Elon Musk, Warren Buffett, Jeff Bezos and Other Billionaires Pay Little to No Income Tax

Tesla CEO Elon Musk, the world’s second-wealthiest person, didn’t pay any income tax in 2018, according to an investigation by Pro Publica.

June 8, 2021 3 min read

This story originally appeared on ValueWalk

Tesla CEO Elon Musk, the world’s second-wealthiest person, didn’t pay any income tax in 2018, according to an investigation by Pro Publica. And Musk isn’t the only wealthy person to avoid paying income taxes in the last two decades.

Q1 2021 hedge fund letters, conferences and more

Elon Musk, others avoid paying income tax

Pro Publica collected a “vast cache of IRS information” covering over 15 years that shows how little Elon Musk, Amazon founder Jeff Bezos, and Warren Buffett paid in income tax. The news outlet found that Bezos, a multibillionaire in 2007, didn’t pay any income taxes.

Elon Musk avoided paying income tax in 2018, and former New York City mayor Michael Bloomberg did the same thing in recent years. Billionaire hedge fund manager and activist investor Carl Icahn avoided income tax two times, while fellow billionaire hedge fund manager George Soros didn’t pay any income taxes for three consecutive years.

The data obtained by Pro Publica offers an unprecedented look into the financial lives of America’s wealthiest people, including billionaire philanthropist Bill Gates, Facebook CEO Mark Zuckerberg and more. The tax returns show not only how much these people had in income and how much they paid in taxes but also their stock trades, investments, gambling winnings and audit results.

Everyone doesn’t pay their fair share

The data collectively shatters the myth of the American tax system that claims the wealthiest people pay the most in taxes. IRS records show that the wealthiest Americans can legally pay income taxes amounting to a tiny fraction of the hundreds of millions or even billions their fortunes increase every year.

Pro Publica noted that many Americans live paycheck to paycheck and don’t amass any wealth. Meanwhile, they pay the federal government a percentage of their income. The news outlet said that in recent years. The median household in the U.S. earned about $70,000 in a year and paid 14% of it in federal income taxes. The highest income tax rate is 37%, and it supposedly kicks in for Americans who earn more than $628,300 per year.

U.S. billionaires take advantage of tax-avoidance strategies that ordinary Americans don’t have access to. Their wealth comes from the skyrocketing value of their assets, which aren’t categorized as taxable income unless the billionaires sell their holdings.

Elon Musk’s true tax rate

Pro Publica looked at the amount each billionaire’s wealth increased, as estimated by Forbes, to how much they paid in taxes. Forbes said the 25 wealthiest people saw their net worth rise by a total of $401 billion from 2014 to 2018 and paid $13.6 billion in federal income taxes in those five years. That amounts to a true tax rate of just 3.4%.

On the other hand, middle-class Americans in their early 40s who have amassed a typical amount of wealth for people their age saw their net worth grow by an average of about $65,000 after taxes between 2014 and 2018, primarily due to home price appreciation. However, most of their income came in the form of salaries, so their tax bills amounted to about $62,000 on average over those five years.

Pro Publica said Warren Buffett avoided the most taxes during those four years despite his public comments about higher taxes for the wealthy. His wealth grew $24.3 billion between 2014 and 2018, but he paid only $23.7 million in taxes, amounting to a true tax rate of 0.1% or less than 10 cents for every $100 he added to his net worth.

https://www.entrepreneur.com/article/374055



You may still get one secret coronavirus stimulus check, but you need to ask for it

The fate of the fourth round of stimulus checks is still uncertain, but that doesn’t mean you can’t get another stimulus payment. In fact, some can still get a little known or secret coronavirus stimulus check from the same relief package that gave $1,400 stimulus payment. However, this secret stimulus check is only for those […]

June 8, 2021 3 min read

This story originally appeared on ValueWalk

The fate of the fourth round of stimulus checks is still uncertain, but that doesn’t mean you can’t get another stimulus payment. In fact, some can still get a little known or secret coronavirus stimulus check from the same relief package that gave $1,400 stimulus payment. However, this secret stimulus check is only for those who own a home.

Q1 2021 hedge fund letters, conferences and more

Secret coronavirus stimulus check for homeowners

Biden’s American Rescue Plan included $10 billion for a Homeowners Assistance Fund (HAF). This fund aims to offer assistance to homeowners with mortgage payments, property taxes, as well as utilities, insurance and homeowners association dues.

Unlike the stimulus checks, this fund doesn’t directly give assistance to homeowners. Rather, it provides the money to states, territories and tribes, which in turn can support those struggling to pay home-related expenses due to the COVID-19 pandemic.

