Podcast Summary
Understanding the differences between private and public market investing: Private and public markets share similarities in requiring a deep understanding of business fundamentals and market conditions, but private markets offer more flexibility and control while public markets are more transparent and subject to market fluctuations.
Private and public market investing share some fundamental principles but require different strategies. Howard Linzen, a seasoned investor and co-founder of StockTwits, shared his insights on this topic during a recent episode of "This Week in Startups." He started his career in public markets, where companies were valued based on traditional metrics like revenue growth and earnings. However, with the advent of the internet and the rise of the private market, new opportunities and challenges emerged. One similarity between private and public markets is the importance of understanding the underlying business fundamentals and the market conditions. However, private markets offer more flexibility and control, as investors can negotiate terms and have a more direct impact on the company's direction. In contrast, public markets are more transparent and subject to market fluctuations, requiring a different approach to valuation and risk management. Howard emphasized the importance of staying adaptable and continuously learning in this ever-evolving investment landscape. Despite the challenges, he remains optimistic about the potential of both private and public markets and the opportunities they present for investors. As the conversation continued, the discussion touched on various topics, including the crypto market, J trades, and the role of social media in investing. Overall, the episode offered valuable insights for anyone interested in the world of investing.
The nature of investing varies depending on the market and investor's personality: Investing in crypto vs private markets requires different skills and perspectives. Crypto's price volatility encourages short-term behavior, while private market investing offers a deeper understanding of the business and a long-term perspective.
The nature of investing changes depending on the market and the investor's personality. Pre-internet, growth was measured by the number of stores, and angel investing offered a longer-term approach with fewer day-to-day distractions for the investor. Post-2008, private and public investing began to overlap, but it's a complex process requiring unique skills and oversight. In the context of crypto, the constant price fluctuations can be a curse, leading to short-term behavior and potentially overshadowing the long-term vision. Private market investing, on the other hand, allows investors to deeply understand the founder, market, and product, and forces a long-term perspective. However, the secondary market is not as fluid as a public market, and the psychological impact of losses can be significant. Ultimately, understanding the benefits and challenges of each type of investing and one's own investment style is crucial for success.
Learning from past financial mistakes and prioritizing user experience: Understanding financial markets and investing requires learning from past mistakes and prioritizing user experience to create optimal products. Stay informed, adapt to market changes, and control emotions to make informed decisions.
Understanding the language of the financial markets and learning how to invest is crucial for young people as the global economy continues to evolve. This includes learning from past mistakes, such as the dot-com bubble, and utilizing user testing to create optimal products. The importance of user experience cannot be overstated, as it allows businesses to understand their customers' perspectives and build the best possible experiences. Additionally, the public markets can be unpredictable and emotional, so it's essential to learn how to control emotions and make informed decisions. The speaker prefers to bet on pure strategies, such as Netflix, and emphasizes the importance of staying informed and adapting to market changes.
Netflix's focus on streaming and potential expansion into web three technologies position them best for long-term growth: Netflix's potential to reach a billion subscribers and significant cash flow make it a valuable investment in a bear market
While Disney has the advantage of a strong brand and conglomerate structure, allowing them to drive customers to their streaming service, Netflix's focus on streaming and potential expansion into web three technologies position them best for long-term growth and reaching a billion subscribers. Mark Cuban emphasized the importance of increasing positions in winning companies, as bear markets can force investors to reevaluate their portfolios and realize that owning too many stocks doesn't provide adequate diversification. The potential of a billion-subscriber service, like Netflix, can lead to significant cash flow and a strong moat, making it a valuable investment.
TikTok's Personalized Content Disrupted Social Media Landscape: Established tech companies solidify their position during economic downturns by investing in talent, R&D, and marketing, making it difficult for smaller companies to compete.
TikTok disrupted the social media landscape by creating personalized content streams for every user, leading to Facebook's decline. This shift towards social leverage, where companies no longer rely on financial leverage, has solidified the position of established tech companies during economic downturns. The bear market we're experiencing has made it difficult for smaller companies to compete, as the larger companies have the resources to acquire talent, invest in R&D, and market themselves effectively. The speaker's personal recommendation is to stay hydrated, especially during intense work periods, and he endorses the use of Liquid IV for efficient hydration.
