2 Burst results for "Katzen Nelson"
"katzen nelson" Discussed on KQED Radio
"Just staying at home. And the only thing that is like more busy, it's just for delivery. So we switched pay, However, like half of what we used to make, after expenses, like your hour might be like somewhere between $5 to $10 an hour. And that in a city like San Francisco doesn't even cover like living expenses. Now wait. Unhappy restaurants, unhappy workers. Okay. But how about the customer's being mixed feelings about it? Usually The only reason that we would use number eats is if there's some sort of Discount or promotion, I think will sort of get away from the ABS again and just start going out either to pick up directly or she actually go in sit and enjoy well, but some group must unequivocally benefit from this industry. Its investors, they should start by acknowledging that today you breeds does not make money. General Salan A ve is head of ovary ts. We've been very public about the fact that is not yet profitable, and neither are her competitors. The platforms themselves lose a ton of money in the hundreds of millions of dollars billions collectively, Ranjan Roy writes a tech industry blah. Count him a skeptic. Customers complain if the fees get too high, and the drivers and couriers are underpaid Gig labor, which raised the question that motivated this story. Which I put to investor Vitelli Katznelson. Why does this business even makes it unnecessary does And I think this touch find figured I had to make money this even today. That is, after years of trying in a market that just doesn't get any better than this. But then how could venture capitalists have poured in a 1,000,000,000 bucks? I asked Roger Roy. Everyone searching for yield in some capacity and finding trying to find any opportunity they can. What Roy means is that with historically low interest rates for years now, those with money have been desperate for higher returns. Veteran venture capitalists Randy commissar has seen it firsthand. Finding opportunities to invest large checks in potentially big outcomes has outweighed the ability for us to sort of discern good from bad. Returns on capital. So there's too much money chasing too few opportunities. In a nutshell. That's it so investors are willing to take risks on start ups that might seem well. Daffy. I could remember one that came in that was robotics pizza delivery business funding pitch for a startup called zooms. I was going to use a eye to understand the desires of his customers, and they would have the trucks drive through the neighborhoods in exactly the right time to deliver exactly the right pizza made by that great little role, But sitting in the back of the truck, and ultimately I said as he may tasted the pizza And we ordered a pizza, and it was the worst pizza I had ever had argued against banking Zoom. The Japanese Saudi giant investment fund. Softbank plunked down nearly $400 million The business went bust in just over a year. But looks as comets are taking a flyer on wild ideas sometimes pays off. Hundreds of millions of dollars gets poured into failures all the time and on the other side. There are always these extraordinary phenomenon that come out of nowhere. So back to the basic question one last time. Is there any hope for these firms? These companies have to consolidate with all the industry to a single player to, says investors. Sally Katzen, Nelson. Which is presumably why Grubhub sold itself to the Dutch food delivery company. Just eat take away two weeks ago, and as for the remaining players, they're offering ever steeper discounts. To lure customers and run the weaker firms off the track. But even if there winds up being a winner or two, says investor Katznelson, there will only make money if one driver picks up orders from one restaurant. And delivers him to different customers at once. But FedEx or Amazon drivers delivered to well over 100 customers a day who can deliver that many meals, though relying on underpaid drivers And on restaurants so unhappy with the commissioners that some cities have put temporary ceilings on what the Absecon charge during the pandemic. Ceilings that make the business even more unprofitable. Small wonder the industry opposes them. Ultimately, even though these policies might be well intentioned, that ends up hurting the very people that these policies are intending to help..
