September 7, 2016
Following 17 months of mostly negative equity returns in Europe, very recently, I have noticed an inclination amongst European investors to increase the risk profile in their portfolios. They may not exactly be going for broke (yet), but the willingness to take more risk is clearly on the rise. The rising appetite for risk could be driven by one of two factors. Investors could either be turning more optimistic, or it could be the result of less benign factors, such as a need to generate higher returns, whether they really believe in such an outcome or not. ... In short, I suspect investors are chasing returns that (I think) are unrealistic, and it is not the first time that happens. When investors are under extreme pressure, as I think many are now, they sometimes behave quite irrationally. They do things they would have sworn only a short while earlier they would never do. ... Is there anything else investors could do to raise the overall return level and, in particular, to generate more income without necessarily taking more risk?
Both Uber and Lyft tell The Verge that the past year has seen a surge in public officials interested in giving the companies taxpayer dollars for public transit contracts. For the companies, it’s an appealing new way to establish themselves as vital infrastructure, especially in low-density communities like Altamonte where running traditional mass transit can be expensive. Given the pace at which these partnerships are coming together, it’s possible to imagine ride-hail companies taking on the role of all-encompassing, smartphone-driven public transit providers, one town at a time. ... The pilot program is unusable for people without a smartphone or credit card, and the company attempted to have the city sign an unusually far-reaching nondisclosure agreement. ... At a subsidy rate of 25 percent — and assuming the ridership would grow annually by 100 percent — Uber would receive roughly a million dollars per year from the city. A potential indication of Uber’s aspirations, the chart also included a scenario in which Altamonte would pay Uber a full 100 percent subsidy, putting the town on the hook for up to nearly $7 million in ride-share funding over a two-year span. ... Martz settled on a 20 percent subsidy for any trip within Altamonte, and 25 percent for rides to and from the city’s commuter rail station. Martz foresees the yearlong pilot costing taxpayers less than a hundred thousand dollars, far cheaper than building a new bus system. Nor does it involve navigating the regional transit authority or negotiating with potentially unionized public employees.
Starting in September 2015, people in the city noticed more planes flying in and out of the airport, loading and unloading those black-wrapped boxes. This March, Amazon announced that it was leasing 20 Boeing 767s from Air Transport Services Group, a cargo company that operates out of the air park. Amazon had also negotiated an option to buy nearly 20 percent of the company. ... Two months after the Ohio announcement, Amazon leased 20 more jets from Atlas Air, an air cargo company based in Purchase, N.Y. Amazon has also purchased 4,000 truck trailers. Meanwhile, a company subsidiary in China has obtained a freight-forwarding license that analysts say enables it to sell space on container ships traveling between Asia and the U.S. and Europe. In short, Amazon is becoming a kind of e-commerce Walmart with a FedEx attached. ... Amazon’s ambitions depend on the continued success of its Prime service. For $99 a year, Amazon Prime customers get two-day delivery at no extra charge. Those who sign up tend to spend almost three times as much as their non-Prime peers. The company zealously guards its numbers, but Consumer Intelligence Research Partners estimates that Amazon had 63 million Prime members as of late June—19 million more than the year before.
You crave the recipe of his secret sauce. You believe you've identified some of its special ingredients: draft foreign players, shoot corner 3s, emphasize defense, share the ball, victimize trembling sideline reporters. ... You'd like to believe you've captured the essence of the bearded coach stomping along the sideline -- a blend of Midas, Yoda and occasionally a teeth-baring pit bull. ... But, in truth, you haven't -- you never could -- because you don't fully realize the simple truths of his journey: how the man who demands respect through discipline and selflessness was once an impatient Air Force cadet who complained vociferously (and repeatedly) to his coach about a larger role. How his bid to represent the United States in the Olympic Games as a player was squashed by petty politics. How his wish to coach the 2008 Dream Team was crushed by miscommunication and subterfuge. How he was passed over -- twice -- for the very Spurs job he now holds. How when he finally got that job, he spent his weekends passing out free wieners in a parking lot hoping to generate basketball interest in a football-crazed state. ... Talk to players, coaches and executives who have worked with Gregg Popovich, and they'll say these are the events that shaped him. Tremendous obstacles. Cold, hard truths. Popovich may float above the fray now, but he earned that ascent -- one gritty step at a time. ... The team's continuity, Pop explains, is why they succeed. Owner Peter Holt, Popovich and Buford have unconditionally backed one another for 22 years.