The Sixth Industrial Revolution -- August 9, 2025

Locator: 48821BOOM.

We've never seen anything like this before. 

From Beth this weekend:

What this means:

With regard to the number of billionaires being created right now, in the AI world, some/many/most readers would find chapter two of Malcolm Gladwells' 2011 Outliers: The Story of Success quite fascinating.

Outliers: The Story of Success, Malcolm Gladwell, c. 2011.

I have never found Gladwell's book particularly compelling. He does present a number of interesting observations but they seem to be exceptions rather than truisms that would be helpful to college students looking to be the next billionaire. But it is what it is. I wouldn't keep Malcolm Gladwell's book in my library but I'm glad I've read it. 

However, having said that, a century from now there will be many books written on the outliers of the early 21st century, specifically, the roaring 20's --if geopolitics doesn't screw it up -- will last well into the thrilling 30s. 

ChatGPT prompt: how many billionaires, do you think, have been "created" in Silicon Valley, California, since 2012?

See ChatGPT's reply at this blog. 

The numbers are bind-boggling, and most of us have become numb to them. In the old days, we would have been talking about the number of new millionaires, but this is billionaires, and not millionaires, but centimillionaires.

Ten Companies With Strongest 2Q25 Earnings -- So Far -- August 9, 2025

Locator: 48820BOOM.

One wonders when Charlie Munger quit reading. I wonder if Charlie Munger ever visited Stanford. 

The list is not likely to change much; the earnings reporting season is almost over.

Link here. This list is absolutely fascinating. Palantir is particularly interesting. See backstory.

Except perhaps for MSFT I can't imagine BRK touching any of these. 

SoFi, Robinhood, and Schwab: all Stanford start-ups.

*********************************
After This Past Week

Well, Duh, From Reuters -- August 9, 2025

Locator: 48819THEONION?

Ya think?

It's beyond the pale that the Intel board would select a well-known Chinese Communist Party insider. 

As long as CEO Tan is in charge, it will be foolhardy for any American company to do business with Intel and think they don't risk Trump's wrath. 

The above "box" is from Reuters today but it could have easily been a headline from The Onion.

Focus On Dividends -- August 9, 2025

Locator: 48818DIVIDENDS.

Link here.

Barron's take on dividends. Fluff.

Renewable Energy - August 9, 2025

Locator: 48817BIRDS.

Link here.

Wind turbines: no longer getting free pass. Link here.

Wind-energy-related bird deaths:

While it's difficult to pinpoint an exact annual number, wind turbines are known to kill bald eagles, with estimates ranging from a few dozen to a few hundred each year. One wind energy company was recently penalized for killing at least 150 eagles over a decade. Though not the primary cause of eagle deaths, wind turbines do pose a risk, especially in areas with high eagle populations or where turbines are poorly sited. 

Oil-activitiy-related bird deaths:

Data directly linking bald eagle deaths to oil drilling operations themselves, excluding oil spills, is not readily available in the search results provided . However, the impacts of oil and gas drilling on bald eagle populations are primarily linked to habitat destruction and disruption, according to The Wilderness Society. Drilling projects can fragment or destroy critical habitat, disrupt migration routes, and isolate feeding and nesting sites

******************************
Great Barrier Reef

Muscle Cars Are Back -- August 9, 2025

Locator: 48816AUTOS.

Tag: Dodge, Stellantis, Durango.

Link here.

Viper Energy To Acquire Sitio Royalties Corporation -- Viper Is A Subsidiary Of Diamondback -- Premier Operator In The Permian? August 9, 2025

Locator: 48815INVESTING.

Tag: Sitio, Viper, Diamondback, Permian.

Link here, from June, 3, 2025.

Link here, from July 19, 2025.

I could be wrong on this but DOR for both STR and VNOM for dividend purposes appears to be August 14, 2025.

What the merger means to STR shareholders. Link here.

For STR shareholders, the merger offers clear liquidity and a defined exchange ratio into a larger, more diversified Premier Permian royalties player. The deal may deliver modest value upside and a quicker roadside to sustainable dividends. But it also means exiting public markets, surrendering standalone governance, and relying on the future success of the combined entity.

From AI:

Sitio Royalties and Diamondback Energy's subsidiary, Viper Energy, announced a significant all-equity merger on June 3, 2025. 

• this $4.1 billion deal, including $1.1 billion of Sitio's debt, combines two major players in the mineral and royalty sector, particularly focused on the Permian Basin. 
• key takeaways:
• increased scale and Permian pootprint: The merger creates a dominant entity in the minerals and royalties space, significantly expanding Viper's presence in the Permian Basin and other areas, including the Bakken, according to Viper Energy. 
• benefits to Viper: Viper anticipates enhanced financial stability, including a lower breakeven point and the ability to increase its base dividend by 10% to $1.32 annually. The deal is expected to be immediately accretive to cash available for distribution per share. 
• benefits to Sitio: Sitio shareholders will receive 0.4855 shares of the combined company for each Sitio Class A share, representing an implied value of $19.41 per share. 
• synergies: The combined company expects to realize over $50 million in annual synergies, primarily from reduced general and administrative costs and lower cost of capital. 
• diamondback's role: Diamondback, as the parent company of Viper, will retain a significant ownership stake (approximately 41%) in the combined entity and is expected to continue driving production growth through its drilling activities. 
• impact This merger is a key development in the consolidation of the minerals and royalties sector, particularly within the Permian Basin. It highlights the growing importance of scale and efficiency in the oil and gas royalty segment.