The public company is one of capitalism’s greatest. Private-equity funds are another way of fixing misfiring firms. But activists have advantages over Wall Street’s buy-out barbarians. Instead of loading up on debt to finance the takeover of entire firms, they get the work done with a stake of, typically, just 5% or so. That means activists are good value because they use less debt, pay no takeover premium and extract far lower absolute fees (The Economist).
Inditex is a pioneer among “fast fashion” companies, which essentially imitate the latest fashions and speed their cheaper versions into stores. Every one of Inditex’s brands — Zara, Zara Home, Bershka, Massimo Dutti, Oysho, Stradivarius, Pull & Bear and Uterqüe — follow the Zara template: trendy and decently made but inexpensive products sold in beautiful, high-end-looking stores (The New York Times).
The mid-2000s was a devastating period for Fort Payne. Nestled in the state’s mountainous northeast, the town of 14,000 had for decades billed itself as “the Sock Capital of the World.” The cushioned sock was invented here, and one in every eight pairs of socks sold globally was said to be knitted in Fort Payne (The New York Times).
“Nothing rivals the market system in producing what people want – nor, even more so, in delivering what people don’t yet know they want. My parents, when young, could not envision a television set, nor did I, in my 50s, think I needed a personal computer. Both products, once people saw what they could do, quickly revolutionized their lives. I now spend ten hours a week playing bridge online. And, as I write this letter, “search” is invaluable to me. (I’m not ready for Tinder, however.)” —Warren Buffett
As a typography fan and notebook nut, these Field Notes are a must-have. Indeed, “I’m not writing it down to remember it later; I’m writing it down to remember it now.”