I Fought a 3 LB Wagyu Cowboy Steak and Won...Eventually
1-14-24
Opening Comments
My last note was about my son, Jack, turning 18. I heard from dozens of parents who commented positively on the piece about Jack and our relationship and it brought back memories for them as well. Many felt it was their favorite recent piece. The most opened links were Warren Buffett’s Life Lessons and the Iranian woman whipped 74 times for not wearing a hijab. We went to Meat Market in Boca for the birthday dinner. The room, service and ambiance are solid. The food is a B- and it is fully priced. My salmon was dry and the sliders were weak as were the desserts. Go for a drink at the bar and have an appetizer and dinner eat elsewhere. It is just not very good, but given the lack of amazing alternatives and the scene, it is packed.
I picked up a new sponsor for the Rosen Report in Lang Insurance. Kevin Lang is a property and casualty insurance broker who focuses on high-net-worth clients. Lang writes home, auto, valuables, umbrella, flood, and watercraft policies in all 50 states. After over 15 years of using the same insurance broker, I changed over to Lang and he saved me money and was creative in his approach. Numerous readers have gone to Lang after a prior post, and Kevin asked to become a sponsor. The guy works 24/7 and responds to calls, texts, and emails in minutes. He explained why some of my coverages were unnecessary and I had not even realized it. I feel a call with Kevin will be enlightening and he can explain how he can improve coverage, save money or get coverage you otherwise might not be able to get elsewhere (866.964.4434) or Kevin@langins.com. He only uses high-net-worth insurance companies (Chubb, Pure, AIG, Cincinnati, Berkley One and Lloyds of London...). Just be sure you tell him the Rosen Report sent you so we can track the power of the RR. The bar for me to take a sponsorship is high and my two sponsors are both companies I use myself (3i and Lang Insurance).
A friend is putting together a “Physical Safety Workshop for Teenagers in NYC” on March 9th and 10th. Dale Bendler is running the event and is a 37-year veteran of the Operations Directorate at the CIA. He is a former Marine and started at the CIA as a Paramilitary Officer in Special Activities and then onto classical espionage as a three-time Chief of Station. I have no skin in this game other than to share an event that may be helpful to your child in the new world of hate and he will also go over party safety. Dale’s contact information is in the link for the event in Tribeca. There are only 10 seats available and I wanted Rosen Report readers to have an early shot.
Video of the Day-Interview with Fabrice Grinda-Prolific Angel Investor
Markets
Inflation Report
Proposed CA Wealth Tax-BAD IDEA
Comparing Biden/Trump Tax Proposals
Forbes Top NY Restaurants + My Feedback
Major Sports News
Adam Neumann’s Flow is Having Issues?
81% Discount on DC Office Building from 2019 Price
West Village Housing Market Remains Hot
Video of the Day-Interview of Fabrice Grinda
I have a great interview with Fabrice Grinda, founder of FJ Labs as part of the 3i Members Founder Series. Forbes called him the #1 Angel Investor in the world. He has compounded at 39% IRR for 25 years. He has made 1,100 angel investments including Alibaba, Instacart, Delivery Hero, Uber, and Air BnB… and sees 300 deals each week. Every interaction I have with Fabrice leaves me smarter. He is amazingly successful, very bright, and always clear with his thoughts and explanations. Listen to four requirements before investing and what are his non-starters. He has made money in over half of his investments which is an amazing statistic for venture. You will be a smarter investor for having listened to our discussion. Thank you to 3i Members and Fabrice for a great podcast.
I Fought a 3 LB Cowboy Steak and Won...Eventually
My passion for cooking is undeniable. I cook dinner 28 days a month. I cook everything from homemade pasta and meatballs to chicken, fish that I catch, turkey, steak, tacos, poke bowls, cookies, cakes, pies, bread, and almost anything else. I do a lot of entertaining and do not recall people leaving my house hungry or unhappy.
I bought a 3.2lb Wagyu Cowboy Steak from Snake River Farms and decided to cook it the day my mother-in-law came to visit. I made scallion mashed potatoes, sauteed spinach and garlic and a chimichurri sauce (a new recipe for me). I had seasoned the steak about 5 hours early with a healthy dose of steak seasoning pressed into the meat and covered tightly in the fridge. Remember, you lose 30% of the seasoning during cooking, so don’t be shy.
Given it was an almost 3” thick steak, traditional grilling would not work as it would burn the outside and leave the inside raw. I had three choices:
Indirect heat method-Grill making 1/2 the grill hot and placing the steak to the side away from direct heat until it is mostly cooked, then on direct heat.
Sous Vide (cooking in a plastic bag in water). After you Sous Vide, the steak is finished on the stove top or grill to sear it.