Navigating the complexities of the modern workforce: The future of work is hybrid, emphasizing interpersonal skills and in-person interactions, but young people may struggle in a down market and remote work landscape. Motivated individuals should aim for in-person learning, but new types of successful workers may emerge. Overpayment in certain industries and Web3/blockchain may impact the workforce.
The future of work is likely to be a hybrid of remote and in-person work, with a renewed emphasis on interpersonal skills and in-person interactions. The speaker, who has experience managing millennials, expresses concerns about the impact of the remote work trend and the current down market on young people. He believes that motivated individuals should aim to be in the office to learn and grow under the guidance of mentors and bosses. However, he also acknowledges that new types of successful workers may emerge in the remote work landscape. The speaker also touches on the topic of overpayment in certain industries and the potential role of Web3 and the blockchain in offloading certain tasks to reduce costs. Overall, the conversation highlights the complexities and uncertainties of navigating the modern workforce.
The future of the internet with decentralized technologies: Decentralized technologies like blockchain and Web3 offer potential to offload tasks, build communities, and create opportunities, reducing the need for large teams and intermediaries.
The future of the internet lies in decentralized technologies like blockchain and Web3. These technologies offer the potential to offload various tasks, from content creation to payment processing, to machines and communities, reducing the need for large teams and centralized intermediaries. The hype around Web3 may seem excessive, but the ability to build and monetize communities through NFTs and decentralized platforms is a game-changer for small businesses and individuals. The speaker's experiences with YouTube and Wall St. Betas serve as examples of revolutionary technologies that were initially dismissed as insignificant but ultimately changed the internet landscape. The potential of Web3 goes beyond crypto; it's about the power of decentralized systems to offload work and create new opportunities.
Exploring the Potential of Web 3.0: Web 3.0 leverages cloud services and decentralized networks to reduce costs for entrepreneurs, enabling the creation of leaner web companies and opportunities for innovation. NFTs and smart contracts foster decentralized communities and ownership of digital assets with associated rights.
Web 3.0 is about reducing costs for web entrepreneurs by utilizing cloud services like AWS and decentralized payment networks. This allows for the creation of leaner web companies and provides opportunities for those who were previously sidelined during the Web 2.0 era to reinvent themselves. The technology is compared to the early days of the automobile, where it had limitations but held great potential. Web 3.0 is the "fog lights and windshield wipers" that make the web a more functional and exciting place. Another intriguing aspect of Web 3.0 is the use of NFTs (Non-Fungible Tokens) and smart contracts. These technologies allow for the creation of decentralized communities and the ownership of digital assets with associated rights. Imagine building a golf club with memberships that have smart contracts attached, allowing for the transfer of ownership and the collection of royalties. The infrastructure for this is already in place, making it an exciting development in the crypto world. Overall, Web 3.0 represents a shift towards decentralized and community-driven digital platforms, offering opportunities for innovation and the empowerment of individuals. It's not just about building the next big Facebook, but rather creating a more fun and engaging web experience.
Creating valuable communities in Web3: Focus on utility, scarcity, and community engagement to build valuable Web3 communities. Clear regulation and experienced leadership are crucial to prevent fraud and ensure a healthy ecosystem. Entrepreneurs should focus on building unique membership benefits and being transparent with members.
The future of Web3 lies in creating valuable communities with real-world benefits, rather than focusing solely on securities and hype. The speaker emphasizes the importance of utility, scarcity, and true community engagement in the Web3 space. He believes that by creating a strong community with unique benefits, the value of membership will naturally increase. The speaker also highlights the need for clear regulation and experienced leadership in the industry to prevent fraud and ensure a healthy ecosystem. He encourages entrepreneurs to focus on building valuable communities and being transparent with their members. The potential of Web3 lies in its ability to enable anyone to create a community with membership benefits, similar to American Express, but with the added benefits of blockchain technology.
Unique experiences and benefits for NFT members: NFTs offer exclusive access to communities and valuable experiences, creating a sense of control, liquidity, and potential for future perks.
NFTs (Non-Fungible Tokens) offer unique experiences and benefits for members, providing them with control, liquidity, and potential for future perks. The comedy example given illustrates this concept, where members could gain access to discounts at comedy clubs and even perform on stage at high-profile venues. The key is to build a community around the NFT and create valuable experiences that can't be replicated. Additionally, the speaker emphasizes the importance of understanding market trends and making informed decisions based on those trends. The speaker's personal experience of buying Disney stock during a market downturn is an example of this strategy. Overall, NFTs represent an exciting new frontier for building engaging communities and offering exclusive experiences to members.
