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Family investors turn to old-economy businesses to avoid AI disruption

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Family investors turn to old-economy businesses to avoid AI disruption

Fish farm nets on the East coast.

Shaunl | E+ | Getty Images

A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high net worth investor and consumer. Sign up to receive future editions, straight to your inbox.

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Equity Group Investments, backed by the family of late billionaire Sam Zell, owns a John Deere dealership, a bluefin tuna fishery and a pedestrian bridge that connects San Diego to Tijuana International Airport.

While those holdings sound entirely unrelated, what unites the private investment firm’s wide-ranging portfolio is a focus on old-economy businesses that are less susceptible to disruption from artificial intelligence and other technologies, according to EGI’s president, Mark Sotir.

“We tend to put our capital to work for a longer duration than most [private equity] firms. If you’re thinking out 10 years, 12 years, you have to start with picking a company in an industry that you know will be around,” he said. “That’s why we shy away from some tech and some startups. It’s not because we don’t like doing them. It’s just very hard for me to tell you where software is going to be 10 years out.”

The anti-AI trade gained steam on Wall Street earlier this year, dubbed “HALO” for “heavy assets, low obsolescence.” Family offices already employ the same strategy with private markets as they invest for generations and value the cash flow that often comes with old-economy businesses, according to Sotir. Economic uncertainty and tax reform has also made backing these asset-heavy companies more attractive.

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Asset-heavy businesses tend to deter traditional PE investors who are looking to buy and sell within three to seven years, giving family offices opportunities to acquire at a discount, according to Sotir.

“Everybody gets so enamored with asset-light, but I like to say, ‘If you’re paying an asset-light premium, then I’m not sure where the advantage is,’” he said.

The “one big beautiful bill” law also provided a boon to owners of these businesses by renewing bonus depreciation, enabling companies to deduct the full cost of qualifying assets like machinery or vehicles the first year they are used.

“It’s a very material change that can make a big difference in terms of the tax benefit,” said Brian Hans, who leads the tax efficiency strategists for UBS’ advanced planning group. “Family office clients are increasingly approaching investing in general with more proactive tax planning, looking at the after-tax return, calculating what the return from the investment is going to be, and factoring that in when making the decision to invest.”

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If the business is an active investment, the depreciation can be used to deduct against income on other active investments like stocks, Hans added. This is a sizable benefit for families that have highly appreciated stock holdings, he said.

Auto and equipment dealerships are ripe for taking advantage of bonus depreciation and check off other important boxes for families like reliable cash flow, according to Joe Mowery, head of dealership investment banking at Stephens.

“It’s very simple. They like a tax-advantaged income stream,” Mowery said.

While inflation and other economic trends can weigh on consumers’ ability to buy vehicles and equipment, the parts and service business is resilient and has high margins, according to Mowery.

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“It’s not a nice-to-have. It’s a must-have. You know, you got to get to work, you got to take the kids to school, whatever the case may be,” he said.

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Old-economy businesses aren’t immune to disruption, but they can come with geographic moats, limiting competition, according to Sotir. For instance, EGI owns John Deere and Kenworth dealerships. Thanks to the franchise terms, Sotir said he does not have to worry about another dealership of the same brand opening nearby.

As for EGI’s bluefin tuna fishing and farming business in Baja California, there are substantial barriers to entry due to quotas on fishing, according to Sotir.

EGI isn’t under pressure to deploy capital, unlike traditional PE firms, as it’s family backed, Sotir said, noting the firm typically makes one to two deals a year. Sotir said the firm is receiving more inbound queries from business owners who are pressured by tariffs, inflation and other factors.

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“The amount of uncertainty that people are dealing with has oddly turned into a benefit for us,” he said.

There are attractive opportunities in agriculture, with farms under tremendous stress, Sotir said. The challenges are real, such as the rising costs of fertilizer and fuel, but EGI can afford to wait for a payoff, he said.

“People are worried about the space, and that’s the perfect time for us to step in to buy,” he said. “Even if the value doesn’t come in the first two, three years, that’s okay, as long as we know it’s coming, because we’ve got that duration.”

