Why Microsoft is Giving Away Patented Software

Microsoft (NASDAQ: MSFT) can easily afford it. On June 30, 2018, Microsoft Corp reported a gross profit of $20.343 billion on 2nd Quarter revenues of $30.085 billion. Therefore, Microsoft can afford to give away patents.

Microsoft could distribute the software through GitHub; which it purchased for $7.5 billion in June. Notably, the OIN announcement came right before the European Commission approved the GitHub deal. To explain, Microsoft needs Commission approval to operate GitHub in the European Union.

GitHub is the perfect place to distribute the OIN patents because it is the world’s largest open-sourced software repository. In detail, GitHub serves 1.8 million organizations and 28 million software developers.

Unfortunately, news articles do not say which software will be released on GitHub.

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How to Tax Corporate Cash

My suggestion is to tax corporate cash at a rate of 5%, but levy that tax quarterly.
Under that regime, Amazon could pay around $1 billion a quarter or around $4 billion a year. Specifically, Amazon reported $27.05 billion in cash and short-term investments on June 30, 2018. Therefore at a 5% tax rate Amazon could pay $1.3525 billion on that cash.
Moreover, I suggest charging a tax of 10% on corporate cash hoards over $100 billion. For instance, JPMorgan Chase could pay $35.51 billion in taxes on its $405.1 billion cash hoard. I arrived at this number by multiplying $305.1 times 10% and adding $5 billion for the first $100 billion in cash.
Under this system, companies will keep the vast of their cash but they will have a strong incentive to spend it. Obviously, the spending will act as an economic stimulus.

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Will Trade War Destroy Alibaba?

A possibility that all investors need to consider is that Trump, Xi, and possibly Ma are putting on a show for the media. Their conflict might be a “work” one of the acts professional wrestlers put on to generate audience interest. Most wrestling works involve creating a fake conflict to add drama to a match.

Remember, Trump has had some experience with wrestling; he appeared in WWE about a decade ago. The Donald even had a fake match involving Vince McMahon and Stone Cold Steve Austin. For this reason, I think the “trade war” is fake news.

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The Growing Attraction Of Seniors To The Internet

There may be various reasons why elders love the internet. While some of them use the internet for healthcare purposes, others want to explore the world through online videos. Many use it to stay in touch with their children, grandchildren, or other family members via social networks, email, or video calls.

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What you should know about the Trump Trade War

The trade war could soon impact average Americans. America’s largest retailer Walmart (NYSE: WMT) supposedly urged US Trade Representative Robert (Bob) Emmet Lighthizer to leave a variety of goods off the tariff lists in a letter, The Hill reports.

To survive the trade war the United States will have to devalue the dollar. Obviously, there is no way American remain competitive in trade with a strong dollar.

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Will WhatsApp Destroy Facebook (NASDAQ: FB)?

WhatsApp proves that Facebook is a mess. However; value investors should examine the Social Network, because Facebook is a mess that makes a lot of money.

For all its faults, Facebook is still a moneymaking machine par excellence. Facebook generated $11.552 billion in cash and equivalents and $30.757 billion in short-term investments during 2nd Quarter 2018. That gave Facebook an astonishing $42.309 billion in cash and short-term investments on June 30, 2018.

Is Facebook a classic Warren Buffett value investment? Uncle Warren loves to invest in moneymaking companies “that somebody’s idiot nephew can run.” Surprisingly, Facebook might fall into that category.

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Climate Change is destroying Everybody’s Property Value – Even Warren Buffett’s

Companies are likely to pull out of reinsurance because of Climate Change. Under those circumstances, publicly-traded insurers are likely to go private or sell out to hedge funds.

Property owners will face rising premiums because insurance companies operating costs are increasing. Reinsurance firms like Gen Re and Aspen underwrite property and other insurance properties. Consequently, insurers will pass higher reinsurance costs onto policyholders.

In summary, sell the beachfront and forest properties now. Prices for such properties are likely to plummet as insurance costs rise.

Billionaires like Kimmel and Buffett are outliers in Climate Change losses. They can afford to take a loss on beach property, most homeowners cannot.

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Amazon Jobs are Terrible Wealth Redistribution Mechanisms

The poster child for jobs’ failure to redistribute wealth is Amazon (NASDAQ: AMZN) where CEO Jeff Bezos is reputedly worth $150 billion. The average salary for an Amazon fulfillment or warehouse “job” is $26,000; a year or $13 an hour, Glassdoor estimated. If he or she is lucky that associate can receive $980 in cash bonuses, a stock bonus of $1,111 and profit sharing of $1,016.

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Does All In’s Success Prove WWE is Finished?

All In demonstrates that YouTube is a more powerful media than cable TV.

Moreover, Alphabet (NASDAQ: GOOG) is responsible for All In’s success. All In demonstrates that YouTube is a more powerful media than cable TV. Being the Elite and all the video of New Japan, Ring of Honor, and other shows on YouTube made All In possible.
Therefore, WWE’s focus on cable TV and Facebook (NASDAQ: FB) video is probably a waste of time of and money. A smart move for WWE would be to cancel Miz & Mrs. and spend the money saved on hundreds of YouTube videos.

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Why Elon Musk will sell Tesla

Interestingly, Musk himself may understand how he is hurting Tesla. Elon knows a car guy must takeover – selling Tesla is the best way to achieve that.
Musk will let a car person takeover Tesla because his goal at the company is driving the mass adoption of electric cars not building a brand. Musk only started a car company and built a brand because nobody else was serious about electric cars.

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