Why Best Buy is ready for creative destruction while Amazon will be the emperor of the eCommerce land

This is a real story. 

2 amazingly different experiences and a warning shot to all those Best Buy investors. The end is near.

Amazon:
   I purchased an oven baking element from Amazon a few weeks ago. Amazon has a nifty feature that highlights products of a similar nature at the bottom of the page. I luckily found a product that was 50% cheaper and clicked through the links and completed the purchase. Product arrived in less than 4 days (UPS). I open the packaging and to my shock find that while it looked the same overall, the ends of the baking element was totally different. This discovery was made after a couple hours of sweating and crouching and making allowances for my stupidity that I could not figure how to insert a baking element into the oven and turn one screw.
   Anyway, It turns out that the page relevance on Amazon picked the wrong product because they referenced the same name I was looking for.
   I opened a claim with Amazon and in less than a week - received full refund for the product including shipping all amounting to $18 (no biggie).

Rating: Excellent! That is Amazon customer service for you!

Best Buy:

On Father's day, I decided to buy a chromebook for my dad. Off I go to Best Buy. There was this part-time worker, supposedly consultant who hounded me the moment I went in. I told him that I was serious about a purchase and did not wish to use BestBuy for "showboating" so I can go home and order on Amazon. Fine. He explained in great detail about the Samsung Chrome book ($249) and the Acer Chrome Book ($199), the advantages of a faster and ligher chromebook with a 16GB SSD drive, flora, fauna et al. I fell for it. i said I am gonna buy the cheaper acer for $199. I pick up 1 of the 2 products lying on the shelf. Odd thing, nowhere on the brown cardboard carton was any product specs other than the stupid barcode. Argh. Hey, in the past decade  nobody sold me the "wrong product". I didnt have to worry much. I pay for it. Bring it home. Start using it. Until 2 weeks later (ie 3 days past their 15 day return policy), I was crushing the box in which the chrome book (now, this is a white cardboard carton with all the specs on the outside...I dont know why this was packaged in a brown carton and kept for sale).
   To my horror, I found that I had bought the old product with 320GB HDD and2GB RAM...the consultant at BestBuy brought this product up but we didnt consider it since we wanted something that was fast.
  I called BestBuy and all I got was "the 15 day return policy is over" and was instructed to go to the store back and negotiate a trade-in. What the hell does that mean? I was sold a product I didnt want to buy. They obviously mis-advertised, displaying the latest model and selling an older model. Seemed more like a bait and switch to me. Although, the old and new product sell at the same price.  Call me naive, I have never had this experience. The product I picked has been pretty much the product I wanted...and due to the brown carton hiding the original packaging, I couldnt verify it was the same product at the time of the purchase.
  Bottom line, I will never step foot in Best Buy again.  With Amazon, I atleast have a recourse...

Rating: Poor and extremely disappointed. 

FLIGHT 4352 - Cincinnati <=> Newark, Beware, if you ever fly this leg

ForeWarned is ForeArmed - this proverb is worth its weight in gold with what I have to say here.

The worst flight in America - UNITED FLIGHT 4352:

Count how many times there is a mention of "we are constantly trying to do a better job" and tally against the statistics.

Passengers interested in avoiding cursed flights should check the on-time performance for flights on airline websites and by independent services like FlightStats.com. The list of chronically delayed flights can be found on the Bureau of Transportation Statistics website.

Flight 4352 OFFICIALLY enters the hall of shame. I rarely fly and often book my tickets looking at the lowest price first. It never occured to me to check flight times (implicitly assumed they were mostly on time).

I am going to frame it here lest it is lost:

In 12 of the past 24 months ending in March, Flight 4352, which has changed flight numbers five times over the past two years to purge its bad history from airline reservation systems, was over 30 minutes late on at least half of its scheduled days, which is the DOT definition of "chronically late."

More depressing news - TB 117 and couches and carpets and cancers and thyroid disease and ...

An email from change.org landed in my inbox - I saved people from fire and now I have cancer (please sign the petition).

One lead to another and I read this horrifying and shocking article - the poisoning of michigan.

