Hektor

Thanks for the reference to Fincantieri and the link, @Spekulatius. I agree the economics are better if a shipyard can serve defense and commercial. My current understanding is there are shipyards run by the Navy (I am not sure about this), and then there are the private ones like HII. I guess more business will shift from the Navy owned (if there is such a thing) yards to the private ones.

Thanks @Spekulatius. I doubt commercial ship building will return to the US. But, I feel the military needs would remain with US firms. I am not sure what opportunities exists based on the situation mentioned in the WSJ article.

Thanks @Saluki. My to do reading list lengthened after reading your post

+1

Thanks @Saluki Smith and Wesson might be part of a oligopoly. Would you consider the suppliers of Anduril to have a monopolistic or oligopolistic characteristics?

And, this can happen even when intrinsic value is unaffected or improving, I would assume.

Is this the beginning of opportunities for private ship/boat builders? https://www.wsj.com/us-news/u-s-navy-ships-are-languishing-in-repair-yards-e6358adf U.S. Navy Ships Are Languishing in Repair Yards President Trump has called attention to U.S. shortcomings in building new naval vessels. America is also struggling to fix the ships and submarines it already has. Limited dry dock capacity and aging equipment are also challenges. The problems reflect a lack of investment in public yards after the Cold War-era and a broader decline in the American maritime industry. Those issues are now coming into sharp relief amid a greater focus on naval preparedness. Naval experts are concerned that tardy or substandard work in repair yards will keep ships and submarines out of action during a potential war in Asia—a conflict expected to be fought in large part at sea. The Navy’s difficulties with ship repair increased in the 1990s, when the U.S. halved the number of public shipyards mandated to maintain nuclear aircraft carriers and submarines. The four remaining government-owned yards were set up over a century ago, designed to build wind- and steam-powered ships. They suffer from aging infrastructure, with more than half their equipment past its expected service life, according to the Government Accountability Office. A shortage of experienced workers is a major problem. With some shipyard welders earning roughly the same as fast-food workers, many have left the profession, according to a report by the Congressional Budget Office. Inexperience reduces productivity and increases accidents, adding to delays, the CBO said. To tackle the resulting backlogs, the U.S. needs to invest in more dry docks, naval experts say.

https://www.wsj.com/real-estate/luxury-homes/cable-cowboy-john-malone-is-selling-off-a-piece-of-his-massive-landholdings-51844d9a ‘Cable Cowboy’ John Malone Is Selling Off a Piece of His Massive Landholdings This sounds funny coming from the cable cowboy “The freedom of being out in open space without people telling you what you can and can’t do—and whether it’s camping or riding a horse, whatever it is, on a boat—is I think of vanishing value for all these poor kids that are living their life tethered to the internet living in a dense urban environment,” he said. “They’re just missing so much of what human existence used to be about.”

I doubt BRK (particularly with WEB around) would want all of Fairfax. They might go for some of the insurance subs, if offered.

@Spekulatius Curious, why sell so soon. From the release this morning, I feel they seem to be doing ok, given the environment.

Is this similar to a bridge loan - quickly fund but for the short term, while the borrower makes long term funding arrangements?

Is this the after effect of move fast and break things? Can they put Humpty together again

Does this mean something is (or was) brewing? https://www.washingtonpost.com/world/2025/07/09/canada-quebec-militia-armed-plot/ Canadian troops arrested in alleged plot to seize part of Québec The suspects are accused of stockpiling an extensive arsenal and conducting military-style training while building an anti-government militia, police said. Four Canadian residents, including active members of the country’s military, were arrested in an alleged armed plot to take over land in the Québec area, the Royal Canadian Mounted Police said Tuesday.

Thanks @xboojum @gfp @schin for the titbit about Dexter.

This need not mean that the federal government contractors are out of the woods. https://www.washingtonpost.com/politics/2025/07/07/veterans-affairs-layoffs-doge-cuts/ Veterans Affairs reverses course on large-scale layoffs The Department of Veterans Affairs said Monday that it will no longer be forced to conduct a large reduction in workforce, unlike several other federal agencies that were forced to make mass layoffs because of the Trump administration’s U.S. DOGE Service.

