Some links

The Undervalued Shares blog has started an interesting “Behind the scenes” series

A good summary from A16Z on how moats develop

Ben Thompson with some deep thoughts on platform business models (Shopify)

A good summary of the crazy things in the capital markets that happened in the last few months

An interesting in depth story on the Luckin Coffee fraud (WSJ, paywall)

Deep Dive on stock based compensation

Alternative data use for predicting asset prices is booming



  • GNP-GlobalNosePicking

    Very interesting on how companies pay employees with risky assets, namely their bonuses / variable components.

    This way employees must “eat what they cook”. It ressonates a lot with Taleb”s Skin in the Game (which I truly recommend!!)., and creates true alignment of interests.

    • This is how it should work.
      I think the following could also be possible: options are more valuable with higher Volatility involved (asymmetric payoff). So employee stock options might create incentives for employees to do more risky bets (high profits or high losses), doing more leverage, and /or stock buy backs etc….
      (I’d like to stress that is not my view, only a part of reality)

      In general I like it very much when employees / managers own company shares.

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