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24 products people waste too much money on that you should stop buying immediately

Wed, 07/10/2019 - 5:22pm

  • Some items we're used to buying every day can actually be a huge waste of money.
  • Store-bought greeting cards, physical books, cable TV, and premium gasoline are just a few examples.
  • Bigger purchases, such as a boat or a time-share, often aren't worth the cost either.
  • Visit Business Insider's homepage for more stories.

Waste not, want not.

We make so many purchases that we don't always realize what we are buying — and how we could be saving money. If we take a step back and think about all of our additional costs, we could cut a few out of our lives. 

These 24 products can often be a huge waste of money:

Matthew Michaels contributed to the original version of this article.

SEE ALSO: 15 things you should never skimp on

DON'T MISS: 12 clever ways to save money every day, according to financial experts

Lottery tickets

Many lottery players purchase tickets each day with the hope of striking big, but games of chance are preventing you from having more money, not less. You are expected to lose money if you play the lottery and there is no guarantee you will even keep winnings.



Cigarettes

In New York City, someone who smokes one pack of cigarettes a day burns up over $5,000 a year. Smoking can also be a huge cost to your health — medical bills can rack up from the dirty habit even tobacco companies are quitting.



Water bottles

As Americans became more health conscious and started drinking less soda, beverage companies needed a new plan. It worked as Americans now drink more bottled water than soda, even though it costs $1.22 per gallon for a commodity that can be accessed for next to nothing.



Brand name drugs

For most products that are exactly the same, customers would usually choose the cheaper option. This does not hold true for brand name drugs, which consistently outpace sales of their generic counterparts despite having the same ingredients and effects. Save yourself some money and buy the generic ibuprofen instead of Advil. 



Movie theater concessions

Movie theaters don't make profits from film tickets, but instead through food sales. The over-inflated popcorn and pricey candy is a rip off considering you can buy the same products at the supermarket for much cheaper and many theaters don't care if you bring in your own snacks (as long as you clean up after yourself).



Café coffee

Before Starbucks and Dunkin' Donuts were on every street corner, people brewed their own coffee at home. This is still somewhat popular — especially with coffee pods — but coffee shops have taken a lot of the business. With expensive price tags and long waits, it's a wonder why everyone isn't turning to homebrew.



Books

A library is the best way to save money on an expensive hobby. Libraries are free and come with millions of books, DVDs, and other materials for you to borrow.



Timeshares

Timeshares sound too good to be true. They offer low prices for a vacation home that you can use whenever you want. But they can trap you with ever-increasing fees and low resale value, making timeshares an almost guaranteed loss.



Boats

One sign of wealth is cruising on a personal yacht, but that may be a better indicator of wasted wealth. Boats are expensive on their own, but as Saltwater Sportsman says, prices for storage, gas, maintenance, and electronic navigation drive up the initial cost.



CDs and DVDs

CDs and DVDs are becoming obsolete, but many people still shell out cash for hard copies of albums and movies. Like books, CDs and DVDs can be rented at libraries, but most people now stream entertainment on apps like Spotify and Netflix for a monthly rate that costs less than a single disc.



Cable TV

Like music and movies, television is moving from more traditional modes to online streaming. Since cable packages make you pay for more than you want, a pick-and-pay model may wind up costing you less. Streaming has the added bonus of no commercials and watching on your own schedule. 



Greeting cards

Make your own — it's more meaningful if you gift a personalized card and you'll save the $5.



Gift cards

Gift cards aren't as popular a present as you may think. Almost one in three gift cards never get used at all, CBS reported in 2014, citing Consumer Reports. And those who do use them tend to spend 20% more than the value of the card, according to Investopedia. Cut your losses and buy something more thoughtful next time.



Gym membership

Gym memberships can be expensive, so if you're not a frequent visitor, you're just wasting money. Thankfully, there are ways to be healthy and exercise outside of a gym.



Premium gasoline

Regular will do just fine. For most cars, there is no need to spend more at the pump for premium gasoline. The extra cost is not worth it, so save up at the tank and pick the most affordable fuel.



The newest gadget

Whenever a new gadget hits market, the older version takes a plunge in price. The old and new version will probably be very similar and the most recent model may have kinks to work out. Save a lot of money by going with a slightly older product that has nearly identical capabilities. 



In-game purchases

Those free games you play on your smartphone have to get money from somewhere. It turns out these games are highly addictive and designed with psychological tricks so you will spend the most money to get to the next level.



Express shipping

Online retailers can make a lot of money charging customers enormous fees for quick shipping. But while the standard option may take a bit longer, the savings is worth it.



Full-priced clothing

Buying clothing full-price can add unnecessary expenses to your monthly budget. Not only do most in-store clothing items eventually go on sale after a few weeks, but there are countless other ways to get new clothes for less. Hit up your local thrift stores, swap clothes with your friends, or check out online second-hand retailers like Poshmark or Depop to save some money.  



Going out to eat

Everyone knows that going out to eat is expensive. According to the Bureau of Labor Statistics, the average American household spends about $3,000 a year dining out. That's a huge expense. According to an article by MoneyUnder30, this number far outweighs how much it costs to prepare food at home. The average price of a meal out is $13. In contrast, the price of buying groceries and making a meal at home is around $4 per plate — a whopping $9 difference. 



Alcoholic drinks in restaurants

While a whole bottle of wine at your local liquor store may cost anywhere between $10 and $15, you can expect to pay at least $8 or $9 for just a glass at a restaurant. Cocktails can cost even more, despite only containing a shot or two of alcohol per serving. Save your pennies and order a soft drink the next time you go out to eat.



Food delivery

Food delivery services are sweeping the nation. Companies like Postmates, Caviar, Seamless, GrubHub, and more allow you to enjoy your favorite restaurants from the comforts of home – for an added fee. Delivery charges can cost anywhere from $2.99 to $8, costing you more money for the same product if you simply went and picked up your food yourself. 



High-end beauty products

Drugstore makeup has come a long way in recent years, to the point where they rival higher-end brands. The actual differences between products you find in CVS and Sephora are almost slim to none — so don't pay more for the luxury brands. 



Off-brand tech accessories and chargers

Off-brand tech accessories and chargers — meaning ones not designed by Apple, Android, Samsung, etc — are usually a waste of your money. They may seem like a cheap and easy fix when you find yourself out and about with a dead device. However, according to the experts at Money, cheap cords can actually end up breaking quickly or even damaging your device. You may end up having to purchase a new phone for the sake of a $9.99 charger. 



CASE STUDY: Interview with PayPal COO Bill Ready on how Venmo evolved from a P2P powerhouse into a full-suite commerce engine (PYPL)

Wed, 07/10/2019 - 5:21pm

PayPal has long been a commerce enabler, offering highly popular services like PayPal OneTouch, a buy button with a wide reach in addition to loyalty and conversions that far surpass the competition's.

But it's also a leader in the digital peer-to-peer (P2P) payments space, as a wider set of users turn to PayPal apps, including Braintree-owned Venmo, for fast, simple, and convenient ways to pay their friends and family.

As digital P2P grows, and users continue to spend and buy online more than ever, PayPal has identified an opportunity to grow its commerce presence onto another platform, expand the services it offers, and better serve its customers in a time where returns and margins are shrinking across the payments space.

Business Insider Intelligence spoke to PayPal COO Bill Ready about how the firm is working to evolve Venmo — one of the most "beloved" apps in the millennial demographic and a P2P market leader — from a P2P offering to a full suite commerce engine.

Simply click here and enter your email address to receive a download of our full Venmo case study completely FREE!

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I flew on one of American Airlines' smallest jets — and now I'm a huge fan (AAL)

Wed, 07/10/2019 - 4:49pm

  • I recently flew on a Brazilian-made Embraer 145, a small regional jet.
  • The Embraer 145 is a nifty plane that genuinely impressed me.
  • I'm no fan of narrow-bodies, but the Embraer 145 reminded me that single aisles can be lots of fun.
  • Visit Business Insider's homepage for more stories.

