Legend at the Clearance Rack
2-25-24
Opening Comments
My last newsletter was entitled, “Just Do It,” and it was one of the worst open rates in the history of the Rosen Report at 60%. There was so much good info in the piece, I hope people take the time to read it. I know some readers who have signed up are no longer receiving the newsletter due to server issues which is bringing down open rates. You can always follow me on LinkedIn, where all newsletters are posted. A reader sent me a story that “Just Do It,” was used by a marketing company after a man on death row said, “Let’s Do It.” I had never heard of that. The Video of the Day was the most open piece but the story is so important if you have kids, you should watch the short video with them. It outlined how much time will be spent on devices for kids aged 18 today until they die. The other most open link was the 3 simple way to teach kids about money.
Big Brother is watching. I searched the internet for the shoe pictures for my last piece. I am getting RUN OVER with ads for these classic sneakers now.
Off to the JPM HY Conference in Miami on Monday afternoon and staying the night. For those readers who are down there, send me an email at rosenreport@gmail.com. I will be there all day Tuesday.
Markets
Berkshire Cash Position
Awful Insider Trading Claim
Food Costs @ 30-Year Highs
Cell Phone Outage Pain
China Buying Land in the US-Good Video
David Bouley’s Legacy
High-End South Florida Residential Market is Hot
Ocean Front Homes Damaged in Storm
Miami $45mm Sale
Twitter Former HQ Offered at Massive Loss
Old Italian Homes for 1 Euro-Worth It?
Pictures of the Day-Missed Epic Sailfish Day
I had my boat put into the water to fish Wednesday and the forecast changed to horrific conditions, so I did not go. BIG Mistake. The seas turned out to be fine and the sailfish bite was epic. One boat caught 50 sailfish on Wednesday. This is peak sail season. Sorry to have missed it. The weather forecasters are awful.
Legend at the Clearance Rack
I have often written about some of my skills. I had the infamous report on my Olympic-quality combined sport of bass fishing and finding golf balls for example and compared myself to the greatest athletes of all time. There have been numerous reports of fishing, surfing and cooking as well stories of business deals.
If I am being intellectually honest, some of my major accomplishments have come at various retail sales. In my well-regarded newsletter, “You Had Me at Clearance Sale,” people were howling at my process with the sales rack.
Well, you know you are in the big time when your country club puts your face on the sales rack. We have had a healthy debate as they try to stop the brilliance of my sales shopping, and just like a defender on Michael Jordan, it is a futile attempt. Greatness cannot and will not be denied. Recently, they purposely held a sale while my family was in Mexico to try to slow down my purchases.
I had not been to the club in almost a week and when I walked in on Saturday, the general manager said, “Eric, we have a sale rack out.” He smiled and I thought it was odd that he was so excited about me breaking the house with my shopping skills. My eyes lit up and I ran down to check out the sale rack despite not needing another article of clothing. I am so proficient at sales shopping that my closet is overflowing with clothes knowing that 90% were purchased on clearance sales at up to 90% discounts. Please don’t try this at home without consulting me. I have 45 years of sales shopping experience. Amateurs confuse price with quality and will buy something they will never wear on sale. This does not happen with the KING of clearance sale shopping. I only buy the best brands in items I will wear. For golf it is Chervo, G Fore, K Jus, Stitch, B Draddy, Ralph Lauren and Redvanly. I now have 20 Chervo shirts and those are the best of the best. It is like wearing butter.
I always peek at the sign on the rack to see the deals before deciding how deep to go. I did a quick glance at the sign and then looked at the merchandise. Rex came over and said, “Eric, did you look at the sign?” Although I had glanced at the sign, apparently I did not look closely enough. When I realized I was indeed on the sign, it was hard for me not to laugh.
Do you know how great of a sales shopper you need to be to have your picture on the sale rack? There are some legendary athletes. MJ, Gretzky, Tiger, Jeter, Brady, Phelps, Serena, Djoker but there is only one LEGEND at the clearance sale rack and that man is known by his last name, “Rosen;” in a class all by himself. The picture below does not lie. Despite not needing anything, I felt morally obligated to buy two shirts (G Fore and B Draddy) for $60 in total given it was my sale. The G Fore was $200 full price. Yes, my friends, that is how legends are made.
