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a_yawning_cat's profile
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@a_yawning_cat

stray thoughts, loosely held. rat jaeger.

California, USA
aycat.substack.com
Joined December 2018

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    1.  🐈‏ @a_yawning_cat Mar 5

      it's possible to combine both too. tesla's crazy valuation is a combination of both seeing far into the future as well as making real innovative progress.pic.twitter.com/GZhV3nEmq6

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    2.  🐈‏ @a_yawning_cat Mar 5

      what this means for the value investor is that they should seek to buy things that have underestimated growth potential or underestimated time horizons. this is not simply to buy companies that have no ego. it is to buy companies that have a HEALTHY ego.

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    3.  🐈‏ @a_yawning_cat Mar 5

      ego is NOT bad. projecting into the future and having some sort of plan is good. the only way to optimistically believe in yourself is to first HAVE a self.

      1 reply 0 retweets 0 likes
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    4.  🐈‏ @a_yawning_cat Mar 5

      internally a healthy ego is confident while externally underestimated. an unhealthy ego is either arrogant or internally underestimated (anxious, depressed, etc...)

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    5.  🐈‏ @a_yawning_cat Mar 5

      a depressed ego never grows because it can't believe in a future. an arrogant ego is pricing itself too much into the future. it's like taking out a huge line of credit and feeling rich instead of in crippling debt.

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    6.  🐈‏ @a_yawning_cat Mar 5

      a bubble popping is when the story of the future encounters something it can't integrate. the STORY pops taking out all of the present perceived value because so much of that value was stored in the future story.

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    7.  🐈‏ @a_yawning_cat Mar 5

      this model can then lead to a new type of rebalancing philosophy. older philosophies include ideas like: 60/40 stocks bonds or 1:1:1:1 stocks:bonds:gold:cash or long volatility vs short volatility

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    8.  🐈‏ @a_yawning_cat Mar 5

      in this newer philosophy a portfolio is like a ship, sailing into the unknown. when the seas are rough, you rebalance into things that have value mostly in the present. when the seas are calm, you can let down the sails and increase speed.

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    9.  🐈‏ @a_yawning_cat Mar 5

      when seas are disastrous what you want are things that have a strong expected future. iphones may die but corn will be eaten. governments may fall but gold will always be shiny.

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    10.  🐈‏ @a_yawning_cat Mar 5

      this last technique is like abandoning ship for the lifeboats. the point isn't to grow but to survive, 0% at best. trying to grow in a disaster is like saying "if a nuclear war happens along with an alien invasion and a giant meteor, what stock do i buy to be rich?"

      2 replies 0 retweets 0 likes
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       🐈‏ @a_yawning_cat Mar 5

      in the vein of "everything is borrowed from God" you don't actually "own" this ship. the ship is a giant shared market and you are just laying claim to different sections of it. e.g. buying lifeboat passes cheap & selling high vs literally hoarding lifeboats for yourself

      8:07 AM - 5 Mar 2021
      1 reply 0 retweets 0 likes
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        2.  🐈‏ @a_yawning_cat Mar 5

          this is mostly speculation rather than building actual capital. any 'real' capital you buy is always sold by someone who doesn't want it. either it's sold in desperation, the seller really needs the liquidity, or is stupid. otherwise you can't get a good deal.

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        3.  🐈‏ @a_yawning_cat Mar 5

          even that is mostly imaginary since it's just laying claim to a source of fun coupons to buy products from the market. the real real ship you are sailing is your life. your real capital is your perspective on life, your skills, your experiences, friendships, memories, etc...

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        4.  🐈‏ @a_yawning_cat Mar 5

          it's a giant bag of Stuff compressed into a story that you present at the End of Days in Ultimate Judgement. and who is it that will judge? You.

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        5. End of conversation

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