Some links:
Huffington post
National resource defense council


(sic)

Americans carry much higher levels of these chemicals in their bodies than anyone else in the world and California children contain some of the highest levels ever measured. During manufacturing, use and disposal, these chemicals are released into the environment where they can be found in air, water, and wildlife. They are carried on air currents as far away as the Arctic where they pollute native human populations, marine mammals, and even polar bears. Exposure to toxic flame retardants have been linked to real and measurable health impacts. Women with higher levels of flame retardants in their blood take longer to get pregnant and have smaller babies. Children exposed in the womb have lower IQs and attention problems. Other studies have linked flame retardants to cancer, male infertility, male birth defects, and early puberty in girls. A recent study in animals has linked

 Why is california singled out - because of TB 117. Read more here - TB 117.

TB-117 2013 is coming and it may not address all your fears. 
http://www.bhfti.ca.gov/about/laws/propregs.shtml. Debra Lynn Dadd explains why here

This is sad news - I didnt know that the air I breathe at home is contaminated with silent killers. A sudden spurt in some conditions and *my natural age* was always the common explanation. Thanks to Janette Neeves Rivera's petition, I understand how thoroughly fvcked I am to live in homes made of carcinogenic materials. No wonder that the generations past the 1950s suffer from untold and rare diseases - all the time I am asking why is that such conditions are not abound in third world? Cause the people are not rich enough to drink the modest concoctions of the western thinktank - eat, drink and breathe carcinogens.

The systematic reaming of middle class America - US health care

 A very riveting and interesting article that hits the nail on the head.

On being insured and the insurance company being the negotiator

“You keep thinking it’s free,” she said. “We call it free, but of course it’s not.”  (sic)

Yet, the sad story is,

1. The USA outpaces rest of world on a 7:1 ratio in terms of medical spending
2. The quality of care is most horrifyingly "average".
3. The total number of drugs/scans/tests/procedures ordered per patient is unnecessary (see it 'saving ass').
4. What more the drug/scan/procedures, USA is the most expensive in all 21 categories.
5. The list goes on and on...

Here is another gem,

The high price paid for colonoscopies mostly results not from top-notch patient care, according to interviews with health care experts and economists, but from business plans seeking to maximize revenue;

While several cheaper and less invasive tests to screen for colon cancer are recommended — colonoscopy has become the go-to procedure in the United States. “We’ve defaulted to by far the most expensive option, without much if any data to support it,” 

Latest NYT article on health care expenditures:

http://www.nytimes.com/2013/06/02/health/colonoscopies-explain-why-us-leads-the-world-in-health-expenditures.html?_r=0

An article by the renowned Dr Atul Gawande on escalating costs and an explanation as to why?

http://www.nytimes.com/2013/06/02/health/colonoscopies-explain-why-us-leads-the-world-in-health-expenditures.html?_r=0

No Whey - Whey is produced from Stomach of young calf (rennet)

Argh - Whey is not Vegetarian (If you are a lacto vegetarian)

Most Whey is made using rennet (the inner lining of stomach of young calves). Read here.
Another link pretty much reiterating the same thing:
A third link so it really registers -  Animal protein stays in Whey during cheese making
Beer and wines are not safe either:
http://www.vrg.org/journal/vj97jan/971wine.htm

If you are a lacto-vegetarian like me - watch out!
Most manufacturers hide animal based products under weird sounding chemical names and numbers (TRUE!), check this out...http://veganconnection.com/notvegan.html

USA only, Vegan beers, anyone? -  http://veganconnection.com/veganbeer.htm
USA only, Vegan Wines  - http://www.barnivore.com/wine

Zach Sobiech - R.I.P

A really really depressing day and week so far. I dont recall the click history - but I read about Zach and one click after another...it lead to a heart-breaking and uplifting story about Zach and hear of his passing a few days ago (May 20 2013).

This link gives a brief insight into Zach's life, diagnosis, suffering, family and his love - very touching!
http://www.youtube.com/watch?v=9NjKgV65fpo

We have heard this so many times - yet, when I heard Zach say "You dont have to find out you are dying to start living", it touched a chord deep down. Wisdom way beyond his years.

Zach's song, "Clouds" is an internet sensation, you can read the lyrics and watch the video here - http://lybio.net/tag/zach-sobiech-clouds-lyrics/
 

why today's youth are fools and why colleges across the country want them to stay that way

Long long ago, I graduated out of a medium tier college. Not that it opened many doors for me or things would have been different had I graduated from a top-tier college. Chances are, regardless, the station I am at is where I would have been had I taken the umpteen other paths. I am not speaking of Destiny (It is a she and she is a Miss). However, I hate to admit...tip of the hat, Ms Destiny.

I am guilty of a crime - of not understanding American culture. It just belies common-sense.

