Podcast Summary
Strong economy adds 248,000 jobs, unemployment drops below 6%: The economy added 248,000 jobs, lowering unemployment to 5.9%, and the automotive industry reported strong sales, signaling a promising end to 2014. Effective communication skills, as discussed on the Think Fast, Talk Smart podcast, can help individuals make lasting impressions and succeed in various situations.
The jobs report for September showed a strong economy with 248,000 new jobs added and the unemployment rate dropping below 6% for the first time in 6 years. The automotive industry also reported strong sales for GM and Chrysler, while Ford struggled. The consistent job growth and revised numbers for previous months indicate a promising end to 2014. Additionally, the Think Fast, Talk Smart podcast, which focuses on communication skills, is a valuable resource for improving business and personal interactions. The podcast features experts on various communication topics, from managing anxiety to taking risks and harnessing nervous energy. With strong communication skills, individuals can make a lasting impression and succeed in various situations.
PayPal's spin-off expected to make it a clear winner in mobile payments and ecommerce: PayPal's separation from eBay could lead to increased adoption on platforms like Amazon and benefit from the global spread of Android, while eBay may struggle and make acquisitions to focus on its marketplace business. Wayfair's IPO is worth watching for its revenue growth.
The spin-off of PayPal from eBay is expected to make PayPal the clear winner in the long term, as it aligns with the trend towards mobile payments and ecommerce. This could lead to increased adoption on platforms like Amazon and potentially benefit from the global proliferation of Android operating system. Additionally, eBay, despite being a giant in e-commerce, may struggle on its own after the spin-off and could make acquisitions to focus on its marketplace business. The IPO of Wayfair, a large online furniture retailer, could be worth watching due to its significant revenue growth. However, it is important to note that the success of these companies depends on various factors and should be considered as part of a diversified investment portfolio.
Wayfair's High Valuation and Low Online Home Furnishings Sales: Despite Wayfair's high valuation, investors may prefer Amazon for its logistical expertise and Prime benefits. Yahoo may unlock value from international components, potentially saving taxes, and pressure is on CEO Marissa Mayer to spend the funds.
Wayfair, an unprofitable online home furnishings retailer, is facing skepticism due to its high valuation and the low percentage of home furnishings bought online. The company's distribution presence is a significant challenge, and investors may prefer to own Amazon instead for its logistical prowess and Prime benefits. Additionally, Yahoo is considering a reverse Morris Trust to unlock value from its international components, potentially saving billions in taxes. Marissa Mayer, Yahoo's CEO, may face pressure to spend the unlocked funds, with some suggesting a purchase of AOL. Disney's CEO Bob Iger extending his tenure through 2018 is a positive for its shareholders.
Disney's Successful Leadership and Anticipated COO Selection: Bob Iger's leadership led to Disney's acquisitions of Marvel, Pixar, and Lucasfilm, resulting in significant shareholder gains. An internal candidate is expected to fill the COO position.
Bob Iger's leadership at Disney has been incredibly successful, with shareholders benefiting greatly from his tenure through bold and pricey acquisitions of Marvel, Pixar, and Lucasfilm. Iger's role in the opening of Shanghai Disney and the development of the Star Wars franchise adds to his impressive accomplishments. Although Disney currently lacks a COO, it's expected that an internal candidate will be chosen for the position, as the talent within the company is considered capable and deserving of the opportunity. Meanwhile, former Federal Reserve Chair Ben Bernanke, despite making a significant income from speaking engagements, faced challenges in refinancing his home loan due to the tight mortgage market. The discussion also touched upon the possibility of deeper reasons for Bernanke's denial, such as insufficient equity in his home or a lack of proof of income.
Motley Fool Experts Discuss Their Current Investment Picks: Ron Gross is bullish on InvenSense due to IoT growth, Matt Arkasinger is bullish on SolarCity's market opportunity, and Jason Moser is excited about MobileIron's long-term trend in enterprise mobility management
Our Motley Fool experts, Ron Gross, Matt Arkasinger, and Jason Moser, discussed their current investment picks, InvenSense (INVN) and SolarCity (SCTY), as well as MobileIron (MOBL). Ron Gross remains bullish on InvenSense, a company that makes motion sensors for various devices, despite recent stock price drops, and believes the Internet of Things will drive growth. Matt Arkasinger is bullish on SolarCity, which offers solar panel installation with no upfront costs and low monthly fees, and sees a huge market opportunity. Jason Moser is a fan of MobileIron, a company providing mobile platform services for businesses, enabling them to secure and manage mobile devices, and is excited about the long-term trend of enterprise mobility management. Despite some skepticism, the experts agree that these companies represent significant investment opportunities.
