Tuesday, April 28, 2015
Monday, April 27, 2015
Biggest Monopoly Companies
Google It’s no surprise that Google makes the list. What began as a simple search engine has managed to find its way into every tech-related pursuit. While Google initially began to take off due to powerful marketing and superior search results, it expanded to offer email services, GPS technology, online data storage, calendar services, and even has its own phone. It’s no wonder it controls more than 90 percent of market share. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/2/#sthash.Wol0i5l5.dpuf
Monsanto Monsanto is one of the corporate giants that is rarely seen but it actually touches everything that is consumed in the U.S. A biotech company, Monsanto has cornered the corn market with its weed killer and seeds. More than 80 percent of the corn that is grown in the U.S. is Monsanto trademarked. And given that corn is in absolutely everything including rubber, building materials, soaps, and nearly every piece of food imaginable, that’s a pretty big statistic. Monsanto received a lot of negative attention for its copyright clause that prevents farmers from re-using seeds, meaning they have to buy new ones each year, but it’s a big factor in why Monsanto got to be the size it has. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/3/#sthash.9oz6oxE7.dpuf
PepsiCo Think of nearly every food and drink brand imaginable: Pepsi. Frito-Lay. Mountain Dew. Gatorade. Tropicana. Quakers. Tostitos. Aquafina. Lipton. And ready for the kicker? Starbucks. Yes, all of these brands and many, many more are owned by PepsiCo (which has also begun focusing its brand extension to China in recent years). It has been acquiring successful brands for decades. So basically every time you pick up a soft drink, juice, snack, or coffee at the Starbucks on every corner, your dollars are heading straight to PepsiCo. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/4/#sthash.n9RK4ohg.dpuf
Microsoft While many say that personal computers are on the way out, Microsoft’s Windows operating system remains the most widely used system in the world. Its market share began to dip in recent years with the increasing popularity of Macs but it still controls more than 75 percent — more so in countries outside of U.S.
- See more at: http://afkinsider.com/23430/biggest-monopolies-world/5/#sthash.HCD5OX97.dpuf
Apple While Microsoft continues to control the market when it comes to computer operating systems, Apple’s niche is clear in its complete monopoly over gadgets. The iPhone is the most popular smartphone by far, and the iPad is overwhelmingly the preferred tablet of the world. When you get into iTunes and the Mac laptops (while some still use Windows operating systems, many prefer the aesthetic and performance of Mac laptops), Apple has a clear monopoly in the tech world. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/6/#sthash.B9wjhV8T.dpuf
Anheuser-Busch InBev Everyone has a preferred brand of beer, but most don’t realize that there’s a good chance many of them are owned by Anheuser-Busch. After merging with the Mexican brewing giant Grupo Modelo, Anheuser-Busch brands grew to include Budweiser, Busch, Michelob, Shock Top, Rolling Rock, Natural, Land Shark, Corona, Stella Artois, Beck’s, Hoegardden, and dozens more. So remember that when you get into your next heated argument about the merits of Natty Light vs. Bud Light. They’re all the same.
- See more at: http://afkinsider.com/23430/biggest-monopolies-world/7/#sthash.Cfsqzlag.dpuf
Intel Intel’s dominance in the microchip market has been obvious for years. It is without question the largest chip manufacturer in the world, holding more than 80 percent of the market share. Used in nearly every computer, phone and tablet, Intel’s chips literally make the world run. This should give you a hint to the extent of their monopoly: you most likely haven’t heard of their biggest competitor, AMD. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/8/#sthash.rRlhnhhP.dpuf
Facebook It may seem bizarre that a company that provides a free service could hold a monopoly over anything, but that’s exactly what Facebook has done to the social media market. It’s estimated that approximately 60 percent of people who use social media sites choose Facebook, and the likes of former giants such as MySpace have nearly disappeared. Say what you will about the obnoxious habits of Facebook users or the unnecessary home page “updates,” but the site shows little sign of slowing down.
