strategy+business, April 17, 2017
by Theodore Kinni
Thursday, April 20, 2017
Friday, April 7, 2017
Saturday, March 25, 2017
Learned a lot lending an editorial hand on this Strategy& annual industry perspective:
What a difference a couple of years can make. In 2013, Warren Buffett called the commercial aviation industry a “death trap for investors.” In 2016, the legendary value investor spent more than US$1.3 billion buying the stock of four major U.S. commercial carriers: American Airlines, Delta, United Continental, and Southwest Airlines — and he has recently upped his stake to more than $8 billion.
Notwithstanding the speculation that this action is a precursor to Buffett’s company, Berkshire Hathaway, taking one of these major carriers private, Buffett seems to be betting that consolidation will continue to pay off for the airlines. He may or may not be right, but it is undeniable that airlines in the U.S. and in most other regions are enjoying a run of good results, buoyed by steadily rising demand and an extended drop in fuel costs. Industry-wide passenger traffic grew by 6.3 percent in 2016. And according to the latest International Air Transport Association (IATA) figures, commercial airlines posted their strongest financial performance ever in 2016 — reporting $35.6 billion in net profit, just a bit above 2015 results but nearly double those of 2014. For the third consecutive year (and only the third year in airline industry history), carriers reported a positive return on invested capital. Read the rest here...
Friday, March 17, 2017
Enjoyed editing Amy Webb's adaptation of her book, The Signals Are Talking, for MIT Sloan Management Review:
Saturday, March 11, 2017
LinkedIn, March 11, 2017
by Theodore Kinni
You’ve probably already heard that EO 13771 is a two-for-one deal. It requires that every newly proposed federal regulation be accompanied by the repeal of two existing regulations. And just in case the folks at the FDA or EPA or SEC or any other agency think they can pull a fast one, the order also requires that the total additional cost of all new regulations in fiscal 2017 net out at zero. Read the President’s lips: No added cost!
This is music to investor ears. Within a couple of weeks of EO 13771, the S&P 500 Index rose 5 percent. The chief executive’s order is not the only reason for the jump, but clearly less federal regulation means more profit for your company. Right?
Maybe not. Like President Trump himself, EO 13771 is only concerned with “how many” and “how much.” Also like the President himself, the order tars all regulation with the same brush. You’d never know it from EO 13771, but companies in all sectors—agriculture, auto, financial services, healthcare, pharma, tech, telecommunications, etc.—depend on and demand regulation. Read the rest here...
Sunday, June 12, 2016
Saturday, June 11, 2016
Friday, June 10, 2016
Tuesday, June 7, 2016
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