Staying Mixed, McGuire Brothers, Netflix, Billionaires and...
…An Ancient Mariner.
First, what’s the news? Good-good, bad-bad, bad-good or good-bad?
For the last several weeks, it’s been a bag of mixed messages. Well, that’s continuing.
Housing starts: very slightly higher than expected – 1.42 million
Building permits: slightly lower at 1.41 million
Continuing jobless claims: If there was a surprise, this is it for last week. 1.87 million, up from 1.80 million last week.
So, more people claimed unemployment and less people dropped off.
S&P Global US Sector PMI rose to 53.7 in April, up from 52.6 in the prior month. Wait, what is this?
Basically, this is a manufacturing index that measures what is going on in manufacturing in the United States.
Anything over 50 means expansion.
With a score of 53.7, higher than the previous month and a 12 month high, the economy continues to grow in the eyes of the manufacturing sector.
Still mixed news, folks. It just shows that the economy hasn’t picked a direction, but it will.
Next week the PCE!
Bits and Pieces
Netflix
Many of you may not recall how Netflix got its start. Yes, it was a subscription-based service. But it wasn't streaming.
At the time, streaming was something your sinuses did at the height of allergy season. Like now.
They started by selling and renting DVD movies by mail. Within two years, they did move to a subscription service with members getting discounted or free rentals.
They would mail 3 DVD’s at a time to you.
Our family was a Redbox family, not so much Netflix. That business continues, by the way.
Well, Netflix has announced they are shutting down their DVD business effective September.
5.2 billion DVDs later.
The World’s Top Billionaires (according to Forbes magazine)
Bernard Arnault & family - $211 billion: LVMH. Those letters include Louis Vuitton, Moet Chandon, Hermes, Tiffany & Co., and Dior just to name a few.
Elon Musk – $180 billion: No introduction necessary. He would be #1 if it wasn’t for that Twitter purchase.
Jeff Bezos - $114 billion: Amazon. He is $57 billion poorer than last year due to the stock market drop, but I’m guessing he can make it on $114 billion.
Larry Ellison - $107 billion: Oracle. He owns the Hawaiian island of Lanai. Not just a few lots on the Hawaiian island, but 98% of the whole island.
Standing joke: What is the difference between Larry Ellison and God? God doesn’t think he’s Larry Ellison.
Warren Buffett - $106 billion: He is called the Oracle of Omaha (no relation to Larry Ellison’s Oracle). His company is Berkshire Hathaway.
One share of stock can be purchased for $496,404. Per share.
Most Unlikely Billionaire: Jimmy Buffet. Yep, Mr. Margaritaville himself. He has taken that “Wasting Away Again in Margaritaville” to a billion dollar level.
The Rime of the Ancient Mariner
“Water, water, every where, nor any drop to drink” is the reference to a cursed sailor as he and the crew is parched on a sailing ship in the middle of the ocean.
He is cursed because he killed an albatross and the crew hung the dead animal around his neck so he would never forget his deed.
Hence the expression that something can be “an albatross around your neck.”
The same can be said – to a degree – of California, as much of the recent rains have runoff into the ocean. However, California announced that it will deliver 100% of requested allocation from the State Water Project, the highest level since 2006.
It seems the albatross has fallen off of California’s neck, at least for the water part of the state.
Additionally, a new federal report estimates a near record snowpack in the Colorado River basin could raise the level of lake Mead by more than 30 feet and Lake Powell by more than 40 feet by the end of 2023.
With a little bit of luck, we can go from 2 days/week to 3 days/week to watering our plants.
At lease water won’t be something your business has to worry about this year.
Natural gas, yes. Water, not so much. This year.
Who are the McGuire brothers?
Cesar, Danny, Gabriel, Gilbert and Marco are the McGuire brothers. That would be the short answer. But since it is in the Russell Report, you need to hear the rest of the story.
All five grew up in the area of Muscoy in San Bernardino county. This is a low income area just south of the 15/215 freeway split.
All five attended Vermont Elementary School.
All five started Bail Hotline Bail Bonds.
Not quite like the elite finance companies I talk about, but a finance company nevertheless.
Everyone starts with one location. Bail Hotline Bail Bonds was no different.
At any rate, they now have 36 locations.
From what I can tell, they took a fragmented industry with various levels of customer service – somewhere between zero and none – and put in a philosophy of helping their clients, many of them lawbreakers, treating them with respect and helping out as best they could.
Amazing how good service generates good referrals.
All while collecting their fees.
But that’s not my point.
They have been using their success to start a foundation and last week christened a new playing field at their old elementary school after donating $250,000 to do so.
Now that’s giving back and that is something MANY small businesses do.
And that’s my point.
How does your business give back? I’d be interested to hear.
And now, a word from our sponsor: don’t forget it’s Mother’s Day in 3 weeks.
Have a great week!
