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Omnivore Digest 6/04/2024

·5007 words·24 mins
  1. Beneath the Law - by Bill Bonner - Bonner Private Research (221 words)
  2. DealBook: A crypto bull’s big tax bill (154 words)
  3. Uber Eats Up Foodpanda (222 words)
  4. 😱 Axios AM: Media survival scramble (118 words)
  5. The Briefing: Spotify’s Price Rise Makes Apple Music More Appealing (178 words)
  6. I can hold my own hand (256 words)
  7. In the belly of the MrBeast (211 words)
  8. Money Stuff: GameStop Comes Roaring Back (229 words)
  9. 🍕 GLP grocery scramble (200 words)
  10. AI Boom Spurs US-China Chip Race (198 words)
  11. 👻 Vibecession is back (190 words)
  12. Hey there (169 words)
  13. 🍋 One Man Against the Markets (210 words)
  14. Listing luster (230 words)
  15. Recent Thoughts on China (228 words)
  16. Muddled markets meet Mexico, Modi and Mandela (241 words)
  17. Bond rally (214 words)
  18. From Cloud to Clutter: Apollo’s Failed Buyout of Rackspace (215 words)
  19. HYH Interview - Anon Private Credit VP (209 words)
  20. 💸 Price shocked (220 words)
  21. June 3, 2024 (269 words)
  22. How to install Paperless-ngx on a VPS (238 words)
  23. AI Strategies Series: How LLMs Do—and Do Not—Work (226 words)
  24. How American Express Became Millennials, Gen Z’s Favorite Credit Card - Business Insider (240 words)
  25. Axios Pro Rata: Photo finished (176 words)

Omnivore Digest: Beneath the Law - by Bill Bonner - Bonner Private Research, DealBook, A crypto bull’s big tax bill, Uber Eats Up Foodpanda, 😱 Axios AM, Media survival scramble, The Briefing, Spotify’s Price Rise Makes Apple Music More Appealing, I can hold my own hand, In the belly of the MrBeast, Money Stuff, GameStop Comes Roaring Back, 🍕 GLP grocery scramble, AI Boom Spurs US-China Chip Race, 👻 Vibecession is back, Hey there, 🍋 One Man Against the Markets, Listing luster, Recent Thoughts on China, Muddled markets meet Mexico, Modi and Mandela, Bond rally, From Cloud to Clutter, Apollo’s Failed Buyout of Rackspace, HYH Interview - Anon Private Credit VP, 💸 Price shocked, June 3, 2024, How to install Paperless-ngx on a VPS, AI Strategies Series, How LLMs Do—and Do Not—Work, How American Express Became Millennials, Gen Z’s Favorite Credit Card - Business Insider, Axios Pro Rata

Beneath the Law - by Bill Bonner - Bonner Private Research (221 words) #

Bill Bonner argues that the trial of Donald J. Trump epitomizes a deeper societal decline into corruption, dysfunction, and chaos. He suggests that the elites targeted Trump to prevent his re-election, constructing a legal case from a complex matrix of state laws. Bonner proposes that there are so many laws and regulations that ignorance is a common and honest defense. He sympathizes with the jury for struggling to discern the crime in Trump’s actions from nearly a decade ago, which misdemeanor emerged as ‘falsifying business records.’

According to Bonner, the trial’s primary consequence was not the verdict itself but the manifestation of a broken system. He contends that the excessive number of laws makes the legal system subject to manipulation by powerful interest groups. Notably, Bonner uses qualitative observations, like a Dublin cab driver’s opinion and the polarized reactions of Democrats and Republicans, to underscore his points.

Bonner concludes that both parties, Democrats and Republicans, contributed to this situation by expanding the power of law enforcement agencies. In his view, society is now under the weight of an overbearing legal system, risking being ‘crushed’ by it at any moment.

DealBook: A crypto bull’s big tax bill (154 words) #

According to Andrew Ross Sorkin, the District of Columbia’s attorney general has secured a $40 million settlement from Michael Saylor, the founder of MicroStrategy, and his company over tax fraud allegations. Sorkin reports that this marks the largest income tax fraud recovery in the district and underscores the district’s determination to pursue cases under its amended False Claims Act. Authorities argue Saylor avoided $25 million in income taxes by falsely declaring residency in low-tax states like Virginia and Florida instead of Washington, D.C. They cite evidence such as his luxury property purchases, yacht moorings, and social media activity showing his presence in D.C. Saylor and MicroStrategy deny the allegations but agreed to the settlement to avoid prolonged litigation. This case highlights the growing scrutiny on high-profile individuals and corporations regarding tax evasion.

