Sunday, July 15, 2018

Some