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.
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.
— Chris Perruna (@cperruna) April 20, 2022
When the facts change, I lose 4 points a blow out: what do you do sir?
— Compound248 (@compound248) April 20, 2022
— Cara Lombardo (@CaraRLombardo) April 21, 2022
“I slept on the floor so the team that was having a hard time could see me on the floor” — Elon Musk, on going through the Model 3 production hell pic.twitter.com/91x37ALXDK
— Marcelo P. Lima (@MarceloPLima) April 20, 2022
Through three years of hell.. 2017, 2018 and 2019 … the longest period of excruciating pain in my life.. we barely made it and we were on ragged edge of bankruptcy the entire time. I wonder how many Tesla investors realized this at the time. $TSLA https://t.co/AqTsywF66d
— Asif Suria (@AsifSuria) April 21, 2022
Over the last 18 months, Nvidia cards INSTANTLY sold out whenever they became available. This supply-demand dynamic has completely shifted in the last few weeks. Now, there are rising inventory levels, increasing availability and even some discounting. pic.twitter.com/jOdOmnD2DB
— tae kim (@firstadopter) April 21, 2022
7 lessons from full-time investors on:
• How they research a company
• Mental strategies and habits
• Time management
— Max Koh (@heymaxkoh) April 19, 2022
One metaphor I use for companies is to view them as buckets for catching liquid wealth. The size of a bucket is based on TAM, while the quality is based on the moat. The inexperienced investor reaches for the biggest, cheapest bucket, which is inevitably full of holes.
— Harris Perlman (@OtterMarket) April 20, 2022
NEW: A $22 billion investment firm is discovering just how complicated it can be to distance itself from tainted Russian money.
Read The Big Take⬇️ https://t.co/ILRXOjXmnd
— Bloomberg Deals (@BloombergDeals) April 21, 2022
It’s happening…this is a huge deal.. pic.twitter.com/SjBl5s1kA8
— jim iuorio (@jimiuorio) April 19, 2022
Very possible over the next weeks we will get a trial run on what happens if/when they China boats don’t show up. Get prepared for a supply shock the likes you have never seen. pic.twitter.com/QCU7HvCzMO
— Dan Collins (@DanCollins2011) April 18, 2022
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.
1/ Thrilled to finally announce @a16z Start! A program we’ve been running to partner with exceptional people at the earliest stages of company formation (in some cases even pre-idea). We invest up to $1M and provide a network of resources & support. 💫💫💫https://t.co/5XaZkizfMO
— David Haber (@dhaber) April 18, 2022
A $1M check from a16z tells me you’re not ready to raise money…
If you’re leaving a high growth startup & convinced 2-3 other smart people to join you, that’s a $3-6M round.
I don’t believe anyone that can raise money, should raise money. Have a plan and play the long game.
— Bri Kimmel (@briannekimmel) April 18, 2022
Real-time Big Mac Index check: $3 in Tokyo, $6 in LA. pic.twitter.com/C82TJWdebH
— Jesse Livermore (@Jesse_Livermore) April 20, 2022
Munger: There’s practically no meetings in the whole Berkshire culture. There’s a few phone calls and no meetings. Warren gets a headache if he’s in a big meeting where a lot of other people are saying dumb things. He gets a sick headache. He’s not feigning it. He actually does.
— Ed Borgato (@EdBorgato) April 21, 2022
Voluntary Disclosure: I hold long positions in Berkshire Hathaway (BRK.B), Twitter (TWTR) and Netflix (NFLX).