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Meet Microsoft's Jony Ive

Written By limadu on Selasa, 31 Maret 2015 | 21.30

Microsoft (MSFT, Tech30) has Panos Panay -- and he still has a lot to prove.

But there's no question: Microsoft's products keep getting better.

The latest example is Surface 3, the tablet/laptop hybrid.

In an exclusive interview with CNNMoney, Panay says his team has grown obsessed with the "third look." When you pick up a new gadget the first time, you might think it looks pretty. But when you look a little closer, you'll likely start to find some imperfections that you didn't initially see. By the third time you look at it -- if you even manage to get that far -- you're either sold or you'll move on.

For the Surface 3 to stand out, it has to make it past the third look, thinks Panay. It has to be "perfect."

surface 3 panos panay

So how much is Panay like Ive?

Both have the same passion for the manufacturing process, flawless design and fierce devotion to their teams.

Both Ive and Panay also have strong family ties. Ive has spoken extensively about the influence he received from his silversmith father. Panay likens the Surface tablets to his own children -- a fact that he acknowledges irks his son and three daughters. Just like he wants everyone to love his children as much as he does, Panay says he wants every customer to get the same satisfaction out of Surface.

To accomplish that feat, Panay spends three hours a day in Building 87, a prototyping laboratory on Microsoft's campus in Redmond, Washington.

There, Panay and his team of engineers and designers work on refining their Surface ideas.

The Surface team consists of 120-or-so people with expertise in 25 different disciplines, including radios, hinges, magnets, metallic rigidity, fabrics and fashion. There are tooling engineers, mechanical engineers and optical engineers. They create prototype after prototype until Panay and the team leaders are satisfied.

"If you don't get an emotional experience, it's not right," Panay said.

The toy-factory-like lab allows the Surface team to build prototypes quickly -- and throw them out if they detect even the slightest imperfection.

The lab has 3-D printers that can print as thinly as 1/10th the width of a human hair. There are class-four lasers that can hack to pieces anything on the planet. There's a paint room and a light lab that lets you detect whether there's a hint of a color you don't like under certain lighting conditions.

"When you're able to innovate every hour, you can put your hands on it and know every detail," Panay said. "You can know if people are going to love it. (Is it thin enough? Is it light enough?) That's how you get emotion into your products."

surface 3 logo

The Surface tablets are beautiful, and the new Surface 3 is the best-looking of them all. Its gorgeous, polished magnesium logo on the kickstand, super-bright and trendy-colored keyboard/covers, and pristine attention to detail are Apple-like (AAPL, Tech30).

"You don't leave anything on the table when you pick up this device," Panay said. "You have some pride in the craftsmanship. You feel proud to hold it. Hopefully some people say, 'I don't know why but it just looks beautiful.' And if that happens, we achieved what we wanted to achieve."

Related: 11 things you need to know about Microsoft's new Surface 3

Related: How the Surface lost $1 billion and lived to tell the tale

CNNMoney (REDMOND, Washington) March 31, 2015: 10:16 AM ET


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How the Surface lost $1 billion and lived to tell the tale

It didn't last long.

Microsoft's (MSFT, Tech30) CFO Amy Hood met Panay backstage on that summer day of 2013. She told Panay that Microsoft was about to announce a $900 million writedown because of a boatload of Surface tablets that didn't sell.

After years of hard work, Panay and his team had cost the company nearly $1 billion.

"When you look at that writedown and that moment, it was, of course, humbling," Panay quasi-chuckled, in an exclusive interview with CNNMoney. "But Microsoft has been so amazing and not once wavering on its commitment to making amazing products. Not once."

Surface has been left for dead more times than rock & roll, and Microsoft just keeps pumping out new versions. The latest, the Surface 3, is actually the sixth Surface tablet Microsoft has produced since 2012.

surface 3 billion dollar writedown

In today's unforgiving gadget landscape, it's a rarity for an epic failure like the Surface to get a second shot at success -- let alone a third, fourth or fifth.

That's possible because Panay is one seriously dedicated dude -- and Microsoft really does support him.

Last year, Microsoft CEO Satya Nadella ordered Microsoft's Building 87 transformed into a state-of-the-art hardware design laboratory, where Panay's team can create prototype after prototype for new gadgets and gizmos -- including the new Surface 3. It's an impressive, and wildly expensive, physical example of Microsoft's commitment.

That dedication has paid off. The Surface story has begun to turn around.

The Surface Pro 3, released last year, turned out to be a big hit, with Microsoft selling more than $1 billion worth last quarter. An enormous sponsorship with the NFL has put Surfaces on the sidelines of every pro football team and splattered giant "Microsoft Surface" branding in every stadium. Surface hasn't yet reached the brand recognition of the iPad or Windows, but it's well on its way towards becoming a household name.

"What a journey for all of us," Panay said. "There were a lot of moments of, 'Do we believe?' And the answer has always been, 'Yes.'"

surface 3 windows

Panay blames a lot of the Surface's early stumbles on the project's secrecy. Microsoft didn't want to tip off its competitors, so it holed the team away in a secret lab and even gave it a meaningless codename, "WDS." Customers were never asked for feedback -- and it showed.

The original Surface ran a scaled-down version of Windows that didn't allow people to download Chrome or iTunes. Its keyboard cover was hard to use, and the tablet flopped around when you were using it on your lap or a couch.

The Surface Pro ran a full version of Windows, but it had all the same keyboard and stability problems. And it was ginormous, essentially eliminating any advantage of being a tablet.

The press wrote it off, and consumers stayed away.

Panay said the negative reviews were difficult to swallow. But he and his team listened to feedback and learned a lot.

"We go full speed, and sometimes we might be going in the wrong direction -- and that's OK," Panay said. "If you fail, this company is amazing. They will support you. You just have to learn about it. If you take some shots out there, you might come back with some beautiful things."

The Surface Pro 3 -- and now the Surface 3 -- are, in fact, beautiful. They are culminations of lessons learned from the Surface's past mistakes. Both run full versions of Windows and all the software you want to put on them. They have a magnetic strip that stabilizes the keyboard on your lap. The keyboard works just as well as any laptop keyboard. And both both Surfaces are super-thin and ultra-light.

"You know, that billion dollar writedown will never go away," Panay said. "Those lessons learned from it will always be unbelievably valuable. But the lessons learned when you get a little success with a product -- those don't go away either. That balance of learning has made us feel really good going into the next product."

Related: 11 things you need to know about Microsoft's new Surface 3

Related: Meet Microsoft's Jony Ive

CNNMoney (REDMOND, Washington) March 31, 2015: 10:15 AM ET


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11 things you need to know about Microsoft's new Surface 3

The Surface fills a gadget gap between laptops and tablets. Today's tablets are great for portability, reading and watching video, but they're not ideal for doing work. Laptops are designed for getting stuff done, but you wouldn't want to read a book on them. The Surface is a laptop that looks and acts like a tablet.

But the Surface Pro 3 costs $799, and that's without a keyboard. Throw in a keyboard and Bluetooth pen, and you're looking at a machine that costs close to $1,000.

With the Surface 3, Microsoft (MSFT, Tech30) set out to make a similar tablet priced more attractively for students, parents and on-the-go professionals.

Here's what you need to know about the new Surface 3:

1. It costs $499.

That's a pretty good price for a PC that comes with 2 GB of RAM and 64 GB of storage. But that doesn't include the $129 keyboard (unless you already happen to have a Surface keyboard lying around, your total price is: $628).

"Surface Pro 3 is a product people know and love," said Panos Panay, head of Microsoft's Surface team. "When we were bringing [the Surface 3] to life, it was about, 'How do we give all that to folks but bring it to more people?'"

A higher-end Surface 3 is available for $599, giving you twice the RAM and storage. You can also add 4G-LTE wireless connectivity for $100 extra.

The Surface 3 is currently available for pre-order, and it will go on sale May 5.

surface 3 499

2. The keyboards are super-bright.

True to Microsoft's target student audience, the keyboards come in some bright, trendy colors aimed at a younger generation. They come in a bright tomato red, a darker burgundy, light blue, and purple. Those come in addition to the slate gray and dark blue that professionals like.

surface 3 keyboards

3. It weighs more than an iPad Air but less than the new MacBook.

The Surface 3 weighs 1.4 pounds. Even with the type cover, the new Surface weighs less than two pounds.

It's also super thin: just 0.34 inches, only slightly thicker than an iPad Air.

surface 3 weight

4. It runs "full" Windows 8.1, and it's upgradable to Windows 10.

Unlike previous non-"pro" versions of the Surface, the Surface 3 runs a full version of Windows, meaning it can run all the software that you're accustomed to running on a PC.

"It has to run everything -- even if it's iTunes or Chrome," said Panay. "You'll feel good because you left nothing on the table when you bought this product."

surface 3 windows

5. It has a processor designed for mobile devices.

The original Surface RT and Surface 2 ran on smartphone processors made by Nvidia (NVDA, Tech30). That made them slightly sluggish, but more importantly unable to run full Windows.

The Surface 3 runs an Intel (INTC, Tech30) chip designed for high-end tablets called the Atom x7. The advantages to the switch are twofold: full Windows (see No. 3) and a mix of power and battery efficiency that you'd expect from a mobile processor.

surface 3 processor

6. It has a 10.8-inch screen.

Similar to the Surface Pro 3 (but unlike other previous versions of the Surface), the Surface 3's screen has a 3:2 aspect ratio. That makes it a little less ideal for watching HD video but way better for reading and writing when you hold it vertically.

surface 3 screen

7. It uses the same plug that charges your smartphone (well...unless you have an iPhone).

The Surface 3 forgoes the magnetic charger that other Surfaces sported in favor of a micro-USB port that every non-Apple mobile device uses for charging.