- See more at: http://afkinsider.com/23430/biggest-monopolies-world/9/#sthash.v03A2oFt.dpuf
Amazon Amazon has long been a big name in the online shopping business, but has really taken off in recent years to become one of the most trusted and used sites out there. Add in the success of the Kindle (Amazon has a clear majority market share when it comes to e-readers), and the online giant makes this list with ease. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/10/#sthash.4FWYAN1E.dpuf
Netflix It’s no coincidence that the release of Netflix’s home-delivery movie rental service coincided with the closing of Blockbuster. Netflix has 61 percent of the digital video market, which is larger than its competitors Redbox and Blockbuster. When Netflix released its streaming-only product, more than a thrid of existing Netflix subscribers signed up. Netflix is only expected to grow. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/11/#sthash.UzGDIthb.dpuf
Kindle Kindle had an estimated 67 percent of the market share in the e-reader market, beating out its competitor the Nook by more than 40 percent as of this writing. In 2011, e-books began outselling paperback books, which is part of the reason Borders went bankrupt and why you see a lot of digital products at Barnes and Nobles now. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/12/#sthash.qrIIqWrq.dpuf
Sirius/XM Sirius Satellite Radio and XM Satellite Radio were the two largest satellite radio providers in the U.S. as of this writing but the two used to be competitors in a game they were both losing. In 2008, they merged to become Sirius/XM and became the only satellite radio provider in the U.S. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/13/#sthash.cPCOVzyP.dpuf
PayPal PayPal’s slogan, “The world’s most loved way to pay and get paid” is accurate. Owned by eBay, PayPal is the leader in the online payment industry. PayPal had 157 million “digital wallets” as of this writing, and is available in 203 markets. Apple and Google have announced plans to offer similar online payment services, so PayPal might be looking at competition. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/14/#sthash.XD5qZF44.dpuf
Lululemon Athletic Yoga practice may be peaceful, but the industry is making aggressive advances. The company has few competitors and has about a 50-percent market share. To give you some idea of the company’s growing potential, a 2013 poll found Americans spend about $27 billion a year on yoga.
- See more at: http://afkinsider.com/23430/biggest-monopolies-world/15/#sthash.GZN4lzd2.dpuf
American Water Works Company, Inc. American Water Works Company, Inc. is the largest public U.S. water and waste utility, with more than 16 million customers in 35 U.S. states plus two Canadian provinces. The company has around a 52-percent market share, and an estimated $4.3 billion market capitalization.
- See more at: http://afkinsider.com/23430/biggest-monopolies-world/16/#sthash.vePfMwti.dpuf
Unilever Another member of the giant owns-everything-but-you-never-realized-it club, Unilever owns everything from Dove and Suave to Ben and Jerry’s and Popsicle. The list is seriously too enormous to describe, but just assume that nearly every ice cream item you consume, almost every beauty product you use, and almost every pasta sauce you dump on a bowl of spaghetti has Unilever’s name on it.
- See more at: http://afkinsider.com/23430/biggest-monopolies-world/17/#sthash.BlRkk3LC.dpuf
Monsanto Monsanto is one of the corporate giants that is rarely seen but it actually touches everything that is consumed in the U.S. A biotech company, Monsanto has cornered the corn market with its weed killer and seeds. More than 80 percent of the corn that is grown in the U.S. is Monsanto trademarked. And given that corn is in absolutely everything including rubber, building materials, soaps, and nearly every piece of food imaginable, that’s a pretty big statistic. Monsanto received a lot of negative attention for its copyright clause that prevents farmers from re-using seeds, meaning they have to buy new ones each year, but it’s a big factor in why Monsanto got to be the size it has. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/3/#sthash.9oz6oxE7.dpuf
PepsiCo Think of nearly every food and drink brand imaginable: Pepsi. Frito-Lay. Mountain Dew. Gatorade. Tropicana. Quakers. Tostitos. Aquafina. Lipton. And ready for the kicker? Starbucks. Yes, all of these brands and many, many more are owned by PepsiCo (which has also begun focusing its brand extension to China in recent years). It has been acquiring successful brands for decades. So basically every time you pick up a soft drink, juice, snack, or coffee at the Starbucks on every corner, your dollars are heading straight to PepsiCo. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/4/#sthash.n9RK4ohg.dpuf
Microsoft While many say that personal computers are on the way out, Microsoft’s Windows operating system remains the most widely used system in the world. Its market share began to dip in recent years with the increasing popularity of Macs but it still controls more than 75 percent — more so in countries outside of U.S.
