Two farmers bought a truckload of watermelons, paying five dollars apiece for them. Then they drove to the market and sold all their watermelons for four dollars each. After counting their money at the end of the day, they realized that they’d ended up with less money than they’d started with. “See!” said the one farmer to the other. “I told you we shoulda got a bigger truck.”
The monetization & distribution conundrum for... →
Explaining the failure of The Daily, M G Siegler touches upon an interesting conundrum for content creators looking for distribution & monetization on internet & mobile: The other element at play here is the (lack of) maturation of the distribution model…Such goals [500 million subscribers] shouldn’t be unreasonable for a popular and well-run publication, but there has to be an...
Ted Weschler →
Excellent profile of Berkshire-Hathway’s portfolio manager in Bloomberg
Apple's price action →
Best & likely the most accurate explanation of Apple’s price action: Suppose you were a mutual fund manager and your strategic models allowed for a maximum 8% allocation in any individual stock. What would have happened to your Apple holdings in 2012? As of September 21st, Apple was up 74.9% year-to-date. Apple allocations at the largest mutual funds had grown to between 13% and 15% of...
Taleb on designing anti-fragile systems →
Brilliant as usual, especially on the topic of technological development: Tinkering by trial and error has traditionally played a larger role than directed science in Western invention and innovation. Indeed, advances in theoretical science have most often emerged from technological development, which is closely tied to entrepreneurship. Just think of the number of famous college dropouts in the...
Danny DeVito explains Value Investing
“A complex system that works is invariably found to have evolved from a simple system that worked. The inverse proposition also appears to be true: A complex system designed from scratch never works and cannot be made to work. You have to start over, beginning with a working simple system.” - Systemantics: How Systems Really Work and How They Fail by John Gall
Startup Exits by Mark Suster
Andy Zaky compares Apple & Google →
And nails it once again: Here is another way to think about all of this. If an investor had $1 trillion in her bank account and had the ability to buy Apple or Google outright in cash at their current market capitalizations, only someone who didn’t care about money would buy Google for $223.5 billion over Apple at $571.7 billion. The reason? Given that Apple not only already has $130...
“What do you want to run for this year, Joe?” “Treasurer” “But you cannot even add!” “I did not say I wanted to run for assistant treasurer.”
Eddy Cue →
Excellent profile of Eddy Cue (h/t Daring Fireball). My favorite part is the quote by Chris Castle (an attorney involved in the negotiations for music labels): “You haven’t lived until Steve Jobs has called you a primitive thinker.”
Apple TV might be a billion dollar business →
Five million Apple TVs per year is a half-billion dollar hobby. As such it quintupled from the first year (calendar 2007). The value for hardware is, of course, only a part of the story. It is accounted for as part of peripherals revenue and amounts to 18% of total peripherals revenues. Last May I estimated that the installed base of Apple TVs was 10 million. I’d estimate current total to be...
Pinterest-ization of e-commerce →
Om Malik quoting Michael Williams of the influential menswear blog, A Continuous Lean: “Online shopping continues to become more of a rich experience, and the structure and set up of Tumblr and Pinterest lend themselves well to the development of shopping sites. I also think that customers are more open to a visual shopping experience, and it seems like the back end technology can better support...
Great South Korean investment ideas from Chan Lee of Petra Capital Management.
Indiana Jones denied tenure at Marshall College →
Shocking! Universities never change.
Movie Quotes: Rocky Balboa
Rocky Balboa: “Let me tell you something you already know. The world ain’t all sunshine and rainbows. It’s a very mean and nasty place and I don’t care how tough you are it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain’t about how hard ya hit. It’s about how hard you can get...
Risk in Equity Markets →
Oakmark Funds’ Bill Nygren defines risk in equity investing: Based on our criteria, risk is highly dependent on the price paid for a stock. When a stock is priced at a premium to its business value, risk is high. When the price is at a large discount to value, risk is low. In 1999, when tech stocks were going up most every day and traditional businesses were declining, we believed that...
Movie Quotes: Seven Samurai
Kambei Shimada: “Go to the north. The decisive battle will be fought there.” Gorobei Katayama: “Why didn’t you build a fence there?” Kambei Shimada: “A good fort needs a gap. The enemy must be lured in. So we can attack them. If we only defend, we lose the war.”
Andy Zaky takes on the Apple Fail Bears →
Andy Zaky, who runs an Apple-only hedge fund, takes on the Apple permabears: They don’t know anything about earnings, earnings growth, P/E compression and stability, the size of the smartphone market, revenue growth, Apple’s operating margins or how they are determined. Instead, they will keep things at the general level because the embarrassing truth is that they really only understand things...
The best way to get what you want is to deserve what you want. ...– http://www.jasonzweig.com/thoughtofday.php
Asian Economic Century
Goldman Sachs’ Jim O’Neill on economic growth in the second decade of the 21st century: We are assuming that the eight economies we define as “Growth Economies” – Brazil, Russia, India, China, Indonesia, South Korea, Mexico and Turkey – will contribute around $15 trillion in real terms to the world this decade. This contribution will allow for faster, yes faster global GDP growth...
Why most CEOs are one-hit wonders?
Good point - something that is missed by most CEO hiring committees: The lesson is that successful CEOs are often successful because of the people around them, and to the extent that their individual contributions matter, they are often specific to their companies.
There's Nothing New Under the Sun
“The whole human race seemed to be in collapse: revolution and financial bankruptcy…a financial and commercial crisis…a building crisis…. With such a compound mixture of financial losses and dangers, it is not surprising that the minds of…investors became utterly depressed; that, notwithstanding the continued existence of peace, money was more and more expended on the first-rate stocks; that the...
Facebook makes you hate the people you know; tumblr makes you love people you...– @amandalynferri (via nickgrossman)
Product Editors, not Product Managers →
At a recent talk at Stanford, Jack Dorsey describing the role of product managers: “I’ve often spoken to the editorial nature of what I think my job is, I think I’m just an editor, and I think every CEO is an editor. I think every leader in any company is an editor. Taking all of these ideas and editing them down to one cohesive story, and in my case my job is to edit the team, so we have a...
What sounds on the face of it like the most utopian of collectivist fantasies —...– Steven Johnson The Internet? We Built That - NYTimes.com
We treat Android like Linux…– Amazon CEO Jeff Bezos
Rethinking resume →
Apple's design talent →
It is amazing that Apple’s Jon Ive has only 15 designers reporting to him. On the other hand Samsung has over 300 designers.