⚖Mark Cuban... 2024?

Welcome to the Thursday Newsletter, where we cover top industry news stories to keep you in the know.

Good morning. Phew, we made it through another Thanksgiving full of “so when are you getting married?” and “what college are you going to?” or the dreaded political and vaccinations chatter. Only one more month until we do it all again 😀

All jokes aside, we had some real discussions in the office about when it’s appropriate to decorate for Christmas. Basically, you’re Buddy the Elf if you put the lights up before Thanksgiving, and the Grinch afterwards. What do you think?

_{-Bailey Hepler}

TRAVEL

Thanksgiving Travel Sets New Record

Phew, we made it through another wild travel day. November 26, 2023, was the busiest day ever for air travel in the US. Transportation Security Administration screened 2,894,304 individuals at airports nationwide, the busiest day ever for air travel in the US.

Less than 0.5% were cancelled. We don’t usually think of TSA as the smooth operators, but they proved us wrong this week. Out of the 51,332 flights scheduled during this period, less than half a percent were canceled.

Travel grew 10% from last year. American Airlines reported a record 6.5 million customers over the Thanksgiving holiday, and United Airlines carried 3.2 million passengers between November 17th and 23rd. This is a huge increase in travel volume, as 2023 figures were 10% higher than in 2022 and 25% higher than in 2019.

Aviation industry is set to boom… buy stock? This record-breaking air travel event signified a rebound from previous challenges and suggested a promising future for the aviation industry. The efficient handling of a large volume of passengers and flights during this peak period showcased the industry's preparedness and adaptability, hinting at potential for continued growth and innovation in air travel. What I’m saying is, there’s room in the portfolio.

BUSINESS

Mark Cuban's Strategic Exit: A Prelude to Politics, New Ventures, or a Leisurely Retirement?

Mark Cuban made two huge announcements this week:

1. He is leaving famed investment show, “Shark Tank”, after next season.

2. He’s selling a majority share of the Dallas Mavericks, reportedly valued at $3.5 billion.

The internet has since discussed whether Cuban is lining his battleships for politics, new business ventures, or to embark of a leisurely retirement. Here’s the breakdown.

Possibility #1 - Cuban's Political Prospects. Cuban's interest in politics is not a well-kept secret. In the past, he has expressed his views on various national issues and even flirted with the idea of running for higher office. His departure from "Shark Tank" and the potential sale of the Mavericks could free up time and resources for a political career. Cuban has previously shown interest in addressing issues like income inequality and healthcare, suggesting a platform that could resonate with many Americans. However, he has explicitly ruled out a third-party presidential run in 2024, leaving the door open for future political endeavors, possibly in Texas, where he has significant influence and recognition.

Possibility #2 -New Business Horizons. Apart from his political aspirations, Cuban's track record as a shrewd businessman cannot be ignored. His latest venture, the Mark Cuban Cost Plus Drug Company, aims to disrupt the pharmaceutical industry by offering prescription drugs at significantly lower prices. This move indicates Cuban's ongoing interest in tackling large-scale societal issues through innovative business solutions. His exit from "Shark Tank" and the Mavericks could be a strategic move to focus more on such impactful ventures, potentially revolutionizing other industries.

Possibility #3 -Embracing Retirement. On a more personal note, Cuban has expressed a desire to spend more time with his family, especially his teenage children. This sentiment could signal a shift towards a more relaxed lifestyle, stepping away from the constant demands of high-profile business and media engagements. Selling his stake in the Mavericks and leaving "Shark Tank" could be the first steps towards a quieter, more family-focused life.

INVESTMENTS

The life of Charlie Munger and the legacy he left behind

Charlie Munger, renowned and respected American investor and business partner of Warren Buffett at Berkshire Hathaway past away on Tuesday, November 28th at the age of 99.

Investment Career. Munger started as a real estate attorney, later focusing on investment management. In 1962, he founded Munger, Tolles & Olson LLP and the investment firm Wheeler, Munger, and Company. Despite some early setbacks, his investment partnership from 1962 to 1975 significantly outperformed the Dow Jones Industrial Average.

Wesco Financial Corporation. As chairman of Wesco Financial Corporation, Munger oversaw its transformation from a savings and loan association to a diversified conglomerate with significant holdings in companies like Coca-Cola and Wells Fargo. His strategy of concentrated investments in well-known stocks resulted in superior long-term returns.

Investment Philosophy. Day traders take note. Munger advocated a philosophy of ethical business practices and a focus on long-term investing. He believed in the importance of holding a concentrated portfolio and deeply understanding each investment.

Partnership with Warren Buffett. Munger's collaboration with Buffett at Berkshire Hathaway was a key element of his career, where his investment strategies greatly contributed to the conglomerate's success.

Legacy. At the time of his death, Munger's net worth was estimated at $2.6 billion. He left a lasting impact through his business acumen, investment philosophy, and philanthropic efforts, influencing generations of investors and contributing significantly to the fields of education and architecture