- See more at: http://afkinsider.com/23430/biggest-monopolies-world/5/#sthash.HCD5OX97.dpuf
Apple While Microsoft continues to control the market when it comes to computer operating systems, Apple’s niche is clear in its complete monopoly over gadgets. The iPhone is the most popular smartphone by far, and the iPad is overwhelmingly the preferred tablet of the world. When you get into iTunes and the Mac laptops (while some still use Windows operating systems, many prefer the aesthetic and performance of Mac laptops), Apple has a clear monopoly in the tech world. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/6/#sthash.B9wjhV8T.dpuf
Anheuser-Busch InBev Everyone has a preferred brand of beer, but most don’t realize that there’s a good chance many of them are owned by Anheuser-Busch. After merging with the Mexican brewing giant Grupo Modelo, Anheuser-Busch brands grew to include Budweiser, Busch, Michelob, Shock Top, Rolling Rock, Natural, Land Shark, Corona, Stella Artois, Beck’s, Hoegardden, and dozens more. So remember that when you get into your next heated argument about the merits of Natty Light vs. Bud Light. They’re all the same.
Intel Intel’s dominance in the microchip market has been obvious for years. It is without question the largest chip manufacturer in the world, holding more than 80 percent of the market share. Used in nearly every computer, phone and tablet, Intel’s chips literally make the world run. This should give you a hint to the extent of their monopoly: you most likely haven’t heard of their biggest competitor, AMD. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/8/#sthash.rRlhnhhP.dpuf
Facebook It may seem bizarre that a company that provides a free service could hold a monopoly over anything, but that’s exactly what Facebook has done to the social media market. It’s estimated that approximately 60 percent of people who use social media sites choose Facebook, and the likes of former giants such as MySpace have nearly disappeared. Say what you will about the obnoxious habits of Facebook users or the unnecessary home page “updates,” but the site shows little sign of slowing down.
Amazon Amazon has long been a big name in the online shopping business, but has really taken off in recent years to become one of the most trusted and used sites out there. Add in the success of the Kindle (Amazon has a clear majority market share when it comes to e-readers), and the online giant makes this list with ease. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/10/#sthash.4FWYAN1E.dpuf
Netflix It’s no coincidence that the release of Netflix’s home-delivery movie rental service coincided with the closing of Blockbuster. Netflix has 61 percent of the digital video market, which is larger than its competitors Redbox and Blockbuster. When Netflix released its streaming-only product, more than a thrid of existing Netflix subscribers signed up. Netflix is only expected to grow. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/11/#sthash.UzGDIthb.dpuf
Kindle Kindle had an estimated 67 percent of the market share in the e-reader market, beating out its competitor the Nook by more than 40 percent as of this writing. In 2011, e-books began outselling paperback books, which is part of the reason Borders went bankrupt and why you see a lot of digital products at Barnes and Nobles now. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/12/#sthash.qrIIqWrq.dpuf
Sirius/XM Sirius Satellite Radio and XM Satellite Radio were the two largest satellite radio providers in the U.S. as of this writing but the two used to be competitors in a game they were both losing. In 2008, they merged to become Sirius/XM and became the only satellite radio provider in the U.S. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/13/#sthash.cPCOVzyP.dpuf
PayPal PayPal’s slogan, “The world’s most loved way to pay and get paid” is accurate. Owned by eBay, PayPal is the leader in the online payment industry. PayPal had 157 million “digital wallets” as of this writing, and is available in 203 markets. Apple and Google have announced plans to offer similar online payment services, so PayPal might be looking at competition. - See more at: http://afkinsider.com/23430/biggest-monopolies-world/14/#sthash.XD5qZF44.dpuf
Lululemon Athletic Yoga practice may be peaceful, but the industry is making aggressive advances. The company has few competitors and has about a 50-percent market share. To give you some idea of the company’s growing potential, a 2013 poll found Americans spend about $27 billion a year on yoga.
