2) The whole point of golden geese is that sometimes they don't work.
Maybe they rarely do. But they're valuable enough that they're positive expected value anyway.
3) So, if you find an example of a time when a lot of 'golden geese' falter, the reaction shouldn't be "whelp guess golden geese are fucked".
The _default_ state of potential golden geese is that they falter; adding on another few examples doesn't change much.
4) And, anyway, the article is referencing a 50% downturn since the peak, for a set of bets that had doubled many times already.
5) If you had told early investors in BABA that it would be a $530B company on 2021-08-01, they would have been ecstatic.
The fact that it was briefly hit $800B doesn't diminish the net growth to $500B.
6) Which is one thing I never quite got about some of the blowback on Softbank from the WeWork shitshow.
Yeah, they lost on it. If you're really going for the biggest wins, you'll lose sometimes, maybe frequently.
And sure, you should think about mismanagement.
7) But if the goal of a strategy is to make 100 bets, lose on 50 of them, and 5x on the other 50, then there's only so much you'll learn from an individual loss.
That's expected. You have to look at the overall performance.
8) IDK how to think about the *real* trajectory--its noisy!
But, FWIW, here's the % performance of Softbank (red) vs the S&P500 (blue) in the last 10 years:
9) Does that mean they're good? Bad? How does that compare to the vision fund?
You can be the judge of that.
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2) I've been trying to figure out how to summarize our whirlwind of advancements over the last few months, and how to talk about what lessons we've learned from our raise and growth.
But I wanted to start two years ago, at a conference in Taipei.
3) FTX had only existed for a few months, and we flew out to the ABS conference meet a bunch of players in the industry and debut our exchange.
And for the first time, we were turning some heads.
3) But our commitment goes beyond that, because in the long run preventing deforestation can't be the full answer: there's only so much deforestation to prevent, and there's a lot more carbon usage than that.
So we're *also* funding research into other ways to help.
1) An effective margin system is integral to an efficient economic system.
There are limits to everything, though.
2) We worked hard on our margin system at FTX: allowing users to cross-margin most assets on the platform.
It means needing to manage one wallet instead of hundreds; it also means massively fewer liquidations.
3) Any margin system needs to have liquidations as a backup, but the goal is to do so rarely.
At FTX, way less than a percent of volume comes from margin calls. This contrasts with a few platforms which are sometimes > 5%, and some which removed data because it looked bad.