So, it is up to the states and other similar government bodies to distribute the relief money to those at risk of mortgage delinquency and default, loss of power or water, foreclosure, and displacement.

“These necessary actions will minimize foreclosures in the coming months, alleviate emergency shelter capacity, and mitigate potential COVID-19 infections,” the Treasury Department says about the HAF.

The Homeowners Assistance Fund provides at least $50 million for each state, Puerto Rico and the District of Columbia. Tribes or Tribally-designated housing entities, as well as the Department of Hawaiian Home Lands are together eligible for $498 million. American Samoa, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands and the territories of Guam are eligible for about $30 million each.

Who is eligible and how to apply?

To qualify for this stimulus payment, your income should be less than or equal to 100% of the median income of the area, or 100% of the national median income (whichever is more). Those who are “socially disadvantaged” will get priority.

Other requirements to qualify for the assistance are: you must own your home; your mortgage balance should be below $548,250 as of 2021; and you experienced financial hardships, such as a loss of job or income because of the pandemic.

Unlike the stimulus checks, you will have to apply for this stimulus payment. To apply, you need to visit your state’s housing agency website. Since each state would likely have its own procedures, the applicant will have to submit the required proof and documents asked by their state.

So, the first thing you need to do is find and contact your state or territory’s HFA. You must then inquire if you qualify or not, and how to apply for the assistance.

Those who live in American Samoa need to contact the territory’s Housing Trust Fund. If you are a member of a federally recognized tribe or are a native Hawaiian, you need to get in touch with the tribal government or the U.S. Department of Housing and Urban Development’s Office of Native American Programs.

https://www.entrepreneur.com/article/373939



These Are The Top Ten India Equity Funds

Emerging markets are a good investment, and one of the best emerging markets to invest in is India. The country is a hub for information technology and business process outsourcing. Also, India ranks among the top five worldwide in farm output. India is poised to regain its growth post-Covid, while its young and highly educated […]

June 7, 2021 4 min read

This story originally appeared on ValueWalk

Emerging markets are a good investment, and one of the best emerging markets to invest in is India. The country is a hub for information technology and business process outsourcing. Also, India ranks among the top five worldwide in farm output. India is poised to regain its growth post-Covid, while its young and highly educated population will help the country sustain the growth rate. If you are planning to invest in India, but don’t know where to start, the best way to invest is through India Equity funds. Such funds invest more than 70% of their assets in Indian securities. Detailed below are the top ten India Equity funds.

Q1 2021 hedge fund letters, conferences and more

Top Ten India Equity Funds

We have used the past one year return data (from U.S. News) to rank the top ten India Equity funds. We have considered both mutual funds and ETFs. Following are the top ten India Equity funds:

  1. WisdomTree India ex-State-Owned Enterprises Fund (IXSE, 58%)

IXSE tracks the price and yield performance of the WisdomTree India ex-State-Owned Enterprises Index. This index includes companies incorporated and traded in India, but excludes state-owned enterprises. It has a YTD return of more than 12%. IXSE has $4.93 million in net assets, and its expense ratio is 0.58%.

  1. Franklin FTSE India ETF (FLIN, 60%)

FLIN works to replicate the performance of the FTSE India RIC Capped Index. This index tracks the performance of Indian large- and mid-capitalization stocks. FLIN normally invests in the securities of the underlying index and depositary receipts representing such securities. It has a YTD return of more than 14%. FLIN has $28.38 million in net assets, and its expense ratio is 0.19%.

  1. Vaneck Vectors India Growth Leaders USD Etf (GLIN, 61%)

GLIN aims to match the investment performance of the MarketGrader India All-Cap Growth Leaders Index. GLIN has a YTD return of more than 15%. It has $73.52 million in net assets, and its expense ratio is 0.94%.

  1. First Trust India Nifty 50 Equal Weight ETF (NFTY, 66%)

NFTY tracks the performance of the NIFTY 50 Equal Weight Index. This index tracks the 50 largest and most liquid Indian securities listed on the NSE (National Stock Exchange of India). NFTY, during normal times, invests a minimum of 90% of its net assets in securities included in the index. NFTY has a YTD return of more than 18%. It has $77.93 million in net assets, and its expense ratio is 0.80%.

  1. Eaton Vance Greater India Fund Class A (ETGIX, 72%)

ETGIX’s objective is long-term capital appreciation, and it normally puts money in equity securities of Indian companies, as well as in neighboring countries. ETGIX has given a return of 7.93% in the last three years and more than 12% in the past five years. It has $260.20 million in total assets, and its net expense ratio is 1.56%. The top three holdings of this fund are Infosys, ICICI Bank and Axis Bank.

