Locator: 45454INV.
The next big thing: Locator: 10001TNBT.
Re-posting.
Investing
In an e-mail sidebar to a reader on investing I wrote:
With regard to Nvidia and earnings this week: yeah, I don’t know.
September will be my big month for new dollars investing.
30% will go into tech. 20% into Big Pharma.
I don’t think I’m exaggerating when I say AI is akin to the Industrial Revolution in Britain in the 1800s in terms of advances we’re going to see over the next 50 years.
Oil has become a utility sector.
Big Pharma is not trusted by anyone.
Car manufacturers are going to be greatly challenged for the next 10 years, maybe longer.
Amazon will simply get bigger and bigger. I don’t invest in Amazon. Plenty of other options.
Next big thing: I have no idea. It may be spatial computing but it may take 10 years to play out.
I had not looked at SRE in a long time: pays 7% and may be the best positioned utility in the US and selling at a great discount right now. I can’t buy more because I have way too much. But with today’s 2-1 split I may reconsider, which of course makes no sense -- a split doesn't change anything.
As long as MMFs pay 5 - 6%, equities are going to have to up their game to attract investors.
Shortly after writing the above, I've reconsidered. I'm still trying to sort out Amazon. I do think -- despite what I wrote above -- I will start a position in Amazon, add it to my "Tech" bucket.
UPS, FedEx, DHL, USPS are mid-streamers: pipelines, logistics, delivery systems.
Amazon: was a mid-streamer decades ago. Amazon is now vertically integrated from upstream (the cloud) to midstream (Amazon logistics) to downstream (Whole Foods).
So, we add, Amazon to the tech bucket.
We'll talk about the huge pay packet won by the workers later. For now: this, the song.
SRE makes no difference but with that 2-1 split, SRE management seems to be making a statement, a better statement than BUD made with regard to Bud Lite -- a Texas two-step debcle.
Back to the "next big thing." Logistics, delivery, midstream, for some, might not be the next big thing "by definition" because it's been here for decades, but I do think "logistics, delivery, midstream" by another name is the next big thing, even though it's been around years: "last mile delivery."
"Last mile delivery": short term
-- Amazon, UPS, DHL, USPS, FedEx (in the US) -- the winner by a long
mile -- Amazon. Except for Amazon, none of the others have a moat, and
as investments DHL and USPS are not even in play.
"Last mile delivery": long term -- whoever wins at robotic delivery. Amazon with Rivian experience, I think, is in the lead for robotic delivery.
FedEx "when it absolutely, positively has to get there overnight"? That has become a cartoonish meme in 2023. Amazon is now doing that -- overnight delivery -- for the majority of packages without charging extra. From what little I know, and I know very little, head-to-head, FedEx has the worst reputation for delivery (disregarding overnight-must-be there-for-a-very-high-price). Just ask the folks in Portland, OR.
So, there's that. Amazon.
Now, back to SRE. A 2 - 1 split doesn't mean a thing, until it does. And in this case, the split got my attention. And I'm re-thinking adding to my position. It pays 7% and seems to be the best-positioned natural gas utility in the US -- with huge operations in California, Texas, and Mexico.
Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.
All my posts are done quickly:
there will be content and typographical errors. If anything on any of
my posts is important to you, go to the source. If/when I find
typographical / content errors, I will correct them.
Again, all my posts are done quickly. There will be typographical and content errors in all my posts. If any of my posts are important to you, go to the source.
Amazon: what business is Amazon in? Link here.
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