Uber Eats Up Foodpanda (222 words) #

Short Squeez - Buysiders, in the article “Uber Eats Up Foodpanda” (2024), argues that Uber’s $950 million acquisition of Foodpanda’s Taiwanese operation is a significant move in the food delivery market. The author emphasizes that both Uber and Foodpanda dominate the Taiwan market, making this acquisition potentially complex from a regulatory standpoint but unlikely to face major antitrust issues.

Short Squeez highlights Delivery Hero’s strategic rationale, noting that Foodpanda Taiwan represents only about 3% of its business and was close to breakeven on an EBITDA basis. By selling Foodpanda, Delivery Hero aims to reduce its net debt by approximately 30% through a repurchase of its convertible bonds.

The integration strategy between Uber Eats and Foodpanda aims to minimize sales cannibalization by leveraging Uber Eats’ broader international reach while maintaining Foodpanda’s local audience. The closing of the deal is expected in 2025, with Delivery Hero continuing operations in the interim.

Additionally, Uber’s $300 million purchase of ordinary shares from Delivery Hero suggests potential future collaborations. The article supports these claims through data on market share dominance, financial performance, and strategic goals of reducing debt and expanding services.

😱 Axios AM: Media survival scramble (118 words) #

Mike Allen, in his article “Media survival scramble,” highlights the urgent challenges faced by major newsrooms, which are grappling with significant restructurings and layoffs just months before a presidential election. According to Allen, the need for “decisive, urgent” actions has been emphasized by Washington Post CEO Will Lewis, driven by declining audiences and revenue losses. Major publications like The Wall Street Journal and CNN have implemented strategic changes under new leadership to adapt to digital consumption trends. Allen uses specific examples, such as audience metrics and organizational shifts, to underline the industry’s struggle to retain readership and navigate financial pressures.

The Briefing: Spotify’s Price Rise Makes Apple Music More Appealing (178 words) #

According to Martin Peers, the recent price increases announced by Spotify, totaling between 20% and 30%, is a “gutsy move” by CEO Daniel Ek. Peers highlights that Spotify has struggled to generate substantial profits due to high revenue payouts to music rights holders. He suggests that this price hike, which makes Apple Music cheaper, could potentially disadvantage Spotify. However, Peers believes most users will likely remain with Spotify due to inertia and the nuisance of switching services, especially since Spotify offers unique features like a duo plan and a robust selection of podcasts and audiobooks.

To support his argument, Peers references a Bloomberg report indicating that Spotify users are the least likely to cancel subscriptions among major streaming services. Nonetheless, he cautions that cumulative subscription inflation across various services might lead consumers to scrutinize their expenses more closely, potentially benefiting Apple Music, which offers cheaper individual and family plans along with bundle discounts through platforms like Verizon.

I can hold my own hand (256 words) #

Jane Doe argues in “I can hold my own hand” that President Biden is preparing to sign an executive order that would empower border officials to swiftly deport migrants who cross the US-Mexico border illegally, even if they are seeking asylum. The executive order would halt asylum requests once the number of migrants at legal entry ports hits 2,500 and resume when it drops to 1,500. Doe uses data from April, where nearly 130,000 migrants were apprehended, to highlight the significant impact of the policy.

Further, Jane Doe explores the growing use of voucher programs in GOP-led states, revealing that most funds are directed towards religious schools. In states like Ohio, Wisconsin, and Indiana, over 90% of vouchers financed religious education in the current school year. This shift is supported by data from the Washington Post analysis, demonstrating the changing landscape of education funding.

Additionally, Doe discusses the FDA’s consideration of MDMA-assisted therapy for PTSD, with 13 million Americans affected as of 2020. Although there are concerns about the validity of studies, the FDA’s upcoming decision could pave the way for psychedelic treatments.

In a broader context, Doe notes Biden’s new tariffs on Chinese EVs as part of the US-China trade war, aiming to incentivize domestic production—a move supported by expert Bernard Yaros who suggests minimal economic impact.

