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The Secret Ingredients of Great Hospitality | Will Guidara | TED



Restaurateur Will Guidara’s life changed when he decided to serve a two-dollar hot dog in his fancy four-star restaurant, creating a personalized experience for some out-of-town customers craving authentic New York City street food. The move earned such a positive reaction that Guidara began pursuing this kind of “unreasonable hospitality” full-time, seeking out ways to create extraordinary experiences and give people more than they could ever possibly expect. In this funny and heartwarming talk, he shares three steps to crafting truly memorable moments centered in human connection – no matter what business you’re in.

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Conversations with Frank Fabozzi, Featuring Kari Vatanen


Key discussion points

  • Beyond the traditional 60/40 portfolio: Why investors are rethinking the role of bonds, diversification, and portfolio objectives.
  • Total portfolio thinking: Moving beyond asset class allocation to focus on the true drivers of risk and return. 
  • Alternative investments and liquidity: Balancing illiquidity premia with the flexibility institutional portfolios require. 
  • Alternative risk premia: Lessons from a decade of systematic strategies, crowding, and evolving market dynamics. 
  • Risk management as a strategic partner: How integrating risk into portfolio construction can improve resilience and decision-making.
  • Behavior, data, and AI: Why behavioral finance, quantitative methods, and artificial intelligence are shaping the next generation of institutional investing.



Rethinking Portfolio Construction for a New Market Era
Register Today!

In this episode of Conversations with Frank Fabozzi, CFA, Kari Vatanen, CFA draws on decades of experience in asset allocation, risk management, derivatives, and pension investing to examine how portfolio construction is evolving beyond traditional models. As inflation uncertainty, private markets, and shifting market dynamics reshape investment decisions, he explores the rise of total portfolio thinking, the growing role of alternative investments and factor-based approaches, and why integrating risk management into strategic decision-making is more important than ever. The discussion also looks ahead to how behavioral insights, quantitative methods, and AI are influencing the future of institutional investing.

Here’s 1 High-Upside Cryptocurrency That Investors Keep Underestimating


LINK (LINK -0.66%), the native token of the Chainlink oracle network, doesn’t attract as much attention as blue chip cryptocurrencies like Bitcoin (BTC +0.36%) and Ether (ETH +0.08%). It’s also plunged more than 50% over the past 12 months as fears of interest rate hikes and other macro headwinds chilled the broader crypto market. However, LINK has plenty of irons in the fire — and it could soar much higher once the crypto market warms up again.

Image source: Getty Images.

What sets LINK apart from other cryptocurrencies?

Chainlink isn’t a blockchain. It’s a decentralized oracle network that fetches real-world data — including news headlines, weather reports, stock tickers, sports scores, and shipping updates — and delivers that information to developer-driven blockchains like Ethereum. Those developers use that real-time data to create decentralized apps (dApps).

Chainlink’s network is powered by independent node operators, who aggregate that real-time data in exchange for LINK tokens. They can then stake (lock up) those tokens as collateral to earn interest-like rewards. But if they feed false data into the network, their tokens can be confiscated and their reputation scores (for attracting new requests) reduced.

Chainlink Stock Quote

Today’s Change

(-0.66%) $-0.05

Current Price

$8.19

LINK’s entire supply of one billion tokens was pre-minted on Ethereum, and no more tokens can ever be created. But as Chainlink expands and attracts more developers and node operators, LINK’s value should rise. Chainlink is already the world’s largest oracle network, and it’s working with major financial institutions such as UBS, JPMorgan, and Euroclear to accelerate blockchain transactions and tokenize real-world assets (RWAs).

It’s also helping older platforms — including SWIFT (for interbank transfers) and the DTCC (for U.S. stock trades) — streamline their settlements. If the CLARITY Act finally passes, that regulatory clarity could prompt more financial institutions to tether their ecosystems to Chainlink, which in turn could lead more investors to value LINK as a utility token rather than a speculative altcoin.

How high could LINK soar?

If Chainlink becomes a “picks and shovels” play on decentralized apps and blockchain-driven upgrades for legacy financial institutions, LINK will attract much more attention. Some bullish analysts expect it to soar back to the double digits over the next few years.

That said, LINK’s volatility could still curb Chainlink’s near-term growth. If its institutional partners think the token is too volatile, they might negotiate private agreements in which their node operators are paid in stablecoins or even fiat currencies. But if LINK stabilizes and gradually appreciates, it could become just as important as Bitcoin or Ether.

JPMorgan Chase is an advertising partner of Motley Fool Money. Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Chainlink, Ethereum, and JPMorgan Chase. The Motley Fool has a disclosure policy.

Portugal stocks lower at close of trade; PSI down 0.03%




Portugal stocks lower at close of trade; PSI down 0.03%

Mortgage Rates Get Much Needed Relief Thanks to a Taco?


Well, it looks like mortgage rates will continue to avoid the dreaded 7-handle.

This time, thanks to a taco.

Ultimately, the core driver of mortgage rates right now is the conflict with Iran.

Any ratcheting up, and mortgage rates rise. Things cool, so do mortgage rates.

So when there’s a taco, things tend to improve, but how long will the strategy work?

Another TACO Helps Mortgage Rates Move Lower

Now when you hear the word taco, you’re probably thinking of a delicious Mexican treat filled with meat, cheese, maybe lettuce (!).

But that’s not the taco in question. Instead, it’s a cheeky acronym for a certain President who “always chickens out.”

I’m not here to get political. I’m here to explain this phenomenon and how it drives mortgage rates.

As noted, their primary driver right now is the Iranian conflict and how that affects oil prices thanks to key waterways involved like the Strait of Hormuz.

When things appear to be getting worse, whether it’s a new bombing campaign or other escalation, bond yields surge higher.

That takes 30-year fixed mortgage rates up with them as inflation fears grow larger.

Conversely, if you hear news of a ceasefire, negotiation, or possible “peace deal,” yields tend to drop and mortgage rates get relief as well.

The latest news out of the Middle East is that President Trump has called off new strikes, which reportedly would have been the largest since World War II.

Trump also added that Iran had agreed to an “immediate, complete, and total opening” of the Strait, and that negotiations will begin today.

Of course, Iran refuted the news, saying it was merely speaking with Oman.

