Great essay from @BlasMoros on some fundamentals of organisational behaviour and hierarchies. Something interesting starts to happen to businesses that flip the hierarchy - where senior leadership acts to support and serve front-line employees.
“Hierarchies are nature’s fundamental organizing structure – robust and efficient => See the foundation of the pyramid for what it is – the most important”
“If you are looking to change a system, a helpful tool in this process is to observe its long-term behavior.”
“Similar to how a biological hierarchy is decentralized, leaders can do the same in their human- centered hierarchy. Because management doesn’t have the in-depth customer knowledge like the frontline crew does, they shouldn’t be making these types of decisions.”
also - Blas' latest project, ltcwrk.com is a cave of wonders for those looking to sharpen their toolkit of mental models
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New Research on Evolution Gaming's Asia and Crypto Risk $EVO
We’ve followed EVO closely since 2019, including throughout 2021. This work doesn't rehash old risks.
We believe we've uncovered various potential significant risks to its unregulated Asia business:
Firstly, our research suggests crypto provides the critical infrastructure to ~50% of EVO’s EBITDA
~30% of unregulated GGR is driven by crypto gambling but the significant majority of GGR touches crypto to facilitate deposits, transfer payments, and hide gambling
crypto isn't discussed once in EVO filings
While bulls argue $EVO is diversified by end market in Asia, our research suggests the distribution channel to get there is highly concentrated
A few reflections on the Berkshire Annual Meeting..
1) The two words Buffett mentioned the most were 'partners' and 'owners'
$BRK
2) This comment was also interesting
“If I were to do this all again, I’d do exactly the same thing: I’d go to individuals and earn their trust"
"Trust is relational, and flourishes through a set of aligned values. It is far simpler to build trust with an individual than with an institution. The corporation is effectively an intermediary between a personal relationship of two individuals"