And if you’re actually interested in learning more about the Evergrande situation, I talked about it on @BanklessHQ with @RyanSAdams and @TrustlessState this week.
Check it out!
And if you’re a job seeker looking for your next step in your career, check out my job board for interesting roles I’ve curated from high-growth companies in tech and finance.
By now, you’ve probably heard that global supply chains are in a state of disarray.
Here's a simple breakdown of what’s causing it:
1/ There's a lot of talk right now about the global supply chain crisis.
@business published an article subtitled "Inside the Brutal Realities of Supply Chain Hell”—it's getting serious.
This thread provides my (very) simple framework for understanding the key drivers:
2/ First off, what are the visible impacts of the crisis?
Product delays (good luck getting appliances before 2022), product shortages (see semiconductors), port buildups (fly over LA and you'll see), and rampant freight costs (sorry, retailer margins).
What can the Chinese bamboo tree teach us about growth?
It has to be cared for every single day. It doesn’t break through the ground for 5 years, but once it breaks through, it can grow up to 100 feet in 5 weeks.
Lesson: Be patient. Growth happens gradually, then suddenly.
Another interesting insight I gleaned from this:
You have to be sure that the “care” you apply is sufficient and appropriate.
This means that your daily actions are compounding under the surface — pushing your personal flywheel with appropriate force and directional efficiency.
And in most cases, you shouldn't “sell” your bamboo before it breaks through the ground (unless someone pays you for the 100-foot version while it’s in the ground).
Investing is about edge—an asymmetric information advantage.
Evergrande is the train wreck that the financial world and media can’t help but watch.
Here’s breakdown on the story:
1/ The Evergrande Group is a Fortune 500 real-estate developer with headquarters in Shenzhen, Guangdong, China.
It was founded by Hui Ka Yan in 1996 in Guangzhou.
It's a big business: as recently as 2020, it had sales of >$100 billion and adjusted core profits of ~$5 billion.
2/ At its core, it's a homebuilder business.
Its website states that it has over 1,300 projects across 280+ cities.
But it has pushed the boundaries, making investments in EVs, an internet and media production company, a theme park, a soccer club, and a mineral water company.