The Reverse Sear Method. I decided on the Reverse Sear that has you cook the steak on low heat in the oven on a rack and finish it by searing it after the center is cooked to 110 degrees.
Well, I underestimated the amount of time to cook the beast in the oven. I started it at 290 degrees and assumed within 25 minutes, it would be over 100 degrees. Remember, I always leave my meat out of the fridge for 20-30 minutes before cooking to allow it to get closer to room temperature to cook more evenly. Given this was so thick, I had it out on the counter for 45 minutes. I placed it on a rack on a baking sheet. After 20 minutes of cooking, the internal temp of the meat was 84 degrees. I was in freak-out mode as all my other food was nearly done. I raised the heat up to 325 and got the steak to 105 degrees.
I then placed the partially cooked steak in a cast iron pan that had garlic bunches cut in half, fresh rosemary and thyme from my garden, and some olive oil. I started the pan on low to start cooking the garlic and letting the herbs permeate the oil. I then turned up the heat as the steak was getting closer.
I started searing the steak and the shell was looking stunning. However, the center was still reading too rare. I seared it on both sides and then put a little butter on it and threw it back in the oven to finish and used the butter and olive oil to marinade the meat with a spoon every few minutes. The result was perfect, but truth be told, took 20 minutes longer than I imagined. I pride myself on timing and having everything done simultaneously. I always let the meat rest on a cutting board for 5 minutes prior to serving.
Life is about making adjustments and I feel I saved what could have been a catastrophe by staying calm and making it happen. As an aside, I think I made the best chimichurri ever (equal mint leaves, large-leafed parsley, cilantro, and then some finely diced shallots, garlic, red wine vinegar, olive oil, lemon juice, and a splash of sugar). I did not finely chop the herbs. I watched Gordon Ramsey and changed a few things to make it my own. The steak was over mashed potatoes with a side of sauteed spinach. The chimichurri was on top and in the mashed potatoes (Ramsey trick). I must say, the dinner exceeded my lofty expectations, and the entire steak, potatoes, and spinach were gone. My mother-in-law makes a great salad and dressing and her contribution was amazing as well.
Quick Bites
On the week, the major averages notched gains. The Dow added 0.34%, while the S&P 500 advanced 1.84%. The Nasdaq was the outperformer, rising 3.09% through Friday’s close. Earnings season kicked off with the banks and United Health. Oil hit $75/barrel Friday after the US/Britain launched attacks against Houthis. Bitcoin rallied 15% on the week but fell 6% on Friday to close at $43.7k after crossing $49k.
The consumer price index increased 0.3% for the month, higher than the 0.2% estimate at a time when most economists and policymakers see inflationary pressures easing. On a 12-month basis, the CPI closed 2023 up 3.4%. Economists surveyed by Dow Jones had been looking for a year-over-year reading of 3.2%. This CNN article outlines what is getting cheaper and more expensive at the grocery store. I can tell you that I am in shock when I see prices at the grocery store. Organic eggs can be $8.99/dozen and the article suggests egg prices are -23.8% from last year. I looked at a small bag of Jasmine Rice the other day and it was $7.99. On a positive note, wholesale prices fell .1% in December.
Interesting WSJ Opinion piece on the proposed CA Wealth Taxes. It’s worth paying attention to legislation moving in Sacramento to establish a wealth tax on high earners and a bounty-hunter scheme for plaintiff attorneys to target alleged tax dodgers. The bill would impose an annual excise tax of 1.5% on the worldwide net worth of every full- and part-year California resident that exceeds $1 billion, starting this tax year. Come Jan. 1, 2026, the state would tax wealth that exceeds $50 million at a rate of 1% each year, with an additional 0.5% tax on assets valued at more than $1 billion. Part-time residents would be taxed on a pro-rata share of their wealth based on the number of days they spend annually in California. The tax would also apply to nonresidents who have recently left the state. The wealth tax would apply to nearly all assets, including shares in a partnership, private-equity interests, artwork, and financial assets held offshore. Meantime, California’s top effective marginal tax rate on wage income this year is increasing to 14.4% from 13.3% owing to a new law that removes the $145,600 wage ceiling on a 1.1% state employee payroll tax to fund expanded paid family leave. Will this pass? I doubt it in this form, but some kind of higher taxes on the wealthy will pass in my opinion in many deep Blue states. The wealthy in CA should run. Call me and I will find you a place in Florida as I am a local Realtor® now.
