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Tren Griffin
@trengriffin
, 3 tweets, 2 min read Read on Twitter
I made the classic seed round investor mistake by not buying enough as an early stage investor when I didn't buy Nike collarless shirts in volume. But I can put that collarless shirt investment in the pitch deck. Being a Tiger as seed stage investor can pay off.
Another mistake I made was selling Nike shares in 2016. Even though I had owned Nike shares since the early 1990s I sold. It is unlike me to sell shares in a business that is so fundamentally sound. I like to avoid short 25 year holding periods like that on a quality business.
Shoe Dog is in my view the best story ever written about being an entrepreneur. My blog post on Nike founder Phil Knight is here: google.com/amp/s/25iq.com… "It’s alright to be Goliath but always act like David.”
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Tren Griffin
@trengriffin
Always my favorite chart in the S-1, in this case from Pinterest. Note the gross margin in a user generated content business where the suppliers have no pricing power. A famous Zen master once said: "Find enlightenment in low COGS via UGC marketplaces."
Spotify is the other side of the pricing power coin from Pinterest:

"Spotify’s cost of revenue, consisting primarily of royalty payments to record companies, amounted to $2.8 billion or roughly 75 percent of the company’s revenue." google.com/amp/s/www.stat…
Spotify must increase its wholesale transfer pricing power in music via: (1) a better deal with labels, (2) becoming a label itself or (3) sell stuff other than music (e.g., podcasts) with better gross margins. The third choice is more within its contol and attractive to a buyer.
Read 5 tweets
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Tren Griffin
@trengriffin
Quiz: "Qualcomm stock jumped > 23% on the settlement Tuesday and another 12% Wednesday."

Does QCOM's significant ROIC/cost of capital spread” explain the magnitude the jump in the stock price?

Is this a double edge sword in that a reduction in growth would be as impactful?
Additional Quiz Questions: Was my picking MoviePass as a case study on my 26IQ blog intended to starkly show that not all revenue growth creates value? google.com/amp/s/variety.…

Can the adverse financial impact of customer churn be nonlinear, and if so, why?
"It’s easy to grow sales and acquire subscribers with a negative variable margin." @d_mccar

"It is critical to bundle all future variable costs of supporting the customer in order to fairly estimate the future contribution." Bill Gurley
Read 3 tweets
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Tren Griffin
@trengriffin
1/ "In a business with a large spread between return on invested capital and cost of capital, rapid growth adds lots of value. For large negative spreads, growth subtracts a lot of value. Whether growth is good or bad is contingent on incremental return." d2wsh2n0xua73e.cloudfront.net/wp-content/upl…
2/ Miller:Modigliani: "The essence of ‘growth' is not expansion, but the existence of opportunities to invest significant quantities of funds at > the cost of capital."

Buffett: "Growth creates value only when a business can invest at incremental returns > its cost of capital.
3/ Mauboussin: "Growth is an amplifier, and it’s impact grows as the ROIC - cost of capital spread widens (above or below zero). At zero spread, growth has no impact.
It’s not margin that matters but ROIC (these are related, of course)."
Read 3 tweets

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Jared Yates Sexton
@JYSexton
Enough people have asked me what happened with the Mueller Report and Barr’s Summary that I should just put it all in one place. These are the most likely scenarios as I see them. 1/
Mueller’s Report extensively details circumstantial evidence regarding collusion and obstruction but not enough to prosecute. The Trump Ring didn’t budge in terms of rolling, but the information is a PR nightmare and leaves much doubt, thus a cherrypicked summary. 2/
Or, maybe the report details all the rumors and innenuendo and the Trump Administration doesn’t even want to chance starting anything new and thus put out a cherrypicked, overly condensed summary. 3/
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Matthew Willemsen
@mwill_crypto
0/ Hot start to the week in the #crypto/#blockchain ecosystem! Successful fundraising rounds. New records set. Several products launched. Below is a 34-part thread on events that took place between Monday and Tuesday.

Enjoy!
1/ 🆕 @Guesserio launches today! Built on @AugurProject [ $REP ], the California-based #crypto project promises their release “will fundamentally change the way you participate in Augur prediction markets.”

Invest in the outcome of real-world events at your fingertips!
2/ 🔧 #Ethereum- and #IPFS-powered #blockchain platform for decentralized marketplaces, @OriginProtocol, unveiled its 'Marketplace Creator' tool.

This allows users to construct a decentralized marketplace in just a matter of minutes! medium.com/originprotocol…
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Matthew Willemsen
@mwill_crypto
0/ A busy #crypto/#blockchain space to kick off the week! Below, I've covered 16 events that took place over the past 24 hours or so.

Now that should keep you in the know!
1/ 📢 @EthereumCF-, @Zilliqa-backed @SwingbyProtocol, a cross-chain lending protocol for issuing an ERC20 BTC token, shared its MVP and whitepaper!

Creates a 1:1 soft-peg b/w #bitcoin [ $BTC ] and the BTC token *while keeping the custodian decentralized*. medium.com/swingby-protoc…
2/ 🗾 @HelloICONworld [ $ICX ] entered into a strategic partnership with top Japanese #blockchain company, @LayerXcom.

Will co-host hackathons, demo days, and conferences to increase the adoption of SCORE, ICON’s smart contract implementation environment. medium.com/helloiconworld…
Read 17 tweets
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Ebenezer A. Frimpong 🇬🇭
@EbeFrimpong
Everyone wants to start a t shirt brand but I see a lot of people going about it the wrong way.

Here’s the route you should be taking.

[Thread]
First things first,

Do not put your name on a f*****g shirt and try to sell it to people. Nobody wants that. Leave your ego at the door.

You need to figure out a target audience and cater to them but here’s the KEY:
Make a list of PASSIONATE audiences that you can potentially combine and stack some of them together.

Example:
1. Veterans
2. Bulldogs
3. Game Of Thrones Fans
4. Power Fans
5. 2nd Amendment Fans
6. LGBTQ Community
7. BodyBuilding Community
8. Men With Beards
Read 18 tweets
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Brendan Bernstein
@BMBernstein
Early stage crypto is extremely crowded. There are 3 consequences:

(1) It’s a great time to be an early stage founder-not investor
(2) Builds a leveraging cycle that drives up valuations
(3) Creates a large dichotomy between early stage private and later stage liquid valuations
Why is this happening?

(1) SAFTs are attractive to investors because they feel similar to SAFEs--which investors understand

(2) Recent LP capital has gone to funds that will largely focus on early stage.$300m to a16z + $400m to Paradigm (i know they'll hold some liquid assets)
(3) Many investors like that early stage focused funds *dont* mark to market monthly. They'd rather not have to talk to their boss about the volatility

There’s probably >$1.5bn that’s looking to deploy to early stage SAFTs
Read 15 tweets
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Nzekwe Gerald Uchenn
@NzekweGerald
INVESTMENT TIPS -- With Nzekwe Gerald Uchenna

SNAIL FARMING BUSINESS OPPORTUNITY IN NIGERIA :

Nigeria's economic recovery programmes have necessitated a radical shift from total dependence on government for job to self-employment.
One such attractive area for self-employment is snail rearing. It is a great money-spinning business that can provide a substantial source of protein to complement Nigerian carbohydrate meals.
Sadly Nigerians inclination to go into business in the fields where thousands have already made their fortune has led to the ulter neglect of such lucrative area of snail farming in Nigeria or export at international market.
Read 92 tweets

Trending hashtags

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