On August 12, in “The bigger ‘dividend mind trick,’” I noted how two completely contradicting conclusions can both be correct.
Yet that doesn’t mean they’re both going to be helpful. In fact, neither one might be. Oftentimes, there’s a balance of the two that encourages the most ideal results.
As I wrote week:
Change a study’s start date, end date, or index, the types of companies evaluated, or whether dividends are reinvested or not… and you can produce very varied answers.
I’m not accusing anyone of being purposely deceptive. But math and logic can easily be manipulated, intentionally or not.
That was in response to Spencer Jakab’s negative evaluation of dividend investments in The Wall Street Journal. But today, I have another example that supports my “varied answers” argument.
This one is from CRE Daily, a commercial real estate-focused publication I particularly appreciate. Last Friday, it noted how:
U.S. retailers posted a net loss of 144 stores through July, but larger incoming locations pushed total retail square footage up 26.1 million feet.
I could easily publish an entire article on those first 11 words to push the conclusion that the economy is in trouble. Twelve dozen more retailer locations shuttering than new openings in a single month isn’t a promising sign, to say the least.
Likewise, the second half of the sentence taken alone makes it seem as if the U.S. is seeing a significant boost of shopping interest – whereas the reality lies somewhere in between.
Truth be told, it often does. That’s why I’m reiterating how important it is to seek a second opinion before you form an economic or investment conclusion.
The deeper you search on a topic, the better your chances are of coming out ahead.
Is it a bird? Is it a plane? It’s… Amazon!
Earlier this year, Amazon (AMZN) announced a 20% cut to its contract with the United States Postal Service. As I wrote on April 16, the global giant:
… has apparently been hard at work… building out its infrastructure in rural areas – the very places it used to wholly depend on the post office reaching. Moreover, it will continue pushing itself toward a completely autonomous system.
One it could achieve within this decade.
What we didn’t note at the time (since it wasn’t yet news) was how part of that expansion looks like it will be through drones.
Notably, it’s been a decade since Amazon delivered its first package that way. But that doesn’t mean the vast majority of us get our brown boxes in such a fashion.
We’re still exceptionally used to – even expectant of – seeing Prime-emblazoned trucks driving along highways and down our streets to deliver goods the usual way. And that will doubtlessly stay the norm for years to come.
All the same, Amazon just announced that its drone delivery services will expand to almost 500 U.S. cities by the end of the year. The long list includes Atlanta, Georgia; Chicago, Illinois; Cleveland, Ohio; and Boise, Idaho – though far away from town centers with towering office buildings.
Really, the program will basically be limited to the suburbs. And by weight, as well. You won’t see couches flying through the air, microwaves, or even large bags of kitty litter. The boxes in question must weigh five pounds or less.
But if you live on the outskirts of Baton Rouge, Louisiana; or Omaha, Nebraska; and desperately need a new spatula, bowtie, or best-selling book in half an hour or less… then Amazon’s Prime Air is coming your way.
Sometimes, the old way is better
Ever since the advance of the iPhone, it seems that everyone’s obsessed with “newness.”
New features. New capabilities. New looks. New feels.
But sometimes the old really is just better. Or at least more preferred.
That’s the lesson American Airlines has officially learned. It’s been betting for nine years that passengers would rather watch movies on their phones than off the back of seats in front of them.
So it hasn’t been installing them.
Apparently, however, that bet was wrong; and it conceded the point on Tuesday.
In what Chief Customer Officer Heather Garboden called “one of the most significant investments in the onboard experience in our history," American Airline will be bringing “next-generation seatback entertainment” to “every seat.”
This change will affect nearly 800 single-aisle jets, beginning in 2028 with an end goal in the early 2030s. The resulting experience will offer movies, television shows, games, and music selections, all with Bluetooth connectivity.
In addition, new and renovated aircraft will feature (per American’s official announcement):
“More first-class seats: Adding more opportunities to stretch out, dine, and unwind…
More main cabin extra: Retrofitting the majority of the narrowbody fleet to expand the number of MCE seats, providing even more access to extra legroom, earlier boarding, dedicated overhead bin space, and a complimentary beverage.
Refreshed interiors: More storage, redesigned seats, and enhanced lighting will have customers flying in comfort and style.”
Will those add-ons translate into profitable sales?
Considering how uncomfortable travel has become, it very well might.
Happy SWAN investing!
Brad Thomas
Editor, The Wide Moat Daily