It's easy to see the entire commercial-aviation industry through the dual lens of Boeing and Airbus — understandable as the US giant and the European mega-consortium divide about 90% of the market for jet aircraft.

However, there are two other plane makers of note on the planet: Canada's Bombardier and Brazil's Embraer.

Mind you, both are in the process of being absorbed by the Boeing-Airbus duopoly. Airbus has effectively taken over the troubled Bombardier CSeries, rechristening it the A220. Meanwhile, Boeing has bought into Embraer big time with a nearly $4 billion deal that's slated to close this year.

Like most travelers, I hate flying on larger narrow-body jets for the most part. But I make an exception for small single-aisle jets, which I very much dig, like the Boeing 717.

Recently, I made a quick trip to my hometown, Huntington, West Virginia. This a small city served by a small regional airport. For what seems like decades, I've flown in and out of Huntington Tri-State Airport on turboprop regional planes. But on my last visit, I discovered that jet service is back.

And the jet I wound up riding, the Embraer 145, was a winner. Read on to find out why:

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The Embraer is an elegant jet aircraft, developed in the late 1980s and early 1990s by the Brazilian company to serve regional markets and replace propeller-driven planes. It took to the skies for the first time in 1995.

Source: FlightGlobal Archives



Here's the Embraer 145 I flew from Huntington Tri-State Airport to Charlotte, North Carolina. I was flying American Airlines, so the jet was operated by Piedmont Airlines, under the American Eagle banner. Piedmont has 60 Embraer 145s in its fleet.

Some useful information about the jet.

The Embraer 145 is the second-smallest jet American Eagle operates; only the Embraer 140 is smaller.

The 50 seats are arranged in a 1-2 configuration, with a very narrow aisle.

Legroom wasn't bad — but I'm a mere 5 feet, 7 inches, so for larger folks, the seats could be snug.

Naturally, because I was flying on a jet plane, I read a novel about a train robbery in Victorian England.

It was a 1975 best seller!

And the late Michael Crichton was a young'un in those days.

Tri-State is more of an airfield than an airport, hence the stepladders to board right off the tarmac. Jet service has been absent for some time — I used to ride Bombardier Dash 8 turboprops off this mountain-top redoubt.

The takeoff was swift and private-jet-like.

Airborne! Flight time to Charlotte was only about 30 minutes — we basically climbed and descended. A quick trip that was much less noisy than what I was used to. The 145 rocks a pair of Rolls-Royce turbofan engines that can generate nearly 9,000 pounds of thrust. The jet can fly as high as 37,000 feet.

Hello Charlotte! The second leg of my trip would take me to Newark Liberty Airport in New Jersey, obviously on some larger equipment.

What a nifty jet the Embraer 145 is! I much prefer flying on small single-aisle jets to big narrow-bodies. They get up fast, the boarding and deplaning process is quick, and compared with regional turboprops, they're a much faster way to zip between the major US carriers' hubs. To top it off, I'm glad that jet service has finally returned to my hometown!

Goldman Sachs says Amazon's logistics network is hardly a threat to FedEx or UPS. It needs years of new construction and a whopping $122 billion just to catch up. (AMZN, FDX, UPS)

Wed, 07/10/2019 - 4:27pm

  • Analysts and logistics insiders say Amazon's investments into its own logistics network is priming it to take on UPS and FedEx as a delivery provider.
  • A new report from Goldman Sachs said those estimates were premature but still "definitely a concern."
  • It would cost Amazon $122 billion for it to catch up to UPS and FedEx and their air hubs, aircraft, delivery vehicles, and other components of their logistics networks.
  • Visit Business Insider's homepage for more stories.

Everyone from UBS analysts to Morgan Stanley experts to former Amazon execs has been sounding the alarm about Amazon Logistics, which has quickly built up a fleet of 70 planes, 10,000 vehicles, and access to ocean and rail brokerage in a handful of years. 

And, according to those insiders, Amazon is priming itself to launch a third-party logistics service that could edge out UPS and FedEx in the same way the company dominated cloud computing with Amazon Web Services. 

"Even Amazon, as big as they are and growing as fast as they are, will not be able to fill up this network on day one," the Morgan Stanley analyst Ravi Shanker previously told Business Insider. "So similar to what they did with AWS, we think it's very logical for them to improve the utilization of their network and lower their own costs by opening up to third parties."

Read more: Amazon took over the $176 billion market for cloud computing. Now it's using the same playbook in logistics.

But a new report from Goldman Sachs is urging everyone to hit the brakes. Amazon's network is still too small to compete with FedEx or UPS. UPS, FedEx, and Amazon all had no comment. 

"Based on expansive FedEx and UPS networks, it would appear that currently Amazon's limited network size probably does not have the scope or global flexibility to offer time-definite capability to reach just about everywhere," the Goldman Sachs transportation analyst team wrote in a July 10 report.

It's also still not big enough for Amazon to totally make its massive amount of package deliveries in-house, Goldman Sachs said. During the 2018 holiday season alone, the retailer shipped 1 billion packages.

For Amazon just to catch up to UPS and FedEx, the company would need to invest a staggering $122 billion into its network. 

One of the most time-consuming parts of Amazon's investment would be in building out air hubs. The retailer is building a $1.5 billion air hub at Cincinnati/Northern Kentucky International Airport, scheduled to open in 2021.

Read more: Amazon's CFO highlighted the power of it perfecting its own delivery capabilities, and it's a clear warning shot to UPS and FedEx

But UPS and FedEx already have, respectively, 13 and 11 hubs. Catching up to that sortation and air-cargo muscle would cost Amazon some $15 billion and years of construction.

Amazon also has only 215 principal and additional operating facilities compared with FedEx's 1,214 and UPS's 1,038 facilities. Matching the logistics giants' might in that area would cost Amazon $46.6 billion.

There's also a variety of specialized services that FedEx and UPS provide that Amazon lacks. UPS, for instance, has logistics solutions for a slew of complex industries: high-security defense, complicated automotive manufacturing, and healthcare — even processes like liquid-nitrogen-dry-vapor shipping of medicine.

"It's two different businesses," Helane Becker, the Cowen managing director and senior research analyst, previously told Business Insider. "What FedEx and UPS does is not the same thing that Amazon is doing."

Still, Goldman Sachs analysts wrote that UPS and FedEx shouldn't be totally complacent — as they're likely to lose more and more business as Amazon continues to move its operations in-house. "Amazon is definitely a concern for the incumbent express companies as Amazon has brought more of its transportation service requirements in-house (distribution facilities and aircraft)," they wrote.

Here's the full chart from Goldman Sachs on where and how much Amazon would need to invest to catch up to UPS and FedEx:

SEE ALSO: The pilots who fly your Amazon packages say working conditions are unsafe, and it's a medical risk

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McAfee is planning a return to Wall Street as 2019's IPO frenzy continues

Wed, 07/10/2019 - 4:14pm

  • McAfee is readying an IPO that could come as soon as this year.
  • The company's return to public markets could raise at least $1 billion, according to a Wall Street Journal report.
  • The company would add to this year's above-average number of tech IPOs.
  • Founder John McAfee made headlines in 2012 after avoiding police questioning in connection to the suspected murder of his neighbor. 
  • Visit the Markets Insider homepage for more stories.

McAfee is preparing a return to the public market after boosting cash flows under CEO Chris Young, according to the Wall Street Journal.

The company's owners are meeting with bankers this week to consider an initial public offering as early as this year. The IPO could raise at least $1 billion and value McAfee at more than $5 billion, the WSJ said.

This year has already been uniquely popular for tech IPOs. The first half of 2019 yielded the highest volume in a comparable period for such offerings in nearly two decades, according to Dealogic. Companies similar to McAfee are enjoying a period of investor interest, with the ETFMG Prime Cyber Security ETF outperforming the S&P 500 by roughly four percentage points so far this year.

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McAfee bolstered cash flows through acquisitions and changes to its business strategy under it's current leadership, according to the WSJ. The company purchased cloud-security provider Skyhigh Networks and VPN company TunnelBear in 2018.  

