10 Things To Learn From Warren Buffett’s 2017 Letter to Berkshire Hathaway Shareholders

The Oracle of Omaha’s latest letter to his Berkshire Hathaway (BH) shareholders is filled with Buffett’s typical humour, humility and cutting insight.

Below are some early reflections from his 2017 letter which was issued on the 25th of February.

1.   Always Look For The Opportunities

Buffett (and Charlie Munger, BH’s Vice Chairman) will always be “prepared mentally and financially to act fact when opportunities present themselves.”

He then goes on to add, in classic Buffett-style,

“Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons.”

2.   It’s Okay To Make Mistakes (Just Make Sure You Learn From Them)

Buffett shares his anecdotes about how he’s “made some dumb purchases, paying far too much..” and gives some examples of when he overpaid for companies such as Dexter Shoes which lost all value and for which he paid for in Berkshire shares (shares now worth $6 billion – arguably the most expensive shoe company in the world!). He then made a similar mistake buying General Reinsurance, again with shares. From that point, he explained how he has ensured that most of BH’s deals came from internally-generated cash rather than through BH shares.

“Today, I would rather prep for a colonoscopy than issue Berkshire shares,” declares Buffett. The lesson here is how it is okay for mistakes to be made, but what won’t be okay is not learning from them!

3.   The American Dream – Built By Immigrants

Buffett remains the eternal optimist. He remarks on the ‘miraculous’ achievement of the United States of America over the last 240 years through the efforts of a ‘tide of talented and ambitious immigrants’, the rule of law and human ingenuity. He explains how, since 1776, Americans have managed to amass wealth totalling $90 trillion.

He does acknowledge that the majority of the homes, cars and other assets are often borrowed but goes on to add how even if the owner defaults on the asset, it remains within American hands.

The one point he does touch on very cursorily is about how the wealth is divided but argues that it is okay as long as it belongs exclusively to Americans. The real challenge here is how less than 1% of Americans actually own the bulk of the wealth – and this inequality is arguably the biggest challenge America faces in the coming years and decades.

4.   Remaining Bullish

“Babies born in America today are the luckiest crop in history,” claims Buffett very boldly. He goes on to explain how American businesses are going to be without doubt ‘winning’ as President Trump may claim.

He then reminds investors that ‘widespread fear is your friend as an investor, because it serves up bargain purchases,’ and that ‘personal fear is your enemy.’

5.   Succession Planning and Managing Talent

Buffett speaks of Ajit Jain who manages Berkshire Hathaway Reinsurance Group and extols his virtues including how Ajit’s operation ‘combines capacity, speed, decisiveness, and most important, brains in a manner unique in the insurance business.’

Buffett talks about how when Ajit Jain first came to BH, he had no experience in insurance and went on to build one of the most successful insurance businesses. Buffett goes on to say, “I there was ever to be another Ajit and you could swap me for him, don’t hesitate. Make the trade!” providing further hints that Ajit Jain could become the next chief of BH.

Ajit Jain is also another immigrant from India who has established his roots in the US and it will be interesting to have the views of Steve Bannon who was dismayed by the fact that there were too many CEOs from South Asia.

6.   The Power of Marketing

Buffett demonstrates how you should always be unashamedly promoting the brand you represent and goes on to tell all readers of the letter to go on to GEICO (an automobile insurance firm) by providing their contact details to save money on their auto insurance! He extols the virtues of GEICO’s superior advantages driven by low costs and how they’ve grown (from making US$8 million annually in 1951 to making that same amount now every 3 hours!).

7.   The Importance Of Having Trusted Advisors Beside You

Buffett explains how he has made errors and ‘stumbled’ either in assessing the fidelity or ability of managers and also talks about how one could count on him certainly making more errors. He then touches on how he is fortunate that Charlie Munger is always around to say ‘no’ to his worst ideas! Anyone who thinks they have no need for guides or advisors is going to be sadly mistaken.

8.   Targets Drive Behaviour And Culture – The Challenge of CEOs Who “Always Make The Numbers.”

Buffett fires a shot across the bow for CEOs who tend to omit certain items or expenses in order to ‘make the numbers’ and meet analysts’ expectations. Buffett warns how CEOs who ‘overtly look for ways to report high numbers tend to foster a culture in which subordinates strive to be “helpful” as well.”

As Buffett explains, business is too unpredictable for numbers to be always met and when a CEO’s focus is driven solely by Wall Street’s expectations, he or she will be ‘tempted to make up the numbers.’