American Water Works Company, Inc. American Water Works Company, Inc. is the largest public U.S. water and waste utility, with more than 16 million customers in 35 U.S. states plus two Canadian provinces. The company has around a 52-percent market share, and an estimated $4.3 billion market capitalization.
Unilever Another member of the giant owns-everything-but-you-never-realized-it club, Unilever owns everything from Dove and Suave to Ben and Jerry’s and Popsicle. The list is seriously too enormous to describe, but just assume that nearly every ice cream item you consume, almost every beauty product you use, and almost every pasta sauce you dump on a bowl of spaghetti has Unilever’s name on it.
Saturday, April 25, 2015
Peter Tiel's Ideas
Peter's founder fund has following areas,
1, Aerospace and Transportation
Cost of transportation to space can introduce a huge commercial door for profit
2, Biotechnology
Cost, long duration, of Drug Approval
Lengthy duration for a company to figure out whether a drug can be effective
3, Advanced Machine / Software
Artificial Intelligence and Robotics
4, Energy
Cheap way to produce energy
5, Internet
1, Aerospace and Transportation
Cost of transportation to space can introduce a huge commercial door for profit
2, Biotechnology
Cost, long duration, of Drug Approval
Lengthy duration for a company to figure out whether a drug can be effective
3, Advanced Machine / Software
Artificial Intelligence and Robotics
4, Energy
Cheap way to produce energy
5, Internet
Thursday, April 16, 2015
SCI
Service Corporation International: A company overview
Service Corporation International/US (SCI) provides death care services and products. The company has a broad network of cemeteries and funeral service locations and operates primarily in the United States and Canada. The operations of the company consist of crematoria, funeral services, cemeteries, and funeral service locations.
The primary services of Service Corporation International/US include cremation, burial, and embalming. The company also tends to sell conventional funeral necessities such as burial garments, flowers, cremation receptacles, burial values, caskets, and prearranged funeral services.
The company has significantly expanded in the last couple of years through acquisitions. It’s pursuing the market for cremation services in an aggressive manner.
Service Corporation International experiences increased market share and synergies from Stewart acquisition
In 2013, Service Corporation International/US acquired Stewart Enterprises, Inc., its largest competitor, for $1.4 billion. This acquisition made the company the largest provider of death-care services.
Since the acquisition, Service Corporation International/US paid down $230 million over a period of 12 months. Debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) is expected to fall during 2015, after which the company can accelerate its repurchase of shares.
The company reportedly has sufficient free cash flows to finance further acquisitions and grow its share within the fractured industry.
Enlarge GraphWhat will ensure the company’s competitive advantage?
Service Corporation International/US (SCI) is a major player in the North American stable cemetery and funeral industry. The company has a 16% share of the revenues in the industry. Its scale offers enormous cost efficiencies and purchasing power.
The scale of the firm’s operations offers an opportunity for the company to experience differential growth through preneed sales. Baby Boomers, who are presently benefiting from preneed results, should provide a tailwind for propelling future growth.
The preneed sales for funeral and cemetery services rendered by the company have experienced robust growth due to enhanced productivity and favorable demographics.
Strong, consistent financial performance
Service Corporation International/US (SCI) has been experiencing a robust growth in free cash flow, amounting to a CAGR (compound annual growth rate) of 17%. Normalized earnings per share for 3Q14 was $0.23, which represents a 28% growth compared to the previous year.