Demystifying the Complex World of Finance: John Lanchester's book, 'How to Speak Money,' explains financial jargon to help readers understand the world of finance and economics, revealing that complexity may be intentional or not but it makes it difficult for the average person to navigate.
Key takeaway from this conversation with John Lanchester is that the world of finance and economics can be complex and confusing, with terms and concepts that seem intentionally obfuscated. Lanchester's latest book, "How to Speak Money," aims to demystify this world by explaining the meaning behind the jargon. One example he gives is the financial derivative, a vanilla mezzanine RMBS synthetic CDO, which sounds intentionally confusing. However, Lanchester argues that it doesn't matter whether the complexity is deliberate or not, as the net effect is that it makes it difficult for the average person to understand. Lanchester also discusses the process of reverseification, where words come to mean the opposite of what they once did. Credit is a prime example of this, as it used to be seen as a negative thing, but is now viewed as a positive by the financial industry. Lanchester's book provides valuable insight into the language and concepts of finance, helping readers navigate this complex world.
The financial crisis of 2008 led to an increase in debt and lack of understanding about financial innovations: Six years after the financial crisis, not enough changes have been made to prevent another crisis, and financial innovations primarily benefit the industry, not the public.
The financial crisis of 2008 led to a significant increase in debt, both personally and corporately, which was partly due to the reversed perception of debt turning into credit. Six years later, the sense is that not enough systemic changes have been made to prevent another crisis, and there's a lack of understanding about financial innovations among those in the industry. Despite the use of the term "innovation," many of these advancements seem to only benefit the financial sector, with few benefits for the general public. It's astonishing that senior executives in these large financial institutions didn't fully understand their own firms' operations, and this lack of understanding is linked to the complexity of the financial sector. Paul Volcker, a respected figure in the financial system, noted that the sector's innovations primarily focused on extracting more rent or percentages from vast capital flows, leaving the public in need of innovations that truly benefit them.
Innovations in finance haven't always benefited ordinary people: The financial industry's complex innovations have not consistently improved everyday lives, emphasizing the need for fundamental regulation, transparency, and simplification.
That the financial industry's innovations, particularly in complex financial products, have not always benefited ordinary consumers or customers, and regulation needs to be more fundamental and focus on ensuring safety and transparency. John Lanchester shared his belief that the ATM machine is the only significant innovation in the past half-century that has directly benefited ordinary people. He also emphasized the need for a more simplified banking model and greater transparency, drawing an analogy to the pharmaceutical industry's approach to product safety. Lanchester also reflected on the influence of his father, a banker, in shaping his perspective on money and finance, instilling in him a sense of approachability and understanding of the subject.
The importance of financial literacy and taking charge of your finances: Realize the importance of financial literacy, become financially responsible, and stay informed to achieve financial freedom.
Taking charge of your financial future is a crucial step towards financial literacy. The speaker shared a personal experience where his father, who was usually reluctant to discuss money, asked him about it during college, leading him to realize the importance of having enough money to not have to worry about it. He emphasized the need for individuals to become "grown-ups" in their financial lives and acknowledged the importance of resources like The Motley Fool in helping people understand money and investing. The speaker also expressed his skepticism towards financial advisers and the industry in general, but encouraged working hard and staying informed as key strategies. He concluded by sharing a piece of advice for those looking to receive better service at restaurants - bring a notebook to take detailed notes, giving the impression of being a restaurant critic. Overall, the speaker's message was that financial literacy is a crucial aspect of adult life, and taking charge of your financial situation is the first step towards achieving financial freedom.
Notebooks give away restaurant critics: In today's world, using a notebook as a restaurant critic is a clear giveaway of one's profession. Instead, use a cell phone for discreet note-taking to blend in.
In today's world of constant connectivity, using a notebook as a restaurant critic to avoid detection is no longer effective. With everyone using cell phones to text, message, and update social media, taking notes in a notebook is a clear giveaway of one's profession. John Lanchester, author of "How to Speak Money," shared this insight during an interview on Motley Fool Money. He explained that during his tenure as a restaurant critic, he found it much easier to remain anonymous the second time around due to the widespread use of cell phones. Lanchester, along with his peers and colleagues, agreed that taking notes in a notebook is a dead giveaway for a restaurant critic. Therefore, if you want to blend in and avoid being identified as a critic, leave the notebook at home and use your cell phone to take discreet notes instead. Lanchester's book, "How to Speak Money," is already a bestseller, so be sure to pick up a copy to learn more about deciphering the language of finance.
