The benevolence of the super-rich has become almost mandatory. Our government has failed to provide adequate care for the people, and now we must rely on billionaires. If they didn’t give away their money mobs with pitchforks, or Bernie Sanders would take it. Wisely, the wealthy have been out front on this issue for a while (buffet, gates, tuner, etc).

Zukerberg’s pledge is enormous, serious kudos to him. Essentially he is setting up a hedge fund with his normal-looking wife (why isn’t this guy single and dating Miss America?) that will make investments and gift the profits. Like having an orchard; you have to give away the fruit, but not the trees. 

Will this new endeavor for Mr. Zukerberg steal his passion from Facebook? 

Does this have anything to do with his September trip to India? Where by the advice of Sir Steve Jobs, he was instructed to go drop acid and get “spiritual”?

Source: Bloomberg

I want to own TWTR so badly, but then shit like this happens and I second guess myself. To sell such a sizeable stake at these levels makes me think he has a serious lack of confidence.

Even if TWTR is a niche product for certain sub-groups of professions and hobbies it could still be tremendously valuable. For finance/stocks/current events, it is a hands down winner. Undoubtedly the brand is powerful and here to stay.

Management just needs to get their act together and develop a more focused monetization strategy. At a $17B valuation, TWTR is a steal compared to FB at >$300B. On a price/sales basis: 9x/19x

After a very unsuccessful turnaround campaign by Marissa Mayer, YHOO is seemingly admitting defeat and looking for a buyer of their internet business. What other businesses do they have you ask? Why Alibaba, the only reason people still talk about this company.

My question is who would want to buy this perpetual money-losing enterprise? My guess is no one. Perhaps, if no buyers emerge they will try and spin off the internet business and become a proxy for BABA.

Via WSJ

Yahoo Inc.’s board is planning a series of meetings this week to consider selling off the company’s flagging Internet businesses and how to make the most of its valuable stake in Chinese e-commerce powerhouse Alibaba Holding Group Ltd.

The board is expected to discuss its options in sessions beginning Wednesday and continuing through Friday. 

The world is full of heroes and villains. We have the pleasure of witnessing a hero being born in ESRX. The white night has declared war on Dr. Evil himself, Martin Shkreli. ESRX will begin offering a $1/pill alternative for Daraprim, the drug infamously purchased by Shkreli’s Turing Pharmaceuticals, which in turn charged $750/pill. Aids patients around the world are rejoicing; they plan on using their surplus savings to send Shkreli mountains of elephant dung to his luxurious penthouse in Manhattan.

Express Scripts Holding Co. said in a statement that it’s partnering with Imprimis Pharmaceuticals Inc., a San Diego-based company specializing in compounded drugs. In October, Imprimis started making a medicine for as little as $1 a capsule that includes the active ingredient in Daraprim, pyrimethamine, together with a vitamin called leucovorin that Daraprim is usually used with.

Turing’s price increase for Daraprim, a decades-old drug that no longer enjoys patent protection, drew outrage from politicians, doctors and health insurers. By having a compounding pharmacy combine the two drugs, Express Scripts doesn’t need to wait for an FDA-approved direct competitor to Daraprim to come to market at a lower cost.

The $750-a-pill price “wasn’t acceptable,” Steve Miller, chief medical officer for Express Scripts, said in an interview Monday. Using a compounded drug is “a simple, elegant solution that gets desperate patients the drugs they need at an affordable price.” Miller said because Daraprim isn’t needed in large quantities, Imprimis should not have a supply problem.

How will Turing fair in the face of such competition?

Will Shkreli ever have enough money to lose his virginity?

Stay tuned…

Glimpse into the future.

AMZN will likely roll out this service within the next few years. The UK will be introduced first because they care less about air pollution and machines flying overhead.

In a nut shell, this video is why AMZN commands a 975 eps multiple. Bezos is a fucking genius will balls of steel to pursue a drone delivery program. This idea would be laughed at by 99.5% of executives a few years ago.

Always remember, AMZN could transform into a profit monster with the snap of a Bezos’s finger. Don’t question this man’s decisions, he will checkmate his competition and eat their hearts.

In unrelated Bezos news, his spaceship company, Blue Origin successfully landed a rocket. Ensuring his dick is as big as Elon Musk.

I own a little AMZN. Hopefully it crashes so I can buy more.

The Fed’s duel mandate is simple. Control inflation, and promote full employment.

Ex. A

I present the consumer price index (otherwise known as inflation)

Can you find the inflation? 

Don’t look too hard, after years of printing trillions of dollars we simply don’t have much inflation to show. How is this possible? The answer, I believe, is innovation. I will elaborate on this theory in future posts. Basically innovation = efficiency = deflation.

Ex B.

I present the labor force participation rate.

Why fix what isn’t broken?

Looking at these two data points that directly correlate to the Fed’s duel mandate, and ask yourself? Why on earth would you consider changing the course?

Innovation counteracts natural inflation. If we continue to innovate, I believe we can not only accommodate further stimulus, but most certainly a low interest rate environment.

On a side note, I am sick of fed governors talking to the media. I would impose a strict media black out on anyone other than the chairman.

Janet Yellen, get your house in order.