Sunday, April 28, 2019

Sunday Night Ramblings, Part 3 -- April 28, 2019

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on what you read here or think you may have read here.

Open book test: Warren says he may buy back $100 billion of his own stock. No time frame. Berkshire repurchased $1.3 billion of its stock last year, after Buffett loosened the company's buyback criteria.

Is the Permian played out? From Rigzone staff so you know this is going to be good. Link here. Two takeaways:
  • the takeaway problem in the Permian is being solved
  • IEA: we have not seen the full impact of the shale revolution yet”
Amazon: "The Real Nightmare On Elm Street" -- Zero Hedge --
In what is being called a "nightmare come true" for freight brokers and carriers, Amazon did what it traditionally does every time it enters a new market, and took its own digital freight brokerage platform live while undercutting prevailing market prices by 26% to 33% in the latest deflationary race to the pricing bottom in order to grab market share, according to FreightWaves.

Late last week, Morgan Stanley equities analyst Brian Nowak had predicted this was going to happen, stating: “We see AMZN’s 1-day Prime shipping raising consumer expectations and increasing the cost to compete in e-commerce. Over the long term, we also see this as a Trojan horse for Amazon to grow its next disruptive business… a third party logistics network.”

Amazon already has an extensive network of trucking carriers as it moves an enormous amount of freight across the country. Having their own third-party logistics network was just an obvious next step for the behemoth of a company that relies so much on shipping. The benefits are plentiful for Amazon: they get to hedge against the volatile price of trucking capacity and they get to expand their infrastructure, while turning part of their costs into revenue. Amazon is already a top 10 international freight forwarder for Asian ocean freight inbound to North America.
Sophia with two friends:

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