Regardless, the market liked the story, as it has in the past when there were similar TACOs.

Stocks are up quite a bit today and the bellwether 10-year bond yield is down over six basis points to around 4.68%.

It had hit a fresh 52-week high last week, threatening the same for mortgage rates if things didn’t change in a hurry.

Can the TACO Effect Keep Working Time After Time?

Now here’s the issue. While the TACO effect seems to be a positive for both the stock market and mortgage rates, you wonder how many times it’ll work.

Over time, investors might grow tired of the same old act of making a big threat, then pulling back at the 11th hour.

It becomes a sort of the boy who cried wolf situation, where nobody believes you anymore, whether it’s new strikes or new negotiations.

At a certain point, the market stops believing you and demands actual results.

This is not the first TACO, and probably won’t be the last.

The back and forth act is getting tiresome and might not be as impactful each time it takes place.

Ultimately, we need an actual solution and end to this conflict so oil can flow freely, prices can come back down, and inflation can get back on course.

Mortgage Rates Have Quietly Climbed Back Near 7%

If we keep seeing empty threats, then supposed negotiations, with no fruit to bear, interest rates might keep climbing higher.

Remember, the 30-year fixed mortgage was sub-6% prior to the war in early March. The best levels since the summer of 2022, the same year the 30-year fixed was in the 3s.

Now it’s closer to 6.625% and went as high as 6.875% last week.

So the conflict has already wreaked havoc on the housing market and the damage is done.

It could get even worse and we might see a 7-handle if a resolution isn’t reached, as the Fed will likely raise its own federal funds rate in the meantime.

But if this strange negotiating style finally pays off, mortgage rates will certainly benefit and could move back toward those nice levels seen before the war.

(photo: onnola)

Colin Robertson
Latest posts by Colin Robertson (see all)

Inverse Cramer: CNBC Stock Pundit Jim Cramer Sells Bitcoin, BTC Holders Cheer


Yesterday, on August 3rd, CNBC host Jim Cramer declared he would sell all his Bitcoin (BTC) holdings due to fears about Quantum computing.

On July 31st, Cramer interviewed Arvind Krishna, CEO of IBM, who stated that Quantum computing would eventually be able to break into the cryptographic algorithms that run the crypto ecosystem, including the top crypto, Bitcoin. Based on these comments, Cramer said he hit the sell button on his holdings.

What is interesting about this is that some investors took to social media lauding Cramer’s decision as a bullish indicator due to the theory of Inverse Cramer – buy what he sells and sell what he buys. Cramer admits that he does not always get things right, but he has made huge mistakes in advising viewers in the past. Cramer was infamously pumping Bear Stearns just days before the investment bank collapsed. On the March 11, 2008 episode of Cramer’s Mad Money show, Cramer told a caller that Bear was fine and not to sell. He told the investor that selling was silly. Several days later, Bear was sold to JP Morgan for a fraction of its price on March 11th.

 

In 2012, Cramer advised his watchers to sell Netflix. The shares in the company surged by around 174% in the following months.

There have been other big misses.

While diminishing the credibility of the Mad Money show, the Inverse Cramer trade has become a meme, and at one point, Tuttle Capit

 

al Management launched an Inverse Cramer Tracker ETF. The fund was liquidated in 2024 due to limited interest.

One investor published a research paper on Cramer recommendations from 2018 to 2024, which showed a mixed bag of results.

In the end, do your own due diligence and don’t make investments based on finfluencers or so-called “experts,” including those on CNBC.

 



Can you Start Trading with ₹20 | #educationalvideo



Penny stocks refer to shares of small-cap companies that trade at a low price, often below ₹5 per share. They are usually found on over-the-counter (OTC) markets or smaller exchanges and are characterized by limited trading volume, making them highly illiquid.

#pennystocks #StockMarket #Investing #StockTrader #MarketWatch #SmallCapStocks
#TradingTips #TradingEducation #StockInvesting #DayTrading #investmentstrategy
#tradewithpurab #purabdarda

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2026’s “Discounted” Properties Aren’t the Bargain They Look Like


James:
Deals are often evaluated on what they could make, but sometimes it’s more important to question on what they could cost you and is the juice worth the squeeze? Today, Kathy and I are opening up our portfolio and we’re talking about the deals that we’re doing today and the ones that we’re letting go and passing on. I’m James Dainard. I’m stepping in the host seat for day today with my good friend Kathy Fettke, and this is Beyond the Market Podcast. All right, Kathy, so I want to know most importantly, what deal have you passed on recently and why’d you pass on it? Because there’s so many opportunities getting thrown people’s way right now.

Kathy:
Yeah. I mean, we all know that multifamily is an opportunity right now. We’re seeing massive discounts, we’re seeing foreclosures. The banks are done extending and pretending. So many of these loans now are in default. It’s headline news everywhere. So one would think that there would be just a ton of multifamily deals out there if they’re down 20, 30, 40% from what they were. The problem is they’re just where they should be. And even if you’re getting a 20, 30% discount, you might not be getting a deal. And that’s what’s confusing because somebody just paid too much before. So the fact that you’re paying less now doesn’t mean you’re getting a deal. So it’s confusing, right? Are you seeing that too?

James:
I mean, right now, because there’s so few transactions going on in certain spaces, the opportunities just keep coming your way. But yeah, you look at it and you’re like, “As investors, we want to shift with the market.” And what’s coming across doesn’t make me want to. It’s like you engage and then you’re like, “Yeah, I’m good. I’m going to swipe right and moving on to the next deal.” There’s nothing that really jumps out at you, especially when you’re looking at the bigger deals. Now the smaller ones, we are seeing more opportunities. Kind of like when you’re in that 10 to 20 units, we call it no man’s land.

Kathy:
It is no man’s land. The institutional investors don’t want it. It’s too small for them.

James:
Yeah. It’s not worth their time and effort because it is a lot more work. When you’re trying to scale a portfolio of 10 to 20 units, it’s like flipping a house. You just run into all sorts of different issues. Yes. But yeah, nothing’s been that attractive. Do you remember in 2008, Kathy, when there was the bank tape where people could buy all these good deals on tape? Yes. And everyone’s like, “We’re waiting for this tape to come out.” Doesn’t multifamily feel the exact same way? It’s just not coming.