The one issue is the club did not pay me for my Name/Image/Likeness so it appears that a lawsuit will be filed. I am suing for free clothes for life. I think I have a strong case, as I may hire Alan Dershowitz to represent me for such an important violation of my lifelong accomplishments as the best sale shopper in the universe. How many times has MJ, Tiger, or Brady had their face on a sale rack? Rosen 1 and the Legends 0! I need 6 more to tie Brady and I think I can do it. Watch out, Tom, I am coming for you.
Quick Bites
Thursday saw yet another new record for the S&P after the strong Nvidia results which pushed stock +15% on the day and resulted in a market cap of just under $2 trillion or more than 7 times the level from October 2022. All three major averages registered winning weeks. The S&P 500 advanced 1.66%, while the tech-heavy Nasdaq gained 1.4% this week. The Dow is up 1.3% for the period. Interesting chart from Visual Capital on 2024 market risks. With respect to Treasuries, there was volatility but the 2 year (4.69%) and 10 year (4.25%) did not see big changes on the week.
WSJ article outlining Berkshire Hathaway’s record cash position of $168bn. Fourth Q operating earnings were $8.5bn and Buffett cited the strength in the insurance business.
I found this WSJ article incredibly concerning. An executive bought stock in a rival company and the SEC claims that act is insider trading. Biotech executive Matthew Panuwat bought options on another drug company’s stock—and earned a windfall of $120,000. The SEC says he committed insider trading, even though he didn’t buy his employer’s stock and didn’t have inside information about the company he bet on. The case, which goes to trial next month, has become the latest test of insider trading law. Let me get this right, the criminals in Congress and the Senate seem to trade on real inside information all the time with no consequences. Even Fed members have done it. An executive of a company cannot buy stock or short it in a rival with NO INSIDE INFO related to the target company. If courts rule against Panuwat I am going to go ballistic.
Good WSJ article on the cost of food not being this much of your income in 30 years. . Eating continues to cost more, even as overall inflation has eased from the blistering pace consumers endured throughout much of 2022 and 2023. Prices at restaurants and other eateries were up 5.1% last month compared with January 2023, while grocery costs increased 1.2% during the same period, Labor Department data show. In 1991, U.S. consumers spent 11.4% of their disposable personal income on food, according to data from the U.S. Agriculture Department. At the time, households were still dealing with steep food price increases following an inflationary period during the 1970s. Bad policies by the Fed and the Biden Administration are to blame. Red Lobster changed all-you-can-eat after suffering big losses. This Bloomberg article outlines the increasing cost of fast food outlining staffing and inflation issues.
Thursday was crazy given the AT&T cell phone outage. You realize how incredibly reliant we are on these idiotic devices when you don’t have access. I was trying to wire money and could not as my account required a text message and I was unable to receive it. I can only say that 7 hours without service seemed like an eternity and made me so much less productive. I hate that I cannot live without my phone. In a strange coincidence, my SIM card had an issue so I could not even use my phone with WiFi for hours. The GM, Chris, at my golf club, fixed it so I could at least use WiFi. AT&T said, “the outage was caused by the application and execution of an incorrect process as we were expanding our network, not a cyber attack.” All this talk of Chinese hacking of US infrastructure had me convinced it was a nefarious act.
I am consistent in my message that I do not trust China and believe they are the worst partner the US has on many fronts. There are a myriad of rules in China on foreign ownership of R/E and an American could not accumulate THOUSANDS of acres of land in China near military bases for example. This is not the case in the US. We need different rules. I interviewed Kyle Bass last year and this is the 3-minute dialogue on the subject. You will be mortified. Remember, a cache of leaked Chinese hacking documents just confirmed experts' warnings about how compromised the US could be.
