Instead it is rideshare drivers; those hardworking immigrants and unemployed factory workers who make their living through Uber and Lyft that will make Pacifica a hit. As I noted last year the Pacifica seems designed for ridesharing. Some of its basic features include:Read more
Strangely enough not getting single-payer is also a potential nightmare for UnitedHealth; because if Buffett’s predications about costs come true, its business might become unsustainable at some point. Health insurers might be forced to drop all but the youngest and healthiest policyholders; or raise deductibles so high that their coverage becomes useless for most people, if costs spiral out of control.Read more
There is a simple reason why traditional automakers will dominate the future of ground transportation: they have a lot of cash. Even vehicle manufacturers in trouble have a lot of money in the bank.Read more
That makes Cummins a great way of hedging for the advent of electric vehicles (EVs). If EVs come Cummins will make a lot of money providing the powertrains for them, if they do not it still has a lucrative diesel business to fall back upon. Persons that want to make a bet on electric vehicles should ignore the money losing Tesla and invest in Cummins instead.Read more
Trump has proposed a tax holiday to let companies bring the money back, something that might be politically impossible to sell to Congress. Although a Republican Congress did give President George W. Bush a tax holiday in 2004 when two thirds of the earnings were repatriated, Wells noted.
If such a holiday were to occur; and it is a big if, a lot of the money would come through BNY Mellon. CNBC estimated that companies would bring $1.7 trillion back to the U.S. That might generate fees for Bank of New York which moves funds for big companies.
Such a holiday might be unlikely now because few Congressmen or Senators would want to be seen giving big corporations a huge tax break in today’s political climate. Hostility to Wall Street and big business is running high and destroying the careers of politicians seen as puppets of moneyed interest such as Hillary Clinton.Read more
The ecommerce growth is impressive but it is not cheap. The latest earnings report; that from April 30, 2017, indicates Walmart paid for the ecommerce growth with its net income.Read more
Facebook (NASDAQ: FB) might be the fastest growing company in the world. The company’s social media footprint, income and revenuesRead more
The aging of the Baby Boom will have many profound effects on the economy; the first of these to be seen will be the biggest yard sale in history.Read more
Working with First Data makes Ant a major player in U.S. mobile wallets because Clover’s retail footprint is almost as big as that of Apple Pay. Apple Pay is accepted by around 4.5 million U.S. merchants.
Alipay also gets access to all of Ant’s resources. Ant is one of the world’s most valuable unicorns (pre-IPO companies) some analysts have estimated its value at $75 billion. Alipay alone has an estimated value of $50 billion according to CSLA Hong Kong Analyst Elinor Leung.Read more
There is one scary figure in Berkshire’s first quarter results and that’s cash and short-term investments. Why has Uncle Warren stashed $96.46 billion in the bank?
An obvious and frightening reason is that Buffett and crew think the U.S. economy is on shaky economic ground. They think something is about to give in the American economy, and when it does they plan to go shopping.Read more