Identifying undervalued companies and holding onto them for the long term: Successful investing requires informed decisions, calculated risks, staying informed about regulatory developments and market trends, and being prepared to adjust strategies accordingly. Look for undervalued companies in challenging industries and hold onto them for the long term.
Successful investing involves making informed decisions, being willing to take calculated risks, and adapting to changing market conditions. The speaker emphasized the importance of identifying undervalued companies, even if they are in challenging industries, and holding onto them for the long term. He also highlighted the value of staying informed about regulatory developments and market trends, and being prepared to adjust strategies accordingly. The speaker shared his experience of buying Amazon early and holding onto it despite its volatility, and expressed his belief in the potential of WarnerMedia Discovery under its new leadership. He also acknowledged the importance of being flexible and open to change, and the role of diversification in a well-rounded investment portfolio. Overall, the conversation underscored the importance of a thoughtful, disciplined approach to investing, and the value of staying informed and adaptable in an ever-changing market.
Investing in companies during market uncertainty: Look for quality products and strong leadership in uncertain markets, as companies like Shopify can still be good investments despite stock drops. Be cautious towards popular products like Peloton, and consider owning companies that control systems or platforms, like Apple and Shopify.
The speaker sees opportunities in the market during times of uncertainty or when popular stocks take a hit. He believes that companies like Shopify, which have great management and products, can be good investments even if their stocks have dropped. However, he also emphasizes the importance of product quality and company leadership, as seen with his cautious approach towards Peloton despite his personal love for the product. The speaker also believes that owning companies that control the systems or platforms, like Apple and Shopify, can be advantageous. He advises being wary of companies that fail to adapt and diversify, even when they have every advantage.
Managing Finances During Market Volatility: Effective management and a strong balance sheet are vital during market fluctuations. Prioritize financial health and make strategic moves to weather economic storms.
Effective management and a strong balance sheet are crucial during market volatility. Mr. Beast's frustration with Peloton's lack of foresight and action during the market downturn highlights the importance of being prepared and making good financial decisions. As Howard Linson emphasized, companies that prioritize their financial health and make strategic moves during market fluctuations can weather the storm and come out stronger. The ongoing debate over semantics, such as the difference between a recession and a downturn, can be distracting and ultimately unproductive. Instead, individuals should focus on the real impact of economic conditions on their personal finances and adjust their spending accordingly. The next generation of the internet, as seen in platforms like Wall Strip and YouTube, offers opportunities to learn from experts and make informed financial decisions, helping people avoid the pitfalls of market volatility.
Media landscape and the importance of authentic sources: Separate facts from opinions, trust authentic sources, and adapt to the changing media landscape for personal and societal growth.
The mainstream media's primary goal is to keep audiences engaged to sell ads, while genuine discussions and exploration of real issues can be found in podcasts and other platforms. It's essential to separate opinions and beliefs from facts and truth. The media landscape is changing, and people need to adapt to the chaos and polarization by trusting themselves and seeking out authentic sources of information. The era of mobility and technological advancements offers unprecedented opportunities for personal and societal growth, but it's crucial to acknowledge the importance of volatility and the role of institutions like the Federal Reserve in maintaining a healthy economic system.
Adapting to Change and Learning from Failure: Companies must learn from mistakes and adapt to changing circumstances to succeed. Public markets can impact behavior and decision-making. Stay grounded and use success as an opportunity to grow, not become complacent. Gen Z uses TikTok for business and personal branding.
Successful companies must be able to adapt to changing circumstances and learn from their mistakes, even if it means experiencing failure. The speaker shares his experience with a company that kept raising funds despite signs of trouble and ultimately failed. He also highlights how public markets can impact a company's behavior and decision-making, citing Peloton as an example. The speaker emphasizes the importance of staying grounded and using success as an opportunity to grow rather than becoming complacent. He also discusses the rise of Gen Z and their use of platforms like TikTok for business and personal branding.
Evergreen content has a longer-lasting impact than trendy content: Focus on creating quality content that resonates with your audience, regardless of the platform.
