TFTLR: Network effects guide, Product discovery, An inflation-protected portfolio, and What Buffet looks for in people
Thoughts for the Long Run, June 17th, 2022
Welcome back to TFTLR!
Mental Model 1 - All About Network Effects (a16z): Really deep analysis of the tactical approach to building network effects. The piece made me appreciate 1) How network effects extend beyond the traditional social networks and marketplaces to include platforms and physical networks and 2) How important clustering and transforming single-player to multiplayer games are.
Mental Model 2 - How People Discover New Products (Lenny): The 7 ways people become aware of new products are 1) Friends or colleagues, 2) While browsing online, organically, 3) While browsing online and seeing a promotion, 4) While out and about, organically, 5) While out and about and seeing a promotion, 6) While at home, seeing a promotion, and 7) Someone reaching out to you.
Mental Model 3 - Building a Beta Portfolio in an Environment That Looks Difficult for Assets (Bridgewater): Fantastic piece on building a portfolio that is neutral to growth and inflation while maintaining expected returns. The portfolio includes a combination of equities, commodities, and bonds.
Personal Development - The Three Things Warren Buffet Looks for in a Person: Intelligence, energy, and integrity are the most important characteristics in Buffet's decision to work with people.
Have a great weekend!
Aimun