David Bouley, the legendary chef, passed away from a heart attack at the age of 70. Being a food connoisseur, I was a big fan of Bouley and wrote a piece in December 2022 entitled, “The Night I Ate Myself to Death at Bouley.” He was creative, innovative, and consistent. His presentation was always beautiful. I don’t recall ever having a bad meal at Bouley, Montrachet, Bouley Bakery, Bouley Upstairs, Danube…. For years, my favorite casual restaurant in the city was Bouley Upstairs where they had amazing burgers sushi, and pasta and it was reasonably priced. Bouley was a master chef and mentor to many important culinary geniuses (Dan Barber, Eric Ripert, Anita Low, Christina Tosi and many others).
Israel
Israel submits report to UN on Hamas’s mass weaponization of rape
Terror Victims Sue Associated Press for Employing Alleged Hamas Affiliate
AP freelance photographer Hassan Eslaiah had advance knowledge of Hamas attack, suit alleges. Check out the picture of the Hamas leader and AP photographer kissing.
Four charged in connection with trying to smuggle Iranian missile components to Houthis
I think it is time the US and the UK stepped it up and crushed the Houthis.
AOC suggests cutting off aid to Israel after U.S. vetoes ceasefire resolution
This is the same person who cried when the US funded Iron Dome for Israel. We know what she thinks about Jews and Israel.
China's 'Shock' Statement: Palestinians Have Right To Use 'Armed Force' Against Israel
Antisemitism is everywhere. It is far worse than I ever imagined.
The university has hired a professor who spread a conspiracy theory about Israel on-air and is now hosting the academic organization that defended him.
London Police: ‘From River to Sea’ Projected on Big Ben ‘Not Criminal Offense’
Other Headlines
Do not expect America’s interest rates to fall just yet
The risk of a second wave of inflation remains too great
Private Equity Payouts at Major Firms Plummet 49% in Two Years
Five major alternative-asset managers — including Blackstone Inc., Apollo Global Management Inc., Carlyle Group Inc., Brookfield Asset Management and Ares Management Corp. — delivered about $37 billion from cashing out private equity bets last year, Bloomberg calculations show. That’s a 49% drop since 2021, the year before the Federal Reserve began raising interest rates.
Pharmacies nationwide report outages in wake of cyberattacks
In my last note, I outlined Sora and the power of the new technology. Well, canceling an $800mm studio is power. In November 2022, I correctly called that AI would have a massive impact. Sadly, I did not buy NVIDIA.
Tax evasion by millionaires and billionaires tops $150 billion a year, says IRS chief
I was too early in calling for the consumer to roll over but I am seeing more signs recently. I have never had a card balance. If I cannot afford it, I don’t buy it. I would rather skip meals than pay 23% interest.
CBS faces uproar after seizing investigative journalist’s files
I need to understand more details on this story. CBC fired and seized the files and computers/records of an investigative reporter.
CRAZY STORY. Welcome to politics in America.
Judge Overseeing Trump-Georgia Case Once Donated To Fani Willis' Campaign
Come on. What about the conflicts here?
Cell data contradicts Fani Willis' testimony, court documents suggest
The data shows over 2,000 calls and 12,000 texts in 11 months between the lovers before when Willis claims the relationship started. I believe it is called, perjury. What are the consequences?
Trump can’t postpone paying $355M judgment in NY fraud case, judge rules
To appeal, The Donald will need to put up $355 million and 9% interest, as collateral.
Trump wins South Carolina, easily beating Haley in her home state and closing in on GOP nomination
Despite media spin, there’s still overwhelming evidence Joe Biden knew of family’s business dealings
Gang of illegal immigrants target high-end Phoenix-area homes in burglaries, authorities say
Sorry Joe, not all of your millions of illegal immigrants are good people. Your border policy is the worst mistake of your Presidency. Deport illegal immigrants who break the law.
Suspected nursing student killer Jose Ibarra not a US citizen, did not know victim Laken. Another murder by someone who illegally entered in 2022. It turns out Ibarra was arrested for child endangerment and released.
I lived two blocks north of Washington Square Park for over 10 years and my kids grew up playing in the park before it was a drug-infested hell-hole.
