Competing Business Models: Referral Fees vs. Advertising (Wanna Guess From Whom??) [Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.] With artificial intelligence gaining momentum, it was only a matter of...Read More
Reviving “The Milkman Model” for the Grocery Business “Costco is the latest retailer to see dips in its stock on the news that Amazon’s buying Whole Foods for $13.7 billion.” –Fortune.com [Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other...Read More
Loss Forecast for Q3 Imagine a company that just reported quarterly sales of $38,000, of which a scant $197 was actual profit. Imagine further that the company went on to forecast that, while sales would continue to grow, its already skimpy quarterly profit would actually flip to a loss the next (current) quarter. You wouldn’t exactly...Read More
$50 Billion(!) Surges & Swoons — in One Stock! The big surprise about this quarter’s earnings surprises? They’re actually a surprise. And how do you know that? By the mammoth moves — both up and down — in the stocks of companies announcing those earnings immediately afterwards. If you’re not keeping score, here’s the roster...Read More
The World’s Biggest Non-Profit (or is that, “No-Profit For-Profit?) “Pred·a·to·ry pric·ing” (noun): pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market. –Wikipedia “Meager as Amazon’s 2013 profits were, they represented a small improvement from 2012, when it actually lost money. Even with the...Read More
Better to Be a “Joly” Than an “Immelt” “Choose your parents wisely.” –wisecrack “Nothing grows in the shadow of an oak.” –old saying Current General Electric CEO Jeffrey Immelt may be a terrific businessman in his own right. But, his now decade-plus tenure as GE chief will always be compared — negatively — to that...Read More