Kathy:
Yes, because we have a multifamily fund. We were prepared for this moment. We got the money ready because we though, boy, when that deal comes, you got to have the money. You don’t have time to syndicate, to raise the money. It’s got to be in the bank and ready to go. So we’ve been planning this and we have our fund ready, and we have been underwriting three or four deals a week. And these are not just any deal. They’re the good ones supposedly that are being brought to us. And we made offers, but we’ve had to negotiate the sellers down because it’s got to be hard to be the seller saying, “But I put this much into it,” or, “I paid this much for it. I can’t give you a bigger discount.” But on the buy side, you’re saying it’s not working. It’s just simply not working.
Once you add in the cost of finance, which is three times maybe what they had when they originally bought it, maybe double, just more. And then you’ve got the higher insurance rates and the higher costs and rents haven’t really gone up. They’ve gone down in some areas because there was so much new supply added. So when you add that up altogether and you forget about what the owner paid at the time, you just look at does this pencil, is this going to work? They don’t. They don’t. Back then when you’re talking about the tapes, they didn’t really work then either. Not at all.

James:
The

Kathy:
People bought them anyway with foresight thinking prices are low, they’re going to go up.

James:
It’s crazy because you’ll see some of these discounts they’re throwing on these multifamily, it’s like $10 million, $15 million less than these people paid a couple years ago for. And you still look at that discount and it doesn’t pencil out.

Kathy:
The other thing is that over the COVID boom, the apartment boom, investors weren’t necessarily doing apartment investing. This wasn’t buy and hold, they were flipping apartments. And a lot of investors didn’t understand that. These are not long-term buy and hold. This will never work. The only way this is going to work is because you think you’re going to fix it and sell it and raise rents and sell it for more. And if you can’t raise rents, you’re not going to sell it for more. And that’s exactly what happened. Then in addition, they had all these extra expenses, so it’s all gone whack and upside down.

James:
That was a blip in time where everything went up rapidly and people made a lot of money flipping their apartment deals. They really did. They did it right. And then they got more capital, more people talked about it, and all of a sudden you go out and that’s the problem with scaling. When you try to scale up, you buy more assets and then if you time it wrong, it can really come down the wrong way. And I think that’s what’s happening, but the deals just aren’t that good. Have you seen any where you’re like, I am going to buy this deal?

Kathy:
Yeah. Yeah. So we have made a lot of offers and we did tie up a property in Kansas City. The location was absolutely incredible right by a university, a new building. They had just built it three years ago during COVID. They paid way more. I mean, all the construction costs and everything, they put way more into it than we were offering. And it was all going to work. Actually, the numbers on this were great. They finally were at a point where they had to concede. Their loan is due. So either the bank’s going to take it or they take our offer. And they did. So then we were like, oh, finally, we got a newer grade apartment. It’s only a few years old. It’s by a student housing. It’s fully occupied. We could still raise rents. They haven’t raised rent. Everything was perfect about it until we got there.
And this is what is such a bummer. We talk to the tenants, they’re happy, they love it there. But then the inspector comes by and we’re there for the inspection. And he’s like, they didn’t put gutters on this thing. They ran out of money when they were building it because construction costs went up during COVID. So they had to cut corners, but they cut stupid ones. And one of the corners they cut was they didn’t put gutters on this building. And so when there was rain over the last three years, now the property has foundation problems. And that is not something I’m going to fix. I’m not doing that. We would have to put in new drainage and that would be fine and not too expensive. But what we don’t know is how much the building has settled. And the inspector thought it settled too much.
Every building settles, but when you don’t have gutters and now you have water, you can’t have water around your building. You got to keep the water away from your building. And they didn’t do such a simple thing. So we had to walk away because of their negligence.

James:
The way the market is, I know that’s what we’ve done in our offices. We just won’t buy certain things now because it’s easy to get blinded from a performer sometimes where everything looks beautiful on paper.

Kathy:
Oh, it was great. It was a great deal. Yeah, on paper. Yeah.

James:
And then you open it up and you’re like, oh wow, why did I buy this? But the paper and the performer told us to buy it. For us, that is one thing we’ve done when the market is more volatile or flat and there’s less upside where you can’t get that pop to cover for unexpected. We definitely get our buy box way more narrowed down. There’s certain long permit timelines. We won’t mess with them. There’s certain buildings now in certain cities in Seattle we won’t buy anymore because we know the tenant relocation is going to be expensive and take a long time, which slows down the deal. And so we’ve had to update our buy box with just not buying these certain things. Because this had foundational issues, is that just a no-go for you guys anymore in today’s market?

Kathy:
It was fixable. The inspector told us what we could do and we just put in drainage. The problem is the settling, there was going to be more problems. We knew it. And problems that you can’t really see yet because the settling was so quick that first year and it didn’t have to be. I mean, again, buildings settle anyway. And this was a little bit of a different type of build. It was shipping containers. What? It was a shipping container apartment. Have you seen those?

James:
I’ve seen them. The whole apartment building was made of shipping containers.

Kathy:
Yeah. So I mean, I love the concept. I love new stuff, but there’s not enough research, I guess you could say, on what happens when these shipping containers settle too quickly. And can they handle that? It just was too unknown and we’re not going to take that risk. We have investors in this. We’re not going to give them that risk. So we walked away from something that could have been cool, but also could have been a nightmare.

James:
We’re going to take a quick break, but when we come back, Kathy and I will be breaking down the decisions shaping our portfolio. Welcome back to the On the Market Podcast. Let’s get back into our portfolio update. What deals are you actively looking? You have a bigger fund that is looking for deals. What’s Kathy’s buy box for a multifamily deal now? If you’re like, “Hey, this is the three things we need to hit,” or it’s not worth looking at when you may have looked at that earlier.

Kathy:
For sure. Well, we don’t want them too old. I’m not like you. I don’t have the guts that you have, James, to go get this old scary looking stuff. So we want newer product. I know that’s kind of what Ken McElroy’s been able to do is by work with builders who kind of similar situation as I was doing is they just spent too much money building it and now the numbers don’t work and now they got to get rid of it, but it’s fairly new and the new second owner gets to come in and get all the benefits. So we’d love that, but those go quickly. Then you’re competing against institutionals and the big boys. So we are looking, like you said, for something that’s out of their radar. So a hundred units or less, fairly new and in growth markets, the kind of the markets that I’ve been investing in for years, which is more the Midwest or Southeast.
But then those are the areas where there was overbuilding in general. So then you’re going to see softer rents in those areas.

