Whitney Tilson’s e mail to buyers claiming he doesn’t maintain any positions in shares he writes about and discusses Tesla’s Mannequin Y reveal as a complete bust; JetBlue; Brexit; Life Boat play; school dishonest scandal.
1) Chances are you’ll not agree with the bullish or bearish views I categorical on sure shares, however one factor you need to know is that I’m not speaking my ebook – as a result of in my new place as a publication author, I’m not allowed to have positions in any of the shares I write about.
This fall hedge fund letters, convention, scoops and so forth
This prevents conflicts of curiosity, as there’s by no means any query about whether or not I’m placing my buyers or my subscribers first. I additionally assume it’ll assist me give higher recommendation, as I can inform you from almost 20 years of expertise that having a monetary stake in a inventory can create all types of emotional biases.
2) I hoped to have an e-mail that was Tesla-free, however with the Mannequin Y reveal final night time, no cube – perhaps subsequent time! To summarize, my “spidey sense”is admittedly tingling now…
Glenn referred to as it a “full bust; bears couldn’t have even hoped for this degree of pathetic-ness; the critiques are scathing.” Certainly, listed here are a few of them:
- ZeroHedge: Tesla Introduces Mannequin Y That Appears Suspiciously Like Mannequin three In Underwhelming “Reveal” Occasion. Excerpt:
In what we will solely describe as a bomb of a presentation, Elon Musk mumbled his approach by means of Thursday’s deliberate Mannequin Y reveal that began fifteen minutes late and ended with the reveal of a car that seemed suspiciously just like the Mannequin three. The Mannequin Y, to place it frivolously, appeared to be met with a tepid reception, not simply from the gang on the occasion, but in addition by Musk himself, who appeared none too enthused to be introducing it.
Musk spent the primary 45 minutes of the occasion stumbling by means of what seemed to be unprepared remarks, briefly reviewing all the fashions and factories that Tesla has produced and constructed since its inception as an organization. The primary three quarters of the presentation appeared uneasy and melancholy to a level, with Musk speaking fondly about all the work the corporate has carried out during the last decade.
…When the time got here for the large reveal, everyone on the presentation, together with Musk himself and the gang appeared utterly underwhelmed. Musk virtually poignantly requested for the Mannequin Y to be revealed and what rolled out onto the stage appeared suspiciously like a Mannequin three.
…The stay “reveal” was hardly met with any applause because the confusion and disappointment from the viewers within the room was palpable. Musk himself didn’t appear enthused by the reveal both. Twitter was additionally, skeptical, to say the least.
- When Edmunds says your new SUV “isn’t a real SUV,” you realize you’re in hassle (additionally take a look at the scathing commentary).
- Right here is extra scathing commentary on Automotive & Driver’s web site.
- Right here’s Anton Wahlman’s take: Tesla Mannequin Y: The Presentation’s Undertone Was Elon’s Physique Language. Excerpt:
– Tesla’s CEO Elon Musk unveiled the Mannequin Y, which was as anticipated given all that had been teased just lately.
– Much more importantly, Elon appeared like he had one thing on his chest that he couldn’t say at this level, regardless that he was tempted close to the top.
– There was no consolation on the present enterprise of any variety, together with any constructive gross sales replace on hope for a superb March quarter.
– Taking a look at Elon’s physique language and speech, I acquired the sense that this was a approach for him to offer a biography and a legacy.
– I feel the chance that Elon shall be stepping down his submit as Tesla’s CEO, simply went up.
You possibly can be a part of my Tesla e-mail record by sending a clean e-mail to email@example.com.
three) I’m on a JetBlue flight to San Francisco proper now for a weekend with a dozen of my cousins, in what’s turning into an annual custom of enjoyable and bonding.
I really like the airline’s free, high-speed “Fly-Fi” – what a distinction to the sluggish, buggy WiFi on United final week.
In 2003, a yr after JetBlue went public, I wrote 5 articles about it, which I’ve posted right here. I didn’t spend money on the inventory then, fortunately, because it was an entire canine for greater than a decade, nevertheless it positioned me nicely to take benefit when the chance arose, as you possibly can see on this chart:
It’s one in every of my favourite case research that I train in my Classes from the Trenches: Worth Investing Bootcamp. To observe it (and rather more), can register for the video collection right here.
four) Extra huge information yesterday that reinforces my view that Brexit isn’t going to occur. Don’t get faked out by the vote towards a second referendum, which is what I anticipate will finally occur – that’s simply political maneuvering. Brexit: Parliament to vote on delay, rejects a second referendum for now. Excerpt:
British lawmakers voted Thursday to hunt to delay Brexit — perhaps for weeks, perhaps for months — after Prime Minister Theresa Might’s plans for leaving the European Union have been repeatedly rejected by a raucous Parliament making an attempt to wrest management from her.
…Now Britain virtually definitely won’t depart the European Union in two weeks — until E.U. leaders reject its request for an extension and it crashes out with no deal. The vote to delay Brexit handed 412 to 202.
Additionally on Thursday, lawmakers voted towards holding a second Brexit referendum, an entire do-over that would reverse the results of the historic June 2016 plebiscite.