An informative WSJ article entitled, “$6 Trillion in Taxes Are at Stake in This Year’s Elections,” outlines the differences in tax plans for Trump and Biden. The truth of the matter is I have ZERO faith in the government to be stewards of my hard-earned capital. Republicans generally want to extend all expiring tax cuts from the 2017 law former President Donald Trump signed—the price tag: $4 trillion over a decade. Biden proposed extending Trump’s tax cuts for households making under $400,000 annually but said the rest should expire. Beyond that, he would raise taxes further on top earners and corporations. That plan, including tax increases the president hasn’t fully detailed, would generate more than $2 trillion beyond current forecasts. That $6 trillion gap is on the ballot, and the ultimate resolution will affect family budgets, corporate profits, and the federal government’s fiscal health amid rising debt. I do not believe we have a revenue problem, I believe we have a spending problem. Massive government waste, bills filled with pork, too much free money, inefficiency, empty government buildings, handouts to foreign countries, bad border policy bad Treasury Department funding mistakes….all create hundreds of billions of waste. Hold politicians accountable. I LOVE Warren Buffett’s idea of holding politicians accountable for budget deficits which is outlined here.
Forbes came out with the 2023 All-Star Eateries in NY. I have eaten at 9 out of 12 of the “4-Star” restaurants and 12 out of 13 of the “Classics.” It is ironic how few New York City residents have eaten at more top restaurants than I have and I live in the culinary wasteland of South Florida! The Forbes list has some credibility with me based on my experiences but don’t agree with all of it. The 3-Star list has 44 restaurants and I have been to exactly half of them. My favorites are highlighted in blue and for the three-star, I have just included my top picks. Open the link to see them all. The ones that I do not feel should belong on any list would be Keens, Cecchi’s, Nobu 57, River Cafe’, Patroon, & La Goulue.
A lot of sports news to go over. Michigan was the best team in college football this year. Congrats to Harbaugh. Tough decision to stay at U of M for $12.5mm/year or chase the Super Bowl. He has interviews set up with NFL teams already. Saban retired as the best coach in the history of college football after winning 7 national championships. At 72, he has nothing to prove. The Bill Belichick dynasty is over after winning 17 division championships in 19 season, attending 9 super bowls and winning six. Time to retire but he won’t. Pete Carroll is out of the Seahawks and I am not sorry to see him go. I am not a fan of how things went down at USC. However, he had a 137-89-1 record as a coach and won a Superbowl. Let’s not forget about the worst play call in Super Bowl history vs the Pats. As an aside, given the frigid conditions (-27 degrees with windchill), Chiefs/Dolphins playoff tickets can be bought for as little as $34. Amazing 50-yard line seats were $125 on Stubhub.
Israel
US, Britain launch strikes against Houthi militants in Yemen terrorizing Red Sea shipping
Democrats were upset at Biden given the airstrikes were done without Congressional approval. "Multiple people in Congress found Biden’s actions unacceptable. I believe under the War Powers Act of 1973, Biden has the right to approve airstrikes without Congress.
Startling look inside Hamas tunnel where Israeli hostages were kept in horrific conditions
Protesters paid to take part in pro-Palestinian demonstrations
Ackman Escalates Attack On Business Insider—And Musk Eggs Him On
Is this what you want your children to learn? That Israel does not exist?
South African national cricket team removes Jewish captain, citing anti-Israel protests against him
Other Headlines
JPMorgan Chase profit falls after $2.9 billion fee from regional bank rescues
The stock was +2% on the news as revenues beat expectations.
Citigroup posts $1.8 billion fourth-quarter loss after litany of charges
Citi will also cut 20,000 (10% of workforce). The stock rallied on the news.
Citigroup CEO Jane Fraser sees ‘cracks’ emerging among some consumers as savings dry up
“We are paying attention to the lower FICO consumer, where there are cracks,” Fraser said.
Delta more than doubles fourth-quarter profit, but trims 2024 earnings forecast
SEC approves rule changes that pave the way for bitcoin ETFs
Major institutional investors will be launching Bitcoin ETFs. BTC is gaining traction and it is +160% in the past year. First-day trades exceeded $4bn.
Savings as a % of gross national income is contracting
It happened previously in 2008 and 2020.
U.S. deficit tops half a trillion dollars in the first quarter of fiscal year
For the period from October 2023 through December 2023, the budget deficit totaled just shy of $510 billion, following a shortfall of $129.4 billion in December alone. Wait, the “Inflation Reduction Act” did not shave hundreds of billions off the deficit as promised? Our deficits are not sustainable. We need more politicians to care on this topic.
Global oil demand to rise by 2 million bpd in 2024, says WoodMac
The projection is for 103.5mm barrels per day for 2024
Hertz is selling 20,000 EVs and replacing them with gas-powered vehicles
The company cited demand concerns and higher expenses linked to EV repairs for the decision. I have been discussing the issues/limitations of EVs and the growing # of players cutting back in the space. I am a TSLA owner.
