Weekly reading – 16th April 2022

Business

Pricey Jet Fuel Punishes Airlines and Passengers. “Jet fuel, a kerosene-based product akin to diesel fuel, has roughly doubled in price since last April across the U.S., according to S&P Global Commodity Insights, while gasoline has risen about 45%. A fall in exports of Russian diesel in recent weeks has driven Western refiners to shift resources from jet to diesel production, leaving jet fuel undersupplied, S&P Global Commodity Insights analysts said.”

Apple’s privacy focus means fewer app features, slower development, say company’s own engineers. The skeptics or critics that say Apple’s focus on privacy is self-serving should read this article. Of course, when you run a business, I believe your MO should be to maximize revenue and profit. However, what differentiates one company from all the others is its ability to align such a goal with actions that also benefit other stakeholders. In this case, Apple has repeatedly proven that they align their business with user privacy. There are things that the company could have done to further its business interests, but those things were put on shelf because they went against their promise to users on privacy. If that’s not proof of Apple’s intention, I don’t know what is.

Wedgewood Partners First Quarter 2022 Client Letter. Some great commentaries on a few companies such as Meta, PayPal or First Republic Bank.

Amazon sellers face 5% fuel and inflation surcharge to offset rising costs. What sellers get from platforms such as Amazon is traffic, eyeballs and business. However, such dependence also means that in the times of inflation, it becomes more expensive for sellers to generate revenue and profit. You can only pass on the costs to consumers so much before business is lost.

The Chips That Rebooted the Mac. A nice piece by WSJ on Apple’s decision to develop its own chips. Business students should really be encouraged to study Apple for business lessons and insights. The company is a great case study in terms of customer orientation, platform development, business strategy, execution, supply chain, pricing and marketing. The move to rid itself of dependence on Intel and decide their own future is a masterpiece

Intangibles and Earnings. Improving the Usefulness of Financial Statements. Accounting is the language of business. Some companies use sophisticated accounting practices to often hide the true state of their businesses. This article walks readers through how to sort of earnings, investments and the implications on valuations.

Other stuff I found interesting

Why Germany Won’t Keep Its Nuclear Plants Open. It is baffling to me that Germany decides to favor other sources of energy and electricity over nuclear. If there is EVER any silver lining, in addition to laying bare what we should know about Putin already, it’s that Germany starts to move away from Russia and the dependence on its gas and oil

America’s highest earners and their taxes revealed. It’s an informative read, but by no means do I mean that billionaires are legally guilty for successfully exploiting the loopholes to reduce taxes. It’s the lawmakers’ job to make sure high earners pay their fair share AND keep the attractiveness of the US as a business environment. On the other hand, rich folks want to keep as much money as possible. The fact that they can do so without being in jail shows who successfully did their jobs

An example of how China uses technology, surveillance and facial recognition to inflict human rights abuses on its own citizens

Stats

Digital ad revenue in the U.S. jumped 35% to $189 billion last year

Fintech app installs grew by 35% YoY in 2021

In March, total U.S. online grocery sales pulled back 6% to $8.7 billion versus March 2021’s record high of $9.3 billion

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