A Scapegoat, an Outlier and a Disaster
Limited reading last week, but still happy that I came across some eye-opening stories. Here are some of those:
This week I am recommending a very long piece, which will take time to read and even more to reflect on. It’s about the Boeing 737 tragedy and is titled ‘What Really Brought Down the Max’. I believe it’s a must-read for two reasons. Firstly, it’s an absolutely fine piece of investigative journalism by William Langewiesche, who was once a pilot himself. And despite how anodyne journalism, especially critical commentaries, could become, Langewiesche sticks out his head and adds his opinion where he feels he need to. Thank goodness for that! Secondly, this story lays out piece by piece what happens when unchecked capitalism takes over, when parts of the system work but the whole system breaks down, and the desperation that follows to find scapegoats in the aftermath. At times, a few are squarely blamed where the blame should have been shared by many. Not discounting Boeing for the several errors that it made, Langewiesche however searches for the other root causes. He finds them in the boom that the airline industry experienced in the last few decades, resulting in demanding employers, and untrained staff. It is at the same time heart-breaking as it is a scary story, and I can’t recommend it enough. Sit undisturbed for an hour or so, preferably with a cup of tea or coffee, and read it in one go.
Porsche accounts for only 10% of the Volkswagen Group’s revenues, it contributes to almost 30% of its profits. This, after churning out only 250k cars annually in the VW’s output of roughly 11 million cars! Staggering numbers that indicate the strength of the Porsche brand, one that was once on the brink of bankruptcy. More importantly, VW has managed to do something right here by not letting Porsche’s approach become diluted by its own mass market appeal. This short piece captures the numbers.
WeWork is turning out to be a corporate drama. First the highly anticipated IPO, which I wrote about here. Then the call-off on the IPO, and now this piece on how Softbank is aiming to remove Neumann as the CEO. Let’s see how this story ends, but surprising takeaway for me was how Neumann could put some extraordinary conditions in the beginning – for instance, no women on the board, his shares carrying 20X voting rights than ordinary shares, and few others. Here is what Larry Ellison has said about the start-up: “WeWork rents a building from me, and breaks it up and then rents it. They say, ‘We’re a technology company, and we want a tech multiple.’ It’s bizarre.”
A quote that I came across last week:
Oh, it’s very simple. My secret had been I know what to ignore.
- Francis Crick (when asked what it takes to win a Nobel Prize)
