Macromegas #5
Hi friends,
Happy Friday!
Useful Knowledge
The Three Sides of Risk
Moving story and amazing lesson for all of us on how to assess risk. Investing is definitely the major application, but applies to all aspects of life.
Spoiler - this is how to properly qualify risk according to Morgan Housel:
The odds you will get hit.
The average consequences of getting hit.
The tail-end consequences of getting hit.
Read the full (and beautiful) story here: The Three Sides of Risk
The FAANGS are making the most out of the COVID-19 financial stress
Many companies are retreating. But Amazon, Apple, Facebook, Google and Microsoft are placing bets to get even bigger.
"Even with the global economy reeling from a pandemic-induced recession and dozens of businesses filing for bankruptcy, tech’s largest companies — still wildly profitable and flush with billions of dollars from years of corporate dominance — are deliberately laying the groundwork for a future where they will be bigger and more powerful than ever.
Amazon, Apple, Facebook, Google and Microsoft are aggressively placing new bets as the coronavirus pandemic has made them near-essential services, with people turning to them to shop online, entertain themselves and stay in touch with loved ones. The skyrocketing use has given the companies new fuel to invest as other industries retrench."
Read the complete article here: The Economy Is Reeling. The Tech Giants Spy Opportunity
For some background reading, and interesting McKinsey analysis published in the last recessions, the 2008 Global Financial Crisis: What’s different about M&A in this downturn
Are we entering a recession?
"Trillions will be spent. Either taxpayers pay it, or creditors pay it."
- John Cochrane (a.k.a. The Grumpy Economist) on the COVID-19 recession
It's that simple.
Charts below show the long-term (delayed) effect for the Spanish Flu, hundred years ago.
Personal Growth
You don't pay for books in money - you pay for them in time. Choose wisely.
"Get the advice of everybody whose advice is worth having - they are very few - and then do what you think best yourself."
- Charles Stewart Parnell
These quotes are operating principles I will be explaining in the online course I am releasing this summer, "Systematize Success - Success Fundamentals".
If you are interested, simply hit reply and I'll add you to the waiting list (discount code when it launches).
If you think I am doing great at helping you understand the world, making you think, or even just entertaining you positively, please forward to 3 of your friends/colleagues who might enjoy this as well. Your help means A LOT!
If I don't, please let me know by hitting "reply" - I want to know and improve.
I am recording my first podcast this afternoon as a guest to Venturi, and I am psyched.
Just wanted to share the news with my newsletter friends - link coming later.
Thanks for reading - talk to you next week,
V
PS: as usual, if you have questions, comments, suggestions, or ideas to explore, feel free to write: simply hit "reply".