9.   What Value (Or Fees) Do Those Hedge Fund Managers Add?

Buffett has hedge fund managers plainly in his sight. He bemoans the prevailing hedge fund standard of “2 and 20” which means a 2% annual fixed fees and 20% of profits – which means hedge fund managers end up making money (simply by piling on the assets) even if the underlying fund performs badly.

Buffett argues how merely investing in an unmanaged low-cost index would do far better than through some very expensive fund managers and highlights how only one individual, a Ted Seides, from thousands of professional investment managers offered to take him up on a $500,000 bet that a low-cost S&P fund would beat (over a 10-year period) five expensive hedge funds. He goes on to explain that 1,000 monkeys are as likely to make similar market predictions as 1,000 fund managers…

Buffett’s guidance is that all large and small investors should stick with low-cost funds as it is always going to be the hedge fund managers rather than clients who reap the benefits.

He adds how he has always recommended a low-cost S&P 500 index to his friends but how wealthier investors have always only politely thanked him for the guidance and went away to listen to the ‘siren song of a high-fee manager.’ Buffett estimates that more than US$100 billion has been wasted in the past ten decades as a result of “elite superior investment guidance,” and how most of the financial damage impacted pension funds for public employees.

10. Mind the GAAP – the Woes of Warren

One final point to note about Warren’s on-going challenges with accounting standards, or Generally Accepted Accounting Principles (GAAP). He explains that amortisation is not truly an economic cost and therefore should not be reflected in the way US GAAP requires them to. He also feels that GAAP-prescribes depreciation methods also understate true economic costs which mean earnings are overstated.

Buffett highlights how the changes in BH acquisition strategy – from merely owning a portfolio of stocks to outright ownership of businesses. This meant that rather than having a balance sheet that was ‘marked to market’ (or having a balance sheet that reflected prevailing share prices for the stocks they own) they had now companies they owned or controlled and therefore had to be reflected as per current GAAP or accounting standards. This meant that they have had to write down for companies that lost value (referred to Buffett as the “losers”) but could not revalue the goodwill for the companies that performed well (or the “winners”). This is why their market-value gain was 23.4% in 2016 vs a book value gain of 10.7%.

Advertisements

Opening Remarks – 4th Shared Services Centres Forum (Nairobi, Kenya)

Date                : 20th July 2016. Wednesday.

Location         : Serena Hotel, Nairobi

Topic              : 4th Shared Services Centres Forum: Sharing Experiences

 

A very good morning distinguished guests, ladies and gentlemen

It is a pleasure to present the opening remarks for the 4th Shared Service Centres Forum. We are particularly pleased to be partnering with Deloitte and Standard Chartered Bank Kenya for this crucially important business area.

Over the last decade, we have seen an increasing number of companies using shared services, outsourcing and global business services to improve efficiency, lower costs while maintaining a high level of rigour and quality. Shared services and BPOs have been one of the most instrumental pillars of financial transformation and we know that almost three quarters of a million finance personnel are employed in this sector globally.

Many organisations are looking at GBS, shared services and outsourcing as a way to help transform their finance function from a traditional cost-focused and back-office function looking mainly at historical data into a value driven, value-adding forward-looking part of the business.

Shared service organisations are ideally place to lead this change due to their global reach, visibility of data and information across the entire business (in contrast to a finance function within a single business unit), and they are also geared towards continuous  improvement and standardisation

Kenya in particular has been one of the early adopters in Africa in the space of shared services, BPOs or global business services. Given Kenya’s position as a major communications and business hub, we can only expect the sector to grow exponentially in the coming years as more business, particularly in East Africa seek to enhance efficiencies and adopt best practices in financial transformation.

A critical component of this transformation is the building of human capacity with the right set of skills and capabilities. It is to this end that ACCA has worked closely with our partners globally to develop the right set of solutions to support the process.

In the last two years, ACCA identified needs based on 12 months of consultation with over 150 multi-national companies including captive shared service centres and business process outsourcers, governments and industry bodies, in 13 countries.

Following this extensive consultation, ACC developed a suite of Global Business Services qualifications, starting a Certificate level, progressing on to Diploma and Advanced Diploma level. This also dovetails nicely with companies’ training and development frameworks and ensure there is a consistent programme of training which in turn supports staff moral and staff retention, which is traditionally a huge risk and issue for most shared services and BPO firms.

