Met a guy at a party this weekend.

He was fine until,
Guy: "U were Columbia 2016? What was ur 5-Year reunion like?

Did y'all sit around figuring out who's the most successful?"

My stomach dropped. Something vile was bubbling in my throat-- the toxicity dizzying.

Story time 👇
He was a Columbia 2019 so maybe it was self-deprecating humor?

Well not funny. A revolving door of emotions passed between us.

First, disgust. Why the fuck would we come all this way just to whip out our dicks & size each other up?

Second, denial. Dude musta had no friends.
People like him were the exception, not the rule.

Third, sympathy. Should I feel bad for him?

Fourth, realization. Damn, this guy... was all of us.

Fifth, disgust. Why the fuck did we come all this way just to whip out our dicks and size each other up?
Because we're an entire race intoxicated by the fumes of our own competitive obsession.

There's a name for this phenomenon:

Girardian mimesis.

And here, amid the loud music and murmurs of pending IPOs was Girardian mimesis at its finest.
What is mimesis?

@david_perell explains this beautifully in perell.com/essay/peter-th…

TLDR: Mimesis = imitation.

We don't know what we want, so we want what our neighbor wants. And the less we understand why, the more desperately we want.
"Mimetic conflict emerges when 2 people desire the same, scarce resource. Like lions in a cage, we mirror our enemies, fight because of our sameness, & ascend status hierarchies instead of providing value for society."
~ @david_perell
The concrete jungle of NYC was an echo chamber of our mimetic conflicts.

It was the culture of finance.
It was the culture of scarcity.
It was the culture I flew halfway across the world to get away from.
Coming to SF 4 yrs ago felt like departing Plato's cave.

As I packed up my east coast life, a friend asked:
"Are you running from or running toward?"

Both.

"From scarcity. Toward abundance."
I was naive. I didn't know it at the time but I was running in a spiral.
To say that I was running from scarcity toward abundance explains only half the story. More accurately, it was from scarcity-driven mimesis to abundance-driven mimesis.

We are still "gigantic imitation machines" (as @peterthiel describes) no matter where we go.
I came to SF looking for the land where unicorns frolick and the pie in the sky is ever growing.

I wanted to experience the smoke in mirrors, the exaggerated exuberance, the song and dance about general AI, and ceaseless anticipation for the next big crypto pump.
Everyone has their own unique story in the global exodus from finance to tech. Sick of PE interviews? Want to build product? Longing for something new?

More likely they are all manifestations of Girardian mimesis.

The irony!

Our instinct for imitation is truly inimitable.

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More from @FabiusMercurius

11 Sep
🥬Kimchi Premium & Hidden Arbitrage🥬

On Jan 8, 2018, a man made $1.5B trading BTC in Korea.

BTC price was $25K in Korea.
But $16K elsewhere in the world.

57% arbitrage opportunity! WHAT?! This trade became infamously known as the Kimchi Premium.

Here's the full story:
👇
1/ How it started

It was not always this way.

Back in Jan 2017, BTC hovered at $2K. Crypto prices between Korea & elsewhere was not that different.

By Dec 2017, BTC had soared 10x to $20K. Unknown to most of us, there was an even madder dash to panic buy in Korea than the US.
Suddenly S. Korea was trading 20% of all global BTC volumes on any given day. The "Korean Housewife Trader" became a meme.

Such localized trading frenzy caused local BTC prices to diverge from 1% premium to 10% to 30%...

At 30%, (even) CNN took notice:
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4 Sep
👩‍❤️‍👨 Dating + Investing: The Same Game? 👩‍❤️‍👨

Men want 2 things.

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Turns out:
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It's called ...
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1/ What is the Secretary Problem?

Imagine ur in HR.
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What strategy maximizes ur chances of choosing the BEST?

[code @ end of 🧵]
Now replace "ur in HR" with
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Replace "secretary" with
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28 Aug
🏭Ray Dalio’s Economic Machine🏭

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Hedge funder Ray Dalio cracked the code.

Here's how his economic machine solved McDonald's 🐥problem.👇
1/ What is the Economic Machine?

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While seemingly complex, the economy is mechanically & predictably driven by human nature.

i.e. Everything from debt cycles to GDP is a machine.
3 Forces drive Dalio’s economic machine:
#1 Productivity growth
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The diagram above shows these 3 forces together in action.
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25 Aug
📋Common Finance Interview Questions📋
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Bankers/traders/PMs have attention spans of 🪰s.
Trip on your tongue & there's 50,000 hungrier candidates behind you.

Spinoff 🧵 of @SahilBloom's 20 questions (bit.ly/3kvqzfY) but tailored to Wall Street.
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1/ “Why this company?”

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Start here. It shows (a) ur organized (b) u've done ur homework.

Example:
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#2: "I read about X deal & I wanna help on the next one!"
#3: "My buddy X from LevFin says culture is great."
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#1 strokes ur interviewer's ego; s/he will like u more & whatever u say next will sound 2x better
#2 shows ur excited! (i'm convinced half the reason banks hire undergrad interns is for their energy)
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21 Aug
🎚️ What is Risk Premia? 🎚️

Be honest: Are u a GOAT trader?

Or did you just make 40% returns being long tech stocks through COVID? What is a good way to assess one's trading performance anyways?

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🔑 This is the central equation of this thread.

🔑 Learning to accurately attribute your total return between Rf, β, and α is key for traders to accurately assess their performance.

Let's start at the bottom then move up.
1/ Risk Free Rate -- small risk, small reward

Think about a super safe way to make a little return: ur savings account. Deposit cash, get 0.4% APY.

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17 Aug
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Is it the new gamma squeeze? Or the new merger arb?
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Turns out there's some systematic arbitrage to exploit in the deSPAC process!

If ur unfamiliar w/ how SPACs work, read:
During de-SPAC (where sponsor merges w/ target), shareholders can "redeem" their shares before deal closing if they don't want to own the target.

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