James:
Yeah. And so you have to pad that out. And how you do that is you want a higher cap rate and you want a higher return going in because – Got

Kathy:
To get a better deal. Yep.

James:
Yeah, things are still sliding in certain, especially those high pop growth. I know we have Spokane and Washington, Eastern Washington. I love

Kathy:
Spokane. I went to school in Spokane.

James:
Oh, that’s right. Yeah, Spokane did

Kathy:
Great. I did.

James:
They got a serious pop on rent growth and units during COVID. Now it’s retracting because it just. I remember someone sent me a perform on a deal. It’s like three years ago. The rents were at three bucks a foot. I’m like, “This is Spokane. This is a $1.50 a square foot rent market. How are we up to three bucks?”

Kathy:
I saw that too, and I was questioning it as well because everybody’s kind of going over to Idaho through Spokane, to Coeur d’Alene. And so I get to go see my school hometown and I saw the same thing. How have these rents and prices and everything gone up so much? I don’t know if this is just sustainable, but if you got in there when it was cheap, then it would’ve been good.

James:
Yeah. And that’s what we’ve seen is they’ve gone back down to two bucks and that’s a big drop. And then a lot of units got built all at one time.

Kathy:
Yes.

James:
I mean, actually, if you like Spokane, Kathy, I’d look in Spokane. There’s some deals out there from new construction.

Kathy:
New construction where the builders were expecting higher rents and they’re not getting

James:
Money. Way higher rent. They’re in

Kathy:
Trouble.

James:
Yeah.

Kathy:
Okay. Thanks for the tip, James. We’ll go look.

James:
But those are the markets that are struggling. And it’s right, there is some new property, but yeah, the institutional and the deals just aren’t there. But you have to avoid falling into those numbers traps, which are the old buildings right now, those look the best on paper, but they are a nightmare inside the walls. And we don’t even buy old apartments. You

Kathy:
Don’t.

James:
No, we’re 1960s or ’70s or newer if we’re above 10 units because it is a nightmare. We’ve bought those properties for 50 grand a door and we thought they were worth 200 grand a door and the middle just made no sense. It takes too long. It costs too much. And then the thing is too, because it takes so long, you can’t really know exactly where your rates are. Is there going to be a war going on and energy cost is still high? There’s so many different moving parts and if you can’t launch the rate, the deal just, you can’t perform it outright. And so that’s definitely something we’re not buying is those old big buildings because there’s too many unknowns and unstable markets, you have to remove the unknowns.

Kathy:
Right now I’m doing a post burr, which is basically I’ve had a property for 10 years. I haven’t really done much to it. Now I’m fixing it up and we’re going to flip it. We’re going to sell it. So I’m kind of doing, you know what I mean?You’ve held it for a long time and the tenants were fine with it. Now it’s time to make it modern and nice and we’ll make hopefully money on the sale now. But of course this is a very old home and we’ve got to completely replace the furnace. So there’s an extra 10 grand that wasn’t originally told to me from the contractor that I feel like I hear James in my ears saying, “Well, you should have known. You should have known. If it’s an old house, it’s going to need a new furnace.”

James:
10 grand for a furnace. Where’s this house at?

Kathy:
Ohio.

James:
Oh no, I don’t like that number at all. 10 grand. Oh, we pay

Kathy:
Too much. Well, and AC. I don’t know.

James:
Oh, AC. Well, that doubles it. So then you’re closer. That makes more sense. It is a good time to be doing those little secondary upgrades. We’re actually selling a lot of homes or hedge funds right now and they’re choosing not to dust them up like you’re dusting them up. And they’re selling them for probably 15, 20% less than they could. They just don’t want to put any more money in these things. And doing what you’re doing is the right call because you can get that extra 10% to 15%, but you can’t put out a rental used house.

Kathy:
Yeah. We’ve had this thing, we paid 50 grand. I don’t know. It’s in the middle of Ohio somewhere. And somebody has rented it for 10 years. But then she left and my property manager said, “You could rent it again or we could put 20 grand into this and you could sell it for 100,000 more.”

James:
It’s

Kathy:
Like, “Okay, I’ll do that and I’ll just 1031 because this is kind of the nice thing about a post burr or a property you’ve had for a while. We can 1031 it. It doesn’t have to be a flip. I don’t have to pay those taxes and we’ll be able to buy a couple of newer properties.” So I’m like, “Yeah, let’s do it. Let’s do it.” So I think this is something people could look into is what does your portfolio look like? And can you just sort of make money on what you already have just by doing a few improvements?

James:
What are you guys like, “Hey, this is on.” In the next 12 months, you feel really confident, you’re like, “This is what we’re targeting and we know we’re going to get this.”

Kathy:
There’s a couple of things. So this is not a I’m doing by myself thing, but we do syndicate. And when we syndicate, we can do bigger deals. And then the risk is shared by all those who are investing, but the reward is shared too. One of the things that we’re seeing is obviously a great need for new housing. A great need for new housing, certainly everywhere, but also in California where it’s hard to build. I won’t build anymore. We’ve built subdivisions in California and the demands are just so high. It’s so hard. Just school fees alone and all the fees. I mean, you’re in 150,000 just in fees and probably more now. So we don’t really want to do more building in California, but we have a team that’s very good at land entitlement. And for those who don’t know what that means, it’s taking raw land and getting approval to build something on it by the city or by the county.
And that’s a, I guess, riskier thing because it’s political. You’re dealing with neighbors who maybe don’t want that developed, or you’re dealing with the city council that may be slow growth or pro growth or whatever. Or you’re dealing with a city council who wants it, but then there’s an election and new people come in and then they don’t want it. So it’s more of a political play, but that is what’s needed. And that’s supposedly what this new housing bill is trying to help, is trying to make the process of building easier. Well, we have for 15 years been doing entitlement projects. My partners are 40-year veteran land developers, and we’ve been doing a lot of land entitlement. So we just got some land in Truckee, which is a fast-growing area. A lot of the tech moguls are moving there. It’s right in Tahoe. And so Truckee has.
I love Truckee and that it has just grown to be very bougie, kind of like Park City style where you take an old town and make it gorgeous. And this parcel is walking distance to downtown, but it’s Truckee and it’s California and they’re slow growth. They don’t want new development. So of course I put my feet on the brakes here. We got to make sure the city really wants this, that the people want this. So of course, one of the things you do is you make sure that a large portion of it is affordable. And that’s partly how you get it through is don’t you want a place for teachers? Don’t you want a place for firefighters? It’s Tahoe, you need firefighters to be living locally. So we need to have housing for them. And as long as you carve that out
And the city wants it, and it’s already approved as a housing subdivision. So it’s not like we’re having to go through that whole process. It’s already that far. Somebody else took the 10, 20 years to get it to that point, so we’re taking it over. So we like doing that because then we don’t take on the risk of building. We already have a buyer, a national builder who wants those lots. So land and title. But that’s not something you do on your own. You got to know what you’re doing if you’re going to do that.