ACCA’s delivery of this training is also available completely online. To this end, I am also pleased to introduce to you ACCA-X, which is ACCA’s landmark and award-winning digital learning program which provides training up to the Diploma level. We partnered with edX (formed by Harvard and MIT) who provide the technology solutions and Epigeum, part of the Oxford University Press, to develop a high quality learning content which provides training opportunities for all finance staff. The introductory courses are also available for free for anyone, anywhere in the world.

ACCA has always strongly believed in the future of the SSO industry and continues to make significant investment in the sector. This includes development of cutting edge thought leadership and insights, development of qualifications, working with partners, such as the event today with Deloitte and Standard Chartered Kenya and working with various industry bodies to further support the growth of the sector.

We are pleased to continue this support here in Kenya today.

I look forward to an excellent forum today and hearing best practices from some of Kenya’s leading organisations and I wish you all a fruitful discussion and forum.

Thank you.

Where technology lost to tradition

Over the last few decades we have seen numerous examples where technology has usurped tradition, leading to plenty of hands wringing, worrying and eventually acceptance of technology’s dominance over the things that we previously thought were ‘the way things are done’ or tradition.

From going to a travel agency, or flagging for a taxi, or buying takeouts , we have now ditched habits and activities that were previously taken to be the de-facto way.

In the light of these changes (and some undoubtedly have had a huge benefit in people’s lives), it was interesting (and perhaps heartening) to read an example of how tradition managed to stand strong in the face of overwhelming technological progress and indeed even strike a blow and reign supreme!

This is the curious tale of the dabbawalas.  A recent Bloomberg Business article, Startups Haven’t Replaced India’s 19th Century Food Delivery Service (February 3, 2016), highlighted how over 400 technology/app driven businesses backed by over US$120 million of funding  have failed to dislodge a 120-year old, traditional food delivery enterprise. The aspiring new-age disruptors failed to make a dent whilst single-handedly decimating traditional black cab/taxi or travel industries.

Only a handful of 400 food-delivery-tech start-ups are still in business after having lost much of the VC funding and thousands of staff, despite spending millions on technology, promotion and advertising.

I thought it would be useful to take a closer look at the conditions that have led to the enduring success of these dabbawalas (from ‘dabba’ which means lunch box or tiffin carriers – the ubiquitous multi-layered carrier tins; and ‘wala’ which loosely means man or deliverer leading to ‘dabbawala’ – lunch box delivery man).

First some context and history to the humble dabbawala:mumbai-dabbawala

  • Starting from 1890, no rain nor flood nor natural disaster nor riot not terrorist strike nor weather has stopped the dabbawalas in fulfilling their duties.
  • The business model has remained exactly the same since the very first delivery: food prepared at home or community kitchens are delivered to students and workers in schools, offices, factories and depots in a lunch/tiffin carriers, and the empty containers are returned!
  • 5,000 dabbawalas now deliver about 175,000 to 200,000 meals a day (or over 50 million meals a year)
  • They have only ever gone on strike once in over a 120 years – and even then timed it on a public holiday – and in support of an anti-corruption campaign!
  • Each dabba or lunch box changes hands at least six times in transit before it reaches the final consumer – or 2.4 million transactions per day (200,000 deliveries X minimum 6 transits X 2 – to return the lunch/tiffin box back)
  • There are some claims that the dabbawalas lose only one tiffin box per 1.6 million deliveries (comfortably allowing them to be within the six-sigma standard of 3.4 defects per million transactions) – despite the absolute lack of technology or apps to support them. All that is used is a system of alphanumeric codes to identify the source and destination of each dabba.

Next, let’s consider the business and employment model used by the dabbawalas:

dabbawalas1

  • The monthly service charge for the delivery of the lunch boxes is between 400 to 1,200 rupees (or between US$6 to US$18 monthly).
  • The prices are not based on distance but on the customers’ ability to pay – deliveries from richer neighbourhoods means higher rates.
  • There are about 200 ‘managers’ who act as supervisors to teams of up to 25 dabbawalas – managing the total 5,000 dabbawalas
  • The dabbawalas age ranges from between 18 to 65 and are often poorly educated (often rarely receiving formal education beyond the age of 14 or 8th standard in Indian education terms)
  • The dabbawalas continue to be paid low wages – approximately 8000 rupees (or about US$120 monthly) but have achieved a very low attrition rate or labour turnover.
  • Each dabbawala receives the same income, irrespective of experience, age or number of customers serves.
  • Each dabbawala is not an employee, but is an entrepreneur and equal shareholder in the Dabbawallah Trust.
  • The dabbawalas employ a risk-mitigation system of a KYC (know your customer) principle to prevent the threats of contraband or bombs being delivered and implement a minimum monthly-subscription rule.