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Russell 1000 And S&P 500 – Same Lane, Different Construction

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S&P 500 Snapshot: Index Inches Closer To Correction Territory

FTSE Russell is a leading global provider of index and benchmark solutions, spanning diverse asset classes and investment objectives. As a trusted investment partner we help investors make better-informed investment decisions, manage risk, and seize opportunities.Market participants look to us for our expertise in developing and managing global index solutions across asset classes. Asset owners, asset managers, ETF providers and investment banks choose FTSE Russell solutions to benchmark their investment performance and create investment funds, ETFs, structured products, and index-based derivatives. Our clients use our solutions for asset allocation, investment strategy analysis and risk management, and value us for our robust governance process and operational integrity.For over 40 years we have been at the forefront of driving change for the investor, always innovating to shape the next generation of benchmarks and investment solutions that open up new opportunities for the global investment community.

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Tokenomics: The New Divide Between AI Winners And Renters (SP500)

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Tokenomics: The New Divide Between AI Winners And Renters (SP500)

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I’m a long-term investor focused on U.S. and European equities, with a dual emphasis on undervalued growth stocks and high-quality dividend growers. Through years of experience, I’ve learned that sustained profitability—evident in strong margins, stable and expanding free cash flow, and high returns on invested capital—is a more reliable driver of returns than valuation alone. I manage one of my portfolios publicly on eToro, where I qualified as a Popular Investor, allowing others to copy my real-time investment decisions. My background spans Economics, Classical Philology, Philosophy and Theology. This interdisciplinary foundation sharpens both my quantitative analysis and my ability to interpret market narratives through a broader, long-term lens. I started investing when I became a father. By managing wisely what I received and earn, I aim to ensure for me and my children that we don’t have so much that we don’t have to do anything, but that we have enough assets to be free to do what we want. The goal is not to free myself from work, but to make sure I can work in the place and in a way where I can fully express myself.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of IWM, INTU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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VEFA’s First Rebalance: What Analyst Sentiment Is Saying

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VEFA's First Rebalance: What Analyst Sentiment Is Saying

VanEck is a global asset management firm offering ETFs, mutual funds, private funds, model portfolios, institutional strategies, separately managed accounts, as well as UCITS funds. Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission. VanEck has a long history of looking beyond financial markets to spot trends that create meaningful investment opportunities. We were one of the first U.S. asset managers to give investors access to international markets, which set the tone for identifying asset classes and themes such as gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 that later helped shape the investment industry. The firm oversees $161.7 billion in assets as of September 30, 2025. Disclosures: http://ow.ly/SZ9450N5qTJ.

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IMF: Uncorrelated Managed Futures Strategy From Invesco (BATS:IMF)

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IMF: Uncorrelated Managed Futures Strategy From Invesco (BATS:IMF)

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With an investment banking cash and derivatives trading background, Binary Tree Analytics (‘BTA’) aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Does Remote Work Make Employees Happier? Here’s What the Evidence Says

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Does Remote Work Make Employees Happier? Here’s What the Evidence Says

Some six years ago, a great experiment began in workplaces across the globe. Office workers did their jobs from home before the pandemic, of course, but never so many and for so long.

Now, after six years, it’s time to ask a fundamental question: Does remote work make people happy?

The short answer: Academic research shows that although working from home a couple of days a week boosts job satisfaction and makes employees less likely to quit, full-time remote work is more likely to make people anxious and lonely.

“There seems to be a Goldilocks effect with remote work and happiness,” says Adolfo Cuevas, associate professor of social and behavioral sciences at New York University. “Working from home some of the time provides flexibility and work-life balance benefits, without the social isolation that can accompany being fully remote.”

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Northern Funds Intermediate Tax-Exempt Fund Q1 2026 Commentary

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Northern Funds Intermediate Tax-Exempt Fund Q1 2026 Commentary

Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments in efforts to realize their long-term objectives.

