#62 Cisco, Nike to exit Russia
And $19 mn to have dinner with Mr.Buffet..
Welcome to another edition of Business News for Kids 🙇♂️.
Busy business this week 💼
Networking and Telecommunications Hardware maker Cisco🎛, and sports footwear major Nike 👟 will be fully exiting Russia, accelerating plans to leave as the Russian government announced rules that would allow it to seize assets. Less than 1% of Nike’s revenue comes from Russia and Belarus.
While companies exit Russia, users seem to continue to exit cryptocurrencies 😅 Bitcoin and Ethereum both fell below psychological barriers of $20,000 and $1,000 respectively leaving everyone wondering where web3 is headed 🚀🛩
And a Russian journalist put on auction their Nobel Peace Prize medal to support Ukrainian children, and raised a whopping $103 million 🤩. Previous highest bid for a Nobel medal was $4.76 million.
All the way in the USA.. the FDA aka Food & Drug Administration authority approved a medicine 💊 for treating hair loss ailment Alopecia. Positive news for several million people that suffer from it, and gives the drug makers an opportunity in the $14.2 billion Alopecia treatment market.
While in India the RBI aka the Reserve Bank of India 🏦, passed a ruling that bans Indian fintech that offer Prepaid cards and Wallets from issuing credit aka loans to users. The move is aimed at blocking unregulated Buy Now Pay Later schemes and predatory Loan interest rates charged by some companies.
Wait, what is..
Web3: The third major iteration of the internet or more accurately of web experiences with a focus on decentralisation and virtualisation. Decentralisation what? 😅 Well like web2.0 ushered the movement to the “Cloud” - decentralisation is in many ways the move back to personalised, individual and/or distributed computer systems. Basically, everything around Blockchain, Cryptocurrcies etc. While virtualisation is about the advent of immersive experiences using Augmented Reality (AR) and Virtual Reality (VR) products.
Woah 😱 Weird 🥴?
Lunch for $19 million 😱🥴?! Well its possible when it’s with billionaire, and one time richest person in the world, Warren Buffet. Ever since 2000, people have bid for a lunch with Mr.Buffett; money form which goes to charity. This is the last lunch the 91 year old Mr.Buffet will host, and ended with a winning bid of $19,000,100 🚀. Beating previous best of $4.5 million and >7x off the first ever bid of $25,000 😱.
Inspiring business entities to know 🙏
Meet Berkshire Hathaway, our inspiring business entity of this week.
Berkshire Hathway, founded in 1839 and with roots in textile manufacturing, was purchased by Warren Buffett and his partnership firm through a majority share purchase in 1965. Buffett operated it initially in its core business of textile manufacturing but later started making all their investments using the same company. Today it owns various companies and holds investments in several more including Apple (~5%), Coca-Cola (~9%), Kraft Heinz (~26%), American Express (18%) and many more.
Fun fact 1 share of Berkshire Hathway trades at $417,202 🤑🤑🤑. It has never done a stock split in its long history.
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Stocks, stonks and.. ⚡️
While several companies highlighted over last few issues have been splitting their stock.. remember Amazon’s 20x split and Tesla 3x.. last mile mobility startup Bird 🛴 is planning a Reverse stock split 😅 - i.e. joining shares, than splitting them.. its shares are trading at 55 cents i.e. $0.55 which is lower than minimum price of $1 per share that a stock must have to remain listed on the New York Stock Exchange! Quickest way to get it above $1? Join two of its $0.55 share into 1 so that each is valued at $1.1 😆.
Mental models.. whaaaat! 🤯
Mental models are nothing but ways of thinking, you can use as a framework, to take decisions or solve problems. In this section we cover interesting mental models & concepts from various subjects.
Scarcity, a key economic concept, is the gap between supply and demand of a particular good or service or even people. You know like how its super difficult to find people that code 😅. When a good becomes scarce, and demand remains, its price typical grows. Does the high price of Berkshire Hathway share make it a difficult to trade asset? And hence makes it scarce? And hence drives the price further up!? Discuss with a big person.
Geek out here and watch the video.
Tech, products, toys ++ 🤖
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Take care. See you next week. Pray for Ukraine and for Russian citizens. 🙏