"katzen nelson" Discussed on Optimal Finance Daily
"This is optimal finance, daily episode, six eighty two. How a stock market turns investors into gamblers by Vitale Katzen Nelson of contrarian edge dot com. And I'm Dan, your host. I am here every weekday reading to you from some of the best personal finance blogs on the planet. And today I'm going to keep this intro real short for us to. Let's get right to our post. As we start optimizing your life. How a stock market turns investors into gamblers by Vitale Ketson Elson of contrarian edge dot com. Don't let this wave of stock market volatility go to your head. The value of the companies in your portfolio doesn't change by positive or negative. Five percent three times a day, get the value, right? And the price will follow. For example, my firm recently met with a prospective client a physicist who has millions of dollars by owning apartment buildings in the US and Canada. He confessed that he was never able to make much money in stocks as we talked to him, we observe why the Dow was having one of those five hundred points up and five hundred points down days. He was visibly happier when the Dow was going up and sadder as it was going down, people who are otherwise successful as businessmen and as investors and private business or real estate change their behavior completely. When they entered the stock market. I have a friend whose father has made hundreds of millions of dollars by building several companies from scratch in Mexico, an absolutely brilliant businessman and the worst stock investor ever he'd Fred about every move. In his stock portfolio. As we talked to the physicist, we used this analogy, what we or any rational investor do is not much different from buying an apartment building. I, you look at the quality how well the buildings built the location and demographic trends in the area and so on. Then you start valuing this building you formulate your best case and worst case scenarios for rent occupancy property taxes and other important variables price square foot price per bedroom price to worst case rent in the stock market. These shortcuts are price to earnings price to cash, flows price to book value. If the price of an apartment building is at or below your worst case scenario you buy the building, if not you move on this is a rational business, like way of valuing an apartment building or any asset, including a publicly traded one. Yet there are two important differences between an apartment building or a private business and publicly traded company. The latter offers instant liquidity and. Oh, transaction costs. These differences should be huge advantages to sell an apartment building may take months or years. Transaction costs are enormous, three percent to seven percent of the buildings value to buy and to sell in and out costs combined could be as high as six to fourteen percent. The stock market should be a paradise for an apartment investor or businessmen, instead of having to deal with tenants and local authorities, you buy stocks or even an apartment REIT real estate investment, trust that owns hundreds of apartment buildings, arguably reducing the risk of owning a single building. The REIT is run by professional management. In this case, the definition of professional is that they get paid. You can let them deal with tenants. Of course, you have to analyze the REIT's management to make sure that they are competent and properly incentivized. But this analysis is not much different from what a business person would do when hiring a manager of an apartment building. So you can do the same analysis you performed on an individual apartment building on this REIT. E- except and here is where we enter into the domain of public equities. And the rational person is replaced by an irrational one stocks are priced every second of the trading day thousands of times a day someone tells you this company's worth this much. Actually, this is not what they tell you. This is what you hear. What they tell you is I would buy or sell this company for this much. At this moment. There are a million reasons why someone might want to buy or sell a stock on any given day. A lot of them have nothing to do with the company's value. So yes, there is a difference between value and price. You only know the difference if you've spent the time to value the company. If your apartment building was a public stock, it's price would fluctuate daily, and most of the fluctuation would just be noise. The price would be moving based on local weather, employment highway traffic, a mayoral race. The list is long. A lot of these factors will be transient and random in nature. In a word noise if a building similar to yours is put on the market at a ridiculously. Oh price by forced seller. You are not going to be upset that you're building is now probably worthless. You'll see it as an opportunity to buy another building on the cheap that is rational business like behavior, the liquidity of the stock market, and it's negligible. Transaction costs are great features, but probably do most people more harm than good. They can turn even the most otherwise astute private investors into degenerate gamblers on a daily basis. The difference between a gambler and degenerate gambler the gambler plays with as much money as he can afford to lose the degenerate. Gambler puts everything on the line. When you gamble in the stock market with all of your life savings, you are a degenerate gambler. That's why it's important to focus on what businesses are worth, not how the market prices them. You just listened to the post titled how a stock market turns investors into gamblers by Batalli cats and Elson of contrarian edge dot com. And a quick reminder that we give away books to random people on our mailing list. So if you want to be part of that, please come by old podcast dot com and join our weekly newsletter. We also give away spreadsheet tools to help you optimize your financial life. If you join, it is totally free. Again, you can sign up at AOL de podcast dot com hopefully will see their and that's a wrap for today. I will see you right back here tomorrow where your optimal life awaits.