Weekly reading – 3rd July 2021

What I wrote last week

My thoughts on why investing is hard

Business

Credit Suisse 2021 Report on Payments, Processors & Fintech. This deck is long and has tons of information. You can get a lot of pointers out of it, but be aware that many slides have quite old data.

The economics of dollar stores. An excellent post by The Hustle on how dollar stores work. The most interesting things to me are 1/ unit prices on some items at these stores can be higher than those at bigger chains such as Target or Walmart. The absolute prices are lower, but they are also on a much smaller volume. 2/ These stores seem to be more concentrated in poorer neighborhoods. I read somewhere that richer customers don’t mind the stigma of buying stuff at dollar stores. I wonder if that’s still true and how much the trend is a boost to these stores’ business.

How a Beer Giant Manages Through Waves of Covid Around the World. A great story of how a global business uses data analytics to make decisions in the tumultuous pandemic. Even when the AB Inbev’s data team accurately predicted the second surge in India, it did get the previous predictions wrong. Nobody has a crystal ball to see the future. All we can do is to increase the odds with a wealth of data and machine computing.

Mac sales in India tripled after online Apple Store opened. One aspect of Apple’s business that I think should be discussed more is its retail stores and website. The report here credited the presence of Apple’s website for the significant increase in sales. I also learned from the article that to launch own-brand eCommerce sites in India, companies need to source locally 30% of their production. I guess there is a side benefit of expanding supply chain in India, apart from lowering the risk of over-reliance on China.

What does MongoDB do?

An interesting article on the next CEO of Amazon, Andy Sassy. The level of detail orientation described in the article is admirable. I love the concept of the Wheel of Death. People naturally tend to get complacent. Having them on their toes and preserving the unpredictability is a great way to ensure that they perform to the level required.

What I found interesting

Inside Wikipedia’s endless war over the coronavirus lab leak theory. Content moderation is super difficult at scale. Especially when you are widely considered to be neutral and often accurate. And during a global pandemic.

Equipping cargo ships with puffy sails could help Michelin improve a vessel’s fuel efficiency by 20%

The 5 coolest trends in urbanism … in Europe

Stats that may interest you

U.S online grocery sales hit $7 billion in May 2021, just a bit higher than the figure in March 2020, right before Covid

1/3 of U.S grocery sales comes from independent supermarkets

1 out of 3 men in the U.S reported to have fewer than 2 close friends, excluding relatives, according to a survey in May 2021

According to Bain, Covid increased the forecast online sales as % of all grocery sales in the US in 2025 from 8% to 13%

Average Prime Day order in 2021 was $47.14, down from $54.64 and $58.91 in 2020 and 2019 respectively

Amazon Pay Later hit 2 million sign-ups in India

97% of customer auto purchases in the U.S involves online research, but auto eCommerce only makes up 1%

Weekly readings – 4th July 2020

What I wrote

I wrote a bit how relying on one metric, such as revenue, can be very misleading

A feature that I wish were available in iBooks

A very excellent and inspiring speech of Steve Jobs

I reviewed this book on Essentialism and this book on Personal Finance

An excellent conversation between Patrick O’Shaughnessy and Brad Gerstner

Business

New Competition Poses Limited Risk to Tesla’s US Marketshare

More than two-thirds of McDonald’s business is earned through its drive-thru operations. And internal figures suggest that nearly ten percent of many franchisee’s 2018 sales were attributed to third-party deliveries from: Uber, Amazon, Delivery Hero, Zomato, Postmates, Deliveroo, Swiggy, DoorDash, and Grubhub.

Source: 2pm

Apple’s Relentless Strategy, Execution, and Point of View

The house servant who pioneered the franchising business model

Average Target store generated $300 in revenue per square foot. The top 25% stores averaged $430 per square foot

Google revealed that news publishers kept 95% of ads revenue when using Google Ads Manager

The fall of Quibi: how did a starry $1.75bn Netflix rival crash so fast?

The real cost of Amazon

Harvard Business Review on rewards

In order for a rewards program to be a profit center instead of a cost center, the payout must be inextricably linked to desired behaviors

Investing in the unknown and the unknowable

Technology

After iOS 14, there’s almost no reason to buy an Android phone anymore

The Fasinatng… Fascinating History of Autocorrect

A cool tool to work with numbers, build models and share them more easily

What I think is interesting

The Consultant: Why did a palm oil conglomerate pay $22m to an unnamed ‘expert’ in Papua?

The value of downtime and enoughness

The true cost of dollar stores

An unprecedented investigative report by Reuters on the misconduct of judges and how the system is unfairly lenient on those judges. Have a read and see if you are not enraged by what is currently going on

How the Chinese government allegedly hacked the then leader in wireless technology from Canada and led to the demise of that company.

A good piece on how money flowing to the local police is invested. Police serve and protect the people, but they are equipped with gears and tools for wars. Who are they going to wars against internally????

“A Lesson on Elementary, Worldly Wisdom” by Charlie Munger