Hope you’re all enjoying the long weekend. If you have a significant other, hopefully you were able to do / enjoy something nice together for Valentine’s Day. For all my Asian readers, happy lunar new year! And for all my American readers, happy President’s Day!
Starbucks – After decades championing “the third place“, Starbucks has been experimenting with newer store formats. Initially the company moved upmarket with their Reserve/Roastery formats. This one is from the Seattle location:
As previously mentioned, Nintendo is following in the footsteps of Disney and will be building theme park attractions. Bloomberg recently published more details on what that may look like ahead of Super Nintendo World opening at Universal Studio Japan:
Super Nintendo World is slated to open this summer in Osaka, featuring a Power Up Band wearable that lets visitors collect coins and battle bosses while exploring a physical environment.
The recent Wework debacle seems to have opened up a bit of soul-searching within tech companies and among investors. Cynics are largely looking for ways to say, “I told you so,” with the main conclusion being we have somehow gone full circle back to the cash-burning bubble experienced back in 2000.
During November, the paper portfolio outperformed the S&P500 by 0.92%. This number, however, masks the underlying strength of the portfolio since ~40% of the value is still allocated to cash. The stock-only portion of the portfolio outperformed the S&P500 by 3.89% with significant strength across almost all holdings except for Uber, Match, and Activision Blizzard.
Every tech/internet company today that has accumulated immense market power seems to have done it using two simple strategies: 1) Leverage a successful core customer base or asset to attack an adjacent market, and 2) Using a loss leader to encourage adoption.