  1. Wasatch Emerging India Fund® Investor Class (WAINX, 73%)

WAINX aims for long-term growth of capital, and normally invests in companies that are economically connected to India. WAINX has given a return of 11.87% in the last three years and more than 16% in the past five years. It has $466.12 million in total assets, and its net expense ratio is 1.64%. The top three holdings of this fund are Bajaj Finance, HDFC Bank, and Divi’s Laboratories.

  1. Matthews India Fund Investor Class (MINDX, 78%)

MINDX seeks capital appreciation, and normally invests in common stocks, preferred stocks and convertible securities of firms located in India. MINDX has given a return of 3.13% in the last three years and more than 8% in the past five years. It has $695.31 million in total assets, and its net expense ratio is 1.15%. The top three holdings of this fund are HDFC Bank, Reliance Industries and Infosys.

  1. WisdomTree India Earnings ETF (EPI, 78%)

EPI tracks the price and yield performance of the WisdomTree India Earnings Index. It invests at least 95% of its assets in securities included in the underlying index and securities with similar characteristics. EPI has a YTD return of more than 17%. It has $863.55 million in net assets, and its expense ratio is 0.84%.

  1. ALPS/Kotak India Growth Fund Class A (INAAX, 79%)

INAAX aims for capital appreciation, and invests a minimum of 80% of its assets in equity and equity-linked securities of Indian companies. INAAX has given a return of 7.89% in the last three years and more than 12% in the past five years. It has $328.28 million in total assets, and its net expense ratio is 1.31%. The top three holdings of this fund are Infosys, Reliance Industries and Tata Consultancy Services.

  1. iShares MSCI India Small-Cap ETF (SMIN, 95%)

SMIN tracks the investment performance of the MSCI India Small Cap Index. This fund normally invests at least 80% of its assets in the securities of the underlying index. SMIN has a YTD return of more than 25%. It has $314.42 million in net assets, and its expense ratio is 0.81%.

https://www.entrepreneur.com/article/373931



3 Interesting Benefits of Blockchain and How It Can Change Finance

June 6, 2021 5 min read

Opinions expressed by Entrepreneur contributors are their own.

On Thursday, January 28th, Robinhood received a request for $3 billion in collateral from the Depository Trust & Clearing Corporation (DTCC). This prompted the broker to halt purchases of GameStop shares on its trading platform in order to reduce the size of the collateral desired by the DTCC. In the aftermath of this incident, Robinhood has been rallying for a move away from the current T+2 standard for settlement of trades to instantaneous settlement. This is because the DTCC collateral requirement is a result of the current T+2 standard. Essentially, the DTCC has to ask participating brokers, such as Robinhood, for collateral to insure against the event that the broker goes bankrupt between the time the trade is entered into, and the two days it takes to settle the trade.

While a move to instantaneous settlement might not be the panacea that Robinhood is hoping for, these recent events bring attention to the tremendous benefits that would come from moving the financial infrastructure to blockchain — the technology which could ultimately enable instantaneous settlement of stocks.

While I was in San Francisco a few years ago, I met with private equity expert and technologist Ankit Kumar, who would go on to mentor and teach me about blockchain technology. He essentially told me that blockchain technology and smart contracts are a new paradigm in computing. This allows a software program to make trustworthy commitments — something not possible before. This in turn enables instantaneous settlement of contracts with zero counterparty risk and an immutable auditable trail of the transaction — all at essentially zero cost. The use cases are infinite, especially in the world of finance. Projects such as Maker, Compound and Uniswap are now building the basic infrastructure of a stable digital currency, money market, and exchange. You will likely see an explosion of use cases across all segments of finance such as payments, real estate and insurance.

Let’s look at some of the key advantages of blockchain technology and some of the potential impacts on the financial ecosystem.

1. Elimination of counterparty risk

In the 1960s, the US stock exchanges were on a T+5 settlement standard. The NYSE closed every Wednesday to make sure the settlement backlog could be cleared. Stock certificates were recorded in physical form and the settlement process required couriers, known as runners, to transport these certificates from one broker’s office to another.

The creation of the DTCC in 1973 followed by the process of first immobilization and then dematerialization of stock certificates enabled today’s T+2 standard and electronic trading systems.

However, distributed ledger technology can take us further into an era of instantaneous settlement. This would ensure that shares and money are exchanged simultaneously and completely eliminate the risk that money is not delivered once the shares are exchanged, and vice versa. This in turn can obviate the need for intermediaries in a transaction and open up participation in financial markets to people who otherwise were left out because they did not “know” the right intermediary, or were not judged to be a “reliable” counterparty by biased intermediaries.