Why is it harder to imagine that kids CAN stay with their parents and go to a local college/university spending the LEAST amount of money that doesnt endanger the kid or the parent financially? Why? Why? Why?

Back in the day, only because it was prohibitively expensive, and reservation policies that didnt allow a meritirous student like me to pursue an electronics engineering course, I was FORCED to pick a school outside my city. I was home-sick everyday of the 4 years. All in all, I spent somewhere close to $2000 (adjusted for exchange rates in the 1990s) for a 4 year college degree. I was able to earn close to $2000 in the very first year of employment ( I was living with my parents then, no bills, no expenses...free cash flow!)

Let us apply the same to the USA - kids are independent, have other expenses that need to be supported when they do graduate. The starting salary for a fresh out of college is no more than $40-50k. In one statement, let me state emphatically - this salary is NOT SUSTAINABLE. Unless the freshly-minted graduate lives a misers existence paying off the debt before enjoying the first $ as a debt-free man!


Confession - the 4 year degree certificate DID open doors for me, not the college nor the course!

Confession - 2: I am no Bill Gates, Mark Zuckerburg, CTO ,whiz kid, genius, prodigy. But, just the above-average person any employer would love. If you are reading this, you shouldnt confuse yourself in thinking you are any better. 

See, the world is full of employees. The world is full of engineering graduates. Let us see if you make the connection!


What prompted me to write this article was this paragraph from the daily beast (How to Reinvent the college)

The hazy imprecision of this notion is a triumph of college marketing. Many colleges hope that whims and intangibles will guide student decisions. It’s simply not in their interest to encourage students to think closely about the economics of their choice.

 The economics of obtaining a college degree in the USA are far costlier than other parts of the world. It is hugely tilted in favor of the universities. It will be many times cheaper to get one in India (for example).

Online education may sound the death-knell for these greedy colleges which at this moment are acting like toll-bridges. Not for too long.

WHOLE FOODS Salad Fiasco - This is why Indian Vegetarians MUST never trust even Vegan offerings in Food Stores

I expect great things from Whole Foods. I have shopped there several times and am shocked to learn the latest goof-up.

As a matter of rule, I dont trust *anything*, absolutely anything sold by American food stores,  American/Chinese restaurants or chinese and indian cooks. I eat at only vegan restaurants where there is a little chance of animal/insect/seafood content contaminating the offerings (reminds me of something I am researching right now - POKA YOKE)

Check out this link: http://www.huffingtonpost.com/2013/05/09/whole-foods-error_n_3249651.html

What is an affront to my senses is the wording in this paragraph:

The Food and Drug Administration noted the vegan salad contains soy, and the curried chicken salad contains egg. It said people who have an allergy or severe sensitivity to soy or eggs run the risk of serious or life-threatening allergic reaction if they eat the salads.


The company, based in Austin, Texas, said no illnesses have been reported

No - this is unacceptable. Some vegetarians (lacto) like me cannot and will not eat animal-contaminated food, for religious and cultural reasons. We are not Vegan by choice or fashion! We chose Vegan so there are no assumptions whatsoever (no lac, no honey, no milk and its by-products too).

This thinking is embedded in American culture. I see it wherever I go - While it is hygienic and ultimately animal flesh is food - getting mentally sick from accidentally consuming contaminated food is the same as physical sickness emanating from allergies. American cooks (Teenagers), chinese or for that matter Indian cooks (in Indian restaurants offering a mix of veg/non-veg) dont get it.

Example, pizza places - they use the same gloved hands to dip into beef/pork and generously dip it into veggies. The pizza cutters are not dedicated for veggie lovers.
"Subway" - another worst example. The contamination of veggies as the workers move from meat to veggies is appalling.

This is happening everyday in America...people are ok with eating tiny chunks of beef, pork and chicken as long as it doesnt make head line news. Argh!


But, for now, I will take whatever 100% vegan restaurants there are in the offering and may their type thrive.

Why couponing is on its way out?

Americans are neither rich nor lazy - they seem to finally face the same problem most indians do in the united states -

"We cannot find coupons for the products we want to buy"

Interesting  article here:

The Checklist Manifesto - Dr Atul Gawande

I was first introduced to Dr Atul Gawande by reading this article on NYT, It was a wonderful article about the most expensive health-care county McAllen, Texas, USA. It is a must read - Link 

For more information and to read all of Dr Atul Gawande's contributions to NYT - Go here

Recently, a good friend pointed me to the "The Checklist Mainfesto". Requested it from the local library and luckily enough, am holding the book in my hands and decided to post this after reading the first couple of chapters...it is a must-read. The back cover has comments on another of Dr Gawande's book, "Better" which I will be adding to my reading list soon.