Entrusted with $1.2 trillion in assets under management as of March 31, 2024, we understand that investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That’s why we combine robust capital markets research, expert portfolio construction and comprehensive risk management in an effort to craft innovative and efficient solutions that seek to deliver targeted investment outcomes.

As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect and transparency.

Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company. Note: This account is not managed or monitored by Northern Trust Asset Management, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Northern Trust Asset Management’s official channels.

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Fed Rate Decision Takes Centre Stage As Earnings Draws To A Close

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Get ahead of the market by subscribing to Seeking Alpha’s Wall Street Week Ahead, a preview of key events scheduled for the coming week. The newsletter keeps you informed of the biggest stories set to make headlines, including upcoming IPOs, investor days, earnings reports, and conference presentations.

Wall Street’s major market averages are higher on Friday as traders gear up for the highly anticipated SpaceX (SPCX) initial public offering. SpaceX priced its IPO at $135 per share, raising roughly $75 billion in what is set to become the largest IPO ever, with a valuation of about $1.77 trillion.

The economic calendar is relatively lighter for the holiday-shortened week, with markets closed on June 19 in observance of the Juneteenth National Independence Day. The Federal Reserve’s June 16–17 meeting will take center stage in an otherwise quiet week.

Import and export price indexes along with housing starts for May are due on Tuesday. The Fed’s interest rate decision is expected on Wednesday alongside the retail sales data for May. The FOMC will hold its press conference on Thursday, with the Philadelphia Fed Manufacturing Index for Jun and initial jobless claims numbers also expected on the same day.

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As the earnings season draws to a close, only a few companies are expected to report their results in the coming week, including Canopy Growth (CGC), Accenture (ACN), and Kroger (KR).

_______________________________________________________________

Earnings spotlight: Monday: Canopy Growth (CGC). See the full earnings calendar.

Earnings spotlight: Thursday: Accenture (ACN) and Kroger (KR). See the full earnings calendar.

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Volatility watch: Sandisk (SNDK) and AST Spacemobile (ASTS) have seen options volatility increase over the last week. The most overbought stocks per their 14-day relative strength index include Inno Holdings (INHD), STAK (STAK), and AmeriTrust Financial Tec (AMTFF

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BTQ Technologies: Quantum Dreams Meet A Very Hard Reality

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Noah Holdings Stock: Deep Value With Structural Transformation (NYSE:NOAH)

BTQ Technologies: Quantum Dreams Meet A Very Hard Reality

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Indiana Lottery Players Denied Big Wins After Space Invaders Scratch-Off Printing Error

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Royal Family Watches Red Arrows Flypast from Buckingham Palace Balcony

INDIANAPOLIS — Indiana lottery players who believed they had scratched their way to life-changing prizes in a new $5 game were left stunned and empty-handed after a printing error caused tickets to display inflated winnings that did not match official records, prompting the Hoosier Lottery to pull the entire game from shelves.

The Space Invaders Cash Invasion scratch-off, launched recently, featured space-themed symbols including a rocket ship that appeared to trigger instant big prizes. At least two players, forklift driver Mike Fields and Glendon Jones, drove to claim what they thought were $100,000 and $2,500 jackpots respectively, only to learn the tickets were worth far less — or nothing at all.

Fields purchased four tickets and scratched one revealing what looked like a $100,000 prize under the rocket symbol. Scanning it at a retailer showed only a $20 win, confirmed by lottery officials. “They never told us ‘no,’ they just said that we wouldn’t be paid today, and no other information really except that we would be informed by mail within 30 days,” Fields told local media.

Jones, excited about his apparent $2,500 victory, traveled to Hoosier Lottery headquarters in Indianapolis expecting payment. Instead, officials informed him of a misprint, leaving him with no winnings. “They said to come down here to headquarters and they would pay the ticket. I get here and they say it’s a mess up, misprint and that I’m pretty much out of luck on it,” Jones said.

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The issues stem from a technical glitch where some tickets printed prize amounts that differed from the lottery commission’s official validation records. The Hoosier Lottery became aware of the problem last Tuesday and immediately halted sales of the game.

