From our heroes at Information Is Beautiful, a Tetris-inspired re-imagining of the Billion-Dollar-o-Gram.
This one’s for the geeks: Debtris
January 11th, 2011This one’s for the geeks: Debtris
January 11th, 2011From our heroes at Information Is Beautiful, a Tetris-inspired re-imagining of the Billion-Dollar-o-Gram.
What An Earnings Report Can Tell You
January 10th, 2011Hey, kids – it’s earnings season! That means that companies are starting to report to the world how they did in the last three months of 2010 (that is, the 4th quarter of 2010). Earnings reports are super important, whether you’re a rookie or a pro. Read on to find out why:
credit: Smudge 9000
Here’s the interesting thing about earnings reports: they give investors important information about the past and the future.
For example, overall profits are expected to be 9.8% higher than they were at the end of 2009. (Makes sense – 2009 was a pretty rough year on the economy.) But what about the years before that? Are there any companies that usually bring in 15% profit that are now earning less? Maybe 10% is their new normal. Would you be satisfied with that, as an investor, or would you prefer to find a company with a better track record?
Companies’ past earnings aren’t as important as their future earnings. Even though overall profits rose at the end of 2010, it looks like they’re not going anywhere in 2011. Why? Well, the job market hasn’t really improved. People without money can’t spend money, and companies can’t profit without money.
There are some exceptions: even though the job market is in bad shape, companies that sell luxury goods to a different market have continued to perform well. You can also predict future earnings based on new laws and tax policy. FedEx and Novellus Systems will both be taking advantage of a tax break to buy themselves new computers and cargo jets. (Those purchases not only benefit the businesses – they also increase profits for technology and airplane manufacturers.)
A little bit of bad news for companies that depend on consumer spending to boost their profits:
“…we’re not going to see sustained declines in the unemployment rate.” – Ben Bernanke, Chairman of the Fed
Segregation Resurfaces In The South… TILE Two-Liners 1.10.11 >> 1.14.11
January 10th, 2011MONDAY
- Southern Sudan is likely to become Africa’s newest country, wrapping up a bloody 20-year civil war with the north. One of the Southern Sudanese citizens voting for independence said, “My vote is for my mother and father, and my brothers and sisters who were murdered in the war.” (BBC News)
TUESDAY
- China gets into carbon trading – an approach to global warming that requires carbon-producing companies to basically buy the right to pollute from other companies. Huge news for one of the world’s biggest economies – largely powered by coal. (The New York Times)
WEDNESDAY
- The commission investigating BP’s giant oil spill confirms that mistakes by BP and others led to the spill. Oil industry: Prepare to be regulated. (The Wall Street Journal)
THURSDAY
- North Carolina school board restores policy of economic segregation in public schools. (The Washington Post)
FRIDAY
- Health care coverage is becoming unaffordable for more and more Americans. Even nonprofit health insurance provider Blue Shield of California has raised rates 59% over 5 months. And another 15% increase is on the way. (The Los Angeles Times)
Grounded Jets, Space Jets(!), and Misleading Celebrity Tweeters… TILE Two-Liners 1.10.11 >> 1.14.11
January 10th, 2011MONDAY
- “Cupcake leader” Crumbs (a chain of bakery shops) was just sold for $66 million, proving that the American epidemic of childhood obesity *can* be profitable. (The Wall Street Journal)
TUESDAY
- Radiohead just keeps on flipping the music industry script. They’re allowing a group of fans to sell a bootleg concert DVD made up of clips secretly shot by 14 different audience members. The catch? All profits have to go to Oxfam. The concert was, after all, a benefit for Haiti. (BBC News)
WEDNESDAY
- Someday, someone will literally fly you to the moon and let you play among the stars. For a price, of course. (BBC News)
THURDSAY
- Don’t believe everything your favorite celebrities tweet: They may be on an ad agency’s payroll. (Bloomberg)
FRIDAY
- If you thought this winter’s snowstorms were annoying for your family, think about the airline industry, which lost over $100 million because of cancelled flights. (The Wall Street Journal)
How To: Survive A Conversation About The Economy This Week
January 7th, 2011Looking for a job or a great deal on a condo? Well Ben Bernanke has some news for you! Our Treasury Secretary and the U.S. Senate got together today for a little chat about the state of the economy. Ben says:
“We have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold.”
credit: kevindooley
The story:
Basically, Americans are starting to spend more money on everything besides real estate. That’s pretty good. But the unemployment rate is still 9.4%, which is bad. In fact, it may take up to five years for the job market to get back in shape.