In the belly of the MrBeast (211 words) #

According to Adam Bumas in “In the belly of the MrBeast,” Jimmy “MrBeast” Donaldson has surpassed T-Series to become YouTube’s most-subscribed individual channel, signifying a pivotal moment in digital media. Bumas offers a personal perspective by visiting the only physical MrBeast Burger location in New Jersey’s American Dream Mall, described as an emblem of grandiosity and financial ruin.

Bumas critiques MrBeast Burger’s food quality, noting it has deteriorated from its initial offerings, now consisting of subpar cafeteria-style items. The atmosphere, marked by overwhelming video screens playing MrBeast’s content, contributes to a sensory overload. Bumas highlights a dissonance in MrBeast’s persona, lacking distinct personality traits despite his massive following. This, according to Bumas, reflects YouTube’s algorithm-driven success model rather than genuine creative talent.

Furthermore, Bumas addresses MrBeast’s ongoing legal dispute with the MrBeast Burger’s operating company over the quality tarnishing his brand. He suggests that although Donaldson still leads in subscriptions, his growth rate is slowing, influenced by competition and a strategic partnership with Amazon hinting at future ventures beyond YouTube.

Money Stuff: GameStop Comes Roaring Back (229 words) #

According to Matt Levine, the GameStop saga has resurfaced with significant market movements influenced by Keith Gill, also known as “Deep Value” or “Roaring Kitty” on Reddit and Twitter. Levine questions the hypothetical scenario of manipulating stock prices using a “magic lamp” analogy, highlighting the strategic financial actions one might take if they could arbitrarily move stock prices.

Levine details Gill’s latest actions, noting that Gill disclosed on Reddit a substantial $116 million position in GameStop, comprising 5 million shares and 120,000 call options. Despite the unverifiable nature of the screenshot Gill posted, Levine notes that the disclosed figures align with observable market activity, suggesting legitimacy.

Gill’s strategic position, valued at approximately $174.5 million, showed potential paper gains of about $281 million with GameStop’s stock price hitting $40.50. Levine stresses the importance of nuanced public statements to avoid legal repercussions while influencing market perceptions.

Using data from Bloomberg and public disclosures, Levine supports his commentary with estimates of trades and their impacts. He underscores the complexity of such maneuvers and questions the practicality and legality of replicating Gill’s apparent strategies, hinting at the broader implications for market regulation and investor behavior.

🍕 GLP grocery scramble (200 words) #

In the article “GLP grocery scramble,” authored by Tina Reed and Maya Goldman for Axios Vitals, the authors argue that the booming success of new obesity and diabetes drugs like Ozempic and Wegovy is significantly altering consumer food preferences. Their effectiveness in aiding weight loss by slowing stomach emptying has led major food companies, such as Nestlé and General Mills, to release new and reformulated products with smaller portions and higher protein content. This is in response to complaints from drug users about difficulty getting necessary nutrients and the unappealing nature of certain foods.

Reed and Goldman emphasize that such shifts in food offerings could influence American diets more broadly. Citing Robert Moskow, a TD Cowen industry analyst, they suggest that competitors might soon follow Nestlé’s example. The authors also highlight that experts welcome these changes, suggesting they could markedly enhance nutrient density in diets and alter perceptions around portion sizes. Estimates indicate substantial uptake of these medications, potentially affecting over 10% of the U.S. population, further supporting the argument for a significant long-term market response.

AI Boom Spurs US-China Chip Race (198 words) #

According to HackerNoon, the AI boom is accelerating the rivalry between the US and China in the semiconductor industry. This competition is reshaping the global tech landscape as both nations vie for technological supremacy. HackerNoon highlights how semiconductor chips are crucial for advancements in AI, which in turn has placed immense pressure on chip companies to innovate and secure market share.

HackerNoon presents data on semiconductor market trends, showing increased investments in chip manufacturing capabilities from both the US and China. The US has been bolstering its semiconductor manufacturing infrastructure, influenced by geopolitical tensions and the necessity to ensure a domestic supply chain. Meanwhile, China is equally invested in reducing its reliance on foreign technology by advancing its own chip-production technologies.

