Click here for the PDF: The Weekly Beacon – February 9 2024
We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
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This weeks issue: Adam Neumann, WeWork, Chapter 11 bankruptcy, Oil seasonality, Oil fundamentals, China crisis’, India vs. China, Global population, Chinese birth rate, Meta Platforms stock, Meta performance, Meta earnings report, Ford earnings, Traditional versus Electric vehicles, Tesla stock, Tesla earnings, Tesla vs. Ford P/E ratio, Ark Investments performance, wealth destroying ETFs, Cathie Wood and the media.
The “dumbest” man in the room
Adam Neumann is a billionaire whose company went bankrupt; he was forced out of the company by major shareholders and the Board of Directors of WeWork. The Board believed he could not lead the company successfully and his vision would eventually fail the company. His vision was to essentially grow at all costs. Even though Neumann was forced out back in 2019, his fingerprints were all over WeWork’s bankruptcy which was filed late in 2023. Neuman founded WeWork in 2010.
We bring up Neumann and WeWork this week because it was reported by several sources that he is bidding on WeWork and trying to buy them back. Neumann is trying to buy WeWork out of Chapter 11 bankruptcy, with an assist from Dan Loeb’s Third Point. Since December 2023, Neumann and Loeb have expressed a sincere interest to buy WeWork and its leases out of bankruptcy or provide debtor-in-possession (DIP) financing. Neumann has followed WeWork’s struggles even when he was pushed out of the company, he reportedly offered the company $1 billion in late 2022 but was rebuffed by WeWork’s CEO at the time.
Dan Loeb founded Third Point, a value-oriented hedge fund. He is a billionaire whose hedge fund has over $12 billion in assets under management.