Panay said micro-USB was of customers' most sought-after features.

surface 3 port

8. It has a kickstand that clicks into three different positions.

The Surface's kickstand is one of its most standout features, and it gets better in each version. The Surface 3 expands the number of positions to three: desk, lap and couch.

It's not quite as useful as the Surface Pro 3's pick-any-angle "continuous hinge," but it's more versatile than the one or two positions you got from previous Surfaces.

surface 3 kickstand

9. It has a pen.

The Surface Pen works on both Surface Pro 3 and the Surface 3. It has a nice weight and thickness to it, and though you can't store it in the device, the tradeoff is that it's far more useful than a stylus.

The pen can be used to write, capture a screen shot, highlight text and launch One Note among other tasks.

surface 3 pen

10. It has two HD cameras.

The 8-megapixel rear camera and the 3.5 mexapixel front camera are both capable of shooting 1080p HD video.

surface 3 camera

11. Its battery lasts 10 hours.

Battery life is tricky to measure, but Microsoft says the Surface's battery should be able to get you through a day of normal use. Microsoft claims the battery is large enough to let you watch 10 hours of video on a single charge.

surface 3 battery

Related: How the Surface lost $1 billion and lived to tell the tale

Related: Meet Microsoft's Jony Ive

CNNMoney (New York) March 31, 2015: 10:16 AM ET


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You can now trade in your Android for an iPhone at Apple Stores

You can now trade in your non-iPhone smartphone at an Apple (AAPL, Tech30) Store for a credit toward a new iPhone. Previously, Apple only accepted iPhones as trade-ins.

Only "select" phones are available for the deal, and you can only get a credit for if you show up at an Apple Store. Online, you can still only swap old iPhones for a credit.

At an Apple Store, you can use your Android, BlackBerry (BBRY, Tech30) or Windows Phone to get a credit for an iPhone 5C, iPhone 6 or iPhone 6 Plus. (If you want an Apple Watch, you're out of luck -- you'll have to pay full price.)

It's not clear how much Apple will be offering for the smartphones. Apple Store employees will determine how much your phone is worth.

Regardless, don't expect to collect as much for your old non-Apple smartphone as you would get for an old iPhone: There is significantly higher demand for recycled iPhones, so Apple's smartphones hold onto their value much longer than non-iPhones.

And trader beware: Though the Apple Store might be a convenient way to make the switch, Apple likely won't offer the best deal.

Apple charges $85 for a two-year old, unlocked 16 GB iPhone 5. But you can get up to $130 for the same phone on Gazelle, Amazon or another of other companies that recycle phones.

Related: Don't wait! Trade in your old iPhone now

Related: Smarter people use iPhones - study

CNNMoney (New York) March 31, 2015: 7:53 AM ET


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Russia's Gazprom: Profits plunge 70%

putin ukraine gas Russian energy giant Gazprom has been hit by Moscow's conflict with Kiev.

Gazprom (OGZPY), the world's biggest gas producer, saw its net profit fall 70% to 189 billion rubles ($3.3 billion) in 2014. The weak ruble was a big reason.

The profit does not include Gazprom's subsidiaries, such as its oil-producing arm Gazprom Neft (GZPFY), which reported its own 2014 profit falling 32% earlier this month.

The state-run energy giant has been hit by Russia's conflict with Ukraine. Its gas supplies to Ukraine have been at the center of the conflict. Moscow has repeatedly threatened to cut off Ukraine's supply.

Europe has in turn accused Gazprom of using its dominant position to manipulate prices and hinder the free flow of gas across the continent.

About a third of Europe's natural gas comes from Russia and 15% flows directly through Ukraine.

Related: Now might be the time to buy Russia. Yes, really.

Gazprom's falling profits are bad news for investors, the largest of which is the Russian government, who are likely to see their previously generous dividends slashed.

According to a Bloomberg report, Moscow sees Gazprom's 2015 dollar revenues in Europe sinking to the lowest in a decade.

Gazprom's activities alone made up around 8% of Russia's GDP in 2013 -- around half of Russia's government revenues come from oil and gas exports.

Most Russian exporters are hurting due to the collapsing Russian economy and low energy prices. The ruble has fallen 40% in the last six months, inflating the cost of foreign debts.

Opinion: Why is the West subsidizing Russia?

CNNMoney (London) March 31, 2015: 7:31 AM ET


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Toyota's Rav4 gets cheap automatic braking

The company is cutting the price of automatic braking and other crash-avoidance options, a move that could greatly increase the availability of the safety features.

Toyota is offering it on the Rav4, one of its top selling models. It expects to have the package available on all models in the next few years.

At the New York auto show this week, Toyota (TM) is announcing that a package of those three safety features will be available for between $300 to $500. It will also be available for $500 on Lexus luxury vehicles.

Such features have generally been available at a much higher price on luxury or upper end models.

Automatic breaking uses cameras and laser radar to slow or stop a car if there is a stopped vehicle or some other obstacle ahead of it. The other features in the safety package include alerts to drivers that they've changed lanes, as well as a feature that automatically switches between high and low beam headlights at night based on the traffic around it.

"We believe that the ultimate desire of a society that values mobility should be the eventual elimination of traffic fatalities and injuries," said Bob Carter, a senior vice president at Toyota USA.

Related: The best and worst crash avoidance technology

The lower-cost safety features will initially be available on the Rav4 compact SUV, Toyota's third best-selling model behind the Camry and Corolla, as well as on the Toyota Avalon sedan and the Lexus RX crossover.

Three additional Toyota models and four Lexus models yet to be announced will get feature later this year. Toyota expects it to be available on nearly all models and trim levels by the end of 2017.

Related: More cars earn top marks for safety

CNNMoney (New York) March 31, 2015: 8:03 AM ET


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Land Rover's new $200,000 SUV is most expensive ever

Written By limadu on Senin, 30 Maret 2015 | 21.29

Land Rover unveiled the new high end version of the Range Rover, the SVAutobiography at the New York auto show Monday, which has a $199,495 price tag. That's up about $12,000 from the suggested price on the Autobiography Black model, which it replaces.

The new model includes a 550 horsepower V8 engine, up from 510 horsepower in the previous supercharged model.

Rear-seat passengers have access to a beverage chiller compartment and powered deployable tables. Styling features include a new front grille finished in graphite and polished chrome.

Related: Ultra-luxury SUVs on the way

But Land Rover might not be able to hang onto the title of most expensive SUV for long - a number of ultra-luxury SUVs are in the pipeline. Lamborghini, Bentley, Maserati and Rolls Royce all have plans for SUVs. Jaguar, which is also made by Jaguar Land Rover, recently announced plans for its first SUV, the F-PACE, due out in 2016.

The Bentley could be the first of the group to go on sale, perhaps later this year. Others are two to three years away.

But all those cars would be the first SUVs for those high priced models, while SUV's are Land Rover's core product.

Related: Ford's big Lincoln Continental is coming back

CNNMoney (New York) March 30, 2015: 9:38 AM ET


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George Soros: I'll invest $1 billion in Ukraine

george soros ukraine George Soros' philanthropic work has focused on promoting democracy in eastern Europe.

The veteran hedge fund investor told an Austrian newspaper he was prepared to invest $1 billion in the collapsing war-ravaged economy.

"There are concrete investment ideas, for example in agriculture and infrastructure projects. I would put in $1 billion," he told Der Standard. "This must generate a profit. My foundation would benefit from this, not me personally."

Soros launched his Open Society Foundations in 1979 to promote democracy and open societies. Most of their work has been focused on former Communist countries in central and eastern Europe, but they've also funded programs in Africa and the U.S.

The Hungarian-born billionaire said Europe and the U.S. must show strong political leadership over Ukraine to make it more attractive to private investors. The West could provide finance at European interest rates close to zero, for example.

"Ukraine is defending Europe's borders," he was quoted as saying. "But above all, the country is fighting for European values such as the rule of law and freedom. That is too often forgotten."

Related: Ukraine's economy teeters towards collapse

Russia's seizure of Crimea a year ago, and its support for armed rebels in eastern Ukraine, has sent Ukraine racing towards the economic abyss.

Ukraine's currency, the hryvnia, has lost nearly 60% of its value against the dollar in just a year. GDP shrank by 7% in 2014. It's expected to fall by another 5% this year.

And while the country secured an IMF-led international bailout package in February, the chances of recovery any time soon look small.

Ukraine faces a number of daunting challenges: corruption costs the government $10 billion a year in lost revenue, IMF-mandated austerity -- such as gas price hikes and pension cuts -- are hugely unpopular, banks are collapsing under the weight of bad loans, and interest rates are the highest they've been in 15 years.

Related: Soros urges Europe to throw Ukraine $50 billion lifeline

CNNMoney (London) March 30, 2015: 9:06 AM ET


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This man bet $100K that there's a startup bubble

tech bubble

Many in the industry have been sounding warning bells about a possible bubble, citing early-stage startups attracting millions in investment at sky-high valuations, despite having little or no revenue.

Last week, tech investor Sam Altman challenged bubble believers to put money where their mouths are.

Altman, who invests in young tech companies through Y Combinator, said that though there are some unreasonable valuations, he's hopeful about the future of tech. He made three predictions on where specific tech startups will be in five years' time and encouraged someone to bet against him. The wager: $100,000 in a charitable donation.

