131–140 of 212 posts
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I am waiting to buy Herman Miller chairs for pennies on the dollar. Remember those days?
The number of auctions in the early 2000s was staggering! Furniture and art were the two cheapest items to buy...
I'll just go on the record to say that I think WeWork is the biggest deck of cards that is begging for a collapse. I've only been to a handful of locations, but they never seem busy and I'm not sure how they're making rent. Plus, not to mention, back in my day, when you did a startup and got funding from your rich uncle (not Uncle Rich), you grew your startup from your apartment, and when you outgrew that space, you…
I am waiting to buy Herman Miller chairs for pennies on the dollar. Remember those days?
By taking an old stodgy business (commercial real estate) and bringing it in conformance with modern expectations of design, ease of transactions, lease length, and vibe. The real estate owners couldn’t be bothered to do this because they make too much money by doing nothing to bother with doing something for an extra $47b (a rounding error on the value of global commercial real estate) The huge fundraising rounds ar…
So many of these unicorns seem so stupidly simple in hindsight. I'm in St Petersburg right now and the taxi outside the train station quoted an initial rate of EUR 50 to drive a grand total of 6km (after haggling, "just" EUR 30). I booked an Uber (operated under Yandex Taxi in Russia now) and the total price was just EUR 5 Take stodgy, often scammy, and downright consumer unfriendly industries, add transparency and a…
Take someone else’s money, spend it aggressively, pretend like you can fix things in the future, and viola - you have a unicorn.
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The number of auctions in the early 2000s was staggering! Furniture and art were the two cheapest items to buy...
Any idea how to find these auctions for when history repeats itself?
(I'm guessing here that Craigslist and Facebook will survive.)
The biggest revenue opportunity for WeWork is big corporations opening smaller office location in cities where just want to staff a small field office or operations office. Example, Uber opening an office in let's say Columbus. Now instead of Uber going on a real estate hunt, they can simply rent out space in WeWork Columbus which gives them flexibility to scale or shrink depending on business. It is essentially abst…
This probably true, and there's a company similar to WW in Montreal who did a presentation indicating that as well. The thing is: there's very little competitive advantage in that. Having 'cool decor' is less valuable to larger companies, and it's not as though other entities can't duplicate that if they want. Other, more established firms can inch their way into copying some of WW's mojo, and compete on price, which…
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WeWork, of all of the overvalued unicorns that exist today, will likely be hit the hardest during a recession. Just watch.
How do I protect my VTSAX investment if we work goes public and is included in the basket??
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This probably true, and there's a company similar to WW in Montreal who did a presentation indicating that as well. The thing is: there's very little competitive advantage in that. Having 'cool decor' is less valuable to larger companies, and it's not as though other entities can't duplicate that if they want. Other, more established firms can inch their way into copying some of WW's mojo, and compete on price, which…
I wouldn’t say cool decor isn’t valuable to larger companies. If you’re a stodgy, older firm you’re going to get some chunk of Millennials that will decide that your beige cubicle farm isn’t anywhere they want to work. Or you might be running investors through the office and they don’t know jack about tech but if you don’t have a bunch of kids in hoodies clustered around the kombucha dispenser then they might just pa…
Landlords will do it quickly and cheaply if it's part of a contract.
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WeWork, of all of the overvalued unicorns that exist today, will likely be hit the hardest during a recession. Just watch.
How do I protect my VTSAX investment if we work goes public and is included in the basket??
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Any idea how to find these auctions for when history repeats itself?
Craigslist, Facebook Marketplace, etc. (I'm guessing here that Craigslist and Facebook will survive.)
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I don’t understand why laypeople are so confused by how real estate investing works. I build an office building and spend $100M. I “hemorrhaged cash” yet I own an asset that’s going to throw off cash flow for years. It’s the same thing with WeWork on a smaller scale. They spend $5M to build our office space to own an asset that’s going to throw off cash flow for years. Albeit a much higher yield for a much shorter te…
The article says they don't own property.
Their asset is what’s known as a leasehold interest. Riskier and shorter duration than owning real estate, but still an asset making this cash hemorrhaging talk complete bosh.