San Francisco store requires customers to shop with employee escort to curb ‘rampant shoplifting’
Or there could be consequences for crime, but never in San Fran.
LOVE THIS. Pictures of the scum scammers.
Exercise twice as effective as anti-depressants
Researchers find walking or jogging is the best way to improve symptoms
Gym attendance falls flat as Ozempic is blamed for causing people to vomit during workouts
The more Americans that take Ozempic, the faster the US economy will grow, Goldman Sachs says
"The main reason we see economic upside from healthcare innovation is that poor health imposes significant economic costs," Goldman said.
Half of College Grads Are Working Jobs That Don’t Use Their Degrees
Choice of major, internships and getting the right first job after graduation are critical to career paths, new data show. I have written extensively on this topic including in my prior report. College is not for everyone and many who attend should consider a vocational program instead.
Harvard’s Plagiarism Problem Multiplies
Another administrator at the Ivy League university appears to have plagiarized her dissertation. Maybe Harvard needs to change their motto to “We only hire plagiarizers.”
One map from the International Atomic Energy Agency said that over a 25-year period ending in 1970, “more than 56,000 barrels of radioactive waste had been dumped into the Pacific Ocean on the U.S. side” alone.
Intuitive Machines lands on the moon in historic first for a U.S. company
Federal judge’s NIL ruling throws NCAA into chaos: ‘Turning upside down’
Violent, diarrhea-inducing stomach bug spreads in Northeast: ‘Incredibly contagious’
Thank you for risking your lives to save others.
Americans are idiots. Watch this short video
A kid held up a sign asking for beer money with his Venmo account and he raised OVER $1MM. Come on, man.
Real Estate
A WSJ article entitled, “They Were About to Move In When the Ocean Almost Washed Away Their New Home.” Having lived in Florida for a total of over 20 years between 1978-1992 and 2017-2024, I feel safe in telling you that you should think twice before living on the beach. Erosion and hurricanes are no joke. I wanted to live on the Intracoastal given my love of fishing. The risks, housing costs, insurance costs and maintenance costs (salt air) make it prohibitive. The story has amazing pictures of a brand-new home that saw a ton of damage given the high waves in Jupiter Island. Insurance on these homes and coastal homes everywhere can be very hard to place and can be very expensive. Insurance companies are looking at their existing coastal exposure and are non-renewing more frequently. If you want or need assistance reach out to one of my sponsors, Kevin Lang, of Lang Insurance 866.964.4434.
The Israeli mogul, who has an estimated net worth of $5.6 billion, according to Forbes, is in contract to buy the house at 4521 Pine Tree Drive for $24 million. The article suggests the house is a tear-down on 1.3 acres. The seller bought the lot in 1997 for $750k and built the house in 1995 that is being torn down.
The former Twitter HQ located in SoMa is hitting the market at huge 'discount' The 187k sq ft building is expected to be offered at ~$50M, or $275 per sq ft. What did the seller pay for the building in 2013? $110M, or $586 a sq ft, in 2013 and spent tens of millions in repairs/renovations The building reportedly has a vacancy of 67%. Assume $40mm was invested into the building and assume it sells for $40mm, not the $50mm asking price. It would mean a sale at a 71% discount on the invested amount. Then the taxes will re-rack at a far lower rate. Remember, these cities are generally running deficits. Doom Loop.
In an ideal world, when my kids leave the house for college, I would like to downsize in South Florida and have a condo in the mountains and in Italy. There have been all kinds of news stories about 1 Euro homes for sale in various cities in Europe and this CNBC article goes over the pros and cons. Buying a house for so cheap means it will need a ton of work which brings in headaches. In one story, a woman bought two places totaling 2,700 sq feet and spent a total of $446k. WOW, that seems incredibly cheap and the finished product looked very nice. In the end, I love Italy, want to improve my cooking skills, and am looking forward to more time there.
© 2024 The Rosen Report LLC. All rights reserved. Does not constitute investment, financial, legal or tax advice. Consult with your lawyers and professional financial advisers. Rosen Report™ #659 ©Copyright 2024 Written By Eric Rosen.
