Weekly readings – 16th May 2020

A scathing critique of AWS from this engineer

Related to the link above, this is quite a blog post from someone who used to work at Amazon and was working at Google at the time of the writing

Content, Cars, and Comparisons in the “Streaming Wars”. Matthew Ball’s essays are always great to read

The secrets behind the runaway success of Apple’s AirPods

How Morning Brew grew to $13m in revenue with 33 employees

Vauban Architecture: The Foundation of Central and Northern Vietnam’s Citadels

The latest memo from Howard Marks

How the most prized degree in India became the most worthless

WeChat Surveillance Explained

If Landlords Get Wiped Out, Wall Street Wins, Not Renters

All applications used at GitLab

Chicago Will Now Require Food Delivery Apps to Disclose Itemized Cost Breakdown. You can protect restaurants or you can protect delivery apps. In this case, I don’t think you can do both. I am glad Chicago went with restaurants

Source: Crunchbase

How Khan Academy Successfully Handled 2.5x Traffic in a Week

The faded beauty of abandoned cars across Europe and the US

“Visa saw an 18% rise in U.S. digital commerce spending during the month of April, excluding the travel category, as face-to-face transactions fell 45%”

From Boston to Saigon: A Coronavirus Quarantine Diary

Lessons From Slovakia—Where Leaders Wear Masks

Senate Votes to Allow FBI to Look at Your Web Browsing History Without a Warrant. I’d argue that this is a bridge too far into user privacy

Next time if you want to support local restaurants by ordering on delivery services like Grubhub or DoorDash, you may want to do a bit of research on how those services treat restaurant partners. Here is an example

Weekly readings – 5th April 2020

Colonial-era Nile river treaties are to blame for the unresolved dispute over Ethiopia’s dam

Lessons from Italy’s Response to Coronavirus

Covid-19 impact on retail

How Apple is working from home

Source: Visual Capitalist

Phone companies are required to take measures to combat robocalls

Howard Marks’ new note

Why Germany’s Coronavirus Death Rate Is Far Lower Than In Other Countries

Work from home productivity data

A story of how Microsoft struggled to get Skype to be competitive in the communication app world

How WHO Became China’s Coronavirus Accomplice

Google released Community Mobility Reports of areas and countries around the world as folks are staying home amid the threat of Covid-19

Weekly readings – 5th October 2019

Grab Accounts for 73% of Ride-Share Trips in First Half of 2019 in Vietnam.

Retailer Adoption of Apple Pay Quickens. Since I was able to use Apple Pay on my phone, I have been using it as the first payment method, even in a city as small as Omaha. I have been a pretty happy user ever since.

Source: Loup Ventures

Comparison of smart digital assistants by Loup Ventures

Meet the Women Leading Netflix Into the Streaming Wars

The man who built his own Lamborghini

Dog-walking startup Wag raised $300 million to unleash growth. Then things got messy. SoftBank doesn’t seem to be the Midas that some hyped it to be with its massive checkbook, does it?

Latest memo from Howard Marks: On the Other Hand

Researchers Discover the Tallest Known Tree in the Amazon

Measuring Apple’s Content Distribution Arm

WeWork Used These Documents To Convince Investors It’s Worth Billions. A long but good article on the accounting jujitsu that WeWork employed

Weekly Readings – 6th April 2019

The Enormous Numbers Behind Amazon’s Market Reach. A nice overview of where Amazon stands in various industries with visuals. 42% of the book retailing market, 45% of the E-commerce space, 32% of the cloud computing market, 35% of the online apparel area. From a business strategy and execution standpoint, Amazon is a remarkable success.

Death by a Thousand Clicks: Where Electronic Health Records Went Wrong. An astonishing and remarkable (long) read on Electronic Health Records in America. I urge you to have a read if you stumble upon this post of mine. Despite throwing billions of dollars at the nationwide EHR effort since President Obama’s first tenure, America has had little to show for it. I’ll let the former Vice President – Joe Biden share his story: “I was stunned when my son for a year was battling Stage 4 glioblastoma,” said Biden. “I couldn’t get his records. I’m the Vice President of the United States of America … It was an absolute nightmare. It was ridiculous, absolutely ridiculous, that we’re in that circumstance.”

Digital India. A very interesting report by McKinsey on the digital landscape in India. Sneak peek below

By McKinsey

Howard Marks’ latest memo. As insightful and enlightening as always.

Amazon’s Rise in Ad Searches Dents Google’s Dominance. Amazon as an advertising giant is here. Established ads agency such as WPP or Omnicom reportedly spent a good chunk amount of money on Amazon ads on behalf of their clients.

Lyft stock down by 12% and some thoughts on investing

After popping up 8% on the first day of its IPO last Friday, Lyft’s stock dropped by almost 12% today. That’s what I find baffling about the stock market. How much of the business could change in the span of 4 days? I haven’t encountered news that could justify the drop of that size. What changed? Will it go further down tomorrow? Or will it shoot back up again? And by how much? I literally have zero idea.