Thanks @xboojum

Good question. I had assumed that the cheaper competition eroded Dexter’s margin, making them less profitable. I asked ChatGPT and found this: Dexter Shoe Company, once a well-known American footwear brand, faced a combination of factors that contributed to its decline. Here's a breakdown of the main reasons for its failure: 1. Shifting Market Trends Rise of Athletic Shoes: As consumer preferences shifted toward athletic shoes (e.g., Nike, Adidas, Reebok), brands like Dexter, which had been known for traditional dress shoes, were left behind. Dexter was slow to adapt to these changing trends. Casualization of Fashion: In the 1990s, dress shoes became less popular as the casual dress trend gained traction. Dexter was primarily known for its formal and semi-formal shoes, which became less desirable as casual footwear options took over. 2. Branding and Image Problems Outdated Brand Identity: Dexter's brand was associated with old-fashioned, conservative styles. As fashion trends changed, the brand struggled to reinvent itself and stay relevant to a younger audience. Failure to Innovate: Unlike competitors that embraced technology or style innovation (e.g., introducing new materials or unique designs), Dexter's shoes were seen as boring and lacking innovation, which hurt its appeal. 3. Manufacturing Issues Production Costs and Location: Dexter relied heavily on domestic production, which was more expensive compared to competitors who outsourced manufacturing to countries with lower labor costs. As cheaper foreign-made shoes flooded the market, Dexter's higher-priced products couldn't compete. Quality Control Issues: Some consumers reported quality inconsistencies with Dexter shoes, which undermined the brand's reputation for durability and craftsmanship. 4. Management Missteps Lack of Adaptation to Retail Changes: The retail landscape was evolving, with the rise of discount retailers and the growth of e-commerce. Dexter was slow to adjust its retail strategy, which hurt its ability to compete with companies that embraced new selling platforms and direct-to-consumer models. Acquisition by Brown Shoe Company: Dexter was acquired by Brown Shoe Company (now known as Caleres) in the late 1980s. While this allowed Dexter to continue operating for a while, the larger corporate structure may have hindered the agility needed to respond to changing market conditions. 5. Competition The Rise of Discount Retailers: Brands like Payless, Walmart, and other discount shoe retailers grew in popularity, offering lower-priced alternatives to traditional, higher-end brands like Dexter. Consumers increasingly gravitated toward affordable options, which further hurt Dexter’s market share. Globalization and Foreign Competitors: The globalized footwear market allowed international brands (like those from Asia) to produce shoes more affordably, intensifying competition for American manufacturers like Dexter. 6. Poor Response to Consumer Preferences Lack of Trend Awareness: Dexter failed to recognize the rising demand for trendy, fashionable shoes and continued focusing on conservative designs that lacked broad appeal, especially among younger consumers. Not Targeting Emerging Demographics: They didn't effectively target newer consumer demographics, such as millennials and Gen X, who were more interested in casual and versatile footwear rather than traditional dress shoes. 7. The End of the Brand In the early 2000s, after struggling with declining sales and relevance, Dexter's brand eventually faded from the mainstream footwear market. Some of its assets were acquired by other companies, and its name is not as prominent today as it once was.

Their CEO has been making media rounds. He seems to be bullish of late, different from being defensive during the doge blood letting.

Competition from lower cost producers with Chinese operations, many be.

Thanks for the response @Spekulatius. How would one assess if/when the bleeding from doge has ceased?

Why BAH at this price? BTW, came across this on WSJ https://www.wsj.com/podcasts/wsj-the-future-of-everything/booz-allen-ceo-on-silicon-valleys-turn-to-defense-tech-we-need-everybody/9FB081A8-D126-43F8-8A58-F87396CCA1F7

https://www.afr.com/world/north-america/first-taco-now-twit-trump-will-inevitably-tank-the-economy-20250624-p5m9w3 Move over TACO. Here comes TWIT

https://www.ft.com/content/4fdac31f-e2ba-4635-ad9c-72299edce912 ‘If there’s one family that hasn’t profited off politics, it’s the Trump family,’ president’s son says in an interview