McAfee first went public in 1999 and remained on markets until Intel bought it in 2011 for $7.5 billion. The cybersecurity-software giant was valued at $2.15 when private-equity firm TPG took a 51% stake in 2016.

The company is named after its founder, John McAfee, and a return to Wall Street may remind some of the headlines he made in 2012.

After leaving the company in 1994 to move to Belize, McAfee fled to Guatemala to avoid law enforcement looking to question him regarding the suspected murder of his neighbor. The company's founder maintained his innocence and was deported to the US, with Belize declining to ask for his extradition.

Join the conversation about this story »

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Registered sex offender Jeffrey Epstein and Harvey Weinstein were part of a group that made a failed $45 million attempt to buy New York Magazine in the 2000s

Wed, 07/10/2019 - 3:19pm

Jeffrey Epstein, the financier charged with sex trafficking, made his fortune managing the fortunes of billionaires. But in 2003 and 2004, during the same time prosecutors say he was paying underage girls for sex, Epstein also tried to establish himself as a media mogul — twice.

Epstein, now 66, was part of a group that made an unsuccessful bid to purchase New York Magazine in 2003, The New York Times reported at the time. Former advertising executive Donny Deutsch, investor Nelson Peltz, U.S. News & World Report owner Mortimer Zuckerman, and Harvey Weinstein were also members of that group.

According to The New York Times, the group bid $45 million for the magazine, but investment banker Bruce Wasserstein outbid them by $10 million. The group, led by Zuckerman, blamed their loss on the rules of the auction.

"We made it clear that we were willing to put more money on the table,'' Zuckerman told The New York Times in 2003, ''but after they had a handshake, they were not willing to entertain other offers.''

The New York Times wrote that the motives behind the bid were "ego, power and cachet."

And that was not Epstein's only attempt to enter the media business. In 2004, Epstein and Zuckerman invested $25 million in pop-culture focused Radar Magazine, according to The New York Times. Epstein and Zuckerman became equal partners in the company. Radar's founder and editor-in-chief Maer Roshan kept a minority stake. The trio told The New York Times that they thought the magazine would appeal to trendy urban singles.

"I always focus on the potential downside of an investment," Epstein told The New York Times in 2004, "and I don't think this is something that is going to lose money."

Read more: How Jeffrey Epstein, the mysterious hedge-fund manager arrested on sex-trafficking charges, made his fortune

Under their leadership, the celebrity news magazine went from publishing in print bi-monthly to every month but continued to struggle. Radar stopped publishing a print magazine in 2008. That same year, Radar was sold to American Media, Inc., which still publishes an online edition.

Epstein made most of his fortune as a hedge-fund manager, Business Insider previously reported. After spending a decade at Bear Sterns, he launched his own investment firm that he claimed only catered to billionaires. L Brands CEO Les Wexner was his only confirmed client.

Epstein was arrested on charges of sex trafficking in New Jersey on July 6, and pleaded not guilty on July 8. Prosecutors said that, from 2002 to 2005, Epstein lured girls as young as 14 into his homes and paid them for massages that became increasingly sexual in nature. Business Insider previously reported that Epstein served 13 months in prison after confessing to felony sexual solicitation of underage girls.

In March 2018, Business Insider reported that New York Police charged Weinstein with rape, criminal sex conduct act, sex abuse, and sexual misconduct against two women, following over 70 accusations of sexual misconduct.

SEE ALSO: The famous connections of Jeffrey Epstein, the elite wealth manager charged with sex trafficking young girls

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More $10-plus billion companies have gone public in 2019 than at the height of the dot-com tech bubble. Here’s how their businesses compare.

Wed, 07/10/2019 - 2:57pm

Silicon Valley's bubble may not be ready to burst — but if history is any indication, it may very well have started deflating.

According to a new report in The Wall Street Journal, more private venture-backed companies valued at $10 billion or more, dubbed "decacorns," have gone public in the first half of 2019 than any other time since the height of the great dot-com bubble in 2000. 

Companies like Lyft, Uber, Pinterest, Zoom, CrowdStrike, and Chewy have already raised billions in respective IPOs over the last six months. For comparison, 2000 saw more than 75 blockbuster IPOs in the same time period.

Read More: POWER PLAYERS: Meet the 9 executives helping Silicon Valley's biggest corporate venture capital funds pump billions into tech startups

Of course, history doesn't always repeat itself — it doesn't necessarily follow that just because the great IPO rush of 2000 presaged the end of a bubble, we'll see a similar trend play out in 2019. Still, it's hard to avoid a feeling of deja vu: In 2000, we had Pets.com, the ill-fated online pet store; in 2019, we have Chewy.

So we looked back at the decacorns of 2000 to see how today's tech giants stack up.

SEE ALSO: This Brazilian immigrant CEO thinks that Silicon Valley investors need to do more to help customers outside America, even if their income is lower

In 2000, right before the dot-com bubble popped, pricey startups were going public at eye-popping valuations. Here’s a look at the companies with a $10 billion valuation or higher who went public that year.

Embarcadero Technologies

According to a Forbes report, enterprise software company Embarcadero Technologies was one of the few profitable companies to go public in 2000, and raised $42 million in its public debut. Pitchbook data indicates, the company was acquired by Thoma Bravo for $118.17 million in 2007 and taken private. Thoma Bravo sold the company to cloud software company Idera in 2015 for an undisclosed amount.



Pets.com

The online pet store Pets.com is commonly referred to as the poster child for the 2000 tech bubble and subsequent bust. The buzzy company was featured on morning talk shows and took out pricey Super Bowl ads before raising $82 million in its public offering. Just 268 days later, the startup filed for bankruptcy, citing that it had miscalculated shipping costs.



eFunds

The payments software provider raised more than $71 million in its June 2000 IPO, according to Pitchbook data. In 2007, the company was purchased by investments management giant Fidelity for $1.8 billion.



Sonus Networks

The network security company was one of the hottest IPOs of 2000, and was trading up more than 600% by August 2000 from its opening price of $23 per share. Fourteen years later, the company was purchased for just $2 million by surveillance hardware company Sunhillo and folded into its new parent company, according to Pitchbook data.



WebMethods

Enterprise software maker WebMethods was valued at $6.6 billion following its February 2000 IPO which raised more than $147 million, according to Pitchbook. The company wasn't profitable when it went public, and was scooped up in 2007 by German tech giant Software AG for $546 million.



Fast forward to today, and history may be repeating itself, as six startups worth $10 billion or more hit the public markets in the first half of 2019.

Lyft

Ride-hailing app Lyft went public in March just a few months ahead of competitor Uber but performed poorly during its first months of trading. As of Tuesday, Lyft shares were trading at $60.93, down from its IPO price of $72.



Pinterest

Pinterest was one of the few decacorns that priced its public offering cautiously and ended up with a public valuation below its last private round of funding. The $19 share price set the visual search site's valuation right at $10 billion. On Tuesday, shares were trading above its opening price at $26.72.



Zoom

Video conferencing software maker Zoom seems to be the sleeper hit of 2019's IPO boom, with shares currently trading more than $50 above its $36 opening share price. According to The Wall Street Journal, enterprise companies like Zoom may have piqued investor interest where consumer startups have struggled because there is an inherent path to profitability.



Uber

Popular ride-sharing app Uber went public in May under the leadership of CEO Dara Khosrowshahi, who took over for founder Travis Kalanick in 2017 after a series of leadership missteps and scandals. Kalanick was present on the trading floor for Uber's public debut in May that opened at $45 a share. On Tuesday, shares were trading at $43.65.



CrowdStrike

Cybersecurity startup CrowdStrike had yet to turn a profit before it raised more than $600 million in its June IPO. The startup was privately valued at $3.4 billion and included backers from some of Silicon Valley's biggest investors, such as Accel of Slack and Facebook fame, and Google's venture arm, CapitalG.



