Cannabusiness

Cannabis sativa — the name of the plant species that includes marijuana and industrial hemp — seems to have gone mainstream in modern America.

When I was walking through LaGuardia Airport last week for my flight back to Columbus, I passed a shop that featured the above advertisement for cannabis sativa seed oil, as an “herbal fix for problem skin” with “100% naturally derived ingredients.”  And Kish and I have been to parties where people our age have knowledgeably and seriously discussed the claimed health benefits of cannabis-infused oils and creams for conditions like sore shoulders and aching backs.  For years, people who have pushed for legalization have claimed that the plant could produce many different types of useful products — and now it seems those claims are being realized.

If cannabis products are being accepted by the masses for skin care and health care purposes, it’s a pretty good indicator that cannabis has become big business.  In America, there aren’t many product areas that are bigger than skin care and health care.

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Cash Culture

If you take flights on certain airlines, you have heard the announcements that they only accept credit cards if you want to buy a snack box or adult beverage. I always wonder how that can be — aren’t greenbacks legal tender that must be accepted everywhere? How can you deny someone who wants to pay with cash?

So I’ve been happy to go to a few places recently — like this taqueria in Detroit’s Mexicantown neighborhood — that not only accept paper money, they require that you pay with it. But why do they apologize for that policy? The retailer doesn’t have to pay credit card fees, and the purchaser doesn’t have to sign little slips and worry about whether their card data will be hacked. There’s a pleasing, old-school anonymity to paying with folding money that has new-age privacy benefits, too.

In some places, cash is still king. No apologies necessary!

The Peak Productivity Period

When, during the standard work day, work week, and work year, are employees at their most productive?  One company took a look at the issue and tried to come to some conclusions based on quantifiable data.

59d679b82b6f9ad9b10ee36a24b6e1e8The study looked at Redbooth, a project management software company, and examined an anonymized data set of 1.8 million projects and 28 million discrete tasks.  It concluded that the peak productive time on any given day is 11 a.m., the most productive day is Monday, and the most productive month is October.  At the other end of the spectrum, workers completed the least tasks after 4 p.m., the least productive day is Friday, and the lowest percentage of tasks were completed in January.

You can’t draw really meaningful conclusions from one study of one company in one industry, of course, and it would be interesting to know how those 28 million separate “tasks” were defined.  (Is logging on to your computer a “task”?  How about submitting your time records to your boss, or sending a quick status update email versus a full-blown report?)  Nevertheless, the study seems to confirm what should be obvious — productivity ebbs and flows during the work day, work week, and work year.

I’m also convinced based on my own work history that productivity is uniquely individualized, and varies a lot based on the circadian rhythms, personality types, and social mores of individual workers and individual workplaces.  I feel like I am at my most productive first thing in the morning, when I can get in early and immediately knuckle down to work and there are fewer phone calls and work flow interruptions and distractions; I’m not a big late-night worker except in emergencies.  Other people get to the office later, like to do some visiting to start their day, and seem to pick up steam as the day goes on and the night hours arrive.  Averages tend to smooth out the real, material differences between people’s work habits and practices.

The one conclusion from the study that most surprised me was the productivity variance between seasons and months.  I would have bet that winter was the most productive month — in the Midwest, at least.  When your alternative is raw, cold weather, a bustling day at the office looks pretty good by comparison.

Investing In Space

Let’s say your modest portfolio in the stock market has had a good run over the past year or so, and you’re looking for a new investment opportunity.  Let’s posit, further, that you think Bitcoin is a curious bubble that’s going to burst someday, and that you’d rather put your money into a company that produces something more tangible and more futuristic.

Well, what about space?

fh-onpadSpaceX is racking up a number of impressive accomplishments.  Last month SpaceX successfully tested its Falcon Heavy Rocket, and it is moving forward on launching what it calls the most powerful operational rocket in the world.  The Falcon Heavy launch is set for next week, on February 6, from the Kennedy Space Center in Florida.  The successful launch of the Falcon Heavy would join other stellar (pun intended) SpaceX accomplishments, like being the first company to launch a rocket with payload into space and then land the rocket back on Earth, and being the first company to relaunch an already used rocket.  SpaceX also built the first private spacecraft to dock with the international space station, and it’s shown it can reuse the spacecraft, too.  If you’re trying to make space a commercially viable enterprise, developing reusable rocket technology and reusable spacecraft technology, to hold down the cost, is a crucial first step — and SpaceX looks like the leader in taking that step.

