Really cool stuff. Out of curiosity what made you select PowerDNS (and in general a commodity DNS server) vs. developing a custom DNS server integrating your logic (using https://github.com/miekg/dns for instance).
Are these payback periods factoring in opportunity cost? If not the game is already lost. If so periods that long are so sensitive to alternate asset returns that they could easily be infinity.
No - these numbers likely do not factor in opportunity cost. And yes, you can probably earn a better return elsewhere. But the reasons that I installed rooftop solar were:
* Diversification. These days stocks, bonds, real estate, crypto, and even precious metals are increasingly correlated [1]. Solar panels offer pretty consistent returns regardless of what is happening in the stock market.
* Backup power. I live in an area that is prone to natural disasters. Having a backup power source gives me a bit of peace of mind.
* Hedge against increasing energy prices. My solar panels have actually performed better than I expected due to electricity prices increasing faster than I expected.
* Clean energy. When I turn on my A/C in the summer I take some enjoyment from the fact that it's powered by the panels on my roof and not burning fossil fuels.
* Entertainment. I enjoy nerding out and learning about the tech, monitoring output, etc. A lot of people think solar panels are ugly but I actually like the way they look.
Yes the S&P 500 would have returned signficantly more than my solar panels. But I already have a lot invested in the S&P 500, solar panels were fairly inexpensive and don't make up a significant portion of my overall investments, and the psychological benefits outweigh whatever opportunity cost I have incurred.
There is also the option to finance them. You need to be careful with financing, as I think there are a lot of predatory offers out there. But if you are buying or building a house, for example, and can roll the cost of the panels into your mortgage, then that's going to reduce the up front cost and hence the opportunity cost.
But yeah when you get into the $100K range for a Tesla solar roof, then I think that starts to be a pretty substantial amount for most people that can be better spent elsewhere. Not to mention the delays, customer service issues, etc that people have experienced with Tesla - which can easily offset any peace of mind benefits.
I'm in the same camp as you. I'll add that my panels are returning 16% on capital spent, and it's going up as electricity prices go up.
So, yes, I could probably get a higher return if I invested that capital elsewhere, but, apart from the diversification, I get benefits beyond the raw financial return.
Firstly, earlier this year, we had a cable coming into the house fail. By the time the electrician and city had done all they needed to do to sort it out, almost 4 days had passed. We would have been without power for that time. As it happens we ran completely on solar for that period - freezers stayed frozen, could run the laundry, etc. Some stuff was limited (no oven, no hot water) but the impact was minimal compared to what it might have been.
Secondly, during the day at least, I'm not really fussed about electricity usage. If lights are on, or AC is on or whatever. So there's less "hey, that light is costing money" etc. So we end up using more electricity, but the marginal cost (during the day) is 0. My next car is electric (already on order) and that can charge at home as well (during the day, I work from home) and so that just increases the return (utilization of available power goes up.)
From a financial point of view, for me, it's a no-brainer. Obviously ymmv - everyone's numbers are different. For me the payback is in the 5-6 year range (probably under 5 once the car comes online.)
In an average year (not the past 4), 16% would be amazing. That it’s effectively guaranteed and will almost certainly increase every year is icing on the cake. I’d take that trade any day.
Not OP but I'll run what I plan on doing. In Germany you can get a plug-in ready kit with 2.2 kWh battery and 920W panels for less than 600€ [1]. The panels are about 1.8 m² each (=3.6 m² total), so with on average 1.200 kWh/m² solar radiation and 25% efficiency I'm looking at up to 1080 kWh in energy I'll get out of the system per year.
Electricity here in Germany is expensive at an average 30 ct/kWh, so the panels save 324€ worth of electricity - an ROI of > 50%. Choose some better quality for the inverter and battery and you'll still be north of 30% ROI.
The key thing making this high ROI possible is that it's small. Counterintuitive, yes - but explained by the fact that for larger installations than that, setup costs go up: you need to install the panels on your roof instead of hanging them off your balcony which can be thousands of € in labor, you need to run new power wires...
