What I Wrote Last Week
Robinhood’s New, Attractive & Very Expensive Credit Card
Business
The Odd Couple Steering Netflix Through a Comeback. I was skeptical of the co-CEO model because there are few examples in the past in which this model succeeded. However, so far, it has been a hit for Netflix. The two CEOs seem to complement each other. One is more focused on data, while the other is leaning more towards creativity. This should be a case study for business schools and companies around the world on what it takes to even have a chance at a successful co-CEO model. The real test, though, will be when Netflix has a setback.
Cocoa prices are soaring to record levels. What it means for consumers and why ‘the worst is still yet to come’. A short while ago, we had a shortage in the famous chilli sauce Sriracha and then in olive oil, both due to climate change affecting supply. Nowadays, it’s cocoa. I probably will need to keep an eye on supply disruptions caused by climate around the world. The consequences can be radical.
Credit Card Swipe Fees Are Going Down. Are Points Going With Them? The answer is no. 7 basis points for all merchants in 5 years is paltry. Yes, it is a hit to issuers’ revenue, but the amount is so small that it’s not worth changing rewards. Changing rewards will result in some ramifications. The first is consumer backlash. It’s hard and expensive enough to acquire customers in such a competitive market like credit cards. Why would you want to anger customers over a small amount of revenue? The second consequence is that it takes a lot of work behind the scene to change rewards terms and communicate it to customers. Is the juice worth the squeeze? I don’t think so.
America Made a Huge Bet on Sports Gambling. The Backlash Is Here. I think fans should be even make sports bets. It’s not right to outright ban it. With that being said, there need to be guardrails and procedures in place to make sure that betting won’t hurt sports or result in illegal activities or outrageous transgressions. My perspective on sports betting is similar to that on gun control in Japan or Australia. Yes, you CAN have guns, but it will be highly regulated and very difficult to have a gun. So much that every gun owner uses it responsibly. It must be the same for sports betting.
He Turned 55. Then He Started the World’s Most Important Company. A few lessons fro this inspiring story. The first is that it’s never too late to start a company. Second, even a man as great as Morris Chang wanted to be financially secure before he took the plunge. Third, he was very hard-working and it was fate that led him to the opportunity to found TSMC. Everybody needs luck, but you need to prepare yourself when luck comes calling.
Pardon the Disruption: Can discount retailers be stopped? “The discounter has traditionally put down stores in areas that aren’t as densely populated as the ones large supermarkets tend to focus on, and that typically serve middle and lower-income household. Winn-Dixie stores, however, are located in prime locations that serve higher-income households used to doing full-basket shops instead of the top-up trips that are Aldi’s specialty“.
Other Stuff I Find Interesting
Nobody Told EV Owners How Quickly They Burn Through Tires. Yes, you may save money from not having to buy fuel, but you will spend more on tires. Yes, gasoline is bad for the environment, but so are the particles from the tires. I want to be as environmentally friendly as possible, but if I buy EVs, I will be honest and not use it as a reason why I make that purchase.
Hospitals Are Adding Billions in ‘Facility’ Fees for Routine Care. “Hospitals are adding billions of dollars in facility fees to medical bills for routine care in outpatient centers they own. Once an annoyance, the fees are now pervasive, and in some places they are becoming nearly impossible to avoid. The fees show up on patients’ bills after hospitals snap up clinics and doctors. Hospitals can designate the newly acquired clinics as an extension of their operations, forcing patients to pay the fees to cover costs for the entire hospital. Fees have grown more pervasive as hospitals have gone on an acquisition tear in recent years, chasing after patients who have more options to get medical care somewhere else. Many hospital systems now get at least half their revenue from patients who aren’t admitted. By one estimate, more than half of doctors work for hospitals.”
A nice video explaining understeer and oversteer in F1
Stats
Inflation increased by 2.8% on a 12-month basis in February 2024. A good sign for those that hope the Fed will lower rates soon.
Vinyl record sales topped $1.4 billion in the US in 2023
Minh Quang Duong 
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