The plan:
So what’s the plan? First of all, Bernanke practically begged lawmakers to get their rear in gear and rearrange the federal government’s disastrous spending habits (which have led to bigger and bigger budget deficits over the years). And then there’s… quantitative easing!
The important thing you don’t understand but easily could if you just read this:
Friends, it’s time you learned what quantitative easing is. Basically, it’s a way for the government to pump more money into the economy without causing crazy inflation, which would make all that new money worth a lot less.
Here’s how it works: the Treasury prints some money for itself, and uses that money to buy stuff (mostly bonds) from banks and financial institutions throughout the country. Bam! More money in the economy.
But flooding the economy with cash usually causes inflation (which means your dollar will buy less than it used to). So the Fed is working hard to keep the inflation rate below 2%. But you probably don’t need to get into all that detail in a friendly conversation.
So now you know.
So you want to be a socially responsible investor?
January 7th, 2011
Joel Solomon’s career is somewhere between entrepreneur, philanthropist, and activist. His philosophy is that companies should focus on socially responsible growth – meaning they should care about their impact on their society and the environment, but not give up on making money. Since 1996, he’s been the president of Renewal Partners, a company focused on creating a “triple bottom line” economy. And he’s a pretty big dreamer – while most companies focus on a 10 or 20 year strategic plan, Joel has a 500-year vision about how the work of current generations is crucial. He was nice enough to share a bit about his plans and how you can play your part in changing the world.
TILE: What is socially responsible investing?
Joel: Socially Responsible Investing is about placing your money into companies whose products and services represent your values and beliefs. Every dollar you spend or invest is a direct vote by you for what matters in life and on the planet.
TILE: How can businesses make money and be socially responsible at the same time?
Joel: Business can make plenty of money by being good citizens of the environment – for their workers, and for the communities where they make products and in those where they sell them. Good ethics and planet-responsible behaviour* are fully compatible with making reasonable financial returns. In fact, clear values and true purpose, when combined with the tools of business and money, make a powerful combo that can drive social change.
TILE: Why do you do what you do?
Joel: My life is committed to respect for the hard work my ancestors did to give me my life, and to do everything I can to see that what matters most to me is available to future generations. Those commitments led me to make business and finance serve my long term goals. Every day I get to meet some of the brightest, most creative, most inspiring entrepreneurs and leaders in the world. That’s my reward for staying true to my values and purpose.
TILE: How do you think young people can play a role in philanthropy?
Joel: Young people with access to philanthropy should learn all they can about the issues of our times, especially those that touch your heart and mind the most. Ask lots of questions. Read. Get exposed. Volunteer in organizations you believe in. Find a career that expresses your true values. Learn all you can about the non-profit world. Ask for observer status at foundation meetings. Ask for a small grants budget so you can gain experience making decisions with donations. Seek mentors and experienced advisors. Attend conferences.
TILE: What’s the best advice you would give to your teenage self?
Joel: Commit to your own maximum potential to learn, lead, and live, such that your life and work make a positive impact for today and tomorrow. Follow your inner calling. Develop creativity. Do deep work on yourself, soon, and continually.
Develop pragmatic skills. Travel. Be compassionate.
* Please excuse our extra ‘u’s. Though he was born in Tennessee, Joel is now a resident of sunny Vancouver, Canada.
>> TILE brings you exclusive opinions, explanations, and interviews from experts in every industry. To read more, click on Ask the Experts in the TILE Library.
Have a burning question or an expert you’d like to see interviewed? Just Ask TILE!
Sneaky Tricks Debit Card Companies Play – And How To Play Them Back
January 7th, 2011The man behind the Your Money column in the NYTimes gives a fast-moving and really useful explanation of debit and credit cards. Understanding the difference and some features of each can potentially save you a few hundred bucks a month – money you can surely put to much better use.
Feed your head, not your bank’s overdraft fee collectors.
Sneaky Tricks Debit Card Companies Play – And How To Play Them Back
January 7th, 2011The man behind the Your Money column in the NYTimes gives a fast-moving and really useful explanation of debit and credit cards. Understanding the difference and some features of each can potentially save you a few hundred bucks a month – money you can surely put to much better use.
Feed your head, not your bank’s overdraft fee collectors.