Chewy

Perhaps the best comparison to the old guard of unprofitable public tech companies, Chewy is an online store for pet products. Sound familiar? But unlike its predecessor Pets.com, Chewy is still going strong in the public markets after raising more than $1 billion in its debut in June.



How to withdraw money from PayPal and put it in another bank account

Wed, 07/10/2019 - 2:47pm

  • PayPal lets you withdraw money via bank transfer or paper check.
  • To store a balance in PayPal, and to receive a paper check, you need a PayPal Cash or PayPal Cash Plus account.
  • When requesting your PayPal balance be transferred to your bank account, you can choose an instant transfer (for a fee) or a standard transfer, which can take longer.
  • Visit Business Insider's homepage for more stories.

When I used to sell items on Etsy and eBay, I was always thankful for PayPal. It was such as easy way to receive money — not to mention spend it on something else.

PayPal is one of the largest electronic funds transfer companies today, and it works with everyone from online merchants making sales to friends and family who want to send cash to each other. What's more, it provides a safe way to conduct transactions — no doubt you've been paid by freelance clients or used it yourself when checking out online.

You have two options when withdrawing money from PayPal: a bank transfer or a paper check in the mail. Either of these options will work, but a paper check in the mail could take more time to arrive, and you may need to pay fees.

Note that since the spring of 2019, PayPal requires users who want to store money in their PayPal account to have a PayPal Cash or PayPal Cash Plus Account (the latter offers a debit card and the ability to deposit checks). Users who don't want to store money — they just want PayPal to facilitate purchases through a credit card, for instance — don't need a PayPal Cash Account.

If you opened a PayPal account before March 29, 2019, you can switch over to this type of account to keep and use your balance from PayPal. To convert your account, select the "Keep it in PayPal" option when you receive funds and and follow the prompts.

Below, we'll go through the steps to transfer your money to a bank. If you'd prefer a paper check, skip to step five.

How to withdraw money from PayPal 1. Choose between an instant and standard bank transfer

There are two different transfer speeds to transfer to a bank account: instant and standard. The instant transfer option charges 1% of your balance transfer with a maximum of $10 per transaction, and you'll receive your funds in around 30 minutes. The standard option is free to use, but will take up to one business day.

2. Link a bank account to your PayPal account

Once you log into your PayPal account, click on the link "Money" then "Link new bank." Select from the list of banks provided or click on "I have a different bank" if you don't see it listed.

Then, select the type of account — checking or savings — and enter your account information. You'll need to wait for PayPal to confirm your bank account before you can withdraw money.

3. Confirm your bank account

PayPal will confirm your bank account by sending two tiny deposits, no more than $0.99. Check your bank account after two to three business days to see your PayPal deposits, then log into your PayPal account to confirm these amounts.

To do so, click on "Money" after logging into PayPal, then click on the bank account you want to confirm. Enter the amounts of the two deposits that were made.

4. Make a transfer

To transfer money to your bank account, click on "Withdraw Money" right by your PayPal balance. Choose if you want to make an instant or standard transfer — only qualifying bank accounts can opt for instant transfer, and you should be able to see if yours is eligible.

Once you select which bank account will receive your money, select the amount you want transferred. Review your request, then click "transfer." Your money should arrive within 30 minutes if you made an instant transfer and within one business day if you made a standard transfer.

There may be delays if PayPal encounters any issues with your transfer. For instance, PayPal might need to verify recent changes you've made in your settings, it might need to look twice if you're receiving an unusually high amount of money, or it might need to be extra cautious if you logged in from an unsecured network. Also, if you requested a transfer on weekend, holiday, or after 7 p.m. EST, then your transfer could take longer.

5. Request a check

To request a check, log into your PayPal account and on your summary page, click "Accept the Money" if you don't have a PayPal Cash or PayPal Cash Plus account. If you do, click on "Transfer Money."

Then, click on "Request a check by mail." Select the amount you want withdrawn, fill in your mailing address information, and submit the request once you've reviewed and confirmed your transaction request.

You may be charged a fee for this option, so check PayPal's updated fee list to see how much you could pay.

Related coverage from How to Do Everything: Money

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Beyond Bitcoin: Here are some of the new use cases for distributed ledger technology

Tue, 07/09/2019 - 6:30pm

This is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here.

Of the many technologies reshaping the world economy, distributed ledger technologies (DLTs) are among the most hyped. DLTs are most often associated with cryptocurrencies like Bitcoin, but such coverage sidelines the broader use cases of DLTs, even though they stand to make a far bigger impact on the broader the financial services (FS) industry.

DLT's value lies in its ability to centralize record-keeping, while cutting out the need for authorization by an overseeing party, instead allowing a record to be confirmed by multiple parties with access to the database. This means DLTs have the potential to streamline financial institutions' (FIs) operations, boost data security, improve customer relationships, and drastically cut costs. But many FIs have struggled to implement DLTs and reap the rewards, because of organizational obstacles, but also because of issues rooted in the technology itself. There are a few players working to make the technology more usable for FIs, and progress is now being made.

In a new report, Business Insider Intelligence takes a look at what DLTs are and why they hold so much promise for FS, the sectors in which DLTs are gaining the most traction and why, and the efforts underway to remove the obstacles preventing wider DLT adoption in finance. It also examines the few FIs close to unleashing their DLT projects, and how DLTs might transform the nature of FS if adoption truly takes off. 

Here are some of the key takeaways from the report:

  • DLTs are proving attractive to FIs because of their ability to act as a single source of truth, distribute information securely, cut out middlemen, improve transaction times, and cut redundancy and costs.
  • DLTs like blockchain and smart contracts stand to save the FS industry up to $50 billion a year through improved operational efficiencies, reduced human error, and better regulatory compliance. 
  • The technology is being explored actively across FS, with trade finance, insurance, and capital markets proving especially active. Overall adoption is still low because of organizational and technical hurdles, but these are now being eliminated, promising to boost implementation.
  • A few FIs have pulled ahead of the curve and are very close to taking their DLT projects live, if they haven't already. These players can serve as useful case studies for other institutions in getting their DLT solutions live.

In full, the report:

  • Looks at what DLTs are, and why the FS industry is working hard to make use of them. 
  • Gives an overview of the financial segments which are seeing the most DLT activity, and what they stand to gain.
  • Outlines efforts being made to make DLT more approachable and usable for the FS industry.
  • Examines use cases in which FIs have managed to take their pilots live, and what they can teach their peers. 
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A high-yield savings account helps money earn up to 200 times more, and there are 5 times using one is a no-brainer

Tue, 07/09/2019 - 5:14pm

I don't know about you, but I like to reward myself for saving money toward specific goals. No, not by spending it — by putting it in a place where my money gains value, or at the very least doesn't lose value, over time.

Because I also want my money to be easy to access — and more secure than in my sock drawer — I use a high-yield savings account for most of my non-retirement savings. These accounts offer interest rates up to 200 times higher than a checking account or traditional savings account, which means money in a high-yield savings account is, minimally, keeping up with inflation.

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Dozens of banks offer high-yield savings accounts with varying annual percentage rates (APY) for different balance amounts, some as high as 2.3%. That means an account with $10,000 could turn into $10,230 in 12 months, if left untouched. With consistent contributions, it would earn even more. 

Most financial planners recommend storing money for short-term goals in high-yield savings accounts because there's zero risk of losing money and it's easily accessible. Here are a few goals you may be better off saving for in a high-yield account than anywhere else:

1. Emergency fund

You should be able to access your emergency fund in a pinch. Whether your car breaks down, you get laid off, or Fido makes an unexpected trip to the vet, a high-yield savings account is a good choice for keeping money within arm's reach.

Most high-yield savings accounts allow up to six withdrawals per month, just like a regular savings account, but higher interest rates will help your money continue growing until the inevitable emergency arises.

