Joie de vivre is the fundamental bubble, which sustains all others. I don't see any particular human experience or construct as necessary, so as I go about the world, I see only bubbles of exuberance.
My ideal for investing in bubbles is roughly :
1. Understand the physics of the underlier.
2. Understand the lens that the market has upon the underlier.
3. Understand the governance model. Are regulators involved? Are there hidden calls and puts? Where are all the exits, and who controls them?
4. Understand the externalities. Explore all contingencies. Unveil network effects and hidden counterparties.
5. Decide how many years of your life you can write off, in order to get involved.
6. Execute very carefully.
7. Decide that is ok to fail, before beginning anything.
No comments :
Post a Comment