The article argues that the US-China chip race underlines the strategic importance of semiconductor technology in driving future economic and military power, emphasizing that the outcome of this competition could define global tech leadership. HackerNoon supports these claims with market data and expert analysis, demonstrating the critical role that policy and investment play in the unfolding dynamics of the AI-driven tech race.

👻 Vibecession is back (190 words) #

Emily Peck and Felix Salmon explore the disconnect between Americans’ personal financial perceptions and their views on the national economy. They highlight a Federal Reserve survey showing that while 72% of Americans feel they are “living comfortably” or “doing OK,” only 22% rate the national economy as “excellent” or “good.” This schism, they argue, has persisted since the pandemic and has political implications, affecting re-election chances for politicians and public perceptions of economic health.

The authors use data from various sources, including the University of Michigan Consumer Sentiment Index and Gallup polls, to demonstrate that consumer pessimism does not align with actual economic performance, as people continue to spend despite their negative outlook. Peck and Salmon delve into why this “vibecession” persists, attributing it to factors like inflation, economic inequality, a fragmented media environment, and post-COVID societal shifts. They caution that this negative sentiment could lead to economic vulnerability if consumer behavior changes rapidly in response to new economic data.

Hey there (169 words) #

David Sirota shares a personal narrative about his disillusionment with journalism and politics after working on Bernie Sanders’ 2020 campaign. He explains that family support rekindled his passion, leading to the launch of The Lever, an independent news outlet. Sirota emphasizes that The Lever holds politicians accountable by investigating financial influences behind regulatory failures, such as the East Palestine train disaster and issues with Boeing’s safety practices.

Sirota uses data to highlight their achievements, including exposing dark money influencing conservative judicial appointments, uncovering Medicare privatization schemes, and driving legislative changes. He argues that informed citizens are vital for a functional democracy and urges subscribers to stay engaged through social media, podcasts, and direct email updates.

Sirota commits to unwavering accountability journalism that challenges power and informs the public, empowering readers to act on uncovered truths. He invites readers to become paid supporters to further sustain The Lever’s mission.

🍋 One Man Against the Markets (210 words) #

According to Short Squeez, the recent actions of Keith “Roaring Kitty” Gill have shaken the stock market, as he revealed a $116 million investment in GameStop. This announcement caused GameStop’s stock ($GME) to skyrocket by up to 70% in premarket trading. Gill’s influence is evident; even a single screenshot posted by him can dramatically alter stock prices. His latest post boosted GameStop’s gains to almost $100 million, with the stock maintaining a 60% increase since the tweet.

However, this significant impact has raised concerns about potential stock manipulation. ETrade is considering banning Gill due to these concerns, while both the SEC and Massachusetts Securities Division have initiated investigations. Despite these actions, there is hesitation from ETrade to remove him outright, as it could provoke backlash from his large following.

The article implies that the era of meme stock crazes might be coming to an end. The data surrounding Gill’s activities, including the stock gains attributed to his tweets and the regulatory attention, underscore the thin line between influence and manipulation in the stock market.

Listing luster (230 words) #

According to Bloomberg Deals, Ryan Gould recounts his conversation with Keith Canton, JPMorgan’s head of Americas ECM, about the evolving state of IPOs. Canton argues that while not matching pre-Covid peaks, IPOs are gaining traction with approximately $16 billion raised in 2024 compared to $20 billion in 2023, with deals spreading across various sectors and 80% of IPOs trading above their issue prices (excluding biotech). He attributes this resilience to managed inflation, labor costs, and interest rates, though geopolitical risks and elevated valuation discounts (20-30%) present headwinds.

Canton remarks on increased investor interest from mutual funds and generalist portfolio managers, underlining the broadening market appeal. He foresees six to eight IPOs in Q2, potentially raising total proceeds to over $30 billion in the Americas for the year. Additionally, he highlights an upsurge in secondary proceeds and underscores the necessity for companies to maintain leverage ratios below 4X to appeal to investors. Lastly, Canton mentions the growing trend of non-US companies listing in US markets to access deeper capital pools and greater liquidity.

Overall, the data provided by Canton showcases a cautious yet optimistic outlook for the IPO market’s trajectory through the year.