 

So how have these poorly educated, lowly paid individuals without any access to any computer or app to support their delivery system become an award-wining group of process champions?

  • The dabbawalas have been the paragons of social entrepreneurship – leading to social mobility through enterprise. They have provided employment opportunities for those who have needed it the most. The late Paul Goodman, Professor of Organisational Psychology at the Carnegie Mellon University, described it as thus: “They provide a different picture — a complicated system of working built around human ingenuity and supportive social arrangements that has long been absent from U.S. industry,” in his documentary on dabbawalas.

 

  • Uncompromising attitude to cutting out waste or preventing excesses – this has led to the dabbawalas rejecting a number of potentially lucrative marketing or sales opportunities because it was deemed that they will take up time and impact their core business of delivering on time every time.

 

  • Culture – there is an unwavering commitment to their cause.

The dabbawalas are of a view that their duty is akin to service to God. They are committed to the last man towards a single principle of delivering food on time to the right person.

As Manish Tripathi, a director of the Mumbai Dabbawalas states, “Our work revolves around a few beliefs – the most important ones of which are sticking to time and believing that work is worship. Annadan is mahadan (giving food is the greatest charity). We dabbawalas have a strong belief in god. But you don’t see god, do you? So, whom do you worship? People – after all, they are creations of god. You worship god by ensuring that people get to eat their food on time.”

Professor Stefan Thomke of Harvard Business School notes in his paper, “Culture, for example, often gets short shrift. Too few mangers seem to recognise that they should nurture their organisations as communities – not just because they care about employees but because doing so will maximise productive and creativity, and reduce risk.

 

  • Superior focus on organisational objectives and customer service

There is an absolute focus on unerring time management logistics and commitment to superior customer service through accuracy.

An interesting anecdote is when the dabbawalas were informed that Prince Charles wanted to meet with them, they allowed for the request on the condition that Prince Charles should be at Mumbai’s Churchgate station between 11.20 am and 11.40 am. The mere 20 minutes were given because “they could not take time off work” and only because that was the short period of the day when the dabbawalas had a rare moment of a break time!

Prince Charles Dabbawalas

(As an aside, it is also worth noting that of the three indians invited to Charles’ wedding – two were dabbawallahs (who presented gifts for Camilla (sari) and Charles (turban) – paid for by the dabbawallas pooling)

 

  • Effective leadership

The managers (each managing up to 25 dabbawalas) do not see themselves as leaders or supervisors. They are individuals who help to continuously improve the work-place practices and systems and empower their teams to make decisions within a clearly defined set of parameters. The individual dabbawalas make rapid decisions (modern managers may label this ‘agile’).

There are regular meetings once a month where decisions are made and issues identified and discussed. In the rare event of an error, an investigation is launched to ensure it doesn’t occur again and customers are refunded.

 

  • Adopting new practices to serve customer better

Whilst the delivery model has remained the same, the dabbawalas have introduced innovations such as delivery booking through SMS, online booking (through www.mydabbawala.com) and also introduced online customer services feedback. The customer-centric approach that has been instrumental to the success of the dabbawalas continues.

 

The secret to the dabbawalas is best described by Professor Thomke who says, “The dabbawalas have an overall system whose basic pillars – organisation, management, process and culture – are perfectly aligned and mutually reinforcing. In the corporate world, it’s uncommon for managers to strive for that kind of synergy.”

In this day and age, where the human touch is going out of fashion, the dabbawalas remain a source of inspiration and there is much to be learnt from them.

Branson dabbawalas

As Richard Branson (who spent a full day with the dabbawalas) said, “I will tell my employees: walk like a dabbawala.

Indeed!

dabbawalk

Going beyond networks and building communities

As someone who works for a leading global professional body dedicated to delivering public value to society on behalf of its members, I’ve been thinking about the notion of networks, what it means and whether the emphasis should be around going beyond the notion of mere networks and building communities with a strong sense of ownership by its constituent members supported by active engagement and dialogue.

Numerous businesses have built themselves formidable networks with their customer base but could be missing out on significant advantages in evolving those networks into communities.

Wenger, Trayer and De Laat, (2011) have provided clear definitions illustrating the differences between a network and a community:

“The network aspect refers to the set of relationships, personal interactions, and connections among participants who have personal reasons to connect. It is viewed as a set of nodes and links with affordances for learning, such as information flows, helpful linkages, joint problem solving, and knowledge creation.