Related: 15 Crazy and Surprising Ways People Are Using Blockchain

2. Increased transparency of ownership and reduced litigation

In the current system, the DTCC only tracks ownership of stocks at the broker level. Each broker in turn keeps internal records of actual investors, called beneficial owners, who purchase stocks through them. There is, however, no master registry of actual stock ownership. As a result, there can arise situations where there are dual claims on ownership of the same stock.

In contrast, a blockchain-based system would record the entire chain of stock lending, borrowing, and selling, and would maintain an accurate record of the actual owner of shares at any particular moment.

Under the current system, situations arise where it is impossible to correctly distribute proceeds to the right people because of these conflicting claims. This is easily observed in cases where trades remain unsettled prior to a take-private transaction, or in situations where there is heavy shorting of the stock. A classic example of this is the Dole Foods case. A blockchain-based system would ensure that the rightful owners receive accurate proceeds in any situation, and therefore make the financial system more equitable and reduce litigation.

Related: What is Blockchain? We Explain the Technology of Blockchains

3. Pay key contributors for the value they create in a network

The low cost, instantaneously transmitted, and permanent record of ownership enabled by blockchain further enables the transfer of “value” at scale. As a result, key contributors who help build a network and make it valuable can benefit economically from the increase in value of the network. Imagine if the key early users and contributors on Facebook, Twitter and LinkedIn were able to economically benefit from the value they provided to these networks.

A great example of this concept is the compound token, which distributes the value of this lending platform to the key suppliers and borrowers, who are helping build this platform.

Blockchain technology can deliver immensely powerful benefits, such as reduced counterparty risk, accurate ownership records and fair distribution of value to key network participants. It is imperative that all stakeholders come together to enable moving the backbone of our financial infrastructure to this technology.

Related: How 2020 Became the Year of DeFi and What’s to Come in 2021

https://www.entrepreneur.com/article/371215



These Are the Ten Biggest Airlines Companies

June 4, 2021 4 min read

This story originally appeared on ValueWalk

Airlines stocks are now in the recovery phase, a year after the coronavirus pandemic put the brakes on air travel. Countries slowly easing travel restrictions along with the rise in the number of vaccinations are what is pushing investors back to the airlines stocks. Though the debt level of the airlines has increased significantly since last year, many such stocks are close to or have exceeded their early 2020 market cap. If you are also planning to invest in these stocks, to help you select, detailed below are the ten biggest airlines companies in the U.S.

Q1 2021 hedge fund letters, conferences and more

Ten Biggest Airlines Companies

We have used the revenue figures of 2019 (as 2020 was an unusual year) to rank the ten biggest airlines companies in the U.S. Following are the ten biggest airlines companies in the U.S.:

  1. Frontier Airlines ($2,500 million)

Founded in 1994, it is a low-cost carrier that went public just a couple of months ago. The airline company raised $570 million in an initial public offering. Barry Biffle is the CEO of the company. Frontier Airlines’ stock has gained over 13% since its debut in April. The company is headquartered in Denver.

  1. Hawaiian Holdings ($2,832 million)

Founded in 1929, it is a holding company that operates cargo and passenger flights between the Hawaiian Islands and neighboring island routes through its subsidiary, Hawaiian Airlines. It has about 7,400 employees and its CEO is Peter R. Ingram. Hawaiian’s stock has gained over 72% in the last one year, and YTD, they are up more than 45%. The company is headquartered in Honolulu, Hawaii.

  1. SkyWest ($2,972 million)

Founded in 1972, this company provides scheduled passenger services in the U.S., Canada, Mexico and the Caribbean. SkyWest operates through the following segments – SkyWest Airlines and SkyWest Leasing. It has about 12,500 employees and its CEO is Russell A. Childs. SkyWest’s stock has gained over 48% in the last one year, and YTD, they are up more than 21%. The company is headquartered in St. George.

  1. Spirit Airlines ($3,830 million)

Founded in 1964, it is an ultra-low-cost carrier that offers services in United States, Latin America and the Caribbean. This company initially started as Clippert Trucking Company. It has about 8,900 employees and its CEO is Edward M. Christie III. Spirit Airlines’ stock has gained over 155% in the last one year, and YTD, they are up more than 46%. The company has its headquarters in Miramar, FL.

  1. JetBlue Airways ($8,094)

Founded in 1998, this low-cost airline focuses on the U.S., Caribbean and Latin America. In 2019, the company served over 42 million customers. JetBlue flies travelers to more than 80 destinations. It has about 18,400 employees and its CEO is Robin Hayes. JetBlue Airways’ stock has gained over 97% in the last one year, and YTD, they are up more than 38%. The company has its headquarters in Long Island City.

