Profile picture
, 6 tweets, 3 min read
My Authors
Read all threads
25iQuiz:

1. What are the unit economics of Draft King?

2. How much cash does the business model eat?

si.com/johnwallstreet…
Capital Research, Wellington Management and Franklin Templeton have committed to invest $304M in the company’s common stock. Diamond Eagle has $400M in cash via its IPO. DraftKings expects $500M in unrestricted cash. google.com/amp/s/www.barr…
"DFS revenue in 2019 is estimated at $213M" news.google.com/articles/CAIiE…

"Per figures from the investor presentation, 40% of online sports betting gross profit in New Jersey over the past eighteen months has come from cross-selling to the DFS database."
"Revenue growth had slowed to the low-single-digits. DFS contests have huge vigs (albeit before promotion), and casual players have struggled to win. Figures from DraftKings show that 86% of players have been net losers or breakeven over the past 30 days."

AKA "net depositors".
The Draft Kings business model is to cross sell online sports betting?

What does it cost to acquire a online sports betting customer via other channels?

"Just as grocery stores sell turkeys for rock bottom prices as loss-leaders..." osga.com/online_gaming_…
"In New Jersey, the average cost of acquiring an online casino player is now well over $500 per new depositing customer, according to operators in the state. That’s a substantial price to pay for a customer in a ring-fenced market" egr.global/northamerica/o…
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Tren Griffin

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

More from @trengriffin see all

Profile picture
Tren Griffin
@trengriffin
1/ "Think how much more we learn -and retain! - when a teacher doesn't just enumerate the step-by-step instructions but explains the principles behind them."

That's Michael Pollan describing Samin Nosrat approach in Salt Fat Acid Heat. Charlie Munger's mental models for cooking!
2/ At least with cooking following a recipe may give you an acceptable result. Charlie Munger: "I can’t give you a formulaic approach, because I don’t use one. And I just mix all the factors and if the gap between value and price is not attractive, I go on to something else."
3/ "Taste buds can perceive five taste: saltiness, sourness, bitterness, sweetness, and umami, or savoriness. On the other hand, aroma involves our noses sensing any of thousands of various chemical compounds. Flavor lies at the intersection of taste, aroma, and sensory elements"
Read 4 tweets
Profile picture
Tren Griffin
@trengriffin
"65% of Americans have read a print book in the past year, while 25% have read an ebook and 20% have listened to an audiobook." news.google.com/articles/CAIiE…
"Americans read an average (mean) of 12 books per year, while the typical (median) American has read four books in the past 12 months." pewresearch.org/fact-tank/2019…
"About a quarter of Americans haven’t read a book in any format in the past year."
Read 9 tweets
Profile picture
Tren Griffin
@trengriffin
I just finished the new book on Jim Simons (The Man Who Solved the Market). It is quite a good story and well written. If you expect to learn very much new about how the Renaissance system works, you will likely be disappointed. My 25iQ post on that is: google.com/amp/s/25iq.com…
The best one sentence quote from Jim Simons about the system from the links at the end of my 25iQ post is:

"Efficient market theory is correct in that there are no gross inefficiencies, but we look at anomalies that may be small in size and brief in time.”
From a NYT review: "I think the market is reasonably close to efficient,” another well-known quant, Clifford Asness, once told me, “but there are a lot of little inefficiencies.” google.com/amp/s/www.nyti…
Read 6 tweets

Related threads

Profile picture
Per Bylund
@PerBylund
What people believe they know about the economy is typically exactly the opposite. (So no, it's not only your banker's investment advice.) It is the great power of #economics to point out how the world actually works. For instance, that already incurred costs are sunk, that costs
are a choice on the way to value, that capital is valued for its contribution to consumer satisfaction, that competition is a form of cooperation, that true cost is in fact value (specifically, the value forgone), etc. The apparent intuitive force of simple observation not only
lead people astray, but compels them to reject economics. Perhaps this is why we talk of an "economic way of thinking," which releases the mind from making all these simple and costly errors--and reveals the true nature of the world. I recently encountered another example of how
Read 12 tweets
Profile picture
Gavin Baker
@GavinSBaker
1) High valuations are arguably more dangerous to founders and employees than investors. No room for error.

If Magic Leap – an impressive company - had not raised at such a high valuation, it would be in a much better position today.

theverge.com/2019/12/6/2099…
2) Investors generally own preferred stock with liquidation preferences and anti-dilution rights that protect them. Founders and employees own common stock at the bottom of the pref stack. Investors will also normally be more diversified than the founders and employees.
3) High valuation generally correlated with a big raise. The big raise often gets spent, because the high valuation creates pressure for the next round, which drives unnatural decisions and a higher burn in pursuit of growth to justify an even higher valuation. Tough treadmill.
Read 12 tweets
Profile picture
Dr. Tayo Oyedeji
@tayooye
Why home ownership is a bad investments (part 1) - A THREAD
Caveats 1:

1. Home ownership has some inherent values including:
- Psychological comfort.
- Societal validations.
- Aesthetics.
- Feelings of safety.

These things are important but difficult to quantify so this analysis does not discount the important of these factors.
Caveat 2.

Home ownership serves other purposes in society and in individual lives that are, once again, not amenable to investment modelling.

This is purely an investment analysis of home ownership versus other possible investment models.
Read 18 tweets
Profile picture
Caroline Fiennes
@carolinefiennes
Alors, je vous présente… our findings about (1) what academic #research already exists about UK charities & #philanthropy and (2) the topics on which UK charities & donors say that they would like more academic #research.

(Thread)
#charity #impact #eval #impinv
2/ Combined, the results are a ‘gap analysis’ which can inform future research. Both studies were funded by @Charity_Futures, re its work establishing an Institute of Charity at Oxford University. But the findings can inform the agenda of any researchers in this terrain.
3/ Full findings are here: giving-evidence.com/2019/07/02/sup…

Summary is here: givingevidence.files.wordpress.com/2019/01/press-…
Read 21 tweets
Profile picture
People's Palace
@PeoplesPalaceUK
Kicking off our #CreativeEconomy Networks day in Stour Space hosted by @CreativeWick and in partnership with @NetworkCentre, @QMUL, @ahrcpress and @brBritish with a welcome from Will Chamberlain focusing on local creative initiatives and interOlympic exchanges with Brazil
Tim Clement-Jones, Chair of Council @QMUL, reflects that until recently the contribution of the creative industries to the UK economy has been underestimated but this is starting to change, with @ahrcpress funding research to build a crucial evidence base & build new employment
And we’re into our first panel focusing on #CreativeEconomy Networks, with Martin Dowle of @brBritish, Morag Shiach of @NetworkCentre and our very own Paul Heritage of @QMULsed.
Read 132 tweets

Trending hashtags

#Freedom #innovation #AI #ETH #MichaelMichaelMotorcycle #business #Capital #Economics #TickTock #Maduro #Khashoggi #valuecreation #TechBias #startup #management #ThankGodForTrump #business101 #winter #Euroclear #strategy #BTC #book #Venezuela #MAGA #king
Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!