Your numbers are likely off by about half (in Germany your sunlight is less than 1200w/m2, panels are more like 22% effecient, you'll gave at least some cloudy days, your panels won't be tracking the sun.)
But a small system is still going to bring a return and is cheap to install. And it'll give you a real way to understand the concept and to experiment.
I started with a 660w small system, and it gave me lots of insight for planning my current system.
The inverter keeps a log of electricity generated, used, battery used, imported and so on.
I put that in a spreadsheet which calculates money saved. (Which is reasonably complex because of pricing tiers although fortunately I don't have to deal with daily pricing changes.)
Then some math returns the return on investment per month and per year.
Do you also subject the cost of upfront capital? Example: Imagine that you didn't have the upfront captial, and you needed to borrow it "from a bank" at X% for Y months.
Opportunity cost meaning investing with standard rule of thumb returns? I think usually it's just total cost at installation divided by the product of power generation and energy cost. So that's $ / (W x $/Wh), which should reduce down to just hours that can be trivially converted to years
> Cost of alternative investments not pursued as a result of deployed capital.
Once you’re achieving 30-50% annual returns over 20-30 year horizons (PE, HFT, invite-only HF) , you stop caring about cost of capital for anything less than US$1 million.
But 10% VTI / VOO, sure, factor that 10% into your excel.
Real estate is generally a "good" investment as it's considered a relatively safe way to get significant leverage. 5x leverage in the case of a 20% deposit, or even up to 20x leverage with countries that allow for 5% deposits (New Zealand).
In addition, the interest payments almost always end up being near the rent the owner would have paid, so mortgage payments are higher, but that increase is generally (and quickly becomes) principal while being able to counteract inflation of rent.
> Real estate is generally a "good" investment as it's considered a relatively safe way to get significant leverage
Leverage? People don't normally invest in property (normally involves taking out a loan) for the purpose of taking out another loan. That so called "leverage" is being used to buy the house...ie you don't have any leverage
The leverage is the loan taken for the mortgage. If you have a $1M property, $900k loan. If the property's value increases by 5%, that's $1.05M, so you've made 50% returns on your $100k capital invested. That's leverage, the leveraging of $100k to get the returns of $1M asset.
We can estimate this. US median home price right before the crash in 2007 was $240,000. Today, it is about $400,000. Median rent in 2007 was $810. Today, it is $1,698. There's some simplifying assumptions we have no choice but to make. Let's say renter's insurance is negligible enough to ignore. Meanwhile, we'll just let an online mortgage calculator assume a median $50,000 home insurance coverage payment and bake it in. We'll assume 1.1% of assessed value for property insurance, which is currently the US national average (it varies a lot state to state in reality). We'll assume an FHA loan with 4% down.
This gives us a $1,995 a month payment when we purchased and a $2,142 a month payment today, due to higher assessed value for the tax.
We can see upsides and downsides in both cases. Rent would have been quite a bit cheaper in 2007, but it has very nearly caught up by now. Meanwhile, you're probably talking about renting maybe a 2 bed/1 bath apartment, whereas the median single-family house is more like 4 beds/2 baths, with a yard. Whether or not that extra space and privacy matters to you likely depends a lot on whether you're single or have or ever plan to have a family. You could have invested into something like the S&P 500, which has historically returned about 10.5% since 1957 annually in nominal returns. Let's just kind of naively split the difference here and assume you can invest $1,000 saved on rent versus mortage a month for the first 10 years and $200 a month for the next 9. That would have gotten you somewhere around $240,000 by now. Meanwhile, you're looking at about $248,000 in home equity by now for the purchase case.
Choose different parameters if you please, but I'm not really seeing the case for renting here over the long term, and that's in spite of choosing the single worst time in the last century you could have made the purchase.
Oh I don't disagree, I hate real estate as an investment, it's a terrible asset only made "viable" by tax benefits, rent-replacement and excessive amounts of risk via leverage.
It's my shortcut for describing the idea that you'd spend $X a month on either interest lost to a bank or rent lost to a landlord, and therefore you can mostly consider that a constant expense when considering rent versus mortgage.