James:
We’re taking one more quick break. We’ll be back on more deals that we’re pursuing, passing on, and why? This is the On the Market podcast. Let’s jump right back in. It’s funny, that’s what I’m seeing the best deals on too, is anything that has to do with land development or dirt moving because builders are getting beat up right now. Rates are really high on your hard money loans. Costs are still rising. We have this energy problem. I mean, I though construction was coming down, then it went the other way again. Things are more expensive. Things are taking more to transport out. And the absorption rate on new construction is not great in a lot of markets, especially for that starter. I remember we have two units in Kirkland, Washington, great market to be in. We sold the first two for 1.5 million. 290 days later, we have our third unit listed for 1.3 million.
Same units, same location. The difference is one went up for sale a month after the last sale. That’s all that is. And so there’s a lot of opportunity there. But the good thing about entitlements, and this is why I like dirt deals too right now, I don’t actually want to build them either. I want to flip the lots off, is it takes some time. And because there’s so much pain in the building community with their deals they’re trying to get out the door.

Kathy:
Yeah, they don’t want to do the entitlement.

James:
Well, and the demand for dirt has just dropped. Yes.

Kathy:
Yes.

James:
People’s backyards and lots, it’s worth a lot less now. If you had some land, it’s worth a lot less than it was two years ago.

Kathy:
Well, let me give you an example. We’re tying up this trucky land for three million. It’s worth 12. It would’ve been. So yes, great deals on quality land. That’s why you see a lot of the billionaires buying it up.

James:
Well, and it’s funny, the last couple of years we’ve been talking about multifamily. This is coming, this is coming. It’s actually a lot of development opportunities. I remember 2008 too, same thing. There were so many vacant built lots that had foundations in them and they were spinning them off for like 25 grand. And I feel like actually the opportunities are going to get better in this space.Because the difference between multifamily in distress, they can do capital calls, they can try to get this deal back under control. The rents, they can get more efficient, create more profit. But dirt, inexpensive money, there’s nothing. You can’t fix that problem. You can’t build your way out of it in today’s market. And that’s why we’ve seen a lot better deals. And the nice thing about entitlements, and as soon as you said that, I was like, that’s exactly what I’m looking at right now.
It’s like, how can I spin off not big ones, but how do I spin off two townhome lots in the back of a unit? Because the prices came back too much and I’m permitting three right now where I’m permitting two town homes on each lot on each site. But it takes 15 months in the city of Seattle to get these permits. So the good thing about entitlements is you get to miss the crappy market that we’re in. Because it’s so volatile, people aren’t transacting. By the time your permit’s issued, the market’s going to be different. Hopefully it’s better. In theory, it should be better. And so that’s where you can get this giant pop on the exit because land, if it can drop 50% like you were just talking about or more, it can also pop back up very, very quickly. And that’s how you hit a home run.

Kathy:
All you need is some lever to move, whether it’s interest rates or wage growth. Eventually we’re going to be in a different market. I just spoke in Danville, California at an investor group, which was so full circle because that’s the very first place I was invited to speak 20 years ago. My first time speaking was in Danville, California. So it was fun being there. Very high net worth area outside of San Francisco. And I stayed with my mentor. So then he took me on a tour of some of the things he’s doing in this very high net worth area. He paid two and a half million dollars for a tear down basically. I mean, I think it was a perfectly fine home, but he tore it down, paid two and a half million dollars for it, but he chose it because it was a big enough lot to subdivide.
And he’s able to sell the other half for about that amount. So he’s basically at a zero basis on the house that he’s rebuilding. It’s brilliant, right? This is the kind of land deals you could do out there if you can get enough land or get in an area where land like that is so desirable.

James:
Everyone’s saying there’s no opportunities out there. This is where it is. And I think even us the beginning of the year we’re like, “Hey, we’re going to go get more multifamily deals.” And we did actually, we got some really good multifamily buys, but they’re a little bit heavier operated ones where they’re still newer, but they have some issues that you got to get through. And we’ve been buying the 15 to 25 units in Seattle, have been kind of in our wheelhouse. And we found some good deals, but there’s also not as many of them. And land is coming our way. And what I love about this is, Kathy, we always talk about how we’re opposite on investing. You’re like, oh, you’re crazy. You like to work too hard, you’re too stressed out. But if you look at our buy box right now and what the deals that we’re actually moving forward, we’re buying the same things.
We’re not buying old, and we’re looking at land because it’s the best opportunity. And there is so many things that you can actually look at in today’s market. And like you said, that lot that you’re looking at is almost 70% less than it was worth three to four years ago. That’s madness on pricing.

Kathy:
In a very hot, desirable area. It’s amazing. And the way we structure these, this is what’s cool about raw land, is that we have a purchase agreement and we put down the deposit, but we have a three-year close date. So we have to make payments every month towards that date, but that gives us three years to get the entitlements in place. And then we do a double close at the end.

James:
Yeah. And so to unpack that real quick, you guys, entitlements are great because when you have a land seller that wants a bigger number, even if they’re coming down. Kathy, if you call a bank, who wants to finance that deal right now?