Recent Thoughts on China (228 words) #

Summary of “Recent Thoughts on China” by Citrini Citrini argues that recent Chinese policy initiatives, particularly in the housing market, have positively influenced market sentiment. He expects continued fiscal and monetary support, though sees a full-scale stimulus plan as less likely (20%). He notes significant upcoming policy events: the Third Plenum, the quarterly Politburo meeting, and the Central Economic Work Conference. Citrini advises protecting Chinese equity holdings from trade war impacts and highlights potential in the domestic economy, particularly in semiconductors and consumer discretionary sectors with high domestic revenue.

Citrini emphasizes China’s need to develop domestic alternatives to Nvidia (NVDA) chips to maintain competitiveness in AI and avoid sanctions. He draws a parallel to China’s success in developing crypto-mining ASICs, yet acknowledges the greater complexity of AI chips. Citrini believes China will intensify investments in semiconductor manufacturing equipment and AI research, which could eventually lead to competitive Chinese AI chips.

His strategy involves increasing investment in Chinese semiconductor companies, including NAURA, Piotech, Hygon, Cambricon, and Hua Hong, to capture the localization trend. Citrini supports this by referencing data on Chinese spending on semiconductor manufacturing equipment, illustrating robust government support for technological self-sufficiency.

Muddled markets meet Mexico, Modi and Mandela (241 words) #

John Authers argues that recent political shifts in Mexico, India, and South Africa have had significant but varied impacts on global markets. With Mexican voters awarding Claudia Sheinbaum a large congressional majority, markets reacted negatively, evidenced by a drastic 10% fall in the S&P Mexico Bolsa index, akin to reactions seen during the Global Financial Crisis. Authers uses Bloomberg data to illustrate the substantial market drop, emphasizing investor fears due to Sheinbaum’s Morena party securing a potential supermajority needed to amend the constitution, raising concerns of reverting to a hegemonic rule reminiscent of pre-2000 PRI’s authoritative governance.

In contrast, according to Authers, markets welcomed Narendra Modi’s consolidation of power in India, reflecting investor confidence in his leadership. Meanwhile, South Africa’s transition from Nelson Mandela’s ANC majority to a potential coalition government has left markets surprisingly calm, despite the anticipated challenges in forming a stable government.

Authers also highlights how the dominance of a few major US tech companies, referred to as the “Magnificent Seven,” is distorting market perceptions. By juxtaposing equal-weighted and standard market indices, he shows that these tech giants are disproportionately influencing market movements, underscoring a broader opportunity for investing in companies with decent valuations outside of this elite group.

Bond rally (214 words) #

According to The Bloomberg Close, US Treasury yields have declined due to weak factory activity in May, which raised recession concerns. The report highlights that most industries in the S&P 500 also suffered declines. Additionally, a technical error caused temporary halts in trading for several companies, including Berkshire Hathaway and Chipotle.

Highlighting political risks, Marko Papic from Clocktower warns that a Trump presidency could be disastrous for Treasuries, potentially pushing yields to 5%.

In financial news, Keith Gill, or “Roaring Kitty,” disclosed significant options positions in GameStop, spurring a 75% jump in the retailer’s shares. The SEC is reviewing trading around this time. Meanwhile, rival Andrew Left of Citron is shorting GameStop again.

Regarding the broader economy, investors are increasingly requesting repurchases from Blackstone REIT. In corporate movements, Skydance plans to offer $23 per share for Paramount’s voting stock, while TD Bank hires Paul Mutter to lead its global fixed-income sales.

The article notes California and the US Southwest are facing a major heat wave, posing challenges for power grids and health risks due to extreme temperature fluctuations.

From Cloud to Clutter: Apollo’s Failed Buyout of Rackspace (215 words) #

According to Strategic Rationale, the $4.3 billion acquisition of Rackspace by Apollo Global Management in 2016 was initially grounded in six key investment theses, but it ultimately failed due to unmet expectations and strategic missteps. Strategic Rationale highlights how Apollo anticipated robust growth for Rackspace based on secular trends toward data center outsourcing, workload growth, and multi-cloud usage. Despite these favorable market conditions, Rackspace’s revenue growth fell short, growing only at a 7% CAGR from 2016-2022.