!function(){function e(){var e=document.createElement("script"),n=document.getElementById("myFinance-widget-script"),a=t+"static/widget/myFinance.js";e.type="text/javascript",e.async=!0,e.src=a,n.parentNode.insertBefore(e,n);var c="myFinance-widget-css";if(!document.getElementById(c)){var d=document.getElementsByTagName("head")[0],i=document.createElement("link");i.id=c,i.rel="stylesheet",i.type="text/css",i.href=t+"static/widget/myFinance.css",i.media="all",d.appendChild(i)}}var t="https://www.myfinance.com/";document.attachEvent?document.attachEvent("onreadystatechange",function(){"complete"===document.readyState&&e()}):document.addEventListener("DOMContentLoaded",e,!1)}(); 2. Down payment fund

The stock market has the potential to earn you the biggest returns on your money, but it's never guaranteed. A loss can take years to correct itself and you don't want the money you've been squirreling away for one of the biggest purchases of your life to be gone in an instant. 

"Steer away from holding your money in something that would not be available when you may need it," Molly Stanifer, a certified financial planner and financial adviser with Old Peak Finance, told Business Insider. "It's better to give up expected investment return to have the money available when you want to buy your house than to miss out because you invested too aggressively, or your money is not liquid."

If you're planning to buy a home within two years, try directing your savings into a high-yield savings account, perhaps at a different bank than your checking account. It'll make it easier to compartmentalize your goals — a budgeting strategy financial planners call "bucketing."

3. Travel fund

Most of us don't plan for travel more than several months to a year in advance. Whether it's a soul-searching trip through Europe or a spontaneous weekend getaway, travel is typically a short-term need. A high-yield savings account dedicated to travel — that's earning interest, to boot — can be there when you need it. 

!function(){function e(){var e=document.createElement("script"),n=document.getElementById("myFinance-widget-script"),a=t+"static/widget/myFinance.js";e.type="text/javascript",e.async=!0,e.src=a,n.parentNode.insertBefore(e,n);var c="myFinance-widget-css";if(!document.getElementById(c)){var d=document.getElementsByTagName("head")[0],i=document.createElement("link");i.id=c,i.rel="stylesheet",i.type="text/css",i.href=t+"static/widget/myFinance.css",i.media="all",d.appendChild(i)}}var t="https://www.myfinance.com/";document.attachEvent?document.attachEvent("onreadystatechange",function(){"complete"===document.readyState&&e()}):document.addEventListener("DOMContentLoaded",e,!1)}(); 4. Wedding fund

Saving for a wedding is another reason to use the "bucketing" method. If you're planning a long engagement and know the wedding will cost a pretty penny, consider storing the cash in a specific and dedicated savings account that you can pull from sporadically to buy the dress, or pay the photographer, florist, and caterer.

5. Fun money

If you really want to reward yourself, consider putting your "just for fun" money in a high-yield savings account. It's separate from your checking account, so you don't run the risk of spending money that's supposed to be for rent and bills on a last-minute festival ticket. Plus, the withdrawal limit can act like a safety valve against your own temptations to spend.

Looking for a new savings account? Consider these offers from our partners:

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Levi Strauss sinks after missing profit estimates, blames the cost of its recent IPO (LEVI)

Tue, 07/09/2019 - 4:57pm

  • Levi Strauss & Co. reported second quarter earnings Tuesday that missed profit expectations but beat on revenue. 
  • Shares of the retailer slid more than 6% in aftermarket trading on the news. 
  • The company said the cost of its March IPO ate away at its bottom line.
  • Watch Levi's trade live on Markets Insider

Levi Strauss & Co.'s earnings have taken a hit from its costly public listing. 

Shares of Levi Strauss & Co sank more than 6% after the close of trading Tuesday, when the company reported second quarter earnings. The results missed analyst expectations on earnings per share, but beat on revenue. The company attributed the lower income to the $29 million cost associated with its initial public offering in March, as well as higher advertising costs.

Here's what the company reported versus what analysts surveyed by Bloomberg expected: 

Adjusted earnings per share: $0.07 reported versus $0.12 (expected)

Revenue: $1.3 billion reported versus $1.29 billion (expected)

The company returned to the public market after a three-decade absence. In its filing to the SEC in February, it stated that it intends to increase its focus from jeans to other categories such as footwear and outerwear. It also said that it believed it had a "long runway for growth in both our tops and the women's categories," according to the filing. 

In the second quarter ant first half of the year, "the Levi's brand grew in all three regions across men's, women's, tops and bottoms and maintained its position at the center of culture through iconic products and consumer experiences," said Chip Bergh, the CEO of Levi's in a press release

Net revenues increased across all regions— 3% in the Americas, 9% in Europe, and 6% in Asia. The company also grew it's direct-to-consumer business revenues 9% by adding 78 stores and boosting its e-commerce. 

The company did not adjust its annual guidance for fiscal 2019. The company expects net revenue growth in the mid-single digit range, and a slightly higher adjusted EBIT margin. Levi's also noted that because the timing of its fiscal year ends on the last Sunday in November, 2019 will not have a Black Friday. This is an issue because the day usually boost net revenues by half a point. 

Shares of Levi's were up 3.5% through Tuesday's close. 

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LeBron James has a wild collection of unique and expensive cars — see 13 of the most prolific vehicles in his garage

Tue, 07/09/2019 - 4:11pm

  • LeBron James is one of the most accomplished athletes of his time.
  • The three-time NBA champion has had a storied career in the league so far, and his success has allowed him to indulge in some of his favorite hobbies, like collecting cars. His glamorous collection includes a 1975 Chevy Impala and a custom Lamborghini Aventador.
  • Visit Business Insider's homepage for more stories.

LeBron James has been called one of the greatest athletes of all time and has the car collection to show for it.

It's no surprise given the shelf of awards he has received during his 16 years (and counting) in the NBA, including two Olympic gold medals, three NBA championships, and four NBA MVP Awards.

These accomplishments, along with his various endorsements and other business ventures, have earned James some large paychecks. In 2018, Forbes estimated James' net worth to be roughly $450 million. Here's the car collection he's spending some of that money on.

1975 Chevy Impala

LeBron James respects the classics, including his fully restored 1975 Chevy Impala convertible. The original MSRP for a 4-door version of the car in 1975 was $4,215. The list price for the 2020 model is $31,620.

Source: Complex and Hot Cars



Bentley Continental GT

James' all-white Continental GT was reportedly once noted as one of his favorite cars in his collection. The MSRP for the 2018 model was $218,400.

Source: Complex and Hot Cars



2010 Chevy Camaro SS

LeBron's customized Chevy Camaro is matte white with matching wheels. The MSRP for a 2019 Camaro starts at $25,000.

Source: Complex and Hot Cars



Dodge Challenger SRT

LeBron's Dodge Challenger was reportedly painted silver with blue stripes in support of his favorite football team, the Dallas Cowboys.

A base model 2019 Dodge Challenger starts at $28,095, but can climb as high as $77,945 for the 2019 SRT Hellcat Redeye Widebody model.

Source: Complex, Unbalanced, and Hot Cars



Ferrari 599

The Ferrari 599 is one of three Ferraris LeBron owns. Production of this model ran from 2006 to 2012. The base MSRP for a new model at the time was $310,543.

Source: Complex



Ferrari F430 Spider

LeBron James and his Ferrari F430 Spider was featured in a 2008 episode of "Unique Whips," a television show about celebrities and their cars. The vehicle was customized to fit LeBron's 6'8" frame.

The MSRP for a convertible model in 2009 was $217,310.

Source: Complex



Ferrari 458 Spider

The F430 isn't the only Ferrari Spider LeBron James owns. The convertible's list price for the most recent model in 2015 was $245,000 at its release.

Source: Super Cars Corner and Auto Evolution



2015 Kia K900

LeBron was a Kia Motors luxury ambassador, but claims to have been driving the Kia K900 since before he partnered with the brand. The list price for the most recent model in 2015 was $60,000 at the time of its release.

Source: Kia



Lamborghini Aventador Roadster

King James reportedly spent $670,000 on his custom Lamborghini Aventador. James had the car wrapped to match one of his lines of Nike kicks, the LeBron James X1 "King's Pride" floral shoes.

The base price for a 2019 Aventador S Roadster is a cool $460,247.