Kathy:
No one’s financing

James:
That

Kathy:
Deal.

James:
And not unless you’re putting 50 to 60% down and that’s not going to work.

Kathy:
The holding costs will kill you. That’s why we get the land deals because people put too much, they get too big a loan that’s a hard money loan. They don’t get the entitlements done in time. We come after they’ve done all the work and get it for big discount.

James:
Yes. You guys, for everyone listening, don’t buy land in hard money. It’s not a good idea.

Kathy:
Don’t do it because I’m going to come and take your property after you’ve done all the work. That’s just how it works. You’re going to run out of money and have to sell it, fire sell

James:
It. If you have to finance at expensive rates and wait for permit costs, there’s way too many unknowns in the city. Destroy your deal. And what Kathy’s talking about doing, you guys, is just terms work. Offering the term to the seller, they’re going to get paid off. They can then look for a 1031 exchange or what they want to move their money to. And typically you’re making payments when you hit benchmarks. Exactly. And so Kathy can hedge her risk as soon as she goes, “Okay, I’ve hit the next phase in my development and we still have a green light going through.”
Then you make your next deposit. But the beautiful thing is you can structure to where your cash out of pocket isn’t that heavy. And by the time Kathy goes to sell that in three years, the market is going to look substantially different. And this deal could go right back up to being worth 20 million. It should be worth more with entitlements and a home run can happen. And that’s what we’re seeing too on a small scale, that’s the big scale. But if you’re in any kind of market, you can do the same principle with a backyard lot, especially if you’re in an expensive city, Austin, Seattle, LA. A lot of daddu lots are a big deal right now. Because dirt has gone down, there’s a lot of opportunities to buy a burr, sit on it, rent it out, cut the lot off and sell it.
And you’re going to be able to sell that in a better market, which is going to get you the pop. And that is exactly the deals that I’m in right now too. I’m looking at a lot of bigger lot houses. I just bought a big one that I could put three houses on and I’m getting this thing fixed. I think I’m going to keep it as a rental and then carve the three lots off. And the lots have gone down so much in value, I’m going to wait for two years until it shoots back up because it’s in a primo street. And so the good thing is you don’t need to take out expensive debt, just go start looking for the right type of land deals and getting them entitled, but work with the right team. You got to have the right feasibility team.

Kathy:
Yeah. If I were starting out, I would look for a big lot with a house on it and I would get the financing because you’re buying a house, cash flow of that house, rent it out so you have a way to hold this property while you’re trying to subdivide it. I’m sure that’s what you see all the time.

James:
And Kathy, that’s why I think me and you need to do a trip to Austin.

Kathy:
Let’s go. But

James:
It’s not going to be a big one. We’re just going to get a backyard lot. I think we’re going to have big FOMO if we don’t do this.

Kathy:
Okay. It has to be after my daughter’s wedding.

James:
We need to do this before the end of the year. How about that?

Kathy:
Yes.

James:
And then if we don’t do this, what happens?

Kathy:
Yeah, we’re going to talk about it here that we’re just big losers.

James:
Okay. Well, for everyone out there who doesn’t think that there’s deals, there is deals. It’s just not maybe where you’re thinking. Actually, the deals that I thought I was going to be doing the beginning of the year, Kathy was also looking at. We also didn’t get a whole lot of them done, but I didn’t think land was going to be on my buy box. And it really is right now. And you don’t need to build, you can flip it off. So there’s opportunities everywhere. And it’s funny, me and Kathy, we’re pretty opposite. She’s calm, collected, well-spoken. I’m a little bit nuts, but we’re doing the same deals.

Kathy:
That makes me feel better. Yeah. Maybe I do eat stress. A little stressed for breakfast too.

James:
Well, Kathy, I love that we’re doing the same types of deals. We’re looking for the same things because a deal is a deal and you got to shift with the market. And it’s been kind of fun talking about, because people are talking about how there’s no deals out there. I love hearing that you are looking at container boxes that might to bogging down a hill because of lack of drainage, but you pulled out at the right time and then you’re also crushing it in the secondary markets. I do think vacation, secondary home areas with development dirt, that there is great opportunities there right now.

Kathy:
The bottom line is there’s always opportunity. So if you’re saying there isn’t any, you have a narrow focus.

James:
No. Yep. You got to always open your eyes and talk to everyone and see what’s working for them and what terms they’re offering. Because if you did the same deal that Kathy’s looking at right now a different way and you bought it with hard money, the deal’s probably not going to pencil out. So find the right opportunities, do the right turns. And how you do that is make sure you follow the on the market whenever you want to get any updates on what we’re doing and what we’re buying, because there’s always an opportunity out there, you got to subscribe to our YouTube channel and make sure you get the update on all the news because it is crazy what’s going on. There’s so much volatility in the market, you got to stay on top of it.

Kathy:
Absolutely.

James:
Well, thank you, Kathy, for coming out. Hopefully me and you just get to chop it up more. I love hanging out with you.

Kathy:
Me too.

James:
We have one-on-one time. So hopefully we do this more. And I’m James Daynard and thanks for listening to the On the Market podcast. We will see you next time.

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Sam Altman’s OpenAI publishes brutal critique of Apple lawsuit: ‘Apple is getting this wrong’


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IT’S ALL A BIG MISUNDERSTANDING!

OpenAI says ‘Apple is getting this wrong’

Apple’s lawsuit against OpenAI, in which the iPhone company claims OpenAI staff stole its trade secrets, is based on a series of comical misunderstandings, OpenAI said in a blog post yesterday titled “Apple is getting this wrong.”

“Apple had claimed that they contacted OpenAI in February and that we didn’t respond,” OpenAI said. “They now admit that their outside lawyers emailed the wrong person after confusing two Asian last names—only after we brought this to their attention. Apple also claimed they had a discussion with our General Counsel, which they now concede never happened.”

Sam Altman’s company also complains that the ex-Apple staff who work for him only accessed Apple information after they left the company because Apple asked them to, after it failed to access the files in their absence. Read the whole thing—including the text messages and emails—here.

ONE BIG THING

Ukrainian soldiers have business-like KPIs for killing Russians—and they’re working, RAND says

Russia’s war on Ukraine has become a grinding tally of raw numbers, and Kyiv is executing its strategy with the ruthlessness of a corporate efficiency expert, according to the RAND think tank.