I will soon follow this with a write-up on highlights from this book

Autism, Immune disorders and life in a sterile environment

I am back after a long hiatus...a very interesting article to get things started.

http://www.nytimes.com/2012/08/26/opinion/sunday/immune-disorders-and-autism.html?pagewanted=all

There’s a good evolutionary answer to that query, it turns out. Scientists have repeatedly observed that people living in environments that resemble our evolutionary past, full of microbes and parasites, don’t suffer from inflammatory diseases as frequently as we do. 

Generally speaking, autism also follows this pattern. It seems to be less prevalent in the developing world. Usually, epidemiologists fault lack of diagnosis for the apparent absence. A dearth of expertise in the disorder, the argument goes, gives a false impression of scarcity. Yet at least one Western doctor who specializes in autism has explicitly noted that, in a Cambodian population rife with parasites and acute infections, autism was nearly nonexistent.

It appears, people in third world countries do not need to worry about Autism...as evidenced by the  western doctor. methinks too much of glade, anti-bacterializing life and in short, falling prey to capitalistic pressures of companies like P&G, J&J via their vile advertising campaigns.

You do not know what you want. You are gently persuaded by them to realize what you want...sigh!

Homebuyers - first time and repeat..gems precious you cannot miss!

Once in a while, there is a gem of a post which wakes me up from my slumber to do the needful

The jokers over at WSJ are at it again - stoking. Here is the link to an article which they swear would not write back in 2008, http://online.wsj.com/article/SB10001424052702304563104576361522020024248.html

Most sensible comment from this gentleman and another follow up

• Ted Nicholas wrote:

Sure, housing will improve in the long run. But, as economist John Maynard Keynes said, "In the long run, we are all dead."

In the short run in which we all live every day, I consider the following when wondering if buying makes sense:

1. Mortgage recasts will not be complete on many of the adjustable and more screwy loans until about the end of 2012. Foreclosure sales are likely to continue to affect prices until at least then.
2. Do you have a down payment of at least 10% (preferably 20% to avoid PMI) and safe income to support a ratio of home price/gross income of 3 (not more than 4 with no other fixed monthly payments) and plan on living in the house for at least 3-4 years?
3. How many of the homes in your area and price range are being bought with all cash? This usually commands a discount and will affect comps.
4. Homes have appreciated generally in line with inflation over decades. Since the market took off about 1999-2000, just add about 30% to what your house of interest would have sold for (or was worth) at that time for a guesstimate of reasonable current pricing. Looking at % declines from the peak in 2005-2006 is like bargaining down from the dealer sticker price on a new car.
5. A price/monthly rent ratio of 150 on a given house is a good place to start thinking about buying vs. renting.
6. Like politics, all real estate is local. There will occasionally be good buys available. Following home prices in your area for a while will be helpful in spotting one worth considering.

Follow up:

• Roxie Radke replied:

The only thing I'd modify is planning to stay in the home at least 7 years. Entry and exit costs are enormous on a house and easily dwarf most security deposits in the tightest of rental markets.

Other than that, this is one of the best sets of guidelines I've seen. :) Maybe the WSJ should post this instead.

peace!

Next bubble: Web 2.0 startups

Is Twitters valuation a sign of a bubble? Is there a bubble in web2.0 startups? A sampling of the 25 smartest angel investors(aka smart money!) Ron Conway makes some very interesting points on what to expect and some of the side-effects of google's rich which we are going to unfortunately see in the next round of createive destruction...not many will be left with their pants on...thats for sure!

Why you MUST never short based on valuation

A lesson from the master investor's trade book Whitney Tilson(St Joe and Netflix) - read more here : Whitney Tilson shareholder letter

As one poster Ananthan Thangavel(response to netflix short sellers) on gurufocus put it, 

"Quite simply, valuation shorts should NEVER be entered." 

Illegal immigration: indians from mexico into the US, hilarious!

As with all wave of immigrants in the past, this is unsurprising. But, the devices used is quite shocking and unsettling. This is a first in the book of any indian immigrant - claiming asylum in the name of religious persecution. Indians, in the past, used fake marriages, degrees, experience to enter the land of opportunities. This is a departure from the normal...for the worse.

