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If you are going to miss, do it on a 3% down day! They actually met their number, but missed on revenue. I have a small position in Tencent and consider it one of my "core" holdings (i.e. not something that I trade). Tencent is like an ETF, but it holds a large number of private equity positions, and that really differentiates it from any other publicly traded product.

Its investment portfolio is roughly twice as big as its main Chinese rival Alibaba and dwarfs those of US peers such as Facebook and Google
-- Louise Lucas, Financial Times

I rarely add to a position when it is down, but I might be tempted if Tencent trades back into the $38 range, from December and January. Why own an Asia or China fund and pay an annual management fee when you can own Tencent and receive an annual dividend?

-- Scrib

ETrade (founded in 1982) is now valued at $10 billion and down 30 percent from all-time highs. Coming from the other direction is Robinhood which recently raised capital at a valuation just shy of $8 billion.
-- Howard Lindzon

I'm fully onboard with this hypothesis - the brokerage industry is trying to reinvent itself, but it is extremely monolithic and slow. The shield for Fidelity (and Schwab? I know they do 401K's but I do not know anyone that has them) is if they're your 401K custodian, then that is the most efficient place to have all of your accounts. In addition, Fidelity (and Schwab) allow you to treat your 401K like a regular brokerage account, buying and selling stocks, bonds and ETF's (with some limitations - primarily limited or no options trading).

Were Robinhood to support IRA accounts (they currently do not), I would certainly go that route for my kids, when they get jobs after school (during school? We can hope!).

-- Scrib

Verizon is set to sell the social network Tumblr to Automattic Inc, the owner of online publishing tool WordPress. A source familiar with the deal puts the price-tag "well below" $20 million, while another source puts it below $10 million.
-- Ursula Perano, Dan Primack, Axios

Wow! Like I wrote back in December, Yahoo paid $1.1 billion for Tumblr just six years ago. Anyway, the Axios piece goes on to say that Tumblr's 200 employees will go along with the sale. 200 employees at an estimated $10m to $20m valuation? That's an outrageous headcount - I wonder how many are in NYC?

-- Scrib

Levi's vs. Wrangler's through AugustThings are starting to get interesting! These two have been trading in lock-step for a month, but Kontoor is now breaking out on a decent earnings release that is showing good results against their plan.

Excluding Sears, Wrangler U.S. wholesale revenue was up 2% in the first half of 2019, and the company expects global sales to improve in the second half.

Sears filed for Chapter 11 in October of last year. As I discussed in May, if Kontoor can grow their sales without exploding the budget, they are definitely going to enjoy a higher multiple on the price of their stock. Another tidbit that popped-up in July was that Kontoor declared a regular quarterly dividend of 56 cents per share (LEVI does not pay a dividend). That's a healthy 5.8% yield, at today's $33.82 close.

-- Scrib

Generation Alpha got its start in 2010, at a rate of 2.5 million births per week. They are primarily the children of Gen Y - Millennials born between 1980 and 1995.
-- Ursula Perano, Axios

I did not realize that there was a Gen Alpha, but perhaps I am just out-of-touch! To recap, then:

  • Generation X: Born between 1965 and 1980
  • Generation Y (aka Millennials): Born between 1981 and 1995
  • Generation Z: Born between 1996 and (evidently now) 2009

One thing's for sure, we'd better treat Generation Alpha well, since they'll be taking care of us X'ers in our sunset years.

-- Scrib


Beer Belongs ad campaign

It was 1945 and the United States Brewers Foundation, an advocacy group for the beer industry, sought out the artist, Doris Lee, to paint something for an advertising campaign they called “Beer Belongs.” The ads, which ran in popular women’s magazines like McCall’s and Collier’s featured works of art that equated beer drinking with scenes of wholesome American life. The artworks positioned beer as a natural beverage to serve and to drink in the home.
-- Melissa Hendrickson,

But we all can slow the spread of mass shootings by changing how we consume, produce, and distribute violent content on media and social media. Don’t like or share violent content. Don’t read or share killers’ manifestos and other hate screeds posted on the internet. We also need to study our current approaches. For example, do lockdown and active shooter drills help children prepare for the worst or hand potential shooters the script for mass violence by normalizing or rehearsing it?
-- Jillian Peterson and James Densley, LA Times