Big banks mull the unthinkable: suing the Fed
JPMorgan, Citibank, Goldman Sachs, and others have hired lawyers to sue if sweeping new industry regulations are not watered down.
Argentina Poised to Surpass Venezuela With 200% Inflation Crisis
Independent Party ID Tied for High; Democratic ID at New Low
Both main parties need to rethink their messaging on key issues.
Trump maintains dominant lead before caucuses
Trump 48%, Haley 20% and DeSantis 16%. Great charts in the link. Temps could be as low as -40 degrees on voting day.
PA 2024 Elections: Biden On Upside Of Too-Close-To-Call Race
Art dealer reveals Hunter Biden knew 'sugar brother' was top buyer, making WH ethics pledge a 'sham
Adams ‘looking into’ imposing curfew at migrant shelters as panhandling, crime surges
Fauci admits social distancing not based on science, 'sort of just appeared'
Fauci also testified that the lab leak hypothesis was not a conspiracy theory. I was very critical of Fauci and the “Wet Market” story very early on and was criticized for it. I questioned Fauci early and even wrote, “Fauci Ouchie-Time To Go” on 6/6/21 and was vilified for it.
Glenn Dubin Had Sex With Teen While Wife Slept In Next Room: Epstein Files
Newly unsealed court documents alleges that Glenn Dubin had sex with one of Epstein's sex trafficking victims while his pregnant wife slept in the next room.
Federal Scientists Recommend Easing Restrictions on Marijuana
What is ‘nose cover’ — and why are Gen Zers doing it in family photos?
I had not heard of this. My kids better not get any stupid ideas.
Rice University Offers ‘Afrochemistry’ Class Detailing ‘Inequities in Chemistry’
ESPN operated 13-year Emmy scheme using fake names to get awards for top talent
2,000-year-old bullet found with Julius Caesar's name on it was likely used in civil war
Amazing picture in the link. The suggestion is the bullets were for a slingshot.
'UFO Revolution' docuseries shows UAP flying over military base, 'blows up decades of conspiracies'
Multiple videos in the link. I promise that we are not alone but until I am abducted, I can’t prove it.
Real Estate
The website of Adam Neumann’s apartment startup Flow still reads “coming soon.” Yet, two of the venture’s earliest acquisitions are already facing cash flow problems. The fix: find fresh investors to bridge the gap. Two funds that recently appeared on crowdfunding platform Yieldstreet were opened to address a “cash flow deficit” at separate Nashville properties bought by Neumann’s family firm Nazare Capital. Those assets were then transferred to Flow. Money raised will go toward interest rate caps — a buffer against rate increases — and “operating shortfalls” at Stacks on Main in East Nashville and 2010 West End Avenue in Downtown Nashville, according to the fund pages. A spokesperson for Flow said the property’s debt service coverage ratio in June was “north of 0.8,” when factoring in the rate cap. I have been critical of Neumann for years. Read what I wrote about Flow and Neumann in August of 2022. Neumann is a bad person and there is nothing to get me to invest one dollar in him. I was shocked when Andreessen Horowitz invested $350mm in the guy who bled WeWork dry with self-dealing and bad deals.
A 339k sq ft office tower in the Washington DC area (Bethesda) just sold for $30 million or $88 per SF The seller acquired the building for $134 million in 2019, taking an ~81% haircut in 4 yrs. The seller also spent $21 million renovating the building during their ownership. The owner was in for $155mm and sold for $30mm.
This WSJ article entitled, “$2,400 Per Square Foot: Welcome to New York’s Priciest Neighborhood.” On the Hudson River in lower Manhattan, the West Village exudes the charm of old New York—and homeowners are willing to pay a premium for that: The neighborhood’s 10014 ZIP Code has the city’s most expensive residential real estate as ranked by median price per square foot, at $2,366 in December, according to Realtor.com. One reason the ZIP Code’s square footage is so pricey is because much of the approximately 0.57 square mile neighborhood’s limited housing stock sits in a historic district. I love the West Village. It is charming with great restaurants including some of my favorites: I Sodi, Via Carota, 4 Charles, L’Artusi, Nakazawa, Don Angie and many others. Cool bars too. I lived on 5th Ave & 9th Street in Greenwich Village, two blocks East of the West Village and it was my FAVORITE place to live in NYC. However, from a commuting perspective, the West Village is tough if you work in Midtown.
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Rosen Report™ #647 ©Copyright 2024 Written By Eric Rosen