  1. Alaska Air Group ($8,781 million)

Founded in 1985, it is a holding company that offers air transportation services. This airlines company flies travelers to more than 115 destinations. It has about 20,600 employees and its CEO is Ben Minicucci. Alaska Air Group’s stock has gained over 91% in the last one year, and YTD, they are up more than 30%. The company has its headquarters in Seattle.

  1. Southwest Airlines ($22,428 million)

Founded in 1967, it is among the world’s largest low-cost carrier airline. In 2018, it carried a higher number of domestic passengers than any other U.S. airlines. It has about 56,537 employees and its CEO is Gary C. Kelly. Southwest Airlines’ stock has gained over 82% in the last one year, and YTD, they are up more than 31%. The company has its headquarters in Dallas.

  1. United Airlines Holdings ($43,259 million)

Founded in 1968, it is a holding company that transports people and cargo. In May 2020, CEO Oscar Munoz, who helped United recover from its troubled merger with Continental, was replaced by J. Scott Kirby, who had been president of the company. United is headquartered in Chicago and employs more than 74,000 people. UAL’s stock has gained over 90% in the last one year, and YTD, they are up more than 30%.

  1. American Airlines Group ($45,768 million)

Founded in 2013, it is a holding company that engages in the operation of a network carrier. It deals in the air transportation of passengers and cargo. It has about 102,700 employees and its CEO is W. Douglas Parker. American Airlines Group’s stock has gained over 118% in the last one year, and YTD, they are up more than 53%. The company has its headquarters in Fort Worth.

  1. Delta Air Lines ($47,007 million)

Founded in 1928, this company operates through Airline and Refinery segments. The Airline segment offers transportation for passengers and cargo, while the other segment deals in jet fuel and non-jet fuel products. It has about 74,000 employees and its CEO is Edward H. Bastian. Delta’s stock has gained over 80% in the last one year, and YTD, they are up more than 18%. The company has its headquarters in Atlanta.

https://www.entrepreneur.com/article/373767



Want To Think Like A Futurist?

June 2, 2021 4 min read

This story originally appeared on ValueWalk

Futurists don’t just think ahead. They foresee what’s coming up and, in doing so, anticipate what human civilization will look like in the coming years. Basing their expectations off of what’s going on in the world and what trajectory society, technology, and economics are on right now, they determine how we as a society will move forward.

Q1 2021 hedge fund letters, conferences and more

Key Principles To Think Like A Futurist

If you want to start thinking like a futurist, you can – it doesn’t have to be difficult. In fact, to get a sense of the new world before anyone else does, there are just a few key principles you’ll have to keep in mind.

  1. Get savvy at spotting trends

Thinking about and preparing yourself for the future is, in many ways, about the trends we’re seeing in the here and now. However, while trends are important, they aren’t always that easy to distinguish from passing crazes. As a futurist, you’ll need to start looking at the context surrounding the emergence of new trends to see which ones really look set to make waves.

Take, for example, the electric car trend, and specifically the Tesla. These revolutionary vehicles are only going to keep rising in popularity and will do so because they came about in response to significant trends. Namely, these are the trends towards environmentalism and the desire for new, more high-tech cars.

  1. But don’t attempt to predict

While it’s important to spot trends and (as Tesla CEO Elon Musk did) capitalise on them, you shouldn’t attempt to predict what’s actually going to happen further down the line. Nobody can predict how the future will actually look.

Instead, the role of a futurist is to take what’s going on in the modern day and think about what overarching transformations are likely to emerge as a result. To do so, it will be necessary to look at everything from the model of any given society to its economics and leading organisations, as well as emerging trends.

  1. Keep an eye out for current signals

It can be tempting to focus exclusively on the bigger things. But, actually, the most significant developments very often happen on a much smaller scale. These smaller changes are called “signals,” and signal spotting is a key part of thinking like a futurist.

Just take a look at the growing use of AI in all areas of our everyday lives. This new technological development can be considered a signal that will transform how entire industries function because it is likely to change the jobs that humans do.

  1. And one eye on the past

Humanity is, in many ways, more predictable than people think. As such, it’s always worth looking back at what’s happened in the past to get an idea of what might develop in the future. Again, this isn’t about trying to guess what the world will really look like, but rather to help anticipate upcoming developments and their responses.

If you take a look at the concerns that some have now about the Covid-19 vaccine, you will see that they’re similar to those people had about, say, the MMR vaccine earlier in the 21st Century, and smallpox, measles, and more before that. As such, futurists will likely have seen the current anti-vaxxer movement coming.

  1. Look for emerging patterns

Now that you’ve thought about trends, signals, and historical contexts, you might be wondering what the point really is. Well, the answer is that taken together, they allow us to see patterns that will help to paint a bigger picture.

Just remember that patterns are always subject to change. Just think about the recent shift to remote working. This sudden and unexpected change will have obliterated the expected patterns that some futurists had about the working culture and wider society.