Charlie Munger once said that if you want to make money by buying low, you have to know when to sell high and it’s hard. Given what I have seen so hard, he is right. You don’t know when it is “high” enough to satisfy your own greed. Some may say that determining an intrinsic value of business by discounted cash flow (DCF) will be helpful in knowing when to buy and when to sell. That’s true, but DCF itself isn’t an easy and straightforward practice. It’s really hard. Here in this clip (around 6:50), Charle (not sure if he was 100% serious) mentioned that he never once saw Warren Buffett do a DCF. Plus, a renowned expert in valuation, Aswath Damodaran, admitted that he missed the mark way off when he tried to value Uber in 2014. I once participated in an M&A competition with three of my close friends. In the course leading up to the contest and the contest itself, we had to do quite a few valuation with DCFs. The method involves a lot of assumptions and it’s more art than science. Each company requires a different approach and almost no valuation is the same. If an expert such as Professor Damodaran struggled to get it right, what are the odds of ordinary folks nailing it? My money is on the “not very high” bet.

I don’t know a perfect method in investing, but I agree with Warren Buffett that buying or selling on prices is not investing. I’d recommend these two books if you are interested in life advice and investing. Poor Charlie’s Almanack and The Most Important Thing: Uncommon Sense for The Thoughtful Investor. If you have time, read more from Charlie Munger. He is really a wealth of wisdom. Plus, you can read financial reports (SEC filings of the companies) or S-1 if companies are filing to go public and subscribe to Seekingalpha.com or Yahoo.com to read the transcript of their earning calls. Plenty of useful information can be had from such sources.

I have my own reasons to invest in the companies in my small portfolio and if I go bust, at least I will learn a ton about business and go out on my own terms.

Weekly Readings – 23rd March 2019

Chi Dung’s R collection. This guy’s work is impressive. If you are interested in R, take a look.

The Big Brexit Short. I really like this kind of investigative videos by Bloomberg. I honestly don’t follow Brexit enough. Hence, it’s good to know about this potential scheme. I highly recommend you check out Bloomberg’s Youtube channel. Treasure trove of good information.

What the hell is going on. A very long, yet informative study on how the switch from information scarcity to information abundance affects business, education and politics.

On the Hunt for Japan’s Elaborate, Colorful Manhole Covers. An interesting story on a beautiful aspect of Japan’s culture.

How India conquered YouTube. I find the article fascinating and informative. A good overview of Youtube’s popularity in India and the media consumption behavior in the country.

Howard Marks’ memos. His excellent and insightful memos are praised and read by Warren Buffets and many investors.

I found two links here and here that are very helpful in understanding the subscription model.

Nine Reasons Why Disney+ Will Succeed (And Why Four Criticisms are Overhyped). A fair and detailed piece on Disney+, Disney’s upcoming streaming service. I cannot wait to try the service myself

Inside AirBnb’s “Guerrilla War” against Local Governments. A very good article on how AirBnb fought local governments in the US to avoid taxes and restrictions that the local lawmakers sought to put on them. I am a believer in the fact that if the law allows you to avoid taxes, you have every right to not pay taxes and stay competitive. However, fighting hard to stop new laws (laws always play catch-up with the business world) intended to make AirBnb pay taxes is a bit too far. Loss of taxes strips a local government of necessary revenue to fund projects that will benefit citizens. If your business earns millions of dollars in revenue and profit, what’s the reason for not paying taxes? Simply by “being a platform”?

Pinterest S-1. The photo bookmarking company filed to go public.

Video: Howard Marks interview with Tim Ferriss

The stock markets are crashing now. For quite obvious reasons. Tariffs, trade wars, the government shutdown that has no signs of being abated soon. Markets don’t like uncertainty, chaos or unpredictability.

The S&P500 has gone down by 15% since October. Apple has lost 38% of its market capitalization in the same time frame. My phone has repeatedly received notifications on the 52-week lows of the stocks in my portfolio for the past few weeks.

The knives have started falling. Should you stand still and try to catch the falling knives?

I listened to the interview between Tim Ferriss and Howard Marks, the author of the book: The Most Important Thing: Uncommon Sense for The Thoughtful Investor; which I highly recommend.

Howard argued that it is only when the knives are falling are people terrified and do the bargains show up. If we wait till the dust settles, the bargain will be gone. But when should one start buying to take advantage of the downturn? It’s up to one’s skills. Howard also cautioned that buying during the downturn isn’t enough to guarantee returns. Investors have to be right first and if investors want to outperform the markets and everyone else, they must have insights that no one has or the 2nd layer of thoughts.

If you are interested in investing and business, it is a great interview with a lot of insights. Have a listen while driving or working out or cleaning your place. It’s worth your time.