In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
Both Tesla and SolarCity are losing a lot of money, and both could be in serious trouble if Mr. Musk cannot figure out a way to start generate cash and a lot of it—and fast. Musk has taken a very bold gamble here; he’s essentially betting two of his companies on a fundamental shift in the way the world gets electricity. If that change does not occur, both Tesla and SolarCity will find themselves caught in the death spiral.
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The number of delinquent loan balances at BOFI doubled between June 30, 2014, and September 30, 2014, which indicates that the bank’s loan book could quickly melt down.
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The loss of Costco Canada is already hurting American Express, where revenue fell slightly between December 2014 and March 2015. AmEx reported a TTM revenue of $34.04 billion on March 31, down from $34.29 billion on December 31. The loss of Costco Canada hit American Express hard because the club store giant is huge in Canada, as anybody who visits the country knows.
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The numbers indicate that WWE CEO Vincent Kennedy McMahon Jr. is some sort of visionary at the cutting edge of entertainment. He seemed to have the insight that wrestling fans would be willing to pay a flat rate of $9.99 a month for just the programming they wanted to watch.
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We need to ask ourselves what sort of future companies like Uber have. If they cannot comply with a few basic regulations and make money, then their business model is not viable. Perhaps it is time we scrapped this ridesharing concept or took it back to the drawing board.
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Something else that is also obvious is that PayPal would be an acquisition target; purchasing it would give a large bank, retailer or credit card company access to a vast financial network and tens of millions of potential customers.
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This could indicate that traditional banking might no longer be a viable business because of the alternatives available. Things could soon get worse because PayPal is about to get spun off from eBay Inc. (NASDAQ: EBAY) and transformed into an independent financial services company that will compete directly with banks.
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• Abolish the payroll or withholding taxes, which take a percentage of a person’s salary. These hit the working poor heavily, and they do not raise enough money to cover the costs of programs like Social Security and Medicare.
Read MoreWe now have a glut of oil, and there’s a very good chance we’ll have a glut of water in a few decades after we implement all the new technology.
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Yes it is a bit of a dark horse, but Rite Aid does meet some of Warren Buffett’s value criteria: it is a good company that has been going through a rough patch yet still has the potential to generate a lot of cash. It also has an easy-to-understand business model in a decidedly unglamorous industry—selling shaving cream and prescriptions. Rite Aid also meets another one of Uncle Warren’s classic criteria: it is a company that an idiot could run if necessary.
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