  1. Build a community

To be successful as a futurist, you have to have a lot of information at your fingertips, as well as the capacity to analyse a wide range of different contexts and developments. However, no one person can do it all, even those who are futurists by trade.

As such, it is recommended that you communicate and collaborate. You are far more likely to develop an accurate viewpoint with diverse contributions and a wider range of data to work with.

https://www.entrepreneur.com/article/373554



Elon Musk explains Tesla’s price increases, removal of lumbar support

Tesla Inc (NASDAQ:TSLA) has increased prices multiple times over the last few months, and now we know why. The automaker also announced plans to remove lumbar support from the Model 3 and Model Y. Q1 2021 hedge fund letters, conferences and more Musk explains Tesla’s price increases Tesla has raised the prices on the Model […]

June 1, 2021 3 min read

This story originally appeared on ValueWalk

Tesla Inc (NASDAQ:TSLA) has increased prices multiple times over the last few months, and now we know why. The automaker also announced plans to remove lumbar support from the Model 3 and Model Y.

Q1 2021 hedge fund letters, conferences and more

Musk explains Tesla’s price increases

Tesla has raised the prices on the Model 3 and Model Y seven times so far this year. Although the increases were small and incremental, they add up. The standard range Model 3, Tesla’s least expensive vehicle, increased from a low of $37,000 in February to $40,000, marking a more than 8% increase. Just a few months ago, the long-range Model Y with all-wheel drive sold for less than $50,000, but now it starts at $52,000.

Tesla never offered any explanation for the price increases, but CEO Elon Musk has now explained in response to a Twitter remark from a longtime Tesla enthusiast. Twitter user @Ryanth3nerd said he was displeased with the direction the automaker was moving in by raising prices and removing features like lumbar support for the Model Y. Additionally, he pointed to rumors that the full self-driving feature would increase to $14,000 without any real added features unless you are a beta tester.

An explanation

Musk told him that they removed lumbar support from the front passenger seat of the Model 3 and Model Y because almost no one was using it, according to logs. He said it wasn’t worth the cost or mass for everyone when it was rarely used.

He added that prices are increasing “due to major supply chain price pressure industry-wide.” He said raw materials especially have increased in price.

Raw material prices on the rise

Musk didn’t say which raw materials are causing Tesla’s prices to increase, but it’s no secret that many industrial metals have been under price pressure. The recent shortage of chips for electric vehicles could be causing pressure there as well.

The copper price has more than doubled since the pandemic started. When China announced price controls for industrial metals, it temporarily eased some of the pressure, but then prices started rallying again toward the end of last week. Additionally, aluminum and steel prices have also been increasing in price.

Tesla is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders’ families.

https://www.entrepreneur.com/article/373368



SafeMoon: New Dogecoin or Ponzi scheme?

A new cryptocurrency is getting ready for a shot at the moon like Dogecoin, Bitcoin and Ethereum. But is it really primed for prominent success?

May 31, 2021 4 min read

Opinions expressed by Entrepreneur contributors are their own.

Launched in March 2021 and having racked up more than one million users already, SafeMoon is a blockchain-based cryptocurrency similar to Dogecoin, Bitcoin and Ethereum, but with a few key differences.

The founders noted some key issues with many digital currencies that they wanted to fix, such as price volatility. To discourage day-trading, which sometimes causes great price fluctuations, SafeMoon will reward long-term holders by imposing a fee of 10% on each sale. Half of these fees will be distributed to existing coin owners, in the form of a dividend paid in additional coins.

While it is still very unclear what SafeMoon will allows investors to do, the selling fee discourages people from selling. You are simply paid extra to hold.

Related: Top Cryptocurrencies To Buy In 2021? 4 To Watch Right Now.

“The goal here is to prevent the larger dips when whales decide to sell their tokens later in the game, which keeps the price from fluctuating as much,” SafeMoon explained in a company whitepaper. Whales is the phrase for large holders of a coin.

Additionally, the company decided to opt for manual burns instead of continuous burning, i.e. burning being the destruction of coins to add scarcity and thus value to the currency. SafeMoon believes that manual burning will give them more control of the coin’s supply and price.

SafeMoon’s price

According to CoinMarketCap, the SafeMoon Coin is worth $0.000005084 as of this writing, up from its $0.0000000010 launch value. Its current market cap has fluctuated between just under $3 billion and nearly $4 billion.

Of course, these numbers are far from making it one of the top cryptocurrencies like Dogecoin — it is #202 in the top cryptocurrencies ranking as I write this — but it is already attracting a lot of attention, as it is relatively inexpensive and offers a new function to reward holding. Remember, even our favourite dog currency started off at a small price before shooting for the moon.

