Amazon’s Forklift Jockey VS. Wal-Mart’s “Colleague”


Based on the $ 10, Wal-Mart’s dollar wage rise is a good percentage gain, but not enough. Why is not everyone $ 15 an hour? Who can get more without working 2 shifts?

My introduction to Sam Walton is handled by Michael Milken. Sam jumped over his dusty pick-up truck to meet us, still in his duck hunting boots. We are visiting to evaluate his strategy to eliminate middleman, distribution, retail. It took a truck fleet and many area warehouses.

Sam points out that equally important is his low-cost workforce. He enforced the rule by affixing the floor worker’s “companion.” Give them self-esteem, but no more money. In retail, Wal-Mart has to send millions of people worldwide.

Last time I saw that Amazon did hundreds of thousands. Jeff Bezos’s forklift jockey does not have a fancy, but works on a minimum wage basis. Germany may stop work, maybe elsewhere.

Part-time staff hired to meet seasonal needs, thus contributing to the retail boom. They did not evaluate health insurance or participate in pension and profit sharing programs. Therefore, a low-cost pool of labor. Instead, Amazon does not use salespeople because there are no salespeople. Forklift drivers patrolling the ground in the warehouse did not have any offset power, a dime a dozen.

This pattern is why I own Amazon instead of Wal-Mart, which is 20 times cheaper in a 12-month profit forecast. Amazon’s retail dollar share is incompressible. One day (in the distant future), they will raise prices and earn some money. Prior to this, all the profit models are quarterly and quarterly speculation.

The big board is full of irony. I see Amazon taking the No. 1 spot in Apple’s S & P 500 Index. If Apple tread water, then 30% can go. Consider, Apple’s sales but the market doubled, hundreds of billions of liquidity.

Amazon sales are almost unlimited, but do have some fairly large operating cash flow figures. Apple seasonal need to place new toys. Amazon just needs to direct its internet steam drum to the middle of the road.

Behind me, I heard Polaroid exhausted idle research and development in new toys. Apple’s R & D budget represents a much smaller percentage of revenue than pharmacies and other technicians in the semiconductor, computer and software development arena. It scares me, on a regular basis. Financial engineering is only so far, then you can run out of free cash flow.

I use Amazon’s operating cash flow metrics as a solid indicator, at least as a prerequisite for investing in its business. It can prove the basic indicator of Amazon’s assessment. Bezos reinvests in new businesses rather than profits, and corporate values ??or free cash flow multipliers will remain low forever. Computer storage is a home run and he types these numbers.

Back to the workplace landscape. In the seventies, unions like truck workers and United Auto Workers intimidated General Motors and General Electric Company. GM and Ford each year raise their car prices by 7% to 8%, a huge inflation engine that allows Japanese carmakers and Volkswagen to take market share. In the meantime, GE has invested in factory automation. Since then, the industrial labor force has been in a state of serious erosion. Globally, steel is overcapacity. The country’s industrial capacity utilization remained at a substantially low level. The same is true for aluminum and copper. All of this involves why entry-level workers can only order $ 11 per hour, while stocks test the new high ground month after month.

Any walk will be 20 times the proceeds of sales. The reason for keeping enough investment is simple and powerful. Interest rates on 10-year and 30-year bonds remain historically below the benchmark of a few hundred basis points for the past 60 years. If you believe 10-year bonds will yield 5%, then their historical norm is to sell!

Unless your belief is that inflation has plunged, say more than 4%, there will be no multiple contraction of returns. My wife shouted at me as I left the restaurant tip with 18% of my pre-tax bills. However, I know I am right. It maintains a high price-earnings ratio. Each multiples of the market value is now 5%. Increase your investment capital by 5%, this is a good choice.

And, I want to see the minimum wage in this country is $ 15 an hour. McDonald’s, Wal-Mart, etc., of course, Amazon can afford it. Perhaps, one by one, every country will force this issue when Trump is in his hands, “making America America again.” It is his hollow and pointed shout.

I am foolish to own Amazon, but not FedEx who provide their package. (Twenty times the return.) Even a NAFTA less GM rest too cheap. Cyclical growth stocks like T-Mobile are in a sweet zone like banks. I missed the first Boeing I owned in 1961, when the jet era unfolds. Some stupid bunny!

What I believe to be convincing is that the high-yield bonds in the fixed-income sector hold gains, although the yield gap in U.S. Treasury bonds is now too narrow. So on BB paper, a 5% yield is still starving when it attracts buyers.

The protracted weakness of the dollar is not my voice. I do not understand the track of this regret, but for the country, our trade balance and the momentum of GDP are good. Will the central bank excessively tighten and will the growth rate of the rest of the world exceed us? Give me a rest! England’s gross domestic product grew by 1.5%. I am looking for more than 4% here.

Perhaps this is what Wal-Mart and Amazon have seen, and now wants to hoard cheap labor. They should be ashamed of the high market value of their stock. This is not a feudal part of Central or South. My restaurant tip may be added to 20% pre-tax quickly.

Warwick Buffett will never have Amazon, Amazon is still a concept unit, it is impossible to model. Soooo … Let everyone make their own mistakes. So far, AT & T is my loser on food, but in a world of underproduction, it yields more than 5%. You can easily tweak its numbers until the cow goes home. We exchange Penny per share.

Amazon and AT & T? This comparison seems full of irony, which is a strong force in the financial markets. The less you know, the more money you earn? Not exactly what they preached at the MBA school.

Wal-Mart has put a dollar into its hard-working staff to show that the corporate unit is in the process of being the owner, not the labor force, the Fed and even the parliament. The increase in operating margins is the most silent statistic that can power the S & P 500 and keep our players in the game.

Mr. Sam made another impressive move. In the early days, he handed over most of his Wal-Mart stock to his wives and children, thereby avoiding the huge estate tax on his beneficiaries.

How many of us have such a high degree of selfless thought? As for Jeff Bezos, he can go high in net worth games. If so, he would become the only person in financial history who did not record a significant net income per share.

Anyone applying to the big board for logic should play chess.