Now, Boston-based venture capitalist Michael de la Maza has taken up the challenge. For De la Maza to win, Altman has to be wrong on one of the following statements:

  • These six "unicorns" (companies valued at over $1 billion) -- Uber, Palantir, Airbnb, Dropbox, Pinterest, and SpaceX -- will be worth a combined $200 billion by January 1, 2020. That's double what they're worth today, according to Altman.
  • Nine mid-level Y Combinator startups -- including payments startup Stripe and bitcoin exchange firm Coinbase -- will be worth a combined $27 billion (up from less than $9 billion currently).
  • Y Combinator's current batch of 114 startups ("currently worth something that rounds down to $0") will be worth $3 billion by 2020.

Interestingly, de la Maza -- who runs a $500,000 fund -- doesn't have strong beliefs on whether we are, or are not, in the midst of a tech bubble.

"People call it a bubble whenever valuations are 50% higher than they were a year ago. I think that is very uninteresting," he said. "[It is] a very information light conversation."

De la Maza said he took the bet because he wanted the opportunity to work with the startup guru -- and he believes in Altman's mission.

"I'm relatively indifferent to what the bet itself is," de la Maza said. "I think what [Altman] was trying to do was turn [the bubble] into a hypothesis that can be tracked -- to make it very clear, and allow people to concretely talk about."

Altman confirmed the bet on Sunday via Twitter. He also opened up the bet to another investor with a larger portfolio.

Danielle Morrill, CEO of Y Combinator-backed Mattermark, will track the startup portfolios in question using her firm's business intelligence software.

De la Maza , who used to play chess and poker, said he's prepared to donate to charity should he lose the bet.

He's even eying a Y Combinator-backed nonprofit as a potential recipient: Watsi, a crowd-sourced healthcare platform.

"I think it's a wonderful thing that a charity is going to receive $100,000," he said.

Related: The great tech debate: Are we in a bubble or not?

Related: 9 reason to be hopeful about the future of tech

Related: What bubble? Many social media stocks are big losers

CNNMoney (New York) March 30, 2015: 9:53 AM ET


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Now might be the time to buy Russia. Yes, really.

invest in russia

The oil-dependent economy is on track for a deep recession this year, and there's a risk that the West may impose more sanctions over Ukraine.

Yet Russia's stock market, currency and bonds are all bouncing higher.

After a horror year that saw the ruble roughly halve in value, Russia's currency has gained about 4% since the start of 2015 to trade at about 58 to the U.S. dollar. That compares with the record low of 80 hit in late December.

Helping revive the currency's fortunes has been a halt in oil's recent slide. Crude futures are steadier, trading just below $50 a barrel as tensions in the Middle East stoke supply concerns. That's positive for the Russian economy, which relies heavily on oil revenues.

Related: Russia's economic misery deepens

Bond markets are also showing promise. Russia's 10-year government bond yields have eased to about 11.5% from 13.5% at the start of the year. Yields, which move in the opposite direction to bond prices, are still well above where they were a year ago but the drift lower is positive.

"That's a product of broader stabilization in financial markets," said VTB chief Russia economist Vladimir Kolychev. "It seems that trend is sustainable."

Bank of America Merrill Lynch is also bullish on Russian bonds.

David Hauner, an analyst at the bank, recently picked ruble-denominated government bonds as his top bet in eastern Europe, the Middle East and Africa. Hauner said instability in Ukraine may be steering investors away from the "best [trade] of the year."

Russian stocks have brightened too. The MICEX index has rallied more than 14% so far this year.

Related: Carlyle Group CEO says oil is the best investment right now

Fund flows appear to support the view that sentiment is shifting. The stock market saw capital inflows of $6.6 million in the week to March 25, Russian media reported, citing data from EPFR Global.

That may sound small but it's a big swing from the previous week when the markets recorded an outflow of $57.7 million.

While Russia's financial markets are calmer than they were in December, the investment climate could sour again quickly if relations with the U.S. and Europe deteriorate further, or if oil prices resume their slide -- perhaps triggered by the lifting of sanctions on Iran.

A ceasefire deal reached in February between Ukrainian forces and pro-Russian separatists remains fragile. Violence in contested eastern Ukraine appears to be receding but an escalation of fighting could trigger additional sanctions.

Andrew Risk, principal Russia analyst at London-based political risk firm GPW, said there is a "reasonably strong likelihood of more sanctions."

New trade restrictions would exacerbate Russia's economic problems. Still, ignoring Russia as an investment destination could be shortsighted.

"It's still a very large economy with potentially very interesting opportunities," Risk said. And past political tension between Russia and the West hadn't prevented successful investments in the past.

Related: Putin slashes own salary as economy tanks

CNNMoney (London) March 30, 2015: 7:20 AM ET


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Carly Fiorina: Now a 90% chance I'll run for president in 2016

mpw fallen carly fiorina Carly Fiorina told CNN in February the chances she would run were "way over 50%." Now she says they are "higher than 90%."

In an interview with "Fox News Sunday," Fiorina said the chances of her joining an already crowded field of presidential hopefuls is now "higher than 90%."

The former HP chief, who launched an unsuccessful Senate bid in 2010 against Senator Barbara Boxer of California, said she plans to officially announce her campaign in April or May.

Fiorina is billing herself as a Silicon Valley trailblazer and tech whiz with more tangible accomplishments than Hillary Clinton. She told CNN in February that the odds of her entering the race were "way over 50%."

Fiorina said her experience in the private sector, where she rose from secretary to CEO of a Fortune 100 company, gives her "a deep understanding of how the economy really works."

Related: Chances of run 'way over 50%' - CNN in February

She added that she "knows most of the world leaders on the stage today." She said she can manage large bureaucracies and is capable of "executive decision making."

Washington, she said, "has become a vast, unaccountable bureaucracy" in need of a strong leader.

Fiorina had a controversial tenure at HP from 1999 to 2005, a period marked by the bursting of the dot-com bubble and steep layoffs in the industry.

Fiorina, who was forced out by the company's board of directors, said she was "proud" of the way she managed the company through one of the worst "technology recessions" ever.

Related: The Ted Cruz economy

Related: Hillary's action figure is ready to run

CNNMoney (New York) March 30, 2015: 7:17 AM ET


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5 travel spots that just got cheaper for Americans

Much of the world is on sale for Americans right now since the U.S. dollar is enjoying one of the strongest moments in modern history.

Just about everything from hotels to luxury handbags to McDonald's hamburgers is cheaper abroad than in the United States right now. When you take dollars to the foreign exchange booth, you get a lot more of another country's currency back than you used to.

If you were dreaming of a vacation to a far off destination, now is the time. While Europe may be the first destination to spring to many minds, Americans can get more bang for their buck across many other countries across the globe.

CNNMoney crunched the numbers on exchange rates, hotel costs and flight prices. Here are the top 5 places to find a bargain:

1. That European trip you always wanted. If you're dreaming of Paris, that's a steal right now. Recent roundtrip flights to Paris are as cheap as $519, according to Hopper, a travel-data site. Travelers have noticed the deals. Flight searches for New York to Paris are up nearly 10% last week compared to prior four weeks.

The reason is simple: the euro is now nearly equal with the dollar. One euro costs $1.09. Compare that to a year ago when one euro was about $1.40. (Here's more on why Europe is so cheap).

Travel to the euro area -- Germany, France, Italy, Spain, Portugal, Belgium and Austria, among other nations -- is almost 20% cheaper now from a year ago. The European economy is struggling, causing more bargains and discounts.

Hotel reservations are up in Italy, Spain, and Germany, according to Priceline (PCLN, Tech30). Outside the euro zone, Norway is another good bet: the dollar has appreciated by a third over the past year. That's a lot better than usual, since Scandinavia is typically viewed as one of the more expensive places to visit.

Related: American cash is flooding into European stocks

2. Calling all Russian Vodka fans. Moscow is a can't-miss for cold-weather travelers right now. Russia's ruble has been tanking as its economy gets hurt by western sanctions and plunging oil prices.

One dollar would get you 35 roubles a year ago. Now a dollar gets you 57 roubles. Of course, this isn't just a currency problem. The conflict between Ukraine and Russia has scared travelers away. The tourism industry is trying to rebound by offering deep discounts.

Flight prices from New York to Moscow have dropped 37% on the year and hotels are 45% cheaper than a year ago, according to Hopper and Tripadvisor.

If you'd rather see the sun than sip on Stolichnaya vodka, the U.S. dollar can save you money on the other side of the equator too.

5 cheap travel spots moscow

Related: Russia's economic misery deepens

3. Brazil is a bargain. Pack your bikini, speedo and SPF 30: it's the right time to go to Rio de Janiero -- or anywhere else in Brazil.

Brazil's currency, the Real, has lost almost 30% of its value against the dollar from a year ago. That means places like Rio and Sao Paulo are much cheaper to visit now.

A typical flight from New York to Rio was $1,170 last March. Now it's $856, according to Hopper, which points out that flights have gone down since the World Cup last summer.

Hotels in Brazil are 12% cheaper compared to a year ago, Tripadvisor (TRIP)data shows. By the way, you want to go now before prices possibly soar again for the Summer Olympics in 2016.

Brazil economy is also getting hurt by inflation and the end of a long commodity boom. Add on a strong dollar and you've got a recipe for Americans to B-line it to Brazil this year.

But if you want to practice Spanish instead of Portuguese, there's another steal down South.

Related: Brazil's scandalous boom to bust story

4. Colombia is calling. Colombia is one of the South America's best growth stories right now, but the U.S. dollar's rally keeps the trip cheap.

The dollar has gained 18% in value on the peso in the past year. Hotels in Colombia are 10% cheaper from a year ago, according to Tripadvisor. Flights are bit cheaper too, Hopper reports.

While many Americans still think of Colombia as the "murder capital," that image is outdated. The country is booming.

