Inside Arbitrage Friday Wrap – April 22, 2022

This is a new series we launched two weeks ago to highlight interesting developments in the world of investing, global events, entrepreneurship and health that occurred during the week. We are doing this through a series of curated Tweets and will add other sources over time. Starting last week, we increased the frequency with which we publish on Inside Arbitrage. If you are an existing subscriber, you can login to the InsideArbitrage.com website to adjust the kinds of articles you receive by email by turning on or turning off specific categories of articles. This article is best viewed on our website here because of the embedded Tweets in the article, which don’t show up on most email clients.

Investing

Market conditions deteriorated further this week with some investors worried that the Fed might tighten even faster with 75 basis point hikes instead of 50 basis point hikes. Challenging results from Netflix (NFLX) and Snap (SNAP) indicating that several advisers had stopped campaigns after Russia invaded Ukraine did not help the market mood. The latest development was hospital operator HCA Healthcare (HCA) dropping 22% on a single day after issuing weak guidance. Netflix appears to have been the canary in the coal mine.

Global Events

Entrepreneurship

When Y! Combinator first started in 2005, entrepreneurs would get a few thousand dollars, some key introductions and advice on how to set things up as outlined in Paul Graham’s post here. By 2014, that had gone up to a $150,000 investment from Y! Combinator for a 7% equity stake. The premier VC firm Andreesen Horowitz launched their own startup program with up to $1 million in funding this week. Interestingly even that seems too little for some folks.

Life/Health

Voluntary Disclosure: I hold long positions in Berkshire Hathaway (BRK.B), Twitter (TWTR) and Netflix (NFLX).

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