“The community aspect refers to the development of a shared identity around a topic or set of challenges. It represents a collective intention – however tacit and distributed – to steward a domain of knowledge and to sustain learning about it.”

 

Distinguishing a network and a community

A network is inherently a passive set of relationships and connections (normally anonymous) between individuals, which is geared towards only information flows, and transactions across the connections. Networks tend to be primarily transactional in nature (mainly through the consumption of services and goods) with little by way of value creation.

Communities on the other hand lend themselves well to action and intervention by individuals who are connected around a shared identity, philosophy or collective intention. Communities tend to inspire a sense of camaraderie and collective action by the participants who belong to it.

 

What this means for businesses

Companies that successfully are able to develop and build on their networks and transform them into communities will be able to not only enjoy the scale afforded by networks but also improve the level of dialogue, engagement and sales which in turn improves the margins, leading to better business value.

Essentially:

Networks = High volume X Low margins (due to mainly transactional nature of mostly one way transactions)

Communities = High volume X Higher margins (due to improved dialogue, satisfaction which in turn leads to higher sales and possibly margins)

If we consider the largest companies in the world such as Amazon, they don’t merely seek to develop a large customer base who go to them to buy the products they seek. Instead they have invested significantly towards developing communities within their sales platforms, leading to improved two-way dialogue, and encouraging greater sales of a larger range of products.

Facebook has gone beyond simply creating networks and their initiatives such as “On this day” and “Friends’ Day” are all geared towards engaging their networks towards a more meaningful community, to imbue a sense of camaraderie and fellowship amongst their users. This is what will support the longevity of a social network like Facebook and ensure they avoid the mistakes made by the likes of MySpace and FriendsUnited, which did not seek to go beyond the creation of networks.

Superior organisations take the networks they have, understand the key propositions their networks seek, develop their messages further, engage them better, enhance the levels of dialogue across the participants of the network, and in the process form the basis of a community that will sustain the business towards long term value.

 

 

The origins of Coca Cola

DSC_0023_13In 1869, a wounded veteran of the American Civil War turned up in Atlanta to make a fortune. He had little cash and had little means and chose to live in a  crammed hostel with may others who had big dreams but small bank balances.

The man was John Pemberton. Despite his limited means, he set up an impressing sounding, “Pemberton Chemical Company,” and the principal business of the company to create beverages like Dr Pepper which were becoming increasingly popular in Atlanta and across the United States.

Pemberton spent many years concocting different drinks, using different formulas and compositions, but each one of the drinks failed. His already limited funds were drying up and things were looking desperate and bleak.

He decided that he would give it one last shot and try mixing soda water and cola syrup and this combination  found a small but growing customer base. The years of failures were not in vain, and he finally began to find some hope!

Seven years after coming to Atlanta, he successfully convinced a small group of investors to support his business.

He also realised that he needed to have a brand proposition that stood out from the many other alternatives that were slowly creeping into the marketplace. It was at this time that his accountant and business advisor, Frank Robinson, suggested that his new drink be called ‘Coca-Cola.’

Frank Robinson went one step further and also decided to design and wrote out the logo in his own inimitable handwriting. The world can thank an accountant for the birth of what is now a global icon, instantly recognisable the world over!

In Coca-Cola’s first year of business, they made a loss of $26 – the revenues were only $40! Pemberton lost hope and with little hope of improvement, he decided to sell his business for $2,300 to ASA Candler in 1888 (incidentally when Celtic Football Club – the world’s greatest football club was formed!).

Candler decided that Coca Cola should be available to every single state across the United States of America and also transformed the business model by not relying solely on selling the beverage to soda fountains. It was Candler who stabled a franchisee model to develop bottling networks across the country which in turn allowed for people to buy a bottle of Coca Cola and rink it wherever they wanted to, whenever they wanted it.

This was what set Coca Cola off in their journey to becoming the world’s most dominant soft drink.

 

20150619101900

 

Can this be Apple’s future roadmap?

In a world where the lines between sovereign nationhood and corporations are increasingly being blurred (roughly half of the top 50 economies in the world belong to that of corporations!), I was keen to thinking about the future of the world where Apple is concerned.

Apple have remained the foremost innovators and designers, creating that ultimate blend of functionality, art, design and user experience that has allowed for a far greater take up of technology than previously envisaged. The ease of use of Apple products has democratised the usage of technology by people, of all backgrounds, ages and capabilities.