The capital of Bogota and Medellin, Colombia's second largest city, are becoming tech and cultural hubs while Colombia's beaches are beautiful. The coffee is outrageously good and cheap too.

Related: How Colombia went from murder capital to tech powerhouse

5. The South African Safari. The famous ocean views in Capetown look even better now: It's 13% cheaper for folks with dollars to vacation in South Africa. Similar to Brazil, South Africa's currency is losing value against the dollar as commodity prices slump.

Flights from New York to Capetown are down 24% from a year ago, according to Hopper. To put it another way: South Africa is more than double distance to New York than Paris, yet flights there cost a mere $130 more. If you don't mind really long flights, South Africa offers a lot of bang for your buck.

How long will these deals last? At the moment, experts predict the U.S. dollar is likely to stay strong through the end of the year, but it's unclear whether travel will pick up enough to lift flight and hotel prices even sooner. The word is getting out.

Related: $15 flight to Europe? Too good to be true

CNNMoney (New York) March 30, 2015: 8:07 AM ET


19.33 | 0 komentar | Read More

'Things will not change' after sex bias verdict without push

Written By limadu on Minggu, 29 Maret 2015 | 21.29

ellen pao after verdict

Ellen Pao lost her sex bias suit against prominent Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers on Friday when a San Francisco jury ruled that the firm did not discriminate against her.

Pao, a former junior partner at Kleiner Perkins, sued the firm in 2012, claiming she was passed over for promotions and eventually terminated because she was a woman, and because she had complained about discrimination.

Following the official verdict, Pao took to Twitter to say, "Thank you, world," the first in a series of tweets.

"Because of social media and live reports, the problem of gender discrimination in venture capital has received attention around the globe," read one tweet, followed by: "If we do not share our stories and shine a light on inequities, things will not change."

ellen pao tweet

Others took to the social media platform to echo her sentiment that the battle may have been lost, but hopefully the fight for equity in Silicon Valley is just beginning.

"I hope our industry can keep making progress," tweeted Alexis Ohanian, who is the executive chairman and co-founder of Reddit, the firm where Pao now serves as interim CEO. (He followed with another tweet, welcoming Pao back "full-time" to Reddit after five weeks of trial.)

Chris Sacca, an angel investor who has backed big-name startups including Twitter, Uber and Instagram, tweeted: "Verdict aside, we have a deep gender discrimination problem in tech. Thx to @ekp for reminding us. Let's not let the conversation end here."

On Friday, the hashtag #thankyouellenpao gained momentum, and tweets using the hashtag are continuing to roll in. But what started as praise for Pao's efforts is now flooded with hate tweets.

Interspersed with tweets like "THIS IS ONLY THE BEGINNING #ThankYouEllenPao" are tweets like "#ThankYouEllenPao, you failed in business, court, life, but you have a hashtag now so..."

A tweet from Tracy Chou, a software engineer at Pinterest, illustrated the need for more awareness of gender issues in Silicon Valley.

"White male in tech: I care about women in tech. me: so what do you think about #ellenpao. white male in tech: who?" tweeted Chou, who is based in San Francisco. This was a real conversation she had on Friday.

"I was pretty taken aback," she told CNNMoney.

Prior to the verdict coming down, Sarah Kunst, partner at Fortis Partners, encouraged the conversation around women in tech to continue.

"Hey reporters frantically seeking women in tech + vc for #ellenpao comment? Keep getting comments from us about tech issues post verdict," she tweeted.

Correction: An earlier version of this article said that a judge had found Kleiner Perkins not liable. It was a jury's decision.

Related: 9 reasons to be hopeful about diversity in tech

Related: Saadia Muzaffer is fighting for women in tech

CNNMoney (New York) March 28, 2015: 10:11 PM ET


21.29 | 0 komentar | Read More

The U.S. economy is showing cracks

The U.S. job market had its best year of gains last year since 1999, and economic activity hit a whopping 5% in the third quarter -- the best quarter since 2003.

Three months later, the U.S. economy is looking a little tired. It's losing momentum in puzzling ways. Hiring is still strong, but experts are starting to scale back their growth forecasts.

Federal Reserve chair Janet Yellen summed it up well in a speech Friday: "If underlying conditions had truly returned to normal, the economy should be booming."

Economists say there are two main problems: Workers' wages aren't growing much, if at all. As a result, Americans aren't going out and spending much. On top of that, many foreign economies are slowing down, which puts pressure on the U.S.

The question going forward is whether we're just in a blip or a bigger shift is taking place.

"The consumer really hasn't kicked in at full speed ahead," says Peter Cardillo, chief market economist at Rockwell Global Capital. "We're going through a soft patch."

With March's jobs report out on Friday, this economic head-scratcher will be in full focus this week.

Related: Good news: Unemployment at lowest in 7 years

Still strong on jobs: The U.S. added over half a millions jobs in the first two months of this year alone. That's a 50% increase from the same two-month stretch a year ago when the Polar Vortex had much of America in a funk.

Job gains have come across the board: health care, construction, the service sector and retail businesses have all seen strong pick up. The unemployment rate is down to 5.5%, its lowest mark in seven years.

It would be a full-steam story on jobs except for one thing: wage growth.

Hourly wages only grew 2% in February. That's a marginal bump up, but it's too little for most Americans to notice the recovery's progress. It's also well below the Federal Reserve's roughly 3.5% goal.

lookahead us economy cracks

Wages are typically the economy's last yardstick to move in the right direction. Some economists say there's a six month "drag" on wage growth compared to the unemployment rate. In other words, the wage growth we see now reflects the unemployment rate in in September (when it was 5.9%).

"If you grow at 2% -- that's growth -- but that's certainly not growth that's going to expedite a change in wages," says Cardillo.

Pay attention to wage growth Friday as an equally important measure. It's beginning to be as important a number as the unemployment rate because it's a good indicator of consumer confidence.

Related: Bad news: Stock likely to fall further

Signs of slippage: People don't go out and spend unless they feel confident about the future. There was hope that cheap gas would spur people to feel better about the economy and their pocketbooks. A gallon of gas was $3.53 a year ago. Now it's $2.42, according to AAA.

But a lot of people are still holding onto that savings. Retail sales and construction on new homes both fell in February, missing estimates. The latest numbers on manufacturing are also weaker than hoped for. All this could just be a winter slowdown, but it's raising red flags.

"Most of it was due to the inclement weather we had...I think that kept a lot of shoppers at home," says Bernard Baumohl, chief economist at the Economic Outlook Group, a research firm.

Baumohl sees the economy rebounding in the second quarter -- much as it did last year. But shoppers -- and investors -- are in a "wait and see" mode right now. Businesses are also sitting on record levels of cash, an indication they might not be feeling confident enough to spend big, either.

Analysts forecast that first quarter earnings for S&P 500 companies could be down 4.6% from the same quarter last year, according to FactSet Research. That would be the first earnings pullback in about two years. It has investors on edge, which is why the Dow is negative for the year and S&P 500 is flat.

Related: 19 stocks to buy now

Still slow around the globe: If the U.S. is the hare, everyone else around the world seems like the tortoise right now.

Europe is just starting to move its economy in the right direction after years of going at a glacial pace. Japan continues to be mired in deflation as concerns mount that its stimulus plan isn't working. Oh yeah, Greece is still a problem and Yemen faces a grave crisis.

But the worst developments for an economic perspective are China's slowdown and the strong dollar. China's economic growth was basically breaking the sound barrier the last few years. Now it's just cruising at a lower altitude, which means there's less demand for U.S. exports to China.

The U.S. dollar is on its fastest rise in 40 years, making U.S. goods more expensive than foreign ones. That's great for U.S. travelers, but it hurts major U.S. employers like Microsoft (MSFT, Tech30) and Caterpillar (CAT).

All the foreign volatility is rocking the U.S. stock market. Add on the dollar dilemma, sluggish consumer outlook and, not to mention, Fed rate hike fears and this year is quickly shaping up to be a rocky rollercoaster ride.

"We still have a long way to go," says Laurence Ball, an economics professor at Johns Hopkins University.

Related: Janet Yellen: U.S. economy not good enough yet

CNNMoney (New York) March 29, 2015: 7:31 AM ET


21.29 | 0 komentar | Read More

Indiana backlash: Opposition to anti-gay law grows

CEO Bill Oesterle announced Saturday that the company had put its proposed campus expansion project in Indianapolis "on hold" following the passage of the Religious Freedom Restoration Act.

Angie's List, a business-rating website, was expected to break ground on the campus expansion within days.

"We are putting the 'Ford Building Project' on hold until we fully understand the implications of the freedom restoration act on our employees, both current and future," Oesterle said in a statement.

"Angie's List is open to all and discriminates against none and we are hugely disappointed in what this bill represents."

Indiana's Religious Freedom Restoration Act gives businesses owners who oppose homosexuality for religious reasons the right to turn away gay, lesbian and transgender people.

Governor Mike Pence, who signed the law Thursday, hailed it as a victory for "religious liberty."

On Saturday, Pence told The Indianapolis Star that he supported introduction of new legal language to "clarify" that the new law does not promote discrimination.

Related: Indiana religious freedom: What you need to know

Pence told the Star that a new bill would likely be introduced within days but did not specify what it would say or who would introduce it.

Freedom Indiana, a group opposing the law, called on Pence to "fix the bill to protect all Hoosiers, and make it clear our state is open for business again."

Other businesses have also spoken out against the law saying, it will make it harder to attract employees and customers. They note that Indiana doesn't currently have any laws prohibiting discrimination against gay people.

NBA, WNBA, Indiana Pacers and Indiana Fever: "The game of basketball is grounded in long established principles of inclusion and mutual respect. We will continue to ensure that all fans, players and employees feel welcome at all NBA and WNBA events in Indiana and elsewhere."

