Business Standards Committee.

In 2010, Cohn testified to Congress on Goldman Sachs' role in the 2008 financial crisis. He testified: "During the two years of the financial crisis, Goldman Sachs lost $1.2 billion in its residential mortgage-related business. We did not 'bet against our clients', and the numbers underscore this fact."

US Vs China -- Energy -- Random Charts -- June 6, 2025

A reminder:

• AI is an energy story; and,
• the renewable energy story is driven by ideology.

This graph was sent to me, no source, no link, appears it was posted to purposely mislead readers:

This one chart puts the above chart in perspective:

This chart may be most important (link here):

This is an incredibly misleading chart and doesn't tell me anything:

Why Did Texas Remove BlackRock From Pension Fund Boycott -- ChatGPT -- June 4, 2025

On June 3, 2025, Texas removed BlackRock from its list of companies boycotting the energy industry. This decision followed BlackRock’s significant shift away from climate-focused initiatives, including its withdrawal from the Net Zero Asset Managers group and decreased support for environmental shareholder resolutions. Texas Comptroller Glenn Hegar cited these changes and BlackRock’s support for the new Texas Stock Exchange as reasons for the delisting .

The removal allows Texas state agencies and funds to resume business with BlackRock, which manages substantial investments in the state. However, BlackRock continues to face legal challenges from Texas Attorney General Ken Paxton, who accuses the firm of manipulating energy markets—a claim BlackRock disputes .

This development is part of a broader trend where financial firms are retreating from earlier ESG commitments due to mounting political pressure, drawing criticism from Democratic leaders and climate activists for weakening their environmental stances

ONEOK Buys Remaining Stake In Delaware Basin JV -- June 4, 2025

Reuters headline: 

ONEOK buys remaining stake in Delaware Basin JV for $940 million

Behind a Reuters paywall; can't access.

Copy and past Reuters headline into ChatGPT. Answer:

As of now, there are no publicly available reports confirming that ONEOK has acquired the remaining stake in a Delaware Basin joint venture for $940 million. However, ONEOK has been actively expanding its presence in the Permian Basin through several significant acquisitions.

In October 2024, ONEOK completed a $2.6 billion acquisition of Medallion Midstream, the largest privately held crude oil gathering and transportation system in the Permian Basin’s Midland region. This acquisition included over 1,200 miles of crude oil gathering pipelines with a capacity of 1.3 million barrels per day and approximately 1.5 million barrels of crude oil storage .

Additionally, ONEOK acquired a 43% interest in EnLink Midstream from Global Infrastructure Partners, further strengthening its integrated gas and NGL platform in the region .

These strategic moves are part of ONEOK’s broader effort to enhance its midstream infrastructure and service offerings in the Permian Basin. While there is no specific information about a $940 million acquisition of a remaining stake in a Delaware Basin joint venture, ONEOK’s recent activities indicate a strong commitment to expanding its operations in this prolific energy-producing region.

For the most current and detailed information, it’s advisable to monitor ONEOK’s official press releases and financial disclosures.

Best Bakken Blog -- June 2, 2025