Source: Bleacher Report



Mercedes-Benz Maybach 57 S

The Mercedes-Benz Maybach 57 S LeBron owns reportedly has a license plate that reads "KNG OF OH," paying homage to his time with the Cleveland Cavaliers.

The list price of the most recent model in 2012 was $376,300.

Source: Complex



2018 Maybach S650

The 57S isn't the only Maybach LeBron owns. His S650 has made several appearances on his personal Twitter account. The base price of the 2018 Maybach 650 was $198,700.

Source: Hot Cars and USA Today



Porsche 911 Turbo S

Fellow basketball star Dwayne Wade gave the public a peek into his and James' car collection when he posted a picture of their Porsche 911 Turbo S vehicles side-by-side. The base price for a 2019 model is $190,700.

Source: Complex and Instagram



Rolls-Royce Phantom

LeBron James' Rolls-Royce Phantom was reportedly a 2009 birthday gift from Shaquille O'Neal. The base price of the most recent 2019 model is $450,000.

Source: Complex and Huffpost



THE IDENTITY VERIFICATION IN BANKING REPORT: How banks should use new authentication methods to boost conversions and keep their customers loyal

Tue, 07/09/2019 - 4:05pm

This is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here.

The way incumbent banks onboard and verify the identities of their customers online is inconvenient and insecure, resulting in lowered customer satisfaction and loyalty, and security breaches leading to compensation payouts and legal costs.

It’s a lose-lose situation, as consumers become disgruntled and banks lose business. The problem stems from the very strict verification standards and high noncompliance fines that banks are subject to, which have led them to prioritize stringency over user experience in verification. At the same time, this approach doesn't gain banks much, since the verification methods they use to remain compliant can actually end up compromising customers' personal data.

But banks can't afford to prioritize stringent verification at the cost of user experience anymore. Onboarding and verification standards are increasingly being set by more tech-savvy players within and outside their industry, like fintechs and e-retailers. If banks want to keep customers loyal, they have to start innovating in this area. The trick is to streamline verification for clients without compromising accuracy. If banks manage to do this, the result will be happier and more loyal customers; higher client retention and revenue; and less spending on redundant checks, compensation for breaches, and regulatory fines.

The long-term opportunity such innovation presents is even bigger. Banks are already experts in vouching for people’s identities, and because they’re held to such tight verification standards, their testimonies are universally trusted. So, if banks figure out how to successfully digitize customer identification, this could help them not only boost revenue and cut costs, but secure a place for themselves in an emerging platform economy, where online identities will be key to carrying out transactions. 

Here are some of the key takeaways from the report:

  • The strict verification standards that banks are held to have led them to create onboarding and login processes that are painful for clients. Plus, the verification methods they use to remain compliant can actually end up putting customers' personal data at risk. This leaves banks with dented customer satisfaction, as well as security breaches and legal costs.
  • Several factors are now pushing banks to attempt to remedy the situation, including a tougher regulatory environment and increasing competition from agile startups and tech giants like Google, Amazon, and Facebook, where speedy onboarding and intuitive service is a given.
  • The trick is to streamline verification for clients without compromising accuracy, something several emerging technologies promise to deliver, including biometrics, optical character recognition (OCR) technology, cryptography, secure video links, and blockchain and distributed ledger technology (DLT). 
  • The long-term opportunity such innovation presents is even bigger. Banks are already experts in vouching for people’s identities, so if they were to figure out how to successfully digitize customer identification, this could help them secure a valued place, and relevance, in a modernizing economy.

In full, the report:

  • Looks at why identity verification is so integral to banking, and why it's becoming a problem for banks.
  • Outlines the biggest drivers pushing banks to revamp their verification methods.
  • Gives an overview of the technologies, both new and established but repurposed, that are enabling banks to bring their verification methods into the digital age.
  • Discusses what next steps have to happen to bring about meaningful change in the identity verification space, and how banks can capitalize on their existing strengths to make such shifts happen.
Subscribe to an All-Access pass to Business Insider Intelligence and gain immediate access to: This report and more than 250 other expertly researched reports Access to all future reports and daily newsletters Forecasts of new and emerging technologies in your industry And more! Learn More

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A midair engine failure led a Delta flight to make an emergency landing (DAL)

Tue, 07/09/2019 - 4:00pm

  • A Delta flight from Atlanta to Baltimore made an emergency landing in Raleigh, North Carolina, on Monday after an engine appeared to fail midflight.
  • Video on Twitter appears to show flames within the engine, and users who say they were on the flight describe a smoke-filled cabin and professional crew members who helped keep everyone calm.
  • There were 148 passengers aboard the MD-88 aircraft.
  • Visit Business Insider's homepage for more stories.

A Delta flight from Atlanta to Baltimore was forced to make an emergency landing on Monday after one of its engines failed in midflight, the airline confirmed to Business Insider. 

The flight, DL 1425, had a total of 148 passengers and six crew on board, according to The Aviation Herald. It diverted to Raleigh-Durham International Airport in North Carolina and landed safely. 

The MD-88 aircraft was over Virginia about an hour into its nearly two-hour scheduled flight time when it was forced to turn around, according to data from the flight-tracking website Flightradar24.

Tweet Embed:
//twitter.com/mims/statuses/1148331148168355846?ref_src=twsrc%5Etfw
When you hear an loud bang and they tell you over the intercom that "we lost an engine", you'd expect complete chaos on the plane but the crew was so calm and the pilots did an amazing job. #GodisGood

 

Initially, a spokesperson for Delta characterized the incident as minor and the diversion as precautionary, but has since confirmed to Business Insider that the plane's left engine failed.

Several social-media users posted video that shows what appears to be an orange glow from heat or flames. Business Insider has not been able to verify that the videos are authentic.

Delta confirmed on Tuesday that there was a "maintenance issue" with the left engine, which can be characterized as an engine failure. A spokesperson for the airline said the engine was replaced and the faulty engine would be inspected by maintenance specialists.

The airline's initial statement read:

The flight crew of Delta flight 1425 from Atlanta to Baltimore elected to divert to Raleigh, N.C. out of an abundance of caution after receiving an indication of a possible issue with one of the aircraft's engines. The flight landed without incident and customers will be reaccommodated on an alternate aircraft. We apologize to our customers for the inconvenience this diversion may have caused.

SEE ALSO: American Airlines made a doctor wrap a blanket around herself because a flight attendant found her summer outfit 'inappropriate'

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US Customs just seized a ship owned by JPMorgan after authorities found $1 billion worth of drugs on it

Tue, 07/09/2019 - 3:30pm

  • Federal prosecutors in Philadelphia have seized a container ship operated by the Mediterranean Shipping Co. and owned by JPMorgan Asset Management.
  • That came weeks after authorities found more than $1 billion worth of cocaine on the vessel in what was one of the largest drug busts in American history. 
  • At least a half a dozen crew members have been arrested, according to Homeland Security Investigations, and the investigation is ongoing.
  • Visit Markets Insider for more stories.

Federal prosecutors in Philadelphia have seized a container ship operated by the Mediterranean Shipping Co., weeks after authorities found more than $1 billion worth of cocaine on the vessel in what was one of the largest drug busts in American history. 

US Customs and Border Protection seized the ship on July 4, a statement out Monday said. The ship is owned by client assets in a maritime strategy offered by JPMorgan Asset Management, according to a person familiar with the matter. It is operated by the Switzerland-based MSC. 

On June 18, CBP agents found 39,525 pounds of cocaine stashed in several containers on the MSC Gayane at the Philadelphia seaport. The street value of the drugs was estimated at about $1.3 billion, making it the largest cocaine seizure by the agency. 

"A seizure of a vessel this massive is complicated and unprecedented – but it is appropriate because the circumstances here are also unprecedented," said US Attorney William McSwain. "We found nearly 20 tons of cocaine hidden on this ship."

At least a half a dozen crew members have been arrested, according to Homeland Security Investigations, and the investigation is ongoing. Charges included conspiracy to possess cocaine aboard a ship.