In a note last month, researchers Gian Gentile and Andrew Radin pointed out that Ukraine has gained the upper hand via attrition: wiping out more of an opponent’s troops and weapons than you lose.

Russia, of course, has a larger population and military than Ukraine. So Kyiv has opted for a simple, albeit grim solution: kill Russian soldiers faster than they can be replaced, according to Gentile and Radin.

Ukraine has KPIs for the military—just like corporations, which use them to track output from employees or subsidiaries.

Ukraine’s KPIs call for killing 200 Russian troops for each square kilometer of territory seized and eliminating at least 50,000 each month. It includes an “ePoints” competition, thought to be the first of its kind anywhere, in which drone operators are awarded points for high scores on the battlefield.

THE MARKETS

Stocks rally across the globe as the price of oil declines

  • S&P 500 futures were up 0.13% this morning. The index rose 1.48% yesterday. 
  • In Europe, the Stoxx 600 was up 0.37% in early trading and the U.K.’s FTSE 100 was up 0.19% before lunch.
  • Asia: South Korea’s KOSPI was up 1.62%. Japan’s Nikkei 225 was up 0.32%. India’s Nifty 50 was down 0.64%. China’s CSI 300 was up 1.27%. 
  • Brent crude was $85 per barrel this morning up from a low of $82 yesterday.
  • Bitcoin was $63.4K.

MORE FROM FORTUNE

From Porsche penthouses to Nobu lofts: Inside the $67 billion boom in luxury branded residences – Zahra Tayeb

The NFL’s previous push into Europe lost $400 million. Why it’s trying again – Sam Birchall

OpenAI’s Greg Brockman gave $5.5 million to protect the home of an internet-famous bald eagle named Jackie – Sydney Lake

How Zohran Mamdani’s pied-à-terre tax exposed an epidemic of ‘ghost cars’ instead – Catherina Gioino

Ray Dalio on the AI bubble nearing 1929, 2000 levels and the lesson people always forget: ‘wealth is not the same as money’ – Nick Lichtenberg

The AI race isn’t about models, it’s about infrastructure—and the U.S. is still far ahead – Alex Capri

NOT A BUBBLE

In epic earnings call, Palantir’s Karp—pounding the table—says ‘people finally believe us’

When it was Alex Karp‘s turn to speak on Palantir’s second-quarter earnings call Monday evening, the CEO could barely contain his excitement. Grinning as he repeatedly pounded his pen on the table—and taking jabs at unnamed Silicon Valley AI competitors who “eat vegetables” and don’t support the U.S. military—a pugnacious Karp reveled in what he saw as a landmark moment for the AI software company and a vindication of its approach of selling customized AI services to businesses.

“Obviously, we are loving these results and loving what they mean for our customers and, broadly speaking, the West,” Karp said.

In the quarter ended June 30, Palantir delivered one of its strongest quarters yet. Revenue surged 93% year over year to $1.94 billion, easily topping analysts’ expectations of $1.801 billion. The company reported net income of roughly $1.1 billion, or 41 cents per share, ahead of Wall Street’s estimate of 35 cents.

AI

$1 trillion in AI capex coming down the pipe this year …

A much, much larger amount of money than previously estimated will be invested in AI this year, according to Joseph Briggs and Sarah Dong of Goldman Sachs: $1.019 trillion globally and $581 billion in the U.S. That is such a staggeringly large amount that it will shift U.S. and global GDP upward by nearly 3% at the high end. “AI capex will rise from 1.8% of GDP in the U.S. (0.9% globally) in 2026 to 2.5% of GDP in the U.S. (1.3% globally) in 2027, with a further increase to 2.8% (1.4% globally) in 2028,” they said in a note.

… Not all of it wanted

Over at Morgan Stanley, they’re worried about the quality of the debt issued to support all that spending. The credit market is demanding higher yields on AI-related debt, even when it is coming from investment-grade companies. “Hyperscaler debt is pricing at yields roughly 5–10 basis points wider than the median investment-grade issue despite higher ratings, and lower-quality debt is a full 30 basis points wider amid renewed questions about circular financing,” Lisa Shalett and her team said in a note seen by Fortune.

“[Debt] issuance has also turned a bit more chaotic, with two surprise $25 billion deals from players tangential to the ecosystem. This indigestion is not only driving relative underperformance for the sector within [investment-grade debt] but raising debate around cash flows.” 

IRAN

Iran and Oman may be carving Trump out of the deal he wants for the Strait of Hormuz

No one knows what is really going on between President Trump and Iran. Yesterday, the president said he had called off a round of attacks because the Iranians had asked for talks. By the end of the day, Trump had called Tehran “duplicitous” and admitted that no talks had taken place. 

Trump did say that Iran and Oman were discussing a deal to handle the Strait of Hormuz. That opens the prospect of both countries reopening the Strait by charging fees for shipping, without the consent of the U.S. That would give the White House the uncomfortable choice of either leaving the Strait in the hands of Tehran (which would at least bring down the price of oil and restart export commerce in the region) or use its naval blockade to target ships trying to pass through.

Last night, Trump told reporters, “This is a last chance for them to sign a good document” that would end the conflict, and he said talks are “going on right now” with various mediators.

For its part, Iran has repeatedly insisted it is not talking to the U.S.

Meanwhile, a Liberian ship in the Strait was struck by an unidentified missile and traffic through the seaway remains very low.

NUMBER OF THE DAY

77%

The percentage of S&P 500 companies that beat expectations among the 307 that have reported Q2 earnings so far. “The EPS beat rate is at its highest level since 2021,” according to Bank of America’s Savita Subramanian and Victoria Roloff.

THE FRONT PAGES TODAY

Revolut chief Nik Storonsky sued by broker over €350mn superyacht – FT

BP profit more than doubles as Trump blasts Big Oil for ‘making too much money’ – CNBC

Cyclospora outbreak causes first two deaths – Axios

The AI Boom Is Transforming the American Economy Beyond Recognition – WSJ

SpaceX’s First Earnings Offer a Chance to Reverse Stock’s Plunge – Bloomberg

A Currency Trader at Heart, Bessent Bets on Japan’s Yen – NYT

ONE MORE THING

What if SpaceX’s much-criticized corporate governance is good for investors?

