August 28, 2024

The Appetizer

“The time has come.”

• Federal Reserve (Fed) Chair Jerome Powell at the Jackson Hole Economic Symposium when talking about cutting rates.

Now, on to the numbers. Drum roll, please …

• 13 million: The number of crayons the flagship Crayola factory in Pennsylvania makes every day between July 4 and Labor Day for the back-to-school season.
• 7 hours: The number of hours on average that Gen Z users spend a day on their phones, according to a 2023 dcdx (a research firm focused on Gen Z) report.
• 3.6 million: The number of babies born in the U.S. in 2023, 68,000 fewer than the year before.
• $6,463 to $15,559: The cost of a one-week trip to Disney for a family of four, not including flights or souvenirs, according to NerdWallet.
• 200 million: The number of hot dogs that Costco sells each year, more than all of the Major League Baseball stadiums combined.
• 2,492 carats: The weight of a diamond unearthed from a mine in Botswana, which would make it the largest diamond found in more than 100 years.

Dig In
Activist Investor

Last week, we discussed CEO changes, specifically the shake-ups at Starbucks and Chipotle. But who’s behind these moves? Activist investors.

Imagine you have a lemonade stand that’s not doing so well. A customer decides to buy a portion of your business and starts suggesting changes like new recipes or new jars to improve sales. This customer is like an activist investor.

In the world of investing, this is typically a hedge fund, a private equity firm, or wealthy individuals. They buy a significant chunk of a company’s stock to influence how the company is run. They might offer advice in strategy or push for major changes, like replacing the CEO. They often target companies that aren’t performing well or are poorly managed. 2024 has a been a busy year for activist investors, with data showing 147 activist campaigns globally for the first half of 2024, the highest number on record.

In the case of Starbucks, activist Elliot Investment Management was unhappy with the Starbucks CEO, who had overseen declining sales recently. Elliot had invested up to $2 billion in Starbucks, so they definitely had a vested interest. It’s a classic example of how if you want to drive change, you can – though you don’t always need $2 billion to get started!

Weekly Specials

I wouldn’t have guessed that a lost pair of scissors would be the reason my flight got delayed, but here we are. Thirty-six flights were canceled and another 201 delayed at New Chitose Airport in Japan as a result of the misplacement.

In Mississippi, an amateur fossil hunter uncovered a fully intact 7-foot-long tusk. The tusk belonged to a Columbian mammoth, a distant relative of the famous woolly mammoth, and is the very first fully intact mammoth tusk found in the state.

If you’ve ever dreamed of owning a slice of an NFL team, your chance is here! Kansas City Chiefs CEO Clark Hunt led the charge to allow private equity firms to purchase up to 10% of a NFL team.

As a Costco connoisseur, it’s no surprise that the wholesale club sells half of the world’s cashews and is the top seller of Bordeaux wine. However, success didn’t come overnight. The company at one point had 30 in-house brands before consolidating everything into Kirkland.

Corporate Lunch

Crayola has successfully trademarked the aroma of crayons after failing in 2018. Do other crayon companies need to find a signature scent?

The Unwell Network is doing great and just signed a three-year, $125 million deal to stream the podcast “Call Her Daddy” on SiriusXM. Is there a Spotify exodus?

Patagonia is giving all of its U.S. workers a paid day off on October 29 to vote early in the 2024 election. Who’s running? I haven’t heard anything about this election.

Ford has delayed the development of its Tennessee EV plant and cancelled its plans for a new electric SUV.

Chick-fil-A is opening its first restaurant with an “elevated drive-thru.” This modern marvel has four drive-thru lanes that the company called a “sophisticated conveyer belt.” Oooooh, pinky out.

Neuralink said surgery for its second brain implant in a human “went well,” great to hear. The patient is now able to design 3D objects and play video games.

Diversification does not ensure a profit or protect against loss.

Indices are unmanaged and are not available for direct investment.

Past performance is not indicative of future results.