Pacers and Fever owner Herb Simon added: "The Indiana Pacers, Indiana Fever and Bankers Life Fieldhouse have the strongest possible commitment to inclusion and non-discrimination on any basis. Everyone is always welcome at Bankers Life Fieldhouse. That has always been the policy from the very beginning of the Simon family's involvement and it always will be."

Apple: CEO Tim Cook tweeted that "Apple is open for everyone. We are deeply disappointed in Indiana's new law... Around the world, we strive to treat every customer the same — regardless of where they come from, how they worship or who they love."

Indiana Chamber of Commerce: "In our eyes, the law is entirely unnecessary. Passing the law was always going to bring the state unwanted attention."

Eli Lilly: "We certainly understand the implications this legislation has on our ability to attract and retain employees. Simply put, we believe discriminatory legislation is bad for Indiana and for business."

Eli Lilly (LLY) employs more than 11,700 workers in Indiana, mostly in Indianapolis.

Related: Tim Cook 'disappointed' by Indiana anti-gay law

NCAA: "We are especially concerned about how this legislation could affect our student-athletes and employees."

Indianapolis is a major destination for conventions and sporting events, including the upcoming NCAA Final Four college basketball tournament.

NCAA President Mark Emmert said the NCAA will "work diligently" to ensure competitors and visitors at next week's Final Four are not "negatively impacted by this bill."

Gen Con, the video game convention: The law would "factor into our decision making on hosting the convention in the state of Indiana in future years."

The convention brought 56,000 people to the state last year, according to Gen Con CEO Adrian Swartout.

Related: Guinness returns to sponsor N.Y.'s St. Patrick's Day Parade

Salesforce: CEO Marc Benioff said on Twitter (TWTR, Tech30) that his company will "dramatically reduce our investments" in Indiana, calling the law an "outrage." Benioff called on other CEOs in the tech industry to follow suit.

Yelp: CEO Jeremy Stoppelman said the company will "make every effort" to expand its corporate operations in states that do not have such laws on the books. "These laws set a terrible precedent that will likely harm the broader economic health of the states where they have been adopted, the businesses currently operating in those states and, most importantly, the consumers who could be victimized under these laws."

Related: Will Alabama pass the Tim Cook bill?

CNNMoney (New York) March 29, 2015: 7:56 AM ET


21.29 | 0 komentar | Read More

Indiana backlash: Opposition to anti-gay law grows

CEO Bill Oesterle announced Saturday that the company had put its proposed campus expansion project in Indianapolis "on hold" following the passage of the Religious Freedom Restoration Act.

Angie's List, a business-rating website, was expected to break ground on the campus expansion within days.

"We are putting the 'Ford Building Project' on hold until we fully understand the implications of the freedom restoration act on our employees, both current and future," Oesterle said in a statement.

"Angie's List is open to all and discriminates against none and we are hugely disappointed in what this bill represents."

Indiana's Religious Freedom Restoration Act gives businesses owners who oppose homosexuality for religious reasons the right to turn away gay, lesbian and transgender people.

Governor Mike Pence, who signed the law Thursday, hailed it as a victory for "religious liberty."

On Saturday, Pence told The Indianapolis Star that he supported introduction of new legal language to "clarify" that the new law does not promote discrimination.

Related: Indiana religious freedom: What you need to know

Pence told the Star that a new bill would likely be introduced within days but did not specify what it would say or who would introduce it.

Freedom Indiana, a group opposing the law, called on Pence to "fix the bill to protect all Hoosiers, and make it clear our state is open for business again."

Other businesses have also spoken out against the law saying, it will make it harder to attract employees and customers. They note that Indiana doesn't currently have any laws prohibiting discrimination against gay people.

NBA, WNBA, Indiana Pacers and Indiana Fever: "The game of basketball is grounded in long established principles of inclusion and mutual respect. We will continue to ensure that all fans, players and employees feel welcome at all NBA and WNBA events in Indiana and elsewhere."

Pacers and Fever owner Herb Simon added: "The Indiana Pacers, Indiana Fever and Bankers Life Fieldhouse have the strongest possible commitment to inclusion and non-discrimination on any basis. Everyone is always welcome at Bankers Life Fieldhouse. That has always been the policy from the very beginning of the Simon family's involvement and it always will be."

Apple: CEO Tim Cook tweeted that "Apple is open for everyone. We are deeply disappointed in Indiana's new law... Around the world, we strive to treat every customer the same — regardless of where they come from, how they worship or who they love."

Indiana Chamber of Commerce: "In our eyes, the law is entirely unnecessary. Passing the law was always going to bring the state unwanted attention."

Eli Lilly: "We certainly understand the implications this legislation has on our ability to attract and retain employees. Simply put, we believe discriminatory legislation is bad for Indiana and for business."

Eli Lilly (LLY) employs more than 11,700 workers in Indiana, mostly in Indianapolis.

Related: Tim Cook 'disappointed' by Indiana anti-gay law

NCAA: "We are especially concerned about how this legislation could affect our student-athletes and employees."

Indianapolis is a major destination for conventions and sporting events, including the upcoming NCAA Final Four college basketball tournament.

NCAA President Mark Emmert said the NCAA will "work diligently" to ensure competitors and visitors at next week's Final Four are not "negatively impacted by this bill."

Gen Con, the video game convention: The law would "factor into our decision making on hosting the convention in the state of Indiana in future years."

The convention brought 56,000 people to the state last year, according to Gen Con CEO Adrian Swartout.

Related: Guinness returns to sponsor N.Y.'s St. Patrick's Day Parade

Salesforce: CEO Marc Benioff said on Twitter (TWTR, Tech30) that his company will "dramatically reduce our investments" in Indiana, calling the law an "outrage." Benioff called on other CEOs in the tech industry to follow suit.

Yelp: CEO Jeremy Stoppelman said the company will "make every effort" to expand its corporate operations in states that do not have such laws on the books. "These laws set a terrible precedent that will likely harm the broader economic health of the states where they have been adopted, the businesses currently operating in those states and, most importantly, the consumers who could be victimized under these laws."

Related: Will Alabama pass the Tim Cook bill?

CNNMoney (New York) March 29, 2015: 7:56 AM ET


19.33 | 0 komentar | Read More

'Things will not change' after sex bias verdict without push

ellen pao after verdict

Ellen Pao lost her sex bias suit against prominent Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers on Friday when a San Francisco jury ruled that the firm did not discriminate against her.

Pao, a former junior partner at Kleiner Perkins, sued the firm in 2012, claiming she was passed over for promotions and eventually terminated because she was a woman, and because she had complained about discrimination.

Following the official verdict, Pao took to Twitter to say, "Thank you, world," the first in a series of tweets.

"Because of social media and live reports, the problem of gender discrimination in venture capital has received attention around the globe," read one tweet, followed by: "If we do not share our stories and shine a light on inequities, things will not change."

ellen pao tweet

Others took to the social media platform to echo her sentiment that the battle may have been lost, but hopefully the fight for equity in Silicon Valley is just beginning.

"I hope our industry can keep making progress," tweeted Alexis Ohanian, who is the executive chairman and co-founder of Reddit, the firm where Pao now serves as interim CEO. (He followed with another tweet, welcoming Pao back "full-time" to Reddit after five weeks of trial.)

Chris Sacca, an angel investor who has backed big-name startups including Twitter, Uber and Instagram, tweeted: "Verdict aside, we have a deep gender discrimination problem in tech. Thx to @ekp for reminding us. Let's not let the conversation end here."

On Friday, the hashtag #thankyouellenpao gained momentum, and tweets using the hashtag are continuing to roll in. But what started as praise for Pao's efforts is now flooded with hate tweets.

Interspersed with tweets like "THIS IS ONLY THE BEGINNING #ThankYouEllenPao" are tweets like "#ThankYouEllenPao, you failed in business, court, life, but you have a hashtag now so..."

A tweet from Tracy Chou, a software engineer at Pinterest, illustrated the need for more awareness of gender issues in Silicon Valley.

"White male in tech: I care about women in tech. me: so what do you think about #ellenpao. white male in tech: who?" tweeted Chou, who is based in San Francisco. This was a real conversation she had on Friday.

"I was pretty taken aback," she told CNNMoney.

Prior to the verdict coming down, Sarah Kunst, partner at Fortis Partners, encouraged the conversation around women in tech to continue.

"Hey reporters frantically seeking women in tech + vc for #ellenpao comment? Keep getting comments from us about tech issues post verdict," she tweeted.

Correction: An earlier version of this article said that a judge had found Kleiner Perkins not liable. It was a jury's decision.

Related: 9 reasons to be hopeful about diversity in tech

Related: Saadia Muzaffer is fighting for women in tech

CNNMoney (New York) March 28, 2015: 10:11 PM ET


19.33 | 0 komentar | Read More

The U.S. economy is showing cracks

The U.S. job market had its best year of gains last year since 1999, and economic activity hit a whopping 5% in the third quarter -- the best quarter since 2003.

Three months later, the U.S. economy is looking a little tired. It's losing momentum in puzzling ways. Hiring is still strong, but experts are starting to scale back their growth forecasts.

Federal Reserve chair Janet Yellen summed it up well in a speech Friday: "If underlying conditions had truly returned to normal, the economy should be booming."

Economists say there are two main problems: Workers' wages aren't growing much, if at all. As a result, Americans aren't going out and spending much. On top of that, many foreign economies are slowing down, which puts pressure on the U.S.

The question going forward is whether we're just in a blip or a bigger shift is taking place.