While silly content on TikTok may initially attract attention, evergreen content can have a longer-lasting impact. Young people may not be overly concerned about political issues like the potential ban of TikTok, instead focusing on the content they enjoy and moving on to other platforms if necessary. Instagram is seen as a newsletter-like platform where it's difficult to blow up, but it can be a good complement to a larger presence on other platforms. The speaker expresses a preference for YouTube over TikTok and Instagram for content consumption, but acknowledges that personal preferences and algorithms play a role in what content is recommended and consumed. Ultimately, creators should focus on producing quality content that resonates with their audience, regardless of the platform.
Creators use unrelated visuals to bypass content filters on TikTok: YouTuber Ben Smith shares his plans to create controversial videos using unrelated content, such as baking, to evade filters and keep viewers engaged on TikTok, increasing time spent on the platform.
Creators are experimenting with different platforms, particularly TikTok, to engage audiences with controversial or provocative content, often using unrelated visuals to bypass content filters. YouTuber Ben Smith discussed his plans to create a video explaining human rights abuses in China using a baking video as a cover. He also shared his fascination with listening to Reddit threads while watching unrelated videos on YouTube. This strategy keeps viewers engaged and increases the time spent on the platform, which is important for TikTok as it requires a certain amount of seconds for a video to be counted. Smith also mentioned his plans to create a script about the issues with TikTok and the Chinese Communist Party (CCP), but without mentioning TikTok directly, to see if his account would be banned. Overall, creators are finding innovative ways to engage audiences and navigate content restrictions on various platforms.
Gen Z's desire for community drives interest in co-living spaces: Gen Z seeks social connections and community in urban areas, leading to popularity of co-living spaces offering built-in networks and social fabric.
Gen Z's interest in communal living, such as co-living spaces, stems from the desire for community and social connections, especially in urban areas like New York City. These spaces offer built-in networks and social fabric, making it easier for individuals to meet new people and form meaningful relationships. The house discussed in the conversation, which has a built-in community and regular social events, has a high demand due to its unique focus on intentionality and serendipity. Despite receiving over a thousand applicants a year, the house relies mostly on word of mouth and social media to attract tenants. The differentiating factor from other co-living spaces is the emphasis on community events and intentionality, which sets the tone for a more engaged and inclusive living experience.
Affordable housing with a community feel: Co-living spaces offer affordable housing, fostering strong friendships and community connections, despite the challenges of managing roommates and individual quirks.
Co-living spaces offer affordable housing with a strong sense of community and friendship. These spaces, while more complex to operate than co-working spaces, can lead to meaningful connections and experiences that last beyond the initial intended stay. Co-living is not just about sharing living space, but also involves considering the habits and quirks of roommates, leading to both challenges and rewards. The upfront costs are generally lower due to the furnished apartments and minimal deposit requirements, making it an attractive option for those looking for affordable housing in cities. While the minimum stay is typically longer than co-working spaces, some residents have stayed for over two years, demonstrating the appeal of the community experience.
Creating a Community Living Space in NYC: The founders of this co-living space prioritize transparency and community, aiming to replicate the deep connections formed in hostels while studying abroad in Europe.
The founders of this co-living space prioritize transparency and community in their application process. They understand that living with 20 people comes with pros and cons, such as meeting diverse individuals and experiencing various perspectives, but also dealing with imperfect living conditions. This concept was inspired by the hostel experiences the founder had while studying abroad in Europe, where he formed deep connections with strangers. The goal is to replicate that sense of community in New York City, where people often live in close proximity but rarely interact. The popularity of communal living in the US may depend on the length of stay, as the intentionality of committing to a communal living arrangement for a specific period can contribute to its success.
Forming Lifelong Friendships in Communal Living Spaces: Co-living and hostels offer opportunities for building connections and friendships, and companies recognize the importance of storytelling in attracting customers.
Communal living spaces, such as co-living and hostels, offer unique opportunities for building connections and friendships. Ben, a co-founder of Goldhouse, a co-living space in New York, emphasized the potential for forming lifelong friendships through these experiences. He also shared his personal experience of growing up in a large family and the value of communal living. From a business perspective, Ben believes that companies are increasingly recognizing the importance of storytelling and the founder's journey in attracting customers. He plans to share more about Goldhouse's story and mission moving forward. Overall, communal living can be a valuable option for those looking for affordable and socially engaging housing, especially for interns and young professionals. To learn more about Ben and Goldhouse, follow Ben on TikTok and Instagram (@BecomingBen) or visit their website (goalhousenyc.com).