The Gayane sailed under the flag of Liberia and had previously traveled through the Bahamas and several South American countries, according to an online ship tracker

JPMorgan declined to comment. Mediterranean Shipping Co. did not immediately respond to an email inquiry.

SEE ALSO: A toddler has died after falling 11 stories from a Royal Caribbean cruise ship

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Bridgewater's Ray Dalio struggled with finding his successor. For billionaire hedge funders, it's a growing concern.

Tue, 07/09/2019 - 3:26pm

  • Big names like David Tepper and Leon Cooperman have opted to close their hedge funds instead of transitioning their business to new management, but investors see more and more founders planning for their funds to live on without them. 
  • Fund managers have built teams that invest across asset classes, which reduces reliance on the trading acumen of a single person.
  • Succession planning can be harder than it looks. Bridgewater founder Ray Dalio told Business Insider he was stunned by the amount of work it took and shared what he learned about the process. 
  • Click here for more BI Prime stories.

Hedge funds have long been nearly synonymous with their founders' strategies and personalities, but investors are now looking closely at firms' plans to carry on without their creators at the helm.

Investors say more and more funds should be able to survive a leadership transition. But Ray Dalio, founder and cochief investment officer of Bridgewater, the world's largest hedge fund, told Business Insider it was hard for him to pinpoint how long his succession planning would take. 

"When I began my succession process, I thought it was going to take me probably about two years. But when I say I thought that, I also knew not to believe that," said Dalio on a recent episode of Business Insider's "This Is Success" podcast.

As founders age and the hedge fund industry matures, succession planning is a critical question for investors and potential fund employees. Many of the biggest funds have evolved beyond simply managing one portfolio and now offer a range of services, which makes it more plausible for a successor to take charge. 

"They're companies, they're small corporations, they're not one PM with an analyst running a single portfolio," said Darren Wolf, Americas head of alternative strategies at Aberdeen Standard Investments. "They're set up to be evergreen structures way beyond a single PM."

See more: Billionaire investor Stanley Druckenmiller says there should be only '200 or 300' hedge funds, not thousands — and he expects a culling of the herd

What remains unclear is exactly which fund managers will want their company to live on after they're done working.

Several big-name managers opted to close shop in the last 18 months instead of turning over to a longtime lieutenant. Billionaires David Tepper of Appaloosa Management and Leon Cooperman of Omega Advisors are converting their funds into family offices. Jason Karp closed Tourbillion and is now helping with his wife's organic chocolate company. John Paulson closed his London office recently, and hinted last year that he was close to transitioning his hedge fund into a family office.

But there have been some succession success stories. Farallon Capital is back at the assets under management it reached before founder Tom Steyer stepped down in 2012. Dallas-based HBK Investments has been successful despite the firm's founder and namesake, Harlan B. Korenvaes, retiring in 2003. Large quant funds like Renaissance Technologies and D.E. Shaw have ceded day-to-day control to lieutenants while founders James Simons and David Shaw focus on research and other passions.

"An increasing number of hedge funds can absolutely handle a succession," said Joseph Burns, head of hedge fund due diligence for iCapital Network, because they are diversified asset managers with venture capital and private investment arms.

Still, giving up a business you started and grew isn't easy, something Dalio found out when he tried to transition out  role at Bridgewater, only to step back in when his replacement, Greg Jensen, was overloaded with top investment and management responsibilities.

Bridgewater is currently run by Co-CEOs David McCormick and Eileen Murray, while the Dalio, Jensen, and Bob Prince all share the CIO role.

'Go out and hire a replacement'

Legendary hedge fund manager Julian Robertson drew investors in because of his personality and strategy. Naming a successor for Tiger Management would have made a lot of existing investors uneasy, according to research from Sandy Gross at executive search and coaching firm Pinetum Partners, but the seeding of his proteges' funds let investors know who he backed without forcing them to make a decision about staying with Tiger under a new leader.

But more recently, Gross found in interviews with senior hedge fund personnel that mega-funds are expected to continue beyond the founder. One unnamed COO told Gross that "there is an expectation we live beyond our founders" today, and not close down just because the founder is ready to retire.

"There are plenty of geniuses on Wall Street, so it shouldn't be hard to go out and hire a replacement," an unnamed hedge fund CFO told Gross.

See more: A bunch of hedge fund managers featured in 'The Big Short' are among the casualties of Citadel's most recent cuts

Wolf said Aberdeen goes into hedge funds "wanting to be invested for a long time."

"We do a lot of due diligence before making an investment, so we want to amortize that time and cost across a long period of time," he said.

Well-known platforms like Point72, Millennium, and Citadel are inherently tied to their billionaire founders, but are made up of hundreds of investment teams and professionals who often operate autonomously. For investors, this structure is viewed as a strength.

"We don't like to see too much of the talent concentrated at the founder level," Wolf said.

Bridgewater's Dalio said that anyone thinking of going down the succession path to should allocate plenty of time. He figured the process would take two years, but gave himself 10, he said on the podcast.

"If you haven't done something three times before successfully, don't bet on your ability to do it," Dalio said. 

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Intel-owned Mobileye's CEO says the company is 'all-in on the global robo-taxi opportunity' (INTC)

Tue, 07/09/2019 - 2:36pm

  • Mobileye CEO Amnon Shashua published an op-ed on Tuesday in which he laid out the Intel-owned company's strategy for self-driving vehicles.
  • Shashua thinks robo-taxis are the most likely business application for autonomy as it's currently developing.
  • He also maintains that government regulation has been overlooked as self-driving businesses have matured.


A shakeout is commencing in the youthful world of self-driving cars.

It's a brave, new world barely a decade old. Alphabet's Waymo, formerly known as the Google Car project, is widely thought to have been attacking the problem the longest, starting in 2009 and beginning commercialization in 2018.

But Israel-based Mobileye has been at it for a decade longer. Founded in 1999, the company was acquired by Intel in 2017 for just over $15 billion.

Since then, founder and CEO Amnon Shashua has been expressing a rather broad view of mobility and autonomy. In an op-ed published at Intel's corporate website Tuesday, he summarized his perspective — and provided a major look ahead to how Mobileye and Intel intend to move forward.

Read more: Intel's Mobileye and the British government have found an unexpected way for self-driving data to improve infrastructure

At the moment, as Shashua points out, self-driving is about three distinct systems: driver-assist features; autonomous robo-taxis; and self-driving technology in individual cars. For Waymo, General Motors-owned Cruise, and increasingly, Tesla, the robo-taxi approach is shaping up to be the quickest means to bring autonomy to market. To this push, Shashua has added the need for companies to assess the regulatory framework, as governments move to oversee what has been essentially a large-scale science project.

"The auto industry is gradually realizing that autonomy must wait until regulation and technology reach equilibrium, even for limited use cases such as highway driving or level 3 complex hand-over scenarios in which the driver and car exchange control," Shashua writes.

"The best place to get this done is through the robotaxi phase."

The regulatory aspect

According to Shashua, "It will be easier to develop laws and regulations governing a fleet of robo-taxis than for privately owned vehicles." The key difference would entail licensing fleet operators, of which there will be few, versus adding self-driving evaluations to the existing licensing of millions of human drivers.

As a result, while Shashua and Mobileye don't contemplate abandoning the broad view, in terms of the shakeout, the company is "all-in on the global robotaxi opportunity," he writes.

"Our hands-on approach with as much of the process as possible enables us to maximize learnings from the robotaxi phase and be ready with the right solutions for automakers when the time is right for ... production passenger cars."

The major players in autonomous mobility are all hedging their bets, to a degree. Waymo has developed what it calls a "driver" — a suite of hardware and software that can be applied to everything from electric luxury cars to heavy trucks. Cruise aims to roll out a ride-hailing service in a clearly defined urban area, such as San Francisco, to maximize fleet usage and concentrate the business where the most customers are.

Mobileye has sought ancillary applications (including detailed maps) and to codify its regulatory expertise, while not rising so far above the fray that it misses out on good commercial opportunities. This is the thinking-person's strategy, but then again Shashua has spent more time thinking about the challenge of autonomy than just about anyone else.