Who is behind SafeMoon?

We know little about the creators of SafeMoon, except that there are six leaders. The CEO is a man named John Karony who used to be an analyst for the U.S. Department of Defense. SafeMoon’s CTO, Thomas Smith, has spent the last two years working with multiple blockchain and DeFi organizations. The COO, Jack Haines-Davies, has only listed company names on his LinkedIn profile, though none of them seem to have a website explaining their purpose.

What is next for SafeMoon?

The project laid out a roadmap for the year. The first quarter let SafeMoon double the size of its team and start working on a marketing campaign. The next steps in the plan are the development of an app — though it is still unclear for what purpose aside from facilitating SafeMoon trading — a wallet and some games.

SafeMoon is also looking to be listed on major cryptocurrency exchanges like Binance. Additionally, they would like to build their own exchange – where they would offer NFTs –, keep expanding their teams and open offices on the old continent. The last half of the year will be dedicated to finish the SafeMoon exchange and open an office in Africa.

Related: The Missing Piece of the Crypto Puzzle: Inventing a Fair Stablecoin

Critics of the SafeMoon project

The project does have its critics, though. For example, SafeMoon owns more than 50% of the liquidity and refuses to fix it. What is preventing them from selling everything and creating a rug pull, making it impossible for other traders to sell? All funds would be lost, and we would only be witness to an exit scam.

SafeMoon has also been compared to Bitconnect, which turned out to be nothing but a Ponzi Scheme, where any profits made in the future would be based on someone paying more for the token than you did further down the line. This would mean that early adopters would be the main beneficiary of the system, leaving only the scraps for late joiners. As cryptocurrency investor and influencer Lark Davis said: “Remember, just because you make money off of a Ponzi does not change the fact that it is a Ponzi.”

https://www.entrepreneur.com/article/372691



There Is Still Big Value In Big Lots For Dividend Investors

We are going to come right out and say it, Big Lots (NYSE: BIG) is such a deep value we are shocked that it is still trading at only 11 times its earnings.

May 29, 2021 4 min read

This story originally appeared on MarketBeat

Big Lots Is A Shockingly Good Value For Income Investors

We are going to come right out and say it, Big Lots (NYSE: BIG) is such a deep value we are shocked that it is still trading at only 11 times its earnings. Big Lots is no Costco and shouldn’t be trading at 38 times earnings but it’s at least worth the 17 times earnings and 18 times earnings being paid for shares of BJ’s Wholesale and Target. Big Lots, like BJ’s, Target, Walmart, and Costco, is a high-quality retailer supported by stay-at-home trends, home improvement trends, and the company’s multi-year turnaround plan. Begun a year or so before the pandemic set in, Operation Northstar is a driving force of the company’s success that we see delivering value for investors long into the future.

Big Lots Follows Operation Northstar To Great Success

Operation Northstar is a nationwide rationalization of the business that includes reformatting store layouts, refocusing on merchandise, improving the customer experience, and building out eCommerce and all helped perfectly positioned the company for the pandemic.  Now more than a year after the pandemic began, the company is still growing and on track to sustain growth over the next few years. 

The  $1.63 billion in reported net revenue is up an impressive 13.2% from last year. And that is on top of last year’s 11% YoY gain and it beat the consensus by 580 basis points. The revenue strength was driven by an 11.3% increase in comp-store sales that more than doubled the consensus estimate and were underpinned by eCommerce. eCommerce, a pillar of operation Northstar, saw its business grow 30%. Execs report there was double-digit growth across all merchandise verticals other than food and consumables and that is not surprising. Fiscal Q1  saw the heaviest pantry loading of any time during the pandemic. Noteworthy segments include seasonal items and the Broyhill line which was added last year. The Broyhill line brought in $225 million this quarter and is expected to be worth upwards of 1 billion dollars in annual sales very soon.

Moving down to the earnings portion of the report, both the gross margins and operating margin widened over the past year. The gross margin rate improved 50 basis points to 40.2% while the operating margin rate improved 230 basis points to 7.2%. And the operating margin and gross margin came in above consensus to drive a substantial Improvement in bottom-line results as well. On the bottom line, the GAAP EPS of $2.62 beat the consensus by nearly a dollar And is up more than 100% from last year. 

Big Lots Gives Weak Guidance

Shares of Big Lots fell more than 5% following the Q1 report and may fall further. The move was driven more by the guidance than anything else but we think the market got it wrong. the company refrained from providing a full-year outlook but says it is expecting second-quarter EPs in a range of $1 to $1.15 which is above the consensus estimate. The guidance assumes a low double-digit decline in comparable sales due to last year’s very tough comparison that we think spooked the market. Last year’s Q2 period saw revenue surge 30% year-over-year to set a company record that has sent been beaten. A 10% decline in revenue in the second quarter would put net revenue in the range of $1.48 billion which is still a historically large amount for this company. Better yet, in the two-year comparison, a 10% year-over-year decline in second-quarter revenue is still worth a 25% increase over the two-year time frame.

