Tag: Capitalism

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Culture Politics

Day 1019 and Crossing Borders

There is quote from an 18th century French liberal economist that has always struck me.

When goods don’t cross borders soldiers will

Frederic Bastiat

I’m feeling a bit better so I went for a walk around Tallinn’s public ferry port terminals. I love port cities and the public infrastructure of ports. Trade has always fascinated me. Where culture and its exports goods mingle, you see the most malleable parts of culture. Bonderlands and border towns occupy unique cultural space. Ports represent that that in more organic ways as ships come from everywhere..

One of the more amusing features of the public transportation system of ferries in the Nordics is that there is a cross country service from multiple countries. With rides being in the two to thing hour range you see cottage industries emerge in different policy choices.

Estonia has substantially better alcohol prices than Finland. As it turns out there is a good reason for the price discrepancy. There is a state owned alcohol monopoly in Finland called Akko. Naturally it’s better to buy a good in a competitive market like Estonia.

Outside the ferry there are multiple large liquor retailers. I went inside and was impressed by the wide variety. While there was endless options for beer and spirits, it was really the selection of wine that impressed me.

Finns will take the hour and a half ferry from Helsinki to Tallinn and go straight to the liquor stores and then back on a return ferry. I saw multiple tour buses from Finland in the parking lot.

You can’t trick a broader market forever with a state monopoly. If a market exists the customers will find it. Make something inconvenient and it’s just a fun beer run with friends. But eventually it does get old. Direct to consumer is shaking up old Finish alcohol monopoly.

Most trade disputes aren’t this simple and this easy for people to get around. Borders that can’t be crossed lead to real disputes.

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Emotional Work Politics

Day 1015 and Selfish

I think we are entering a selfish age. High trust societies are built from cooperation. When we get more through coordination than we do from conflict we have an incentive build more. Simple supply and demand can teach us a lot about improving the bargain of trusting each other.

Coordination suffers when trust goes down. But we can’t all maintain the same types of trust across all levels of our interactions. Some areas must remain high trust. Tight industries and clear lines of communication can help.

But we have to become intense skeptics to coordinate in otherwise hostile environments. Civilization has a thin veneer. To selfishly live your own life for your own good is often in conflict with others. The boundaries we tolerate are the rules for acceptable competition. This is how we civilize society. There are laws and then there is power.

Maintaining your own power in a crueler world is knowing when to be selfish to the benefit of other people’s coordination problems. Competition is good.

I am more careful in some interactions now because I see the fog of competing interests. Different rules apply to different people. Knowing when rules do and don’t apply can make you crazy. You’ve judged power and norms correctly when sympathy is with you.

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Biohacking Finance

Day 1009 and Non-Reactivity

I’ve been working on my Q3 investor update all day. I am a little behind my own artificial deadline for it as I believe it’s good to get it out in the first week of the new quarter. I am chasing down a bigger theme in my market insights section that is being refined as I rework my own narrative understanding in real time.

I feel that there is a collective disagreement on consensus reality. We’ve got multiple worldviews that are being hotly contested. Epistemic status humble as the kids say. And so I am doing what I can to get outside the presumed worldview of my own geography and nation and see if a more global perspective is helpful.

But being able to see any of these different vantage points and narratives will require me to be accepting of other competing or adjacent narratives. The presumption is that I can control my own reactions. My body has to be open. So I am here with my Apollo Neuro band sending sound waves to my body while I listen to Endel’s chill program on my noise canceling headphones. I plan to do a Non-Sleep Deep Rest mediation after I’m finished.

I can only give my best performance when I’m sure my body is in a non-reactive place. Parasympathetic is sometimes called “rest and digest” versus its more active sympathetic nervous system partner “fight or flight.” We must assess our world and the many competing perceptions from a place of non-reactivity. It is the only way through the fog of the moment. Never let the stress of the moment distract you.

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Aesthetics

Day 1007 and Half A Decade Past Premium Mediocrity

I recall somewhat fondly the era of capitalism in which moving your business online was an innovation. The direct to consumer phase of retail and packaged goods is forever tightly tied to interest rates in my mind. Direct to consumer failed as an ethos and a movement for better goods for consumers.

Facebook, Google and Apple are engaged in brutal turf warfare over who owns customer data and let me tell you it isn’t the brands or you as the buyer that benefit.

What was once efficient in reaching ever wider and more specific audiences, the consumer internet has smoothed your identity into some brand’s extremely specific Pyschographic. You know what I mean when I was Lululemon girl and Black Rifle Coffee guy. Don’t worry you think, I’m not a sucker. While typing this on an iPhone.

There was a vague optimism that merely by doing something like bypassing superfluous luxuries like brands (which only served to bamboozle with flash and expense) you could provide a better quality product at a lower cost to your ultimate customer. How naive that seems at the speed of global derivatives based financial products.

How fondly I remember thinking someone could design the Platonic ideal of the tee shirt or provide some basic ultimate end good without confusing merchandising tactics. I’ve never once in my life wanted to decide if the X or ultra version of something was better. Just sell me the one good thing damn it.

But they can’t. Markets compete. The differentiation gets competed away eventually. It began with the “one essential good thing” in a category and ended as a mess of optimization for margin & enshitification and selling new versions of the same audience to whatever sucker can pay the CPM. Remember when we used to pretend you could pay for performance in advertising? Sheryl Sandberg got us good.

There’s a weird thing with scale, where the market can raise the threshold for crappiness and then a truly scaled company can positively exploit those dynamics to provide a genuinely superior good. Amazon can have pretty great basics in the same way gas station chains can have decent coffee. Costco’s hotdog will remain an icon if their standards hold up.

Rory Sutherland an advertising executor has a concept called the “threshold for crappiness” that suggested your local chain sometimes had to up its game to compete when a chain comes in. But markets push downwards as well as upwards.

Venkatash Rao first coined premium mediocrity. Private equity excels at this category. It’s global cosmopolitan striver megabrand. It’s the pretty decent but in a big packaged good sort of way item you get at Whole Foods. Imagine the dreaded diffusion line of a once great luxury brand. Or Michael Kors.

Rao put words to a phenomena that drove me a bit nuts during the height of premium mediocrity in 20117. That was the tipping point for me when the shrinkflation of frothy times body slammed the aesthetic soul of branding.

Now the most mass market experience that is still tasteful and good can compete globally. But sometimes you just long to discover where a local market is genuinely better.

My favorite aspect of being abroad is finding markets where it’s not yet occurred & enjoying a significantly better product for it. It’s my most toxic millennial trait.

Legacy local businesses in small towns or secondary markets simply set a different standard for themselves occasionally from the premium mediocrity of the global markets. But times change. Business models change. Now we have ghost kitchens. And you two have probably purchased a premium mediocre brand and been fine with it.

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Startups

Day 1006 and Startup Towns

I was born in the startup Fertile Crescent of Silicon Valley. But I grew up outside of one of the many ecosystem towns. Boulder Colorado always took pride in not only its technical roots in aerospace and defense, but in its new software startups as well.

I admire people that build out a startup ecosystem. Understanding that a certain environment of agency breeds good outcomes. Maybe it’s a kind of boom town mentality in the good years. But in any year it’s good to be on the team that believes in the future. It feels as if people are pulling in the same direction.

I get the sense that Tallinn as a city and Estonia in general as a country believe in a better future. I can’t tell you how much I enjoy seeing a city with a lot of construction. Offices also appear to be full but there is also housing in the city core. Everyone seems to have kids. I’ve never seen more first graders in a city.

The gentleman I met today said that in the future every country will be competing for every global citizen. I think that insight is at the heart of believing in a better future. You have to believe that if you are talented that countries will rightly compete to have you as its citizen. The frontier of the future will be found in finding the optimistic folks who believe that their efforts will make their chosen place better.

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Travel

Day 1004 and the Muses

I’m such a homebody that I sometimes thinks the joys of travel are lost on me. But then I go shopping and I remember that markets are muses. What sells tells you something about a place.

Now you may think crass commercialism is more of a vice than a virtue. But I think it’s wise to hear what works. A market can tell you about what’s popular. Being an American is a niche experience but we’ve got a bigger footprint than our mere population would suggest.

But also the spoils of capitalism have priorities that are about the efficiency of the market. And you see it in every large city of any density or wealth. The layers for consumption of good and services have a logic to them that defies too much local concern. The algorithms have trust and safety teams but scale takes you pretty far. And every city at a certain size needs market logics.

It’s just important to remember each market has a local gem. There are great performers that outclass by wide orders of magnitude. It’s usually some combination of what appeals locally but is also legible to the larger global cosmopolitan skill sets.

Many of the food wars are just city tastes fighting country tastes. Some situations are more market based and transactional. Sometimes that is even good. I’m personally delighted that I can show up to a city and get food delivered. There is always orange soda brand in every market. And you can always get French fries.

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Finance Internet Culture

Day 1001 and Circumstances Change, People Do Not

“The last sustainable edge in markets is arbitraging human nature.”

I had the good fortune to spend an hour and a half with an iconic Wall Street investor last week. I was invited to be a guest on Jim O’Shaughessy’s podcast Infinite Loops. I felt like the luckiest woman in the world.

I’m blessed to have Jim as one of my “Twitter mutuals” where I’ve come to appreciate his endless curiosity, deep empathy and kind friendship for the players of the “infinite game” of life. Plus he’s got the strongest gif game in the business. You should follow him if you don’t already.

I’ve been privileged to work with Jim and the OSV team as one of my LPs in chaotic.capital. Being entrusted with capital from some of finest minds in investing has been as intimidating as it is inspiring.

My fund is an early stage pre-seed venture fund that backs weirdos. Our thesis is simple. The world is increasingly complex, chaotic if you will, and only the most agile will win. We look for those that have the agency to adapt to the one true constant; change. Circumstances changed by the moment but humans remain reassuringly the same.

Obviously it’s hard to imagine a better LP than OSV for chaotic.capital. We are deeply aligned in our thinking on agency, agility, and adaptability. As much as I’d love to prattle on here, I’d recommend you check out the very wide ranging conversations between Jim and I. We cover a lot of ground practically and philosophically. I hope you enjoy it.

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Chronicle Media

Day 994 and Good Conversation

There are few pleasures in life as gratifying as having a good conversation with someone. I recorded a podcast with one of my absolute favorite Twitter mutuals and LP in chaotic.capital this morning. I don’t want to ruin the surprise (click here if you do) but it was a very good time and a very good conversation. I can’t wait to share it with everyone.

I’ve had the good fortune to be in a few deep dive podcasts recently if you want a preview of the kind that of thinking and conversations that bring me joy.

I was recently a guest of Frazer Rice’s podcast Wealth Actually to discuss how the venture asset class has changed over the course of the last fifteen years. I was also a guest of Stewart Alsop III on his podcast Crazy Wisdom where we discussed the complexity spectrum of bringing our present into our future.

One of the most challenging aspects of doing the earliest stage investing in technology, and startups in general, is that we simply have no idea what the future will bring us. We have our best guesses.

That doesn’t mean we are flying blind. Like Captain Kirk, I trust some people’s best guesses a lot more than other people’s facts. But the harsh truth is that we are all doing our best with heuristics and humility.

And it’s through conversations with others do we get to improve our best guesses. Sharing insights and history helps us refine our process and worldview such that our knowledge broadens and deepens.

In conversation we share what’s worked for us and what we’ve seen across our own experiences. A good conversation is a pleasure unto itself but it’s also a window into the world of someone else. And I cannot imagine a more joyful way of improving yourself.

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Aesthetics Culture

Day 993 and Service Expectations

We are in a weird moment for transactional goods and services. As more people draw inwards towards themselves, the social contract is less clear. What do we expect when we pay someone to do something for us? Do we make small talk? Do we smile? Do we reach for connection?

I went to a nail salon today. I’d called ahead looking for a specific nail technician. I was really relying on having her as I treat pedicures as more of a medical grooming need than a strictly aesthetic one.

I get pedicures mostly because the bending over required for clipping, filing, and cuticle trimming is hard on my Ankylosing Spondylitis. I prefer to have someone handle that grooming for me to avoid the unnecessary discomfort.

Especially because an ingrown nail can be a significant infection for someone like me as I take immune suppressants for my autoimmune condition. A little nick or cut gone wrong can get me quite sick.

I like to know I’m working with a careful nail technician. I went through cosmetology school and am familiar with what is in a safe aesthetician environment.

So I was surprised to find myself trying to communicate via non verbal cues with a gentleman who seemed unclear about what tools to use for what job. The woman is scheduled the appointment with was busy with someone else. I said I’d wait but it got lost in translation.

I got more anxious as an acrylic nail drill got involved. I don’t use acrylics. And I really started to panic when a razor came out. I definitely didn’t want that used on my cuticles.

And I found myself unsure in the moment. Do I just trust this gentleman who cannot understand a word I am saying with razors and drills? Or do I just get up and go?

I stayed for too long. The drill was used on my big toe and cut down too far. I finally after some shock extricated myself and left cash on the table and drove home feeling scared and unsettled without letting him finish.

If we can’t figure out how to communicate with each it’s complicates your social expectations. I didn’t want to ruin a service or not trust the person in front of me. But I also have expectations for the experience and safety from knowing something about the job and it’s safety requirements.

I found myself unsettled by the whole experience. That my expectations are high trust and I find myself simply not being able to make the transactional moment work. I’d failed. I paid in full for a service I didn’t get what I needed. I left.

Categories
Reading

Day 988 and Independent People

I prefer literature to non-fiction. My reading time is spent with stories. It so happens I’ve been immersed in a story about an Icelandic homesteader by Halldor Laxness.

Originally published in 1934 and out of print for decades, this book by the Nobel Prize-winning Icelandic author is a huge, skaldic treat filled with satire, humor, pathos, cold weather and sheep. Gudbjartur Jonsson becomes Bjartur of Summerhouses when, after 18 years of service to the Bailiff of Myri, he is able to buy his own croft.

Publisher’s Weekly.

It was described to me as social realism as it follows the harsh reality agrarian Iceland, debt bondage, and the things that are lost in the quest to be free of obligation to anyone. Set across multiple vignettes of Iceland’s history it trace’s the family’s arc from servitude to owners of a sheep farm during World War 1.

Halldor Laxness’s Independent People

It’s a sad story. The protagonist experiences loss after loss in pursuit of his independence. The dream of being indebted to no man comes up against the hypocritical fantasies of the upper classes and their own views of what constitutes a free life.

I am by no means living the kind of homesteading life of the rural agrarian Icelandic people. But the tragic losses that come as part of seeking to be less reliant on systems that enrich others (the church and local landed gentry feature) resonates. It is not easy to be independent people.

The cycles of nature and life come as they wish with little thought to one’s philosophies. Independence and dependence are just ideas that must face reality. I thought of Bjartur as we buried the dead laying hen in the back pasture.