I’m covering my bases because Chinese real estate has been volatile recently and I’m not sure where the market is at now. It could be that renting is still way cheaper than buying, I just don’t have any direct experience to back that up. If I bought while I was living in Beijing I would probably be underwater with my investment right now, renting for 9 years was the right call and my rent was pretty affordable anyways.
Such cities still exist and have been in such a state for decades. They can change but that's meaningless as they can also change the other way around.
Articles like that still miss a bit of the nuance. Imagine having your house paid for, and you grow old and you have no rent to pay. Yes, you could have invested but likely you would have spent some of that money on something else, or your investments might have not worked out so well, or any other reason. Human reasons, to be specific. Owning property is like a lock.
Imagine having your house paid for, and you grow old and you have no rent to pay.
My home is "paid for". Except for the HOA and property taxes that are not that far off from what I was previously paying in rent, the ongoing maintenance costs with random large spikes, and the opportunity cost of having a large chunk of money in the house and not in the market. It was still probably the right decision, but it's not at all a free lunch.
Surely though, the HOA and all that would likely be baked into a renter's price.
Sure, the same way that the benefits of a fixed mortgage payment are baked into sale prices. The efficient market hypothesis would say that neither renting nor buying should be obviously superior in the long term, because if either was then people would bid up rents/prices until it wasn't.
And you didn't need to go live in a HOA
I pretty much did, unless I wanted to significantly compromise on other factors.
> The efficient market hypothesis would say that neither renting nor buying should be obviously superior in the long term, because if either was then people would bid up rents/prices until it wasn't.
Buying have much higher entry point, need a bunch of cash at start then a ton of paperwork.
It is absolutely possible that local buying market is inflated precisely because the area is so desirable buying to rent is (or was) good investment, but that's rarely is true for a bigger market
And it's gonna be interesting wherever this narrative will shift over the next 5 yrs
I keep hearing that properties are in the biggest bubble yet in the USA - with the affordable housing shortage being a red herring, because real estate managers and boomers are unwilling/unable to reduce their prices - despite not getting renters/buyers because it would kick off a death spiral as their interests would consequently go up (because of lower security). Along with the ai layoffs etc
I'm not American so I only hear the occasional interview so don't have any idea if it's really as pressing as these industry professionals keep saying but I'm definitely at the edge of my seat watching...
It is very close to universal truth, aside some small areas with very warped market.
Even if you move out after 5 years, you still own the place and can rent it out and then it pays for itself, to skip the cost of selling it back to market
It never fails, there's always someone who trots this thing out. We had bought our house, and then had to move and decided to rent. I was APPALLED that they wanted me to fill out an APPLICATION form, where they would decide my worth, and let me know if we would be allowed to live there. When buying a house, my cash was as good as anyone elses'. And then the management company would come inside my house to inspect that I wasn't running a meth lab or something. Thankfully that only lasted two years. I will never rent again. Majority owner-occupied neighborhoods have different characteristics as well.
> I was APPALLED that they wanted me to fill out an APPLICATION form, where they would decide my worth, and let me know if we would be allowed to live there. When buying a house, my cash was as good as anyone elses'.
House sellers receive offers from buyers, sometimes including letters, and can choose to sell to any of them (or none of them), whether or not those offers are higher than the listed price. It's not so different.
> And then the management company would come inside my house to inspect that I wasn't running a meth lab or something.
Yeah that part is different. I also prefer owning.
A seller might prefer a cash offer to an offer contingent on the buyer securing credit (credit might fall through). Or, like landlords, a seller might prefer a buyer with a higher credit score (same reason -- buyer is more likely to be able to secure credit and close the deal). A seller might prefer a slightly lower total offer with a serious amount of "earnest money" over a slightly higher total offer without significant earnest money (buyer might try to back out). A seller might prefer to sell to a family with a nice story in their buyer's letter than someone buying a 2nd or 3rd house. Or the seller may think all offers are too low and they can hold out and get a better offer later.
