The Problem With 21st-Century Companies
The Problem With 21st-Century Companies by Bill Bonner – Bonner and Partners
RANCHO SANTANA, NICARAGUA – We’re down in Nicaragua giving a little speech to a group of financial analysts and publishers.
I’ll be sharing the full contents of the speech with members of our Inner Circle advisory soon.
A view of the coastline from Rancho Santana, Nicaragua
Paris was dead when we passed through on Saturday.
It was the All Saints holiday weekend. Our neighborhood – near Les Invalides – had cleared out.
So much the better. Paris is a city for old people. The best season to enjoy it is the fall. And the fall is best when the city is empty.
Then you can get a full draft of melancholic nostalgia without bright, young people diluting the dosage.
Just walk through the parks and kick up the curled-up chestnut leaves… or sit in a deserted café, drinking a glass of Médoc and thinking of dead people.
The pleasure is exquisite.
But our beat is money. And we begin by noting that President Trump’s Deep State advisors have chosen the perfect man to lead the Fed: the quintessential insider, Jerome Powell.
More about him tomorrow…
On Saturday morning, we sat at Le Bistro Esplanade, looking out at Les Invalides – a complex of buildings that began life in the 17th century as a home for aged and sick soldiers – rehearsing neither sweet remembrances nor sour regrets.
Instead, we wondered why Tesla and Amazon are such popular stocks, despite losing so much money.
What follows is an idea on the subject…
They are very different companies. One makes electric cars; the other sells stuff online. About the only things they have in common are that neither makes money and both are vaguely “tech” companies.
Tesla is a classic money-loser. It has a charismatic Pied Piper at the head of it, in the form of Elon Musk, drawing away investors’ money. But it lacks a business model that makes sense.