And what's now clear to him is that while a lot of people might have dreamed of owning a car that can drive itself, they probably won't. The near-future belongs to the autonomous fleets.

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NOW WATCH: Amazon invested $700M into an electric vehicle startup. Here's how Rivian is doing exactly what Tesla isn't.

Here are the latest executive power moves that help explain everything that's going on at Revolut, Accenture, and DISH

Tue, 07/09/2019 - 2:33pm

  • Keeping an eye on major hires and promotions is one of the best ways to understand a company's strategy. 
  • The Org tracks executive changes at companies big and small. 
  • Here's a snapshot of the most important executive moves of the week across fintech and financial services.

Every week we bring you an overview of the most important executive changes from the past week.

This week, embattled fintech start-up Revolut hired Richard Davies as Chief Operating Officer to help reverse the company's recent setbacks. Read more about this and other notable executive changes.

Revolut hires Chief Operating Officer from TSB

Revolut, one of the biggest names in European fintech, has hired Richard Davies from TSB as Chief Operating Officer. Revolut has recently suffered a series of recent setbacks including questions over its money laundering controls and complaints from former employees about a toxic work culture.

Facebook's new Chief Revenue Officer named Chairman of Ad Council

David Fischer, Chief Revenue Officer of Facebook, has been named Chair of the Ad Council's Board of Directors. Ad Council is a non-profit organization that creates innovative social good campaigns to address many of the nation's most important causes. Fischer succeeds Linda Boff, Chief Marketing Officer of GE, and will serve in the role for one year.

Accenture names Domingo Mirón as CEO of financial services

Accenture has announced that Domingo Mirón will succeed Richard Lumb as group chief executive of financial services starting in September. Mirón currently serves as the group's chief operating officer where he is responsible for executing the business strategy and driving operational excellence. Lumb will retire from the company at the end of August.

CircleCI promotes three executives to continue global expansion

CircleCI, the leading platform for intelligent automation and delivery tools, has promoted three executives to continue product expansion globally and develop deeper data, insights and analytics capabilities. Chitra Balasubramanian has been promoted to Chief Financial Officer, Jane Kim becomes Chief Revenue Officer, and Erich Ziegler moves from VP Marketing to Chief Marketing Officer.

DISH Network has promoted Paul W. Orban to Chief Financial Officer

Paul Orban, a 23-year veteran of DISH, has been named Executive Vice President and Chief Financial Officer effective immediately. Orban has served as served as the company's Principal Financial Officer since Steve Swain stepped down as CFO in August 2018. Orban will continue reporting to DISH President and CEO Erik Carlson.

Christian Wylonis is the co-founder and CEO of The Org, where you can meet the people behind the world's most innovative companies, explore organizational charts, stay updated on team changes, and join your own company. 

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NOW WATCH: Nxivm leader Keith Raniere has been convicted. Here's what happened inside his sex-slave ring that recruited actresses and two billionaire heiresses.

7-Eleven is suspending its mobile payment feature after hackers stole $500,000 from Japanese consumers (XVG, BABA, TCEHY, LN)

Tue, 07/09/2019 - 2:15pm
  • This is an excerpt from a story delivered exclusively to Business Insider Intelligence Payments & Commerce subscribers.
  • To receive the full story plus other insights each morning, click here.

Hackers exploited a flaw in a mobile payment feature introduced by 7-Eleven Japan on July 1 to target 900 accounts and use them to make $500,000 in purchases, causing the retailer to shut down the program, according to The Verge.

The feature enabled in-store customers to scan a product's barcode and charge a credit or debit card they linked to their account. Hackers were able to access consumers' accounts because 7-Eleven's system allowed users to send an email to reset their password to an unlinked email address if they provided just their birthday, email, and phone number.

The retailer has responded by preventing consumers from registering for the feature or making payments through it, and it also intends to compensate affected users.

The hack has drawn the attention of Japan's Ministry of Economy, Trade, and Industry, which determined that 7-Eleven didn't follow the necessary processes to avoid unauthorized access to accounts, The Japan Times reports.

Mobile payment service operators are required to confirm the link between consumers' devices and the apps downloaded on them under guidelines set up by the Payments Japan Association, but 7-Eleven failed to do so. The ministry alerted other operators to avoid making the same mistake, which could mean it will take a greater interest in mobile payments services going forward and possibly enforce stricter standards.

If this hack leads to greater oversight from Japan's government, it could hinder the country's mobile payments market as it heats up.

  • A number of companies are working on mobile payments initiatives in Japan, where Prime Minister Shinzo Abe wants 40%of consumer payments to be cashless by 2025. This would be a significant increase from the 18% of transactions cashless methods accounted for in 2015, and with the country's QR code payment market alone projected to be worth 6 trillion yen ($55.2 billion) in 2023, Japan's transition to cashless is a valuable opportunity. That's why top industry players like Alibaba, Tencent, and Line have teamed up to create a unified QR code payment system in Japan, while WeChat Pay, Line, Google Pay, and Paytmhave made new payments plays in the country.
  • But the threat of heightened government involvement could slow the industry's development in Japan. If the government introduces stricter standards and takes a more hands-on role in mobile payments services, it could stifle innovation and investment in mobile payments. News of the government's concerns about mobile payments, combined with reports of the 7-Eleven hacks, might worry consumers and hurt adoption of mobile payments in Japan.

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Victoria’s Secret's parent company falls after its CEO's ties with Jeffrey Epstein resurface (LB)

Tue, 07/09/2019 - 2:09pm

  • L Brands CEO Les Wexner has ties to Jeffrey Epstein, the financier charged with sex trafficking.
  • While Wexner cut ties with Epstein years ago and has not been accused of any wrongdoing, L Brands shares declined on news of the charge.
  • Victoria's Secret has struggled to stay relevant to consumers in the #MeToo era. 
  • Watch L Brands trade live on Markets Insider.

Shares of L Brands slid as much as 5% on Tuesday as reports of ties between its CEO and Jeffrey Epstein — the financier charged with sex trafficking — came to light. 

Epstein was the money manager for L Brands CEO Les Wexner for years, and even bought his Manhattan mansion, Bloomberg reported on Monday. Court documents unsealed the same day revealed that federal prosecutors have charged Epstein with running a sex-trafficking operation. Wexner has not been accused of any wrongdoing.

Neither Wexner nor L Brands have spoken out about his prior connections with Epstein, with whom he has not been connected for more than a decade. Still, the ties between Epstein and Wexner are proving to be a drag on L Brands as it tries to reinvent its image to appeal to socially conscious consumers. 

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L Brands is the parent company of Bath & Body Works and Pink, as well as Victoria's Secret. The conglomerate has struggled to maintain the popularity of its Victoria's Secret brand, which used to be the most famous lingerie retailer in the US. Sales have plummeted as customers have grown disenchanted with the brand. Analysts have also grown skeptical of the company's future in the #MeToo era. 

It's taken its toll on the company. The lingerie company lost 9% of its market share in the US between 2015 and 2018. This year, Victoria's Secret has had said it will close 53 stores in North America, up from 30 store closings last year.

Pink, the brand focused on a younger demographic, has also struggled to keep its sales numbers afloat. Other brands such as American Eagle's Aerie have boosted their market share by being more inclusive and advocating for body-positivity. ThirdLove, another brand, has also become increasingly critical of Victoria's Secret. 

Shares of L Brands are up roughly 4% year-to-date.

Now read more markets coverage from Markets Insider and Business Insider:

The RealReal could be valued at $1.6 billion when it starts trading on Friday. Here's what you need to know about the used luxury goods startup's IPO.

Major US banks are the big winners as Deutsche Bank's business gets a massive shake-up

Acacia Communications skyrockets after Cisco announces plans to acquire the company (CSCO, ACIA)

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NOW WATCH: Nxivm leader Keith Raniere has been convicted. Here's what happened inside his sex-slave ring that recruited actresses and two billionaire heiresses.



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