SpaceX reports its first-ever post-IPO quarterly earnings tonight, and on August 6 the company’s insiders and employees will be freed from the lockup period that prevents them from selling their stock. That might not offer them much comfort, as the stock opened at $114.53 this morning, down 15% from its IPO price of $135.

Elon Musk’s company has been slated by corporate governance critics. They say that the fact that Musk controls 80% of the stock’s voting rights and is the CEO, CTO, and board chairman is “catastrophic,” according to one Danish pension fund. Nell Minow, the veteran corporate governance observer, said SpaceX’s IPO “extinguishes shareholder rights entirely, all but eliminating the right to bring a lawsuit for failure to meet fiduciary standards.”

But over at Jefferies, analyst Aniket Shah advises investors to ignore all that. 

“The data is clear that there is no clear direct evidence that chairman-CEO separation always leads to better performance,” he told Bloomberg. “A check-list approach where dual-class shareholder structure is bad, chairman-CEO separation is good, shareholder concentration is bad — is overly simplistic and can result in making bad investment decisions.”

Anyone following those rules would have been prevented from investing in Facebook or Tesla, he noted. 

Still, the stock has been hammered by traders since it went public. It was once worth $201 per share but is now trading at just 55% of that value. Maybe Musk can turn it around tonight. Some traders think he can: The stock rose 5.68% yesterday and rose another 2% overnight.

BMG acquires Wolfmother frontman Andrew Stockdale’s publishing and recorded rights


BMG has acquired Andrew Stockdale‘s publishing, recorded music royalties, and neighboring rights interests in the catalog of Australian rock band Wolfmother.

The deal, revealed on Tuesday (August 4), brings all three rights types under BMG.

BMG has published Stockdale globally since 2016, and the acquisition adds his recorded music royalties and neighboring rights to that relationship.

Stockdale co-founded Wolfmother in Sydney and is the band’s vocalist, guitarist and songwriter.

The band’s single Woman won the Grammy Award for Best Hard Rock Performance in 2007.

Stockdale said: “Heath Johns is a legend of the Australian music industry with an extensive reach across international markets.

“His enthusiasm for Wolfmother‘s music has been there from the original demos to Joker being played at huge sporting events.

“We appreciate the amazing syncs BMG has created over the years, helping cement Wolfmother‘s music in popular culture, and we’re looking forward to seeing what opportunities await with the great team at BMG.”

Andrew Stockdale, Wolfmother

“I couldn’t think of a better place to have my share of the catalog than BMG.

“We appreciate the amazing syncs BMG has created over the years, helping cement Wolfmother‘s music in popular culture, and we’re looking forward to seeing what opportunities await with the great team at BMG.”

Heath Johns, BMG‘s President for Australia, New Zealand and Southeast Asia, said: “Few Australian bands have built a catalog with the global reach, cultural impact and enduring influence of Wolfmother.

“I signed Andrew to his first publishing deal in 2005, before the band took over the world and two years before they won a Grammy. I still have that original demo CD with Woman, Joker And The Thief, Dimension and White Unicorn on my desk.

“Acquisitions with long-term clients are about more than transactional investments, they’re a reflection of partnerships built on creativity, trust and consistently delivering beyond expectations.”

Heath Johns, BMG

“For Andrew to entrust BMG with his publishing and recorded rights more than 20 years later is a great honor and an incredibly proud moment for the team. Acquisitions with long-term clients are about more than transactional investments, they’re a reflection of partnerships built on creativity, trust and consistently delivering beyond expectations.”

The acquisition is BMG‘s latest under a catalog-investment strategy funded by parent company Bertelsmann‘s Boost program.

BMG completed 30 catalog acquisitions in 2025, and has invested more than USD $1.5 billion in music rights since the Boost program launched in 2021.

BMG describes its $250 million acquisition of Jason Aldean‘s recorded catalog, completed in September 2025, as its largest to date.

Recent purchases also include the publishing and recordings of UK new wave band A Flock of Seagulls in March 2026, and the catalog of German rock band Liquido in December 2025.

BMG reported revenue of EUR €900 million (USD $1.02bn) for 2025 in annual results published by Bertelsmann, a figure down year-over-year on a reported basis following divestments in its Live segment.

Its catalog investment rose to EUR €358 million ($405M) in 2025, up from €243 million ($263M) a year earlier, while its EBITDA margin reached 31.5%.

“2025 was a transformational year for BMG, defined by disciplined execution under our BMG Next strategy,” said CEO Thomas Coesfeld of those results.

“We sharpened our focus on music publishing and recorded music, strengthened our digital capabilities, and supported that focus through our Boost investments and cutting-edge technology, including the integration of AI across our workflows.”

Under the BMG Next strategy, Coesfeld has brought BMG‘s digital distribution in-house and shifted physical distribution to Universal Music Group.

BMG is also merging with Concord. Bloomberg first reported the talks in January; the companies confirmed a definitive agreement in April, under which Bertelsmann will own approximately 67% of the combined company and affiliates of Great Mountain Partners approximately 33%, alongside a one-time cash payment of $1.16 billion. US and German regulators cleared the merger in June, and it is expected to close in Q4 2026. MBW has reported the combined entity is valued in the region of $15 billion.

Coesfeld is due to become Chairman and CEO of Bertelsmann in January 2027, while continuing to lead BMG until the Concord merger closes.

Wolfmother‘s 2005 self-titled debut was certified five-times platinum in Australia and gold in the United States, Canada and Germany.

Its 2009 follow-up, Cosmic Egg, debuted at No. 16 on the Billboard 200.

The band won three ARIA Awards in 2006, including Best Group and Best Rock Album, and the APRA Songwriter of the Year award in 2007.

According to BMG, Wolfmother‘s music has appeared in film, television and video-game titles including The Hangover, Ted Lasso, Guitar Hero and the Madden NFL series.

The band has toured with AC/DC and Guns N’ Roses, and performed at Led Zeppelin‘s 2006 induction into the UK Music Hall of Fame.

BMG, founded in 2008 and wholly owned by Bertelsmann, represents more than 3 million songs and recordings.Music Business Worldwide