I started considering where Apple may be heading over the next decade and half and thinking about how Apple, both as a company and as a global corporate citizen of the world, may evolve.

The image below best describes my own thoughts on where I think Apple will head towards. I have also provided a brief narrative to provide greater context.

A possible roadmap of where Apple may be headed towards
A possible roadmap of where Apple may be headed towards

Some additional context

Apple started the creation of their wider ecosystem with the development of OS X in 2000. The iPod, iPhone and iPad (along with associated products such as the iPod Touch, etc) relied on the iOS, which formed part of the greater ecosystem for Apple users.

Apple’s launch of the Apple Watch was the start of Apple’s foray into wearable technology (following at least two years of speculation).

Apple have also introduced Apple Pay, Apple HealthKit, and Apple Music (which nicely ties in with their multi billion acquisition of Beats) over the past few months.

2016 – the year of maturing of new initiatives

My view is that in 2016, Apple will support the development of additional personal and wearable technology (including iRing, Apple Glasses, etc) and we will see further launch of similar products (alongside newly launched products such as the new Apple TV). We will also see a further maturing of the Apple Pay system and greater application development for Apple HealthKit, utilising the Apple Watch and other related wearable technology.

2020 – The Apple Car zooms in

In about five years, we can expect to see the launch of the Apple Car. Possibly a completely electric car, with both driving and driverless functions, it will seek to revolutionise traffic control and movement. We can also expect to see financial aspects of the car, including insurance, leasing or hire purchase, supported by Apple Pay (or through connected bank accounts).

There could also be a potentially different model where Apple directly manage and maintain a fleet of driverless Apple cars, and passengers who seek transport can get in and by pre-booking through their Apple phones and/or other Apple products, can pay directly to Apple using Apple Pay (and taking on uber in the process).

Apple Insurance

We can also expect to see Apple providing direct insurance services to their consumers and users. Apple HealthKit can detect the health readings of an individual user and in the process price an appropriate insurance premium.

An individuals driving patterns can also provide data to help Apple price an appropriate auto/car insurance premium.

There could be a further maturing and take up of Apple Pay and related financing and banking products

2022 – Apple iBank is established

In the wake of the additional banking and insurance facilities provided directly by Apple, we can expect the iBank to be established which will allow for Apple to develop additional banking and finance capabilities, whilst also making better use of their cash hoard.

The iBank becomes the investment arm for Apple as Apple expands its product range into mortgages and fund management.

As Apple increasingly expands its portfolio of products, they start contemplating the development of Apple homes and flat

2025 – Apple the property developers and managers of societies

Apple starts producing smart iNtelligent homes to support increasing government demands for affordable, smart housing to meet the growing population demand.

The Apple Home becomes an all-encompassing home that is fitted with Apple sensors, that demands Apple usage by the users/residents and incorporates all other elements including mortgage, insurance, and electronics/appliances which syncs itself automatically with the user needs and demands.

Having a smoke at home – expect the Apple sensors to pick this up and send you an add-on to top up your health insurance with, for which you can make payment through Apple Pay – connected to your Apple iBank account.

Your fridge stacked with fizzy drinks, sugar-laden donuts and you are consistently frying food? Expect to receive a notification that your health insurance premium may be compromised and that you may need to top up!

2026 – Apple starts funding governments

As Apple Bank expands further, we can expect to see Apple Bank participating directly in funding campaigns led by the IMF, the AIIB (Asian Infrastructure Investment Bank) and the World Bank, amongst other multilateral agencies. This participation may allow for Apple to obtain additional concessions to sell their products or services.

We can also expect to see Apple participating in various UN and international conferences to support their aims and ambitions

2030 – All hail the Apple Nation

In 2030, the first Apple Citizen is naturalised. The Apple Citizen received an Apple passport, which allows him to travel to a large number of countries (all of the visa requirements are pre-met through Apple’s existing data). Apple’s virtual citizenship is supported by a comprehensive and robust Apple foreign policy backed by a deep monetary policy (exercised by Apple’s iBank) which also means the launch of the iDollar (Apple’s virtual currency backed by the Apple Central Bank).

Apple’s predictive AI (artificial intelligence) also can predict individuals who may be about to engage in subversive activities and detains them for their own benefit and reduce crime and a state of lawlessness. It also forces health lifestyle habits.

Apple starts running lives and tells people how to dream and what to dream.

The era of Apple

This could be the era of Apple. Some may welcome it as it could lead to a more efficient world. Others will resist. The resistance will be led by the men and women wearing old school Casios and using Nokias!