The Technical Outlook: Big Lots Pulls Back Into Another Buying Opportunity

Shares of Big Lots fell more than 5% following the release of the Q1 earnings report and we view this as a buying opportunity. not only is the company’s Revenue growing but its profitability is improving and its dividend is getting safer than ever. At current prices, the stock yields about 1.85%, has a payout ratio below 20%, and a fortress balance sheet. There’s nothing not to like about this stock. As for share prices, we expect to see support form a nice base in the region of  $61.50 before regrouping to move higher again. And one last thing, the company just approved a $500 share repurchase program that will definitely help keep price action moving higher over the next few quarters. 

There Is Still Big Value In Big Lots For Dividend Investors

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The Top 3 Stocks to Buy in June

We’ve provided a brief overview of the top 3 stocks to buy in June so that you can get a head start on putting together your watch list. Each one of these stocks has a trend or momentum working in its favor, which is why they warrant your consideration.

May 29, 2021 4 min read

This story originally appeared on MarketBeat
 While the summer months in the market are typically known to be less active, there are still plenty of great opportunities for investors and traders looking to add new positions. We are seeing constructive action in all different areas of the market after a small correction, and even some of the beaten-up growth names are starting to turn the corner. While investors still need to be on the lookout for headline risk related to inflation, the Federal Reserve, and tax raises, the market is certainly set up nicely for June.

We’ve provided a brief overview of the top 3 stocks to buy in June so that you can get a head start on putting together your watch list. Each one of these stocks has a trend or momentum working in its favor, which is why they warrant your consideration. Let’s take a deeper look below.

Ulta Beauty (NASDAQ:ULTA)

Ulta Beauty is a great option to consider in June as the company offers investors a way to take advantage of people heading back to shopping malls in wake of the pandemic. As one of the largest beauty retailers in the U.S. and a company that offers specialty retail products such as cosmetics, fragrances, skincare products, hair care products, and salon services, Ulta offers a nice way to gain exposure to a leading business in the consumer discretionary sector. The company has been busy gaining market share during the pandemic and has invested heavily in developing its e-commerce platform, which should reward long-term investors with continued growth.

The company just reported its Q1 earnings that were nothing short of impressive, another great reason to consider adding shares. Ulta reported Q1 net sales of $1.9 billion, a year-over-year increase of 65.2%, thanks to a combination of government stimulus, eased COVID-19 restrictions and improving consumer confidence. The company’s Q1 EPS of $4.10 was more than double what analysts were expecting, and the fact that the company increased its full-year guidance tells us that management expects the momentum to continue for the rest of the year. The stock is close to breaking out after briefly making new all-time highs on Friday, so keep an eye on Ulta at the start of the month.

Global-E Online Ltd (NASDAQ:GLBE)

This company went public in early May and offers a new opportunity for investors that want to add e-commerce exposure to their portfolios. Global-E Online has developed a platform that enables and accelerates global, direct-to-consumer cross-border e-commerce growth. The stock has rallied over 30% from the IPO price of $25 per share and could be in for additional upside in June as the company gains more exposure and new investors learn what the company is all about.

It can be quite difficult for business owners to figure out the right way to market and sell their products outside of their home countries, which is a big reason why this company’s platform is intriguing. Just think about dealing with issues like language barriers, currency conversion, and international compliance laws to grasp the value that Global-E Online can provide. It’s also worth mentioning that Shopify has taken a 6.5% in the company. While the stock doesn’t have a lot of trading history, accumulating shares of what could be the next big thing in the growth space might be a smart decision in June.

AppLovin Corp (NASDAQ:APP)

Another recent IPO stock that investors should consider adding in June is AppLovin Corp, a mobile application technology company. AppLovin provides software solutions that mobile app developers can use to grow their businesses by automating and optimizing the marketing and monetization of their apps. We know how prevalent mobile devices are in today’s society, and any company that can help to grow the mobile application ecosystem certainly has strong prospects.

AppLovin is delivering attractive top-line growth and reported revenue up 132% year-over-year to $604 million in Q1. It’s also worth noting that the company reported Q1 Adjusted EBITDA of $131 million, up 110% year-over-year and a rarity among high-growth companies that have recently gone public. The stock recently reached new post-IPO highs and has some momentum working in its favor to start the month of June, which is why it’s a great option to consider adding going forward.

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