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Al Jacobs invites you to take a look at his most recent book, Roadway to Prosperity, which embodies the heart of his nearly half-century in the investment business.  You'll find a wealth of information there.




My compliments to Elon Musk – Tesla, Inc. CEO, SpaceX chief executive and all-around entrepreneur.  He’s a mosr remarkable visionary. His recent address to the International Astronautical Congress in Adelaide, Australia, announcing his intention to begin spaceship construction within nine months, with regular flights of cargo and crews to Mars commencing within the next several years, certainly attracted attention. His conception of establishing a self-sustaining colony of at least a million people on the planet, thereby making humans a multiplanetary species, is inspiring.

You might note, those persons who choose to live on the Red Planet will find it somewhat less inviting than the French Rivera … or the island of Tahiti. Inasmuch as it’s some 48 million miles farther from the sun than is Earth, it’s a good bit cooler. With temperatures ranging from a high of about the freezing point of water to lows approaching –200°F, it’s considerably less hospitable than our South Pole, where the all-time record low on June 23, 1982, reached only –117°F. Obviously Mars is not a place you’ll enjoy leisurely Sunday strolls. For that matter, since its thin atmosphere is mostly carbon dioxide, you’ll not find it very breathable either. Exactly how the inhabitants Mr. Musk envisions will reside there can possibly function … or what they’ll do for a living … somehow escapes me.

Despite the challenges, the Mars project may thrive as well as Tesla. How a company which never produced a commercially viable vehicle, nor earned a dime in net revenue, propelled itself into the automotive forefront is a tribute to exalted promotion – a Musk specialty. Most certainly government, with its granting of credits and preferences, is the key to its achievement, with non-emission vehicles having joined the list of government-subsidized programs. As Amtrak and the Postal Service demonstrate, a losing operation can drag on unprofitably for years, subject only to political considerations.

A final thought: To survive, both Tesla and the Mars undertaking must at some point actually generate a profit. Humbug can only exist on PR hype and contrived obsession for so long. It must ultimately produce a saleable product before the public loses its fascination. As the late British Prime Minister Margaret Thatcher declared, “Eventually you run out of other peoples’ money.”




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