🍋 WeWork Version 0.01%
Good Morning! Uber hit a record number of drivers and couriers during times of mooning inflation. 70% of drivers said cost of living was the reason they joined. BuzzFeed is going to court against 90+ former employees over the company's public listing last December. Tiger Woods turned down Saudi-backed LIV Golf's offer to join its tour, worth a cool $800 million. Nancy Pelosi headed to Taiwan amid growing tensions in the region, and the jet rumored to be carrying her became the world's most-followed plane with 300k people eyeing every move of "SPAR19," according to FlightRadar24.
With the public markets in flux, diversifying your portfolio with an asset class that provides the opportunity for outsized returns makes sense. Download the Sweater app to add venture capital to your portfolio.
1. Story of the Day: WeWork Version 0.01%
You know a place is nice when its name evokes images of a beautiful European woman in your head. Collette, a new swanky coworking space in New York City, looks like it lives up to the picture I had in mind, and paints a prettier one at that.
The club was developed by Edmond Safra, of the billionaire Safra family, and restauranteur Juan Santa Cruz. It will be on the 37th floor of New York's GM building, allowing you to gaze over Central Park and the Plaza Hotel.
Safra was built to be a space for the Pitbulls of the world aka Mr. Worldwide aka internationally rich. These individuals likely have a residence in New York, either primary or secondary, but don't need to have a full-time office. So, if you needed to work, or meet with someone, head to Collette instead.
Santa Cruz said, "I've been thinking about this for a while. The world has been evolving for quite some time, and the pandemic has made it more evident that people do not use their offices as much as they think they do or wish they did."
Short Squeez Takeaway: If you feel like this applies to you, and you have $125k for an initial buy-in cost plus $36k a year for one of the initial 300 spots, you will get a space that has 23 400-square-foot private offices filled with a seating area, a conference desk, videoconferencing hookup, and temp and light controls. You also get access to staff that's at your call to potentially make copies or grab coffees, and definitely show you how to take your Zoom off mute.
2. Markets Rundown
Global equity markets finished slightly lower as US and China relations get tense with Taiwan in the spotlight.
Movers & Shakers
- (+) Uber ($UBER) +19% after posting a quarterly revenue that beat the street's expectations.
- (+) Pinterest ($PINS) +12% thanks to better than expected user numbers, and activist investor Elliott saying it has "conviction in the value-creation opportunity" at the company.
- (–) Caterpillar ($CAT) -6% because the company missed revenue expectations in Q2, citing pain from supply chain issues and its exit from Russia.
- TD Bank to buy Cowen for $1.3 billion
- IDRx, a cancer therapies developer, raised $122 million
- New Mountain Capital to raise $2.45 billion by selling food and enterprise businesses
- Permira to buy Reorg Research for up to $1.3 billion
- Bain Capital to sell EnVen Energy for around $1 billion
- Vice Media, which was once valued at $5.7 billion, in talks to sell self to Antenna Group
3. Top Reads
- Why finance is bullish on communicators (Axios)
- Market mayhem triggers deal-making drought (WSJ)
- London-based hedge fund reels as tech bet goes wrong (WSJ)
- Why big financial firms are scooping up climate modeling companies (Axios)
- Inflation begins to strain finances of young, low-income Americans (Reuters)
- Citigroup planning a hiring spree for its new wealth unit (BB)
- Coal is making a comeback with consumption expected to return to record levels (CNBC)
- Number of Americans employed and hours worked falls in July, data show (Reuters)
- Google, Facebook CEOs warn slackers, what it means (Fox)
- Inflation's main character energy (Axios)
A Message from Sweater Ventures: Add Venture Capital to Your Portfolio
Bear market got you down? Boost your long-term strategy with private equity. Sweater allows anyone to start investing in venture capital with just $500.
Sweater gives you:
- A world-class investment team at your fingertips
- An ever-growing portfolio of high-growth private companies
- Flexibility with automatic recurring investments
- Educational content so you can learn while you invest
- A tight-knit community of investors and founders
With the public markets in flux, diversifying your portfolio with an asset class that provides the opportunity for outsized returns just makes sense.
Download the Sweater app to add venture capital to your portfolio, today.
4. Book of the Day: Framers: Human Advantage in an Age of Technology and Turmoil
From pandemics to populism, AI to ISIS, wealth inequity to climate change, humanity faces unprecedented challenges that threaten our very existence.
The essential tool that will enable humanity to find the best way foward is defined in Framers by internationally renowned authors Kenneth Cukier, Viktor Mayer-Schönberger, and Francis de Véricourt.
To frame is to make a mental model that enables us to make sense of new situations. Frames guide the decisions we make and the results we attain. People have long focused on traits like memory and reasoning, leaving framing all but ignored.
But with computers becoming better at some of those cognitive tasks, framing stands out as a critical function—and only humans can do it. This book is the first guide to mastering this human ability.
“To frame is to make a mental model that enables us to see patterns, predict how things will unfold, and make sense of new situations.”
5. Short Squeez Picks
A Message from Open Door Capital: How the Rich Minimize Income Tax
According to the New York Times, Donald Trump paid $750 in federal income taxes the year he won the presidency. Politics aside, do you ever wonder how the wealthy often pay less in income tax than the average American?
6. Daily Visual: Marriott Revenue Moons
Revenue per available room, by select Marriott brand
7. Daily Acumen: Opportunity Cost
“We all have limited money, so we need to weigh carefully how best to use our dollars. That means pondering not only what we’re getting, but also what we’re giving up. This is one of life’s great financial tradeoffs, rivaling the tradeoff between risk and reward.
Indeed, at times, the two notions overlap. Suppose we stash our money in bonds and notch 3% a year. Yes, our wealth will grow. But if we had bought stocks instead, we might have earned 7% a year, so our more conservative approach—even though it made us money—came with an opportunity cost.
Should we feel badly about the opportunity costs we incur? It depends. We shouldn’t regret failing to invest in the stock market if, say, our time horizon is short and owning stocks simply wouldn’t have been prudent.
We also shouldn’t look at the fabulous performance of a single highflying stock or one hot market sector and feel we missed out, because there’s no way to know which parts of the stock market will soar and it isn’t prudent to make such narrowly focused bets.
The notion of opportunity cost can also be applied to spending. Suppose we’re eyeing a shiny bauble. If we buy it, we give up the chance to purchase something else, either now or at some future date.
Indeed, if we forgo today’s spending and save the money, we might have far more money to spend in the future, depending on the rate of return earned during the intervening years.
The biggest problem with opportunity cost: Often, we don’t even consider it. An investment or a purchase catches our attention and we’re so captivated that we snap it up, giving into our instincts without considering the alternatives.
To avoid this mistake, we need to slow ourselves down, giving the contemplative side of our brain a chance to weigh in—and to suggest that perhaps there are better uses for our money.”
Source: Humble Dollar
8. Crypto Corner by Bonkalytics.com
- For crypto customers, a long battle ahead in bankruptcy
- Crypto stocks get boost from retail traders who drove meme craze
- Robinhood crypto unit fined $30 million by New York regulator
- Hardcore Bitcoin evangelists still buying
- Hackers drain nearly $200 million from crypto startup in 'free-for-all' attack
- It’s now easier than ever to buy crypto with a credit card, but what you need to know
For more crypto-focused content, sign-up here.
9. Memes of the Day
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