"The consumer really hasn't kicked in at full speed ahead," says Peter Cardillo, chief market economist at Rockwell Global Capital. "We're going through a soft patch."

With March's jobs report out on Friday, this economic head-scratcher will be in full focus this week.

Related: Good news: Unemployment at lowest in 7 years

Still strong on jobs: The U.S. added over half a millions jobs in the first two months of this year alone. That's a 50% increase from the same two-month stretch a year ago when the Polar Vortex had much of America in a funk.

Job gains have come across the board: health care, construction, the service sector and retail businesses have all seen strong pick up. The unemployment rate is down to 5.5%, its lowest mark in seven years.

It would be a full-steam story on jobs except for one thing: wage growth.

Hourly wages only grew 2% in February. That's a marginal bump up, but it's too little for most Americans to notice the recovery's progress. It's also well below the Federal Reserve's roughly 3.5% goal.

lookahead us economy cracks

Wages are typically the economy's last yardstick to move in the right direction. Some economists say there's a six month "drag" on wage growth compared to the unemployment rate. In other words, the wage growth we see now reflects the unemployment rate in in September (when it was 5.9%).

"If you grow at 2% -- that's growth -- but that's certainly not growth that's going to expedite a change in wages," says Cardillo.

Pay attention to wage growth Friday as an equally important measure. It's beginning to be as important a number as the unemployment rate because it's a good indicator of consumer confidence.

Related: Bad news: Stock likely to fall further

Signs of slippage: People don't go out and spend unless they feel confident about the future. There was hope that cheap gas would spur people to feel better about the economy and their pocketbooks. A gallon of gas was $3.53 a year ago. Now it's $2.42, according to AAA.

But a lot of people are still holding onto that savings. Retail sales and construction on new homes both fell in February, missing estimates. The latest numbers on manufacturing are also weaker than hoped for. All this could just be a winter slowdown, but it's raising red flags.

"Most of it was due to the inclement weather we had...I think that kept a lot of shoppers at home," says Bernard Baumohl, chief economist at the Economic Outlook Group, a research firm.

Baumohl sees the economy rebounding in the second quarter -- much as it did last year. But shoppers -- and investors -- are in a "wait and see" mode right now. Businesses are also sitting on record levels of cash, an indication they might not be feeling confident enough to spend big, either.

Analysts forecast that first quarter earnings for S&P 500 companies could be down 4.6% from the same quarter last year, according to FactSet Research. That would be the first earnings pullback in about two years. It has investors on edge, which is why the Dow is negative for the year and S&P 500 is flat.

Related: 19 stocks to buy now

Still slow around the globe: If the U.S. is the hare, everyone else around the world seems like the tortoise right now.

Europe is just starting to move its economy in the right direction after years of going at a glacial pace. Japan continues to be mired in deflation as concerns mount that its stimulus plan isn't working. Oh yeah, Greece is still a problem and Yemen faces a grave crisis.

But the worst developments for an economic perspective are China's slowdown and the strong dollar. China's economic growth was basically breaking the sound barrier the last few years. Now it's just cruising at a lower altitude, which means there's less demand for U.S. exports to China.

The U.S. dollar is on its fastest rise in 40 years, making U.S. goods more expensive than foreign ones. That's great for U.S. travelers, but it hurts major U.S. employers like Microsoft (MSFT, Tech30) and Caterpillar (CAT).

All the foreign volatility is rocking the U.S. stock market. Add on the dollar dilemma, sluggish consumer outlook and, not to mention, Fed rate hike fears and this year is quickly shaping up to be a rocky rollercoaster ride.

"We still have a long way to go," says Laurence Ball, an economics professor at Johns Hopkins University.

Related: Janet Yellen: U.S. economy not good enough yet

CNNMoney (New York) March 29, 2015: 7:31 AM ET


19.33 | 0 komentar | Read More

Pebble Time Kickstarter project raised $20.3 million

Written By limadu on Sabtu, 28 Maret 2015 | 21.29

It broke its first record on its first day, when it became the fastest project to raise $1 million -- in 49 minutes. A week later, it became the most-funded campaign in Kickstarter's history after receiving more than $13.3 million in pledges, besting Coolest Cooler, the previous record holder.

Now, in total, Pebble has raised $20,336,930 from 78,463 people. Pebble's initial goal -- to raise $500,000 -- was too easy of a hurdle. Each watch was sold for $159 to early backers, and $179 for just about everyone else. Once retailers start selling the watch, the price will go up to $199.

"We cannot thank the Pebble community enough for their monumental support," Eric Migicovsky, Pebble CEO, said in a statement. "We continue to listen to and be inspired by the backers who believed in us and supported our vision from day one."

The Pebble Time is Pebble's second generation smartwatch, and this is Pebble's second Kickstarter campaign.

Three years ago, Pebble raised more than $10 million from 69,000 people on the crowdfunding site for its first product, the original Pebble Watch. The company's goal at the time was also an easy target -- $100,000.

Pebble Time is 20% thinner than its predecessor, and features a new color e-paper screen. The Pebble Watch only came with a black and white screen. A one-week battery life has also been another selling point for the Pebble Time.

Kickstarter says that Pebble is one of thousands of companies and creators who have turned to crowdfunding on its site for more than one project.

"Pebble's double success really shows the power of Kickstarter as a way to build community around creative work," John Dimatos, Kickstarter's lead for tech and design projects, said in an email statement. "The Pebble team wanted to come back to the people who supported them at the start, and that community really responded."

Pebble says it will start shipping the Pebble Time watch to its backers in May.

Related: New Pebble smartwatch raises $1 million on Kickstarter in record time

CNNMoney (New York) March 27, 2015: 11:16 PM ET


21.29 | 0 komentar | Read More

'Ask SeaWorld' marketing campaign backfires

So when it solicited questions about its animal care online as part of a new marketing campaign this week, it seemed to fuel critics rather than dissuade them.

SeaWorld (SEAS) came under fire for its treatment of killer whales when the documentary "Blackfish" aired on CNN in 2013, criticizing the company's practices. PETA, the People for Ethical Treatment of Animals, has long called out SeaWorld on its animal care.

"Why do you LIE & tell guests collapsed dorsal fins are normal when only 1% suffer this in the wild?" was posted by PETA Thursday. It was retweeted 487 times, and went unanswered by SeaWorld directly.

The company is trying to set the record straight on what it says is "false accusations by activists who oppose whales and other animals in zoological settings."

Related: SeaWorld says PETA 'lies' about killer whales

SeaWorld is encouraging people to use the hashtag #AskSeaWorld on Twitter to ask about topics ranging from breeding to conservation to safety and training. Some questions and answers are posted to the website AskSeaWorld.com.

But a lot of the questions came from activists and animal lovers unhappy with the company.

"Why are your parking lots bigger than your Orca tanks?" asked several Twitter users.

On Friday, SeaWorld addressed what it said were thousands of trolls and bots, hijacking the Q&A.

Related: Harry Potter tour owls 'distressed,' PETA claims

"No time for bots and bullies. We want to answer your questions," it posted on Twitter.

The "Ask SeaWorld" campaign is only part of the company's new marketing push. A website SeaWorldCares.com features videos, research and articles showing how it's a leader in the care and protection of killer whales.

The negative image hasn't helped the company's stock. It's down nearly 40% in the past year and is about 50% below its all-time high.

SeaWorld could not immediately be reached for comment.

Related: Ringling Bros. to phase out elephants from circus shows

CNNMoney (New York) March 27, 2015: 7:38 PM ET


21.29 | 0 komentar | Read More

The activist nun reforming profit-prisons

Mercy Investment Services Inc. is the investment fund for the Institute of Sisters of Mercy of the Americas, an international religious order.

The fund is managed by Sister Valerie Heinonen, a soft-spoken nun who's been buying shares in for-profit prison companies since early 2000. She's not doing it in the hopes of making big bucks. Rather, she tries to use her leverage as an owner to reform the industry.

"What we want is the establishment of a human rights policy at these companies," Heinonen told CNNMoney.

Even more importantly, she wants the policy to be thoughtfully implemented, monitored and transparently disclosed to shareholders.

Related: 19 stocks to buy now

The issue: Hundreds of prisons and immigrant detention centers in the U.S. are being run or co-run by for-profit companies.

For decades, investors have put billions of dollars into the two largest such companies, Geo Group (GEO) and Corrections Corporation of America (CXW). Many investors saw dollar signs as prison populations swelled. The stock of Geo Group has risen 130% in the past three years.

While profits have been huge, some money managers feel it is unfair for Wall Street to profit from what they see as the inhumane warehousing of human beings. This issue is back in the forefront given the surge of immigrant detainees following the mass deportation effort of the Obama administration.

Immigrant federal prisoners are mostly segregated into 13 "Criminal Alien Requirement" prisons, according to the American Civil Liberties Union. These institutions are unusual in three respects.

"They are some of the only federal prisons operated by for-profit companies instead of being run as federal institutions by the Bureau of Prisons; they house exclusively non-citizens; and they are low-custody institutions with lesser security requirements than the medium and maximum-security institutions run directly by BOP," the ACLU says.

Accusations of mistreatment at for-profit prisons are plentiful.

Related: More undocumented workers moving into management

Prison treatment: Among them, according to an ACLU report released in 2014, is a riot in 2012 where about 300 prisoners at a facility run by CCA in Natchez, Mississippi, housing immigrant detainees over "inadequate food, poor medical care, and mistreatment by guards." The report said "the uprising resulted in the death of one guard and the injury of nearly 20 other people."

GEO Group and CCA say they are committed to protecting the human rights of prisoners and detainees.

"Our company adopted a Global Human Rights policy two years ago, which we believe was a first for any private correctional organization in the United States," Geo Group told CNNMoney in a statement.