Link to the story

India Elections : The Rich and Richer

Disclosed, the wealth of the aspiring MP(ministers of parliament) in India.

Wonder, what the low watermark and high watermark are for these upcoming elections. Atleast, from this article from the “masala time of india”, it is 122crores(~24.5million) to 600 crores(120million). I also wonder how this compares to US senators and congressman.

Soniaji may be at the bottom of the heap…if this article is any indicator.

~~~

BSP candidate Deepak Bhardwaj declares assets worth Rs 600cr

16 Apr 2009, 1529 hrs IST, TNN

NEW DELH: Deepak Bhardwaj of the Bahujan Samaj Party (BSP) on Thursday filed his nominations papers from the West Delhi constituency, declaring assets worth a whopping Rs 600 crore.

Bhardwaj is the richest candidate, so far, for the ongoing Lok Sabha elections surpassing the previous richest candidate who had declared assets worth Rs 514 crore.

Interestingly, the candidate who belongs to Mayawati's party came on a tractor that he uses on his farmland, to the Rampura election office in West Delhi to file his nomination.

The 58-year-old tycoon owns businesses in real estate, hotels and education. He runs a school in Dwarka and plans to open two more schools- one in Dwarka and the other in Dhansa, both in West Delhi.

Also Read

A resident of Lajwanti Garden in West Delhi, Bhardwaj also owns a township project called Deepganga in Hardwar and a hotel called Niteshpunj Hotel Complex on the Delhi-Gurgaon expressway.

Earlier this week, the previous richest LS candidate, a Mumbai-based businessman, filed his nomination as an Independent from Surendranagar. Khimji Patadia, 53, has declared assets worth Rs 514 crore, mainly in jewellery and real estate.

Besides Patadia, Bhardwaj beats candidates like the Congress’s L Rajagopal from Vijaywada (Rs 299 crore), the BSP’s Karan Singh Tanwar from South Delhi (Rs 150 crore) and the SP’s Abu Azmi from Mumbai NW (Rs 122 crore).

 

Courtesy: http://economictimes.indiatimes.com/News/PoliticsNation/BSP-candidate-Deepak-Bhardwaj-declares-assets-worth-Rs-600cr/articleshow/4409845.cms

 

Serious Reading

Must reads:

 

How the economy was Lost

http://www.vdare.com/roberts/090223_economy.htm

 

The Real Great Depression(WRONG 1929 RIGHT 1873)

http://chronicle.com/temp/reprint.php?id=477k3d8mh2wmtpc4b6h07p4hy9z83x18

 

Exclusive Derivatives for dummies

http://dandelionsalad.wordpress.com/2009/02/18/exclusive-derivatives-for-dummies-by-the-other-katherine-harris/

 

 

Other articles of interest:

http://www.marketwatch.com/news/story/evidence-mounts-recessions-worst-past/story.aspx?guid=%7B71467556%2D3683%2D4018%2D906C%2D7FFC8A3F9E8C%7D&dist=TNMostRead

http://www.foxnews.com/story/0,2933,498765,00.html

http://dandelionsalad.wordpress.com/2009/02/21/exclusive-why-should-i-pay-somebody-else%e2%80%99s-mortgage-by-the-other-katherine-harris/

http://www.wsws.org/articles/2009/feb2009/mort-f20.shtml

 

Sequoia Capital's : Doom and Gloom

Sequoia Capital's doom and gloom presentation on techcrunch.com

A little about Sequoia Capital

Useful proverbs for the great recession of 2009!

In times such as these, 2 useful proverbs!

 

1.  Japanese saying, Even Monkey’s fall out of trees

2.  The markets can stay irrational longer than you can stay solvent.

Honda CEO sent packing. While GM/Chrysler/Ford CEOs...

>>>

http://www.bloggingstocks.com/2009/02/23/honda-hmc-another-car-firm-ceo-waves-goodbye/

Smoke and mirrors corporate America, the dubious double standards and how the CEO's are the shareholders appointees and why I am a blathering idiot.

Check this paragraph from the article above,

It appears that the Japanese are ready to hold management accountable for poor results, even those not entirely under their control. Their boards may want to send the message that CEO job security is based on results, regardless of the origin of those results.

This may never happen, i repeat, never happen in the US auto industry or corporate America...which can be explained away as "this is how things are, will continue to be".

On first read, the actions by the Honda board seem excessive and also ill-thought. But, again, CEO's only job is to ensure "results" and be answerable to the board and the shareholders.

Good job Honda board. Good job Honda!