But here’s the thing:  you can’t invest directly in SpaceX.  It’s a private company, and its founder Elon Musk has said he won’t take it public until the company has started to make flights to Mars.  Why?  Because Musk is afraid that if the company goes public before then, there’s a chance that the stockholders will pressure the board to focus on things other than colonizing Mars — which is Musk’s goal and is bound to be more expensive and difficult than, say, establishing Moon exploration bases or mining asteroids for precious metals.  It’s not an unreasonable fear on Musk’s part.  So if you want to own a piece of SpaceX, you can only do so indirectly, by investing in Alphabet, which owns a piece of SpaceX as well as parts of Google, YouTube, and other things.

Okay, so SpaceX isn’t currently available for the intrepid investor who wants to get into the space exploration game.  Are there other options?  It’s not easy to determine, because a lot of the companies that are touching upon space issues — like Boeing, for example — are better known for producing other objects.  But you can start to get a sense of what’s out there by looking for lists like this one, on potential investment opportunities involving space, or looking for articles about company announcements related to space activities and then figuring out whether they are publicly traded.

It’s not easy for the casual investor.  What we really need is for one of the stock exchanges to create a “space index,” just like there’s a Dow Jones “transportation index.”  The index would identify the space-related public companies, mutual funds would be established to invest in each of the space index companies, and those of us who’d like to put our money in the heavens could buy into the mutual funds.

Hey stockbrokers!  How about giving investors interested in space some help here?

Trump’s Business Approach

Here’s a surprise:  Congress is mired in disputes about the new legislation that is supposed to “repeal and replace” the Affordable Care Act (or at least claims to do something to deal with the ongoing problems with President Obama’s signature legislation).  There was supposed to be a vote on the legislation on the floor of the House of Representatives yesterday, but the tally got postponed over concerns that the legislation might fail.

President Trump has been involved in the wrangling, and last night he weighed in with what the Washington Post described as an “ultimatum.”  According to the Post, Trump told the Republicans in the House to either pass the legislation on Friday, or reject it, in which case Trump will move on to other items on his agenda.  Trump apparently will leave it up to the Republicans in the House to figure out whether they can agree or not.

the-interview-donald-trump-sits-down-with-business-insiderIt’s an interesting approach, and I suspect that it comes from Trump’s years of working in the business world.  Corporations typically don’t engage in open-ended negotiations, allowing events to marinate and slowly come together — which often seems to be how Congress works (if you believe that Congress works at all).  Instead, because there’s a time value to money and limits to corporate resources that can be expended on potential deals that don’t materialize, corporations set establish priorities, set deadlines, and push.  Once a deadline gets set, it becomes another means of applying pressure to the parties to reach an agreement, and if the deal doesn’t get done by the deadline, typically that takes the transaction off the table, the corporation moves on, and there is no going back.

Trump’s approach to this legislative test is, obviously, also informed by political considerations; he wants to set a deadline so members of Congress are actually forced to do something concrete, and we don’t have the lingering story of “what’s going to happen to Obamacare” attracting all of the media attention and detracting from the other things he’s trying to accomplish.  It’s a gamble, because if the legislation Trump is backing doesn’t pass, he could be painted as a failure in the early months of his Administration, making it less likely that he’ll be able to obtain passage of other parts of his agenda, like tax reform.  We already knew that Trump is a gambler, of course — his whole campaign was a bizarre, otherworldly gamble that paid off.  Now he’s bringing some of that high-stakes, business world approach to the legislative political realm.

We shouldn’t be surprised, by now, that Trump is going to continue to gamble and continue to do things in confounding ways.  Today we’ll get another lesson in whether his approach can actually work in Washington, D.C., even on a short term basis.

Mutt Morsels

IMG_1137Kish and I went to dinner in Grandview last night, and as we walked to the restaurant we passed one shop that had thoughtfully placed a water dish and a huge gumball machine filled with dog food by its front door.

Kasey wasn’t with us, but she would have appreciated the gesture.  And I have to say that, as a means of point of purchase advertising, a water dish and a dog food dispenser are pretty strong inducements.  Anybody who cares enough about our canine friends to provide such treats is probably a pleasure to deal with, and a decent sort besides.