Real estate transactions are not very straightforward. A seller might accept a lower offer if they feel the buyer is more likely to be able to go through with the transaction or just go through it faster. And sometimes they do just plain like one buyer better.
Title is somewhat incorrect: more than 60% of the U.S. is facing drought, making it overall the worst in decades. The data do not show that the drought in each area is the worst in decades.
Title claims "due to plains drought" but the article text largely attributes this to increased planting of soy for its lower fertilizer requirements (related to Strait of Hormuz).
> Wheat isn’t grown in the same places that beans grow.
It depends on what you mean by "beans". The Palouse agricultural region is famously one of the highest yielding wheat and legume producing regions in North America.
Wheat is absolutely grown on the same place they grow beans. The field directly across from my house did that last year. I don't survey all the farms in my area, but It does seem like there is much less wheat this year on fields where I know it was grown in previous seasons.
> Wheat isn’t grown in the same places that beans grow.
...
> A lot of traditional wheat/sunflower/barley/oats has gone over to beans and corn bc roundup and GMO.
So wheat absolutely can be grown on the same places that beans grow, despite your leading claim. And I grew up in the Midwest plains; wheat IS a crop that can be grown there. Marginal? The breadbasket of the US? Huh. News to those who live there.
US farmers are planting less wheat, which made the crop harvest marginal, and along came a drought.
You are wrong and the drought attribution is correct: Winter wheat is the dominant variety in the U.S. and is (and is projected to be further) down due to drought.
"a severe drought in the U.S. Plains has curbed production of hard red winter wheat, the largest variety grown in the U.S... The USDA projected U.S. wheat production in the 2026/27 season at 1.561 billion bushels, down from 1.985 billion in 2025/26, as a severe drought in the U.S. Plains was likely to slash the hard red winter wheat crop by 25% from a year earlier."
"The USDA rated just 28% of the U.S. winter wheat crop in good-to-excellent condition in a weekly crop conditions report on Monday, the lowest rating for this point in the growing season in four years."
This was mentioned in the very first sentence, it's the very first attribution of falling wheat harvest.
Yes Hormuz and rising oil costs are also a factor, a secondary one since they are impacting spring wheat planting decisions as you mention.
> Winter wheat is the dominant variety in the U.S. and is (and is projected to be further) down due to drought.
Both drought and the fertilizer shortage (which, as the article notes, was too late to effect planting decisions but DID impact the costs, and thereby decisions on the applied quantities, of nutrients for the winter wheat crop this year) are impacting winter wheat yields.
At many of these publications the editor chooses the title, not the author. They know full well that most people will read the headline but not the article.
"The commodities guru who warned about silver falling now, is saying the hantavirus could do the same to oil"
Click later:
Guy is just hedging against losses.
I am genuinely starting to wonder how much of the trade swings are from algo trades reacting to headlines ( and subsequent ones reacting to content;p ).
Fertilizer is pretty fungible and is a global market, so even if the US is primarily supplied by Canada, and overall global demand remained constant, prices would go up since there will be supply reduction due to the Hormuz strait being closed.
No, but it makes it pricier. In case you don't know:
"Fungible describes goods, assets, or commodities that are mutually interchangeable, meaning one unit is equivalent to another of the same type and value.
mind you, the hormuz fertilizer and the canadian fertilizer arent interchangeable.
they are two parts of a three part whole.
they arent perfectly fungible either - the core nitrogen, potassium, and phosphorus can come in many forms, and need some chemical processing to get into the right shape for use
Yes. Despite what others have said, yes. But, in general, because of the current global dynamics, fertilizer is more expensive wherever you're going to be getting it from. It just doesn't help that the US has picked a trade war with all allies at the same time, while also engaging in real wars that disrupt global supply chains of critical resources.
Yes, the amount of change the world has experienced over the last 16/48 has been pretty dramatic. And the perception of the US external to he US has changed proportionally. I'd like to think the trend won't persist for the full 48, but I also did not expect quite so much in the first 16/48.
