Investment Strategy
One of the most powerful things to look for in an investment is a network effect. A network effect is an attribute of a company or other system such that as more people use the network, the network becomes exponentially more valuable for each user. It's one of the strongest economic moats that a system can have against competitors. This … [Read more...]
"Japanification" in the economic sense refers to the stagnation that Japan's economy has faced over the past three decades, and is typically applied in reference to the concern among economists that other developed countries will follow along the same path. As a visual, here's Japan's long-term nominal GDP in US dollar terms: Chart … [Read more...]
September 2021 Editor's Note: Now that BlockFi has reduced its interest rates, the risk/reward situation has changed and I no longer hold BTC there, after making a significant amount of interest. BlockFi's rates are now very low for any BTC balances over 0.1%. Yields remain decent for stablecoins, and the rewards card remains a compelling … [Read more...]
Published: January 11, 2021 One of the concerns I've seen aimed at Bitcoin is the claim that it's a Ponzi scheme. The argument suggests that because the Bitcoin network is continually reliant on new people buying in, that eventually it will collapse in price as new buyers are exhausted. So, this article takes a serious look at the concern by … [Read more...]
When it comes to determining a fair value for equities, interest rates are an important variable to consider. As rates rise or fall, they affect the appropriate valuations for different stocks in different ways. This article provides a brief overview of how that works. The Equity Risk Premium Equities are not priced in a vacuum; they are … [Read more...]