The Numbers That Make the Apple-Beats Deal Look Smart

A few data points may reveal why Apple is willing to pay big dollars to acquire Dr. Dre's Beats electronics.

May 16, 2014 at 10:05AM

Why does Apple (NASDAQ:AAPL) want to acquire Beats? That's the key question investors are asking as they digest the news that the company is in the final stages of negotiations to acquire the company for a staggering price tag of $3.2 billion. While the company's premium headphones business is certainly successful, Fool technology specialist Daniel Sparks thinks that Beats' new streaming music may also be one of the key reasons Apple wants to acquire the company.

What's so special about Beats Music? After all, the new streaming music service only boasts about 200,000 subscribers based on a recent estimate by Re/Code. That's a far cry from Apple's nearly 800 million iTunes accounts. The magic may be in Beats' success at convincing members to pay a premium dollar for the service.

In the video below, Daniel takes a look at leaked numbers that are allegedly internal numbers from Beats on the company's paying members. Daniel explains why the data suggests Beats Music may have a promising future.

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Daniel Sparks owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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