Zazu: "Yes. But not like what Starship will do. Take a look a this chart and think about what Starship would be at $10 a kilogram. Note that this isn't a k/kilogram but a kilogram." ttu-ir.tdl.org/bitstream/hand…
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1/ Simba: "Have we asked Disney for a cut of Lion King revenues?
Mufasa: "Disney has all the pricing power. They can use erasers to make us disappear any time."
Simba: "Pricing power?"
Mufasa: "The critically important ability to set higher prices without losing customers."
2/ Simba: "During my internship at Liberty people quoted John Malone saying things like 'It may be that Disney captures the profit but for now cable's got enough pricing power in broadband to make up for that.'”
Mufasa: "Malone rolled up cable with scale-based pricing power."
3/ Simba: "What creates pricing power?"
Mufasa: “It’s your alternatives that matter. Every business is constantly scanning the world trying to get its opportunity cost as high as possible. Opportunity cost is a huge filter."
"If you've got the power to raise prices without losing business to a competitor, you've got a very good business. And if you have to have a prayer session before raising the price by a tenth of a cent, then you've got a terrible business."
2/ Charlie Munger: “There are actually businesses you will find a few times in a lifetime where any manager could raise return enormously just by raising prices—and yet they haven’t done it. They have huge untapped pricing power they’re not using. That's the ultimate no-brainer."
3/ Charlie Munger: "Disney found that it could raise prices a lot and the attendance stayed right up. A lot of the great record of Eisner and Wells came from just raising prices at Disneyland and Disneyworld and through video cassette sales of classic animated movies."
1/ "I’ve been in the top 5% of my age cohort all my adult life in understanding the power of incentives and yet I’ve always underestimated that power.” Charlie Munger
Are incentives properly structured to create what he calls "incentive superpower"?
2/ "Federal Express had one hell of a time getting the [central package shifting system to work]. Finally somebody got the happy thought that maybe if they paid them by the shift, the system would work better. And lo and behold, that solution worked." jamesclear.com/great-speeches…
3/ What incentives would be created if people were given $50 vouchers for a Covid vaccine as some people have suggested?
"If the incentives are wrong, the behavior will be wrong. I guarantee it." Charlie Munger fs.blog/2016/02/charli…
1/ Newsletter owned by Advance Publications (Condé Nast) publishes a meandering slam of businesses like Substack that enable writers to create their own newsletters.
Writers owning their business and controlling their own lives = bad for democracy? Nope! newyorker.com/magazine/2021/…
2/ News (e.g., the mayor took bribes) is non rival and non excludable. Selling news if not to Bloomberg terminals is near impossible.
"few newsletters publish original reporting; the majority offer personal writing, opinion pieces, research, and analysis"
Like the New Yorker!
3/ WTF is this from the post in the New Yorker newsletter:
"Substack obviously wants to call it a democratizing gesture, which I find a little bit specious. It’s the democracy of neoliberal self-empowerment."
Is it investigative journalism? Is it news? You can't sell news.