Whereas many members of Parliament might finally again a second referendum — a extremely contentious proposal marketed as a “Individuals’s Vote” — even supporters of the transfer withheld help Thursday, hoping as an alternative to push the thought in tumultuous days to return.
5) My previous pal Lloyd Khaner of Khaner Capital, who was a (little question ravenous) author in Hollywood early in his profession, has simply written a brand new play referred to as Life Boat. Based mostly on a real story, it focuses on the collision of monetary pressures and enterprise ethics at a small firm. When a dangerous product selection results in the demise of a kid, one individual should take duty or in 40 minutes your complete firm will go bankrupt.
Will probably be enjoying at Theatre 54 @ Shetler Studios & Theatres, 244 West 54th St., 12th Fl. for 3 exhibits solely, beginning every week from as we speak:
- Friday, March 22 at 9:00 pm
- Saturday, March 23 at eight:00 pm
- Sunday, March 24 at four:10 pm
For extra info and to purchase tickets, click on right here.
PS—Right here’s an image of us from 2010 on the convention I co-host in Trani, Italy each summer time (this yr it’s on July 11-12 – click on right here for extra info):
6) I can’t get sufficient of this school dishonest scandal. How such esteemed and respected individuals might interact in such clearly scummy conduct is past me. Their reputations are endlessly destroyed – and for what? Their youngsters have been all the time going to be superb, even when they attended a barely much less elite school.
I don’t doubt that all of them love their youngsters and need the perfect for them, however I feel a main motivation for lots of them was their very own egos: they needed to drop the names of the elite schools their youngsters attended at cocktail events and put the requisite bumper stickers on their automobiles…
It’s additionally pushed by a way of entitlement, which exists disproportionately amongst graduates of all prime schools, however particularly Harvard, which is wildly over-represented amongst these charged (see under).
I converse from expertise.
Certainly one of my favourite jokes is: What number of Harvard guys does it take to screw in a lightbulb?
Reply: One – to carry the bulb whereas the world spins round him.
Whenever you graduate from Harvard and/or considered one of its most prestigious graduate faculties, it’s straightforward to really feel like a grasp of the universe. Any job you apply for is yours. Any promotion that’s obtainable, you’ll get. It solely logically follows, subsequently, that your youngsters will even attend a prime faculty…
I don’t assume I ever suffered from entitlement, however my ego did get uncontrolled after my first dozen years managing cash. Beginning in 1999 by way of 2010, I almost tripled my buyers’ cash in a flat market and have become extensively recognized – I used to be a daily on CNBC, had been featured on 60 Minutes, and so forth.
This success, by itself, would have put me at excessive danger for turning into complacent and making many horrible ego-fueled errors. However when mixed with the pedigree of two Harvard levels, it actually turned my mind to mush – and I paid an enormous worth.
This text within the Harvard Crimson, Six Harvard Alumni Charged in Nationwide Admissions Fraud Scandal, revealed that 5 of the six have been wealthy mother and father making massive funds, and one was on the receiving finish, tampering with college students’ checks. In different phrases, 5 of the 33 mother and father charged to date are Harvard alumni: two who graduated from the school, two from the enterprise faculty and one from the regulation faculty.
I used to be to learn this as I’m a graduate of the primary two and my spouse is a graduate of the latter.
Two of the 33 mother and father charged, 6.06%, are MBA graduates from HBS. That appears excessive. How excessive? I did some digging…
In line with HBS’s web site, there are 46,846 dwelling MBA alumni, 67% (31,387) of whom stay within the U.S.
Let’s assume that each one HBS alumni are over age 25, so the comparability group is all People over this age, which is 67% of the U.S. inhabitants, or 224.9 million.
So, divide 31,387 by 224.9 million and we will see that HBS MBA alumni are one out of each 7,165 American adults over age 25, a microscopic proportion (1.four foundation factors)…
Relative to the 6.06%, HBS MBA alumni have been 434 occasions extra more likely to be caught up on this scandal than the typical American grownup.
However that’s not likely a good comparability, as this malfeasance was solely out there to the uber-wealthy – the highest 1percenters.
To offer HBS each advantage of the doubt, let’s assume that each one of its alumni are within the prime 1%.
Even with this beneficiant comparability, HBS MBA alumni have been nonetheless four.34 occasions extra more likely to be caught up on this shame.
Any approach you narrow it, it’s a black eye for HBS…
Listed here are a couple of of my favourite articles about this scandal:
Final thought: one of many late comics stated one thing alongside the strains of: “I really feel dangerous for the youngsters – that is how they study that their mother and father assume they’re idiots!”
PS—Comic story: in September 1990, once I was working on the Boston Consulting Group, Invoice Ackman, who was simply beginning HBS, invited me to hitch his school roommate, who was simply beginning HLS, to crash the regulation faculty’s first-year-student-orientation booze cruise of Boston Harbor.
It seems that my spouse grew up close to Invoice in Westchester, so she acknowledged him and came to visit and all of us began speaking…and the remaining is historical past. I married Susan three years later and we simply celebrated our 25th anniversary final October. I typically child her that she married the incorrect hedgie!
Right here’s what we appeared like again then: