Nov 8, 2021 Sign Up

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"Doing boring things without getting bored is a competitive advantage." – Shane Parrish

Good morning! In a bizarre but very Elon Musk move this weekend, Elon asked his followers if he should sell 10% of his Tesla stake, promising to stand by the results whatever they may be. 3.5 million voted with 58% voting yes, which means Elon will sell ~$20 billion of Tesla stock. Watch out for one of the most anticipated opens for a stock today since Elon posted the tweet about taking Tesla private 3 years ago. In some good news, Pfizer said Friday that its experimental antiviral pill for COVID-19 is 90% effective as it seeks FDA approval for it.

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1. Story of the Day: FOMO At All-Time High

If you are a regular reader of Short Squeez, you know that we have written about FOMO investing before. On June 10th, we introduced the FOMO economy and only two weeks later, we talked about how crypto was losing its FOMO appeal. That alone should tell you how fast the world of crypto changes. Well, guess what? Cryptocurrencies are hitting all time highs again.

Ben Carlson talks about the 3 levels of FOMO in his A Wealth of Common Sense blog:

1) Long-term FOMO: Missing out on investing on a well performing stock over a few decades. "I need to find the next dividend compounding machine."

2) Level 2. IPO FOMO: Amazon is the ultimate example of a company you wish you would have bought when it went public and just held on for the ride. "I need to find the next world-changing company."

3) Get Rich Overnight FOMO: This is being driven by the massive wealth being created in crypto. Solana is up 11.4K% over the last year. While Shiba Inu is up 71.0M% over the same time period. Someone really just turned $8,000 into nearly $6 billion by “investing” in a meme coin of a dog that is a derivative of another dog meme coin. It took a little over a year. "I need to find the next shitcoin."

Short Squeez Takeaway: Crypto has minted many new millionaires (some billionaires) over the last couple of years. FOMO from this cycle is bound to mess with people's brains in ways we cannot even comprehend right now. What makes FOMO worse is how easy it is to flex your wins on social media these days. No one posts pictures of them holding the bag, it's only pictures that turn $8k into $6 billion that go viral. Next time you try to buy Shiba Inu, pls be ready to lose it all over the next 24 hours.

Source: A Wealth of Common Sense Blog

2. Markets Rundown

• US stocks closed at new records Friday, after the US added more jobs than expected in October.

Movers & Shakers

• (+) Airbnb ($ABNB) +13% after reporting stronger-than-expected third-quarter revenue. The company posted revenue of $2.24 billion versus the consensus of $2.05 billion.
• (+) Expedia ($EXPE) +16% after beating analysts’ expectations during the third quarter. Revenue came in at $2.96 billion, also ahead of the expected $2.73 billion
• (–) Peloton ($PTON) -36% after the firm reported weakening sales growth and a wider-than-expected loss in its fiscal first quarter.

3. Top Reads

A Message from Sweater Ventures: The Venture Capital Fund for Everyone

Sweater is opening venture investing for everyday investors. 

The last decade has seen a rise of retail investors keen on taking investment power into their own hands. Every year, more technology and resources allow investors (like you!) to make well-informed decisions for where their money goes and how it grows.

But the most lucrative long-term investment strategy—venture capital—is still out of reach for the majority of investors, until now. 

Venture capital is no longer just a club for the uber wealthy—it’s our time to put stake in the companies we want and know will change the world. Sweater, the VC Fund for everyday investors is coming soon. 

Join the waitlist to find out more information*.

4. Book of the Day: Risk

Retired four-star general Stan McChrystal has lived a life associated with the deadly risks of combat. From his first day at West Point, to his years in Afghanistan, to his efforts helping business leaders navigate a global pandemic, McChrystal has seen how individuals and organizations fail to mitigate risk. Why? Because they focus on the probability of something happening instead of the interface by which it can be managed.

In this new book, General McChrystal offers a battle-tested system for detecting and responding to risk. Instead of defining risk as a force to predict, McChrystal and coauthor Anna Butrico show that there are in fact ten dimensions of control we can adjust at any given time. By closely monitoring these controls, we can maintain a healthy Risk Immune System that allows us to effectively anticipate, identify, analyze, and act upon the ever-present possibility that things will not go as planned.

5. Short Squeez Picks

• Looking for growth? This company’s share price has increased by 1,650% since 2016 – Learn More
• William Irvine came on The Knowledge Project to discuss stoicism Podcast
• Four things to help you live in the moment

6. Daily Visual: Lopsided Music Streaming Model
Average amount of streams needed to reach payout of $1

Source: Statista

7.  Daily Acumen: Nature of illusion

“The nature of illusion is that it’s designed to make you feel good. About yourself, about your country, about where you’re going – in that sense it functions like a drug. Those who question that illusion are challenged not so much for the veracity of what they say, but for puncturing those feelings.”

Source: Journalist Chris Hedges

8. Memes of the Day

*The information in this advertisement and the prospectus of Sweater Cashmere Fund is not complete and may be changed. We may not sell the Fund’s securities until the registration statement filed with the Securities and Exchange Commission is effective. This presentation is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. The prospectus contains this and other information about the Fund and can be obtained by 1.888.577.7987 or emailing support@sweaterventures.com and should be read carefully before investing. All investing involves risks, and past performance is no guarantee of future results.

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