US and Canadian production is largely irrelevant to the price. These are world comodities. If worldwide production drops, prices rise. As with oil/gas producers, domestic potash producers are under no obligation to sell locally. If prices are higher in europe/asia/africa, that domestic potash will be loaded onto ships until domestic prices rise to match.
much of canadian oil should be pretty insulated and thus also the US consumption of it.
its not particularly available to the rest of the globe because you need different refining.
i find it to be kinda funny that albertan oil prices jump with global markets when albertas major complaint is about a lack of access to global markets.
Canada also doesnt have the export capacity for selling potash directly. if its being redirected away from the US, its US importers deciding they can get a better price by re-exporting it
like a "in theory in ten years from now, these other customers could swap what oil theyre using, so were gonna charge you more now just in case"
Pedantically, most of it is manufactured by biological processes in the soil. Soy Beans are really good at this which is why it is planted so much (the food value is secondary, but enough to give it the edge over alternatives)
For supplemental fertilizer you buy though you are correct.
i dont think canada has had any drop in potash sales to the south. the main potash producers are even planning new US ports for exporting potash to global markets through.
which itself is a major factor - the US imports tons of potash from canada, only to re-export it elsewhere. a clampdown from canada would be more likely to hit a south korea or china more than the midwest
The US does have potash mines for example around Carlsbad New Mexico. But these cover only a percentage of domestic need. Perhaps they could be scaled up not sure.
Nitrogen is pulled out of the air which is free but the process requires hydrogen which is acquired from disassembled methane, the price of which is a significant contributor.
Hard to find exact data but 60-80% of the cost to manufacture ammonia comes from the cost of natural gas. Feel free to look a price charts for both to see the correlation.
Long term yes, however the building in such a plant is very expensive in the short term. As such, no one is going to build a plant unless they actually think it will have reasonably high utilization.
A lot of crops need nitrogen. What has been impacted by Trump's Iran war is the supply of Urea through the Straight of Hormuz.
If the closure persists then no doubt other sources can ramp up to fill the void, but it's going to be too late for this season. Some Asian farmers have already chosen not to bother planting rice crops since the increase in fertilizer (urea) cost has meant they'd be losing money.
Fuel prices are also impacting imported produce prices.
The fact that the US is growing more soy when one of its largest importers, China, hasn't agreed to an import deal and actually seems to be importing more and more from Brazil instead, is extremely confusing. That is unless the farmers are pretty confident that the US will come to an agreement or failing that, expecting some type of US government bail out/subsidy.
But there's a very weird underlying sentiment on HN where many people seem to directly or indirectly jump whenever they can to downplay the existence of climate change. Sometimes, they are emboldened by articles like this which intentionally use misleading headlines.
You're completely right, though, that in this instance, soy beans were mostly focused on because of consumer trends and less fertilizer need. Wheat is just an expensive crop right now. Also, soybeans would actually be less resilient to drought which furthers your point re: the article headline.
There are a number of people who are motivated to deny or downplay climate change, whether they have a financial stake or just because they've made it part of their personality.
Conveniently for them, it's very difficult to attribute any specific weather event to climate change in isolation.
So lower fertilizer demand, and healthier produce, could be a net positive.
Kind of like an oil shortage is driving an increase in EVs and renewable energy.
Finally waking up the US that oil dependence is a National Security issue that renewables are possible solution for. That renewables aren't the 'woke' enemy, but a valid technical option.
> Finally waking up the US that oil dependence is a National Security issue that renewables are possible solution for. That renewables aren't the 'woke' enemy, but a valid technical option.
Amazingly invisible fact to the US political right. Glaringly obvious, yet they can't see it. It's almost like they don't even have their country's best interests at heart...
They have defined themselves in terms of their opposition to causes favored by the left.
Many of these causes imply spending copious money that they are less well disposed to stuff in their pockets or give as tax breaks to their benefactors.
Others make good political ammunition for their uneducated base.
> The smartest model in the world still draws pelicans riding bicycles worse than a five year old.
The bicycle is something that humans are famously bad at drawing: https://www.washingtonpost.com/news/wonk/wp/2016/04/18/the-h...
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