CCA said its human rights policy is publicly available on its website and is incorporated into the ethics and professionalism course that every new employee receives. "It has been shared across our organization in communications from our CEO and others in leadership," a CCA spokesman said.

willacy detention facility Guards search male detainees inside Homeland Security's Willacy Detention Center, a facility with 10 giant tents that can house up to 2000 detained undocumented immigrants, 10 May 2007 in Raymondville, Texas.

Last month, part of an immigrant detention center in Willacy County, Texas was burned to the ground by detainees rioting in protest of what they said were inhumane conditions at the facility. Last week the Federal Bureau of Prisons abruptly canceled its contract there with Management and Training Corporation, the third-largest privately run, for-profit prison company in America.

Issa Arnita, director of corporate communications for MTC said the BOP no longer needed the additional beds that Willacy provided.

The treatment of immigrants at detention centers exploded into the national consciousness this summer as a torrent of undocumented children flowed into the U.S. Kids were being picked up by the border patrol but placing them in immigrant detention facilities was difficult. There just weren't enough facilities available. What was available, however, were prison beds.

With investor money, companies like Geo Group and CCA have been building prisons across the United States, but as crime rates and incarceration levels declined nationwide, those beds sat empty. Now, many of those beds are being used to house immigrants.

How the nuns strive for change: Mercy has raised questions about food, housing and education for the detained children and adults.

"We've also been concerned about legal access for people," Heinonen said.

Implementation and monitoring of human rights policies and transparency in communicating progress to investors is a work in progress.

"How often do the guards get a refresher course and what kind of oversight is there," Heinonen asked.

Mercy and the prison companies say they continue to meet regularly in order to address these issues.

Mercy's relationship with prisons started out pretty warm and fuzzy.

"A number of orders have members who are chaplains in prisons and perhaps this conversation came from what these people saw," she said.

Mercy initially focused on executive compensation. It introduced an investor resolution onto the ballot of both Geo Group and CCA, tying compensation to social as well as financial criteria.

"By the time we got started with the human rights policy, we had had had some success with other shareholder initiatives," Heinonen said. "For example, with the environmental initiative, everyone was recycling their waste."

However, this type of activism can be long and arduous.

Some investors, rather than pushing to reform an industry, simply want to unload their stakes in companies that don't conform to their moral code.

For example, Columbia University students have been recently organizing rallies to push the University to divest itself from private prison companies.

But there's a problem with this strategy: Unless investors sell en-masse, it can do little to spur reform and mainly only helps ease investors' minds about where their profits are generated.

For individuals interested in reforming these companies, Heinonen's recommendation is pretty simple: "I know friends who get materials from companies they used to work for and they just throw them out," she said. "I'd encourage people to read their proxy statements and go out and vote."

Related: Wall Street bets on prison growth from border crisis

Related Undocumented immigrant journalist partners with Los Angeles Times

Related: Cash for passports - how much it costs to buy a visa

CNNMoney (New York) March 28, 2015: 9:28 AM ET


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Google strikes back at Wall Street Journal - with a laughing baby

google baby gif

And this was no standard response. Google (GOOGL, Tech30) used playful animated GIFs to make seething points directed at the Journal and its parent company News Corp.

Here's the back story. In 2013, the Federal Trade Commission decided not to sue Google over antitrust issues. However, on March 19, the Journal revealed that FTC investigators back then did actually feel that Google used abusive, anticompetitive tactics.

In a blog post Friday, Google called the Journal's report inaccurate.

Google's senior vice president of communications and policy, Rachel Whetstone, countered several points in the story.

For example, the Journal report hinted at Google's influence in the White House, counting 230 visits there. But Whetstone said engineers were busy fixing Healthcare.gov and discussing patent reform and self-driving cars.

So what about those GIFs? Last year, News Corp CEO Robert Thomson had said that Google is creating a "less informed, more vexatious level of dialogue in our society."

Google's response? A laughing baby.

And to underscore what it felt about the substance of the Journal report, the Google post closes with this image: An old-school Jewish New Yorker saying "Aha!"

This GIF thing might seem odd, but get used to it.

House Speaker John Boehner is resorting to Taylor Swift GIFs to reach out to young Americans. And the Republican-led U.S. House Judiciary Committee just issued an anti-immigration press release full of them.

Related: Google abused its monopoly power, FTC experts found

Related: Google shuts news service in Spain

Related: 'Google tax' targets big tech

CNNMoney (New York) March 27, 2015: 6:34 PM ET


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'Ask SeaWorld' marketing campaign backfires

So when it solicited questions about its animal care online as part of a new marketing campaign this week, it seemed to fuel critics rather than dissuade them.

SeaWorld (SEAS) came under fire for its treatment of killer whales when the documentary "Blackfish" aired on CNN in 2013, criticizing the company's practices. PETA, the People for Ethical Treatment of Animals, has long called out SeaWorld on its animal care.

"Why do you LIE & tell guests collapsed dorsal fins are normal when only 1% suffer this in the wild?" was posted by PETA Thursday. It was retweeted 487 times, and went unanswered by SeaWorld directly.

The company is trying to set the record straight on what it says is "false accusations by activists who oppose whales and other animals in zoological settings."

Related: SeaWorld says PETA 'lies' about killer whales

SeaWorld is encouraging people to use the hashtag #AskSeaWorld on Twitter to ask about topics ranging from breeding to conservation to safety and training. Some questions and answers are posted to the website AskSeaWorld.com.

But a lot of the questions came from activists and animal lovers unhappy with the company.

"Why are your parking lots bigger than your Orca tanks?" asked several Twitter users.

On Friday, SeaWorld addressed what it said were thousands of trolls and bots, hijacking the Q&A.

Related: Harry Potter tour owls 'distressed,' PETA claims

"No time for bots and bullies. We want to answer your questions," it posted on Twitter.

The "Ask SeaWorld" campaign is only part of the company's new marketing push. A website SeaWorldCares.com features videos, research and articles showing how it's a leader in the care and protection of killer whales.

The negative image hasn't helped the company's stock. It's down nearly 40% in the past year and is about 50% below its all-time high.

SeaWorld could not immediately be reached for comment.

Related: Ringling Bros. to phase out elephants from circus shows

CNNMoney (New York) March 27, 2015: 7:38 PM ET


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Pebble Time Kickstarter project raised $20.3 million

It broke its first record on its first day, when it became the fastest project to raise $1 million -- in 49 minutes. A week later, it became the most-funded campaign in Kickstarter's history after receiving more than $13.3 million in pledges, besting Coolest Cooler, the previous record holder.

Now, in total, Pebble has raised $20,336,930 from 78,463 people. Pebble's initial goal -- to raise $500,000 -- was too easy of a hurdle. Each watch was sold for $159 to early backers, and $179 for just about everyone else. Once retailers start selling the watch, the price will go up to $199.

"We cannot thank the Pebble community enough for their monumental support," Eric Migicovsky, Pebble CEO, said in a statement. "We continue to listen to and be inspired by the backers who believed in us and supported our vision from day one."

The Pebble Time is Pebble's second generation smartwatch, and this is Pebble's second Kickstarter campaign.

Three years ago, Pebble raised more than $10 million from 69,000 people on the crowdfunding site for its first product, the original Pebble Watch. The company's goal at the time was also an easy target -- $100,000.

Pebble Time is 20% thinner than its predecessor, and features a new color e-paper screen. The Pebble Watch only came with a black and white screen. A one-week battery life has also been another selling point for the Pebble Time.

Kickstarter says that Pebble is one of thousands of companies and creators who have turned to crowdfunding on its site for more than one project.

"Pebble's double success really shows the power of Kickstarter as a way to build community around creative work," John Dimatos, Kickstarter's lead for tech and design projects, said in an email statement. "The Pebble team wanted to come back to the people who supported them at the start, and that community really responded."

Pebble says it will start shipping the Pebble Time watch to its backers in May.

Related: New Pebble smartwatch raises $1 million on Kickstarter in record time

CNNMoney (New York) March 27, 2015: 11:16 PM ET


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Your iPhone could help lower medical bills

Written By limadu on Jumat, 27 Maret 2015 | 21.29

Apple's new health software platforms, HealthKit and ResearchKit, allow apps to track an iPhone owner's fitness level. HealthKit enables people to share that data with certain doctors and hospitals. Apps for ResearchKit, which Apple (AAPL, Tech30) launched early in March, send data back to universities and clinics for large scale medical studies.

By making it easy for people to monitor, measure, and share their health information, doctors say health care will become more efficient and less costly down the road.

Recording information on daily activities like walking may not be valuable in isolation. But, by examining the change in how much someone walks over a period of time, doctors can determine certain things about a person's well being. They can identify risks and perhaps prevent issues -- and costs -- big (heart attack, stroke) and small (falls).

Chronic disease suffers in particular stand to benefit the most from health data collection.

High blood pressure patients, for example, only see their doctors three to four times a year on average, according to Dr. Richard Milani, chief clinical transformation officer at Ochsner hospital in New Orleans, Louisiana.

Proper care for a long-term illness requires more regular adjustments than those few times a year patients see a doctor, he says. But patients may not be able to come in more frequently, or afford to come in more frequently. If a patient's health changes between visits, doctors have no way of knowing or helping.

But via HealthKit apps, Ochsner's team has been monitoring some heart patients remotely. Doctors, nurses, and clinical pharmacists can track changes in a patient's health, and if fluctuations are abnormal, the medical team will call the patient and change medication levels if necessary.

HealthKit apps also put patients on equal footing with their doctors. An appointment no longer has to be a Q&A session. Those health records are your records, Milani says. You're entitled to access them, and you can control what goes in them.