Adjusted operating cash flow grew by 21% to $123.2 million. The company’s strong track record pertaining to double-digit growth in earnings is expected to continue during 2015.
After funding dividend payments, the company has significant levels of free cash flows available for pursuing strategic options such as share repurchases and acquisitions.
In addition to stable cash flow, the company has maintained consistent and substantial liquidity with a target minimum liquidity level of $300 million. The favorable maturity profiles for the company’s debt give it a large amount of financial flexibility.
Monday, April 13, 2015
Sunday, April 12, 2015
Buffet's Car Business
Buffet now owns everything in the chain:
- BYD makes car (cheaply)
- Dealership sells the cars
- GEICO provides Car Insurance
- BYD makes car (cheaply)
- Dealership sells the cars
- GEICO provides Car Insurance
How Does Buffet Invest in Consumer Products?
Warren Buffett doesn’t care about the sexy, glamorous luxury brands. He purchases businesses that he understands, and particularly businesses that have a strong following with the middle class – even if the companies have sluggish growth rates and are boring on the surface.
Friday, April 10, 2015
Thursday, April 9, 2015
Wells Fargo Deep Dive
A qualitative look at loan king Wells Fargo
- Banking is largely a distribution-based business.
e.g WFC strongest in west; JPM strongest in east; BAC strongest in metropolitan area
- Relation-building is essential to banking;
- International Presence is Important (only 5.77% from International Market);
- WFC leads in the loans (by end of 2013, 1 in every 3 retail mortgages);
- Auto loan king;
- Credit and Debit Cards (can improve to catch up rivals);
- Strong in Retail/Consumer Loans;
- Second Largest Deposit Base;
- Largest Small Business Lender;
- Largest Auto Lender;
- Cross-Selling;
- Commercial and Retail each 50% business, with highest industrial sectors in investors,
cyclical retailers, oil and gas, and food and beverage, with each about 2% of the business;
- Strong position in commercial real estate (4%);
- Wealth Management, Brokerage, and Retirement Planning (fee based, strong customer base);
- Abbot Downing
- Weak In Investment Banking (JPM - Bear Sterns; C - Salomon Smith Barney;
BAC - Merryl Lynch; WFC - Wochovia)
- Overall, most competitive
WFC Strategy --- slow and steady
=========================
- Banking is largely a distribution-based business.
e.g WFC strongest in west; JPM strongest in east; BAC strongest in metropolitan area
- Relation-building is essential to banking;
- International Presence is Important (only 5.77% from International Market);
- WFC leads in the loans (by end of 2013, 1 in every 3 retail mortgages);
- Auto loan king;
- Credit and Debit Cards (can improve to catch up rivals);
- Strong in Retail/Consumer Loans;
- Second Largest Deposit Base;
- Largest Small Business Lender;
- Largest Auto Lender;
- Cross-Selling;
- Commercial and Retail each 50% business, with highest industrial sectors in investors,
cyclical retailers, oil and gas, and food and beverage, with each about 2% of the business;
- Strong position in commercial real estate (4%);
- Wealth Management, Brokerage, and Retirement Planning (fee based, strong customer base);
- Abbot Downing
- Weak In Investment Banking (JPM - Bear Sterns; C - Salomon Smith Barney;
BAC - Merryl Lynch; WFC - Wochovia)
- Overall, most competitive
WFC Strategy --- slow and steady
=========================
Wells Fargo summary
- Leading market share in mortgage and auto loans; strong in other retail and commercial loans
- Diversified revenue sources—strong in interest and non-interest income
- Large, low cost deposit base
- Strong risk culture—strengthening it even more
- Experienced management team and satisfied employees
- Strong returns versus peers with lower volatility
- Lower risk profile than large peers
- Broader distribution, scale, and product set than regional banks
Wednesday, April 8, 2015
Monday, April 6, 2015
Fertilizer Companies
Investment theory ---
Price goes up and down by weather, crop price, inventory, China export policy, etc. Look for pattern, in at low out at high (to gain the delta)
Example 1 Potash Investment
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