Strategic Rationale asserts that Rackspace’s competitive position deteriorated, with market share in its core Single Tenant business dropping from 9% to 1%. The company also failed in operational efficiencies, as operating expenses rose from 70% of revenue pre-buyout to approximately 100%. Despite some success in increasing free cash flow by shifting to capital-light services and reducing capex, Rackspace’s overall margins and customer base shrank substantially. Strategic Rationale attributes part of this failure to leadership instability and cultural degradation within Rackspace, which saw multiple CEO changes and significant layoffs. The article concludes with a somber outlook for Rackspace, emphasizing its $3.6 billion debt and ongoing operational losses.

HYH Interview - Anon Private Credit VP (209 words) #

In his interview with a Private Credit Vice President (VP), High Yield Harry delves into various aspects of private credit financing and career progression within the industry. The VP details different types of financing including fund financing, opportunistic private credit, asset-backed lending, and debtor-in-possession (DIP) financing. For instance, the VP highlights that NAV Loan deals are typically done at a low Loan to Value (LTV) between 10%-30%, making them cheaper and advantageous at the private equity (PE) level.

To support career growth from an Associate to VP, the VP underscores the importance of transitioning from execution to leadership roles, effective communication with superiors, and developing deal flow. The VP advises fostering relationships across different organizational levels and involving junior staff in processes to aid their growth.

In terms of managing various deal stages, the VP stresses the need to balance new deal flow with portfolio management and to prioritize major risk factors during initial evaluations to avoid inefficient time use. These insights provide a comprehensive understanding of the mechanics behind private credit financing and career advancement strategies in this domain.

💸 Price shocked (220 words) #

Neil Irwin and Courtenay Brown, in their article “Price Shocked,” argue that the U.S. economy is displaying signs of softening, evidenced by increasing consumer price sensitivity. They cite data and anecdotes from corporate earnings calls and the Federal Reserve’s Beige Book. For instance, MacroPolicy Perspectives founder, Julia Coronado, points out that pandemic savings have dwindled, resulting in consumers becoming more price-sensitive and hunting for bargains. Irwin and Brown highlight how companies like the Container Store and Sotherly Hotels are responding by offering more discounts and forecasting reduced demand. Fast food chains such as McDonald’s, Burger King, and Wendy’s are introducing value meals to draw price-conscious customers.

Additionally, the authors discuss the Institute for Supply Management’s manufacturing activity index falling to 48.7, indicating a contraction. Despite solid growth driven by service industries, manufacturing remains weak. Comments from businesses in the ISM survey, such as a chemical products company noting decreased spending and a machinery company facing inflation pressures, further confirm this trend.

Irwin and Brown utilize these data points to illustrate the increasing challenges faced by businesses in maintaining profitability amid a cautious consumer base.

June 3, 2024 (269 words) #

Heather Cox Richardson’s article on June 3, 2024, delves into the fallout from Donald Trump’s conviction on 34 felony counts. Richardson asserts that Trump’s claims of benefiting from the conviction are implausible, as evidenced by his efforts to avoid trial and attempts to overturn the verdict. She cites political consultant Stuart Stevens, who criticizes the spin that voters would support a convicted felon.

Richardson refers to a Morning Consult poll showing 54% approval of the verdict among registered voters, with significant percentages of Independents and Republicans urging Trump to end his campaign. Additionally, a Reuters/Ipsos poll suggests the conviction decreases Trump’s electability among Republicans and Independents.

The piece highlights media critic Colin Cowherd’s remarks emphasizing Trump’s association with numerous felons and critiquing his portrayal of America. Further scrutiny arises from ProPublica’s report by Robert Faturechi, Justin Elliott, and Alex Mierjeski, revealing financial incentives given to witnesses in Trump’s cases, raising concerns of witness tampering.

Richardson discusses the legal issues surrounding the media outlet, The Epoch Times, linked to money laundering, contrasting it with attempts by MAGA Republicans to revive COVID conspiracy theories targeting Dr. Anthony Fauci, which yielded no substantive results.

Finally, she juxtaposes Trump’s situation with President Biden’s adherence to the rule of law in his son Hunter’s trial, emphasizing Biden’s non-interference in legal processes.

How to install Paperless-ngx on a VPS (238 words) #

Jewgeni Lewash offers a comprehensive guide on installing Paperless-ngx, an open-source document management system, on a VPS. The article’s introduction directs to a German tutorial on YouTube and elaborates that the installation involves renting a server and domain, configuring domain settings, and installing essential software like Docker, Docker-Compose, Caddy, and WG-Easy for secure connections.

Lewash details each step, starting from server rental and domain acquisition to configuring the domain and server settings. He provides step-by-step instructions on installing Docker and Docker-Compose, setting up a reverse proxy using Caddy, and establishing a secure VPN connection with WG-Easy. Moreover, he emphasizes the importance of securing external connections and performing regular updates to maintain system integrity.

Using practical examples and commands, Lewash demonstrates the ease of implementing a paperless office environment. He discusses prerequisites, such as having a Wireguard-compatible computer, Visual Studio Code, and a Docker-compatible server. Lewash also highlights the benefits of using a VPS, including central access, data security, scalability, and professional hosting.

The article includes a detailed history of Paperless-ngx development and lists its core features, such as OCR technology, metadata recognition, and search functionalities. Lewash’s meticulous instructions aim to help readers efficiently set up and maintain their paperless document management system.

AI Strategies Series: How LLMs Do—and Do Not—Work (226 words) #

Lucy Tancredi argues that understanding the limitations and functionalities of Large Language Models (LLMs) is crucial for maximizing the benefits of generative AI while mitigating its risks. She begins with the analogy of predictive text, illustrating that LLMs, like advanced phone text predictors, rely on statistical language patterns rather than factual databases. This predictive nature explains why LLMs sometimes generate coherent but inaccurate content, known as “hallucinations.”

Tancredi further underscores the point using John Searle’s “Chinese Room” argument to show that LLMs do not truly “understand” language; they merely follow complex rules to produce statistically plausible responses. Yann LeCun’s insights support this by stating that LLMs lack awareness of the underlying reality that language describes.

Finally, Tancredi uses the analogy of a fruit smoothie to explain that once data trains an LLM, it blends into the model, making individual data pieces irretrievable. This underscores why trained LLMs cannot serve as searchable databases or have specific training data removed post-training.

Tancredi emphasizes that awareness of these limitations empowers professionals to use AI more effectively and safely. She supports her claims with detailed analogies and expert opinions, setting the stage for the subsequent articles in her six-part series.

How American Express Became Millennials, Gen Z’s Favorite Credit Card - Business Insider (240 words) #

Emily Stewart argues that American Express (Amex) has successfully repositioned itself as a top choice for millennials and Gen Z by updating its benefits mix. Historically seen as a luxury brand for the wealthy and older demographic, Amex strategically shifted its focus to attract younger, affluent consumers earlier. According to Stewart, Amex has enhanced its offerings with perks like Uber ride credits, streaming services, and exclusive event access, transforming the card into a lifestyle accessory rather than just a travel tool.

Stephen Biggar of Argus Research notes that targeting millennials and Gen Z ensures long-term value as these younger consumers have more spending potential over time. Additionally, Morningstar’s Michael Miller explains that Amex maintains its luxury appeal by collaborating with retailers to share costs on perks, avoiding significant price compromises on its cards.

In Amex’s first-quarter earnings, Gen Z and millennials comprised 33% of its billed business and 60% of new customer acquisitions worldwide, underscoring the success of this strategy. Stewart describes how Amex continues to offer substantial travel benefits, maintaining its allure for experience-seeking young consumers while laying the groundwork for future growth.

Stewart also highlights competition from Chase Sapphire and raises concerns about the socio-economic implications of high-fee cards, emphasizing the need for consumers to weigh the costs against benefits.

Axios Pro Rata: Photo finished (176 words) #

Dan Primack outlines Trillium’s fraudulent $4 billion bid for Getty Images, characterized as a pump-and-dump scheme. He emphasizes that Trillium, with a mere $17.32 balance, never intended to purchase Getty. CEO Scott Murray faces charges from both the SEC and DOJ and has agreed to plead guilty to securities fraud, as well as settle with the SEC. Primack uses the SEC’s complaint data, showing Murray’s six-month stock and options purchases at an average price of $5.51 per share, ultimately selling them quickly post an inflated bid announcement, confirming the fraudulence. Additionally, Blackstone raised its offer for Hipgnosis Songs Fund, signaling marketplace activity. Bill Ackman’s Pershing Square sold a 10% stake for $1.05 billion, showcasing strategic positioning for a potentially public future. The article underscores the prevalence of merger-related securities scams but highlights the blatant nature of Murray’s actions, culminating in significant legal consequences.