"It's a better way to practice," said Dr. Milani.

Related: How iPhone apps could impact your insurance

Critics say the new technology is just another way for hospitals and doctors to deflect responsibility onto patients.

Proponents argue that gains will build over time. More data, interpreted the right way, means the right procedures will be performed at the right time. Patients who have information on their own health ask more informed questions. This leads to more productive visits, and possibly fewer of them.

Doctors and hospitals benefit similarly. Synchronized medical records can mean avoiding duplicate blood tests or X-rays. Fewer appointments reduce crowding and wait times, freeing schedules and rooms for bigger emergencies.

On the research side, experts are already saving time, money, and effort.

Dr. Alan Yeung, director of cardiovascular health at Stanford, is part of the team that developed the MyHeart Counts app, one of the first five ResearchKit apps.

He says researchers are excited to use Apple's newest platform because it allows them to measure physical activity objectively. Traditionally, that data has been reliant in part on participants' memories. Misremembering how much exercise a test subject performed can be avoided now, as well as redundant tests and additional costs associated with longer trials.

Yeung says he's also enthusiastic about the global scale and speed of software platforms like ResearchKit.

More than 35,000 people downloaded MyHeart Counts the first day it launched, he says. Of those who downloaded it, about 15,000 completed the consent process to participate. To find that many participants using paper enrollment would have taken six months to a year, he added.

Related: Smart clothes -- the next big fitness craze?

CNNMoney (New York) March 27, 2015: 9:22 AM ET


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The futuristic bed that locks the door, brews coffee

luna sleep Luna's four co-founders (left to right): Alexandra Zatarain, Andrea Ballarini, Matteo Franceschetti, Massimo Andreasi Bassi

A lot of startups are rushing to connect your entire home, and the latest entry is Luna, which promises to replace your "dumb" mattress cover with a "smart" one.

"Everything's getting smarter and smarter. The most dumb thing is my bed. And I spend one-third of my life there," said Matteo Franceschetti,, co-founder of Luna.

Luna's mattress cover acts as a hub to integrate existing smart technologies, including your thermostat (Google's Nest), speakers (Beep), lighting (Emberlight) and locks (Lockitron).

It also has its own features.

Luna is very couple-friendly: Two sides of the mattress can be controlled independently so one partner can, say, heat the bed to 75 degrees, while the other keeps opts for 70 degrees.

The team works with three scientific advisers who weigh in on the health components of certain features like temperature regulation.

Luna also learns your behavior. If you typically go to bed at a certain hour, it'll heat up the mattress to your liking in advance. It can also be controlled manually via your smartphone.

Tiny sensors embedded in the product enable sleep tracking. They're also used to sense a person's sleep cycle, gauging the best time to wake you up.

As someone with restless legs syndrome, Franceschetti, 33, said he now cross-references his sleep data with his daily activities to understand what aggravates his symptoms.

luna Luna's smart mattress cover comes in four sizes and is machine washable.

He and Massimo Andreasi Bassi, now co-founder and chief technology officer at Luna, came up with the idea for a smart bed in January 2014, after talking about Franceschetti's sleep problems.

Two months later, he and Bassi, 30, sketched out their idea for Luna on a napkin at a pizzeria to show a friend. Their friend wrote them a $25,000 check that night.

"We weren't looking for money [but] money started to come," said Franceschetti, who sold his international solar energy financing firm to Panasonic in March 2014.

In January, Luna launched an Indiegogo campaign, selling its products for $179 to $229 depending on bed size (retail price $249 to $289). It ended Thursday, surpassing its original goal of $100,000 ten-fold, raising over $1.1 million from over 5,300 backers.

But Franceschetti said the most exciting part hasn't been the amount of money that has rolled in but rather the insights gained from backers. Their responses which will inform future product decisions.

By late August, they'll start shipping out the mattress covers to their Indiegogo backers. (They plan to submit and receive for government approval by then).

But those who want a Luna can still purchase the product on pre-order, just at a higher pricepoint.

Still, there are more big things ahead for the firm. They're currently participating in Stanford University's nonprofit accelerator, StartX -- and are in the midst of fundraising. They've raised $1.1 million to date from undisclosed angel investors.

They're also already considering new features -- cooling the bed is likely on deck next due to demand.

Related: Meerkat announces $14 million in funding

Related: The great tech debate: Are we in a bubble or not?

CNNMoney (New York) March 27, 2015: 9:51 AM ET


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3 things I learned investing thousands of dollars of The Motley Fool's money

what I learned 2

"Why don't you," they said, "take a fistful of our money and invest it in the stock market."

Pretty cool, huh?

Fast forward to today, and I've moved to Berlin (Germany, not New Hampshire) to help launch Motley Fool Deutschland . That move has unfortunately meant that I have very little time to continue investing The Fool's money.

So, after this article is published, I'll try to hide my tears as my Real Money Portfolio is liquidated. Fortunately though, I can take with me a few lessons that I think have made me a better investor. And perhaps these lessons can help a few of you too.

Lesson 1: Invest already! This one may sound crazy, but let's try it: If your aim is to invest your money to get long-term returns then you should ... invest. Now. Not later. Not next year. Now.

Related: Barnes & Noble Is More Profitable Than It Looks on the Surface

For most of my time investing The Fool's money, I found myself sitting on a considerable amount of "dry powder." If you happen to be a private equity firm -- which pockets fees even on money that's not invested -- that may not be such a bad thing. If you're trying to outpace the S&P 500, it's not a great play. Though my stock picks on average beat the market, when you considered the drag that the cash provided, my overall portfolio trailed the S&P.

Sure, in retrospect we can look at certain time periods and say, "It would've been much better to be sitting on cash then!" And that, plus a roll of quarters, might get you through a New Jersey toll booth. But are many (any?) of us really any good at figuring out those particularly good or particularly bad times to invest as they're happening?

Now step back and look at the S&P over long time frames. Time that you spend with your cash on the sidelines is time that you're not earning returns. As my Motley Fool buddy Morgan Housel has pointed out on countless occasions, the best investing is often just being boring and consistently investing.

Note: I'm not saying that you should be 100% or 120% invested at all times. But for most people with a long investing horizon, being 40% in cash isn't going to help you reach your financial goals.

Related: Don't make these 2 big investing mistakes

In my case, the results I produced for The Fool would probably have been considerably better had I spent less time twiddling my thumbs and more time getting that cash invested.

Lesson 2: Know what you know. At the outset of my portfolio, I said that I would be investing solely in financial companies -- that is: banks, insurance companies, private equity managers, and the like. I decided that even though I knew that the financial sector as a whole would go in and out of favor as compared to the other sectors in the S&P. And I was right: Unfortunately, the sector was comparably out of favor for pretty much the entire run of my portfolio.

Related: How to Invest $20, $100, and $1,000 (and More)

Between the date of my first investment for the portfolio and now (March 23), the S&P 500 was up close to 24%. Meanwhile, the Vanguard Financials ETF (VFH) -- which has top-10 positions in companies which I also owned for the Real Money Portfolio -- was up less than 19%.

Despite that, as mentioned above, when we strip out the impact of my extra cash, the individual picks in my portfolio beat the market.

Related: 3 Cheap Dividend Stocks You Can Buy Right Now

If you're planning to invest in individual companies, I find it hard to overemphasize the importance of understanding the industries and companies that you're investing in. And I don't care what kind of investor you are because if you're a ...

  • Buffett disciple that invests in "great companies at good prices," then you better know what a great company looks like. If you don't really understand the industry/company, it'll be really hard to figure out whether it's really great.
  • Hard-core value investor, then you can't possibly hope to be able to build any sort of reasonable valuation for a company unless you really know what makes it tick. Throwing a bunch of number-puke into a spreadsheet doesn't count as a valuation.
  • Long-term growth investor, then it's only when you understand the industries, technologies, companies, and trends that you'll have a shot at identifying the companies that will thrive over the coming decades.

And I could go on.

Know what you know, and invest in things that you understand. Investing is hard enough as it is, there's no sense complicating it by trying to invest in industries and companies that you don't understand.

Related: 3 Companies Apple Inc. Needs to Watch Out For

I respected this idea when I decided to focus my portfolio solely on financials. But through the experience of running the portfolio, I've become even more convinced of its importance.

Lesson 3: You don't need a lot of ideas

I didn't buy all that many companies in my Real Money Portfolio. Instead, I mostly purchased and then repurchased the companies that I had already found, researched, and understood.

I often fall into the trap of wanting to chase every squirrel that runs into my periphery. But when I let that creep into my investing, I end up with a portfolio full of companies that I only half-understand (see above for why that's a bad thing).

On the flip side, when I have a portfolio that's smaller and focused, there's far more opportunity to get to really know those companies and understand what's going to make or break them (see above for why this is a good thing).

Related: 3 Energy Stocks We're Planning to Buy

I believe in diversification, but I don't believe that diversification means buying a lot of random companies that you've barely researched (yeah, yeah, see above again). If you can't diversify enough across individual companies that you know and understand, then a good magic trick is to diversify in one wave of the wand by buying an index fund alongside your individual stocks.

If we want to follow Buffett and his lust for "great companies" -- and why wouldn't we want to? -- then we have to face up to the truth that great companies don't come in bushels. They're out there, but a portfolio of 200 stocks is probably not a portfolio of 200 great companies.

Matt Koppenheffer writes for The Motley Fool. He owns shares of Vanguard Financials ETF.

Related: Warren Buffett's Best Dividend Stocks in 2015

Related: Bad news: Stocks likely to fall further

CNNMoney (New York) March 27, 2015: 10:10 AM ET


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