In a statement, Jared Bond, Director of External Affairs for the Hoosier Lottery, explained: “Last Tuesday, we became aware of a technical issue with our recently launched $5 Space Invaders Cash Invasion Scratch-off. The issue involved a printing error where some tickets appeared to show a prize different from what was recorded on the lottery commission’s official validation record. The lottery is reviewing all applicable rules and procedures to determine the proper remedy.”

Affected players are encouraged to submit a Space Invaders Protest Form available on the Hoosier Lottery website, along with the physical ticket. Submissions must be completed thoroughly and mailed by November 30, 2026. Players can also contact the lottery at 1-800-955-6886 or Info@HoosierLottery.com.

The incident has sparked frustration among players and raised questions about quality control in lottery ticket production. Scratch-off games rely on secure printing processes with multiple layers of validation to prevent exactly these kinds of mismatches between visual prizes and backend data.

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This is not the first time printing or validation errors have affected lotteries, though the scale here appears limited to specific batches. State lotteries across the U.S. generate billions in revenue annually for education, infrastructure and other public programs, with strict oversight intended to maintain public trust.

Hoosier Lottery officials have not disclosed how many tickets were impacted or the total number of complaints received. The game, which featured alien invasion themes and multiple ways to win, was pulled to prevent further issues while an internal review proceeds. Other related games like Space Invaders Fast Play remain available.

For players like Fields, a working forklift driver, the brief excitement followed by disappointment was particularly jarring. Many lottery participants dream of sudden windfalls to pay debts, buy homes or secure retirement, making such glitches emotionally taxing even if the financial stakes for individuals vary.

Consumer advocates recommend that anyone purchasing scratch-offs verify wins through official channels immediately and retain tickets carefully. In cases of disputes, documentation and prompt filing of protests are essential, as lotteries operate under specific rules that prioritize validated records over printed appearances.

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The Hoosier Lottery, like others, uses third-party printers and rigorous security measures. Investigations into the root cause — whether a design flaw, production error or scanning mismatch — are ongoing. Outcomes could range from small consolations for affected players to full adherence to validation data, depending on state regulations and legal precedents.

This episode highlights the intersection of technology, manufacturing precision and human hopes in the lottery industry. While most tickets function as designed, rare errors like this underscore the need for continuous improvements in quality assurance.

Broader lottery trends in Indiana and nationally show steady participation, with scratch-offs popular for their instant gratification compared to draw games. The Space Invaders title tapped into nostalgic video game appeal, likely boosting initial sales before the problems surfaced.

As the review continues, affected players await mail notifications or updates from the lottery. In the meantime, the incident serves as a cautionary tale for enthusiasts: even apparent big wins require official confirmation before celebrations begin.

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Public reaction on social media has mixed sympathy for the players with calls for clearer communication from the lottery. Some express understanding for technical hiccups in complex printing, while others demand greater transparency and potential compensation.

Lottery officials emphasize that the vast majority of games operate without issue and urge continued responsible play. For those with valid winning tickets in other games, redemption processes remain unchanged.

The resolution of these specific claims could set precedents for similar future disputes. Legal experts note that lottery rules typically bind players to the terms printed on tickets and official validation systems, limiting payouts to confirmed amounts.

In Indianapolis and surrounding areas, the story has drawn local media attention, amplifying awareness of the protest process. Players who purchased the game recently are advised to check their tickets against official validation rather than relying solely on printed symbols.

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As summer progresses, the Hoosier Lottery will likely introduce replacement games to maintain revenue streams while rebuilding confidence. For now, the focus remains on fairly addressing the impacted tickets through the established review procedures.

This technical mishap, though disappointing for a handful of hopeful winners, represents a small fraction of overall lottery operations. It nonetheless reminds both operators and players of the importance of accuracy in a system built on chance and trust.

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PayPal: If It's So Cheap Why Is Nobody Buying

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PayPal: Double-Digit Buybacks Turn The Recent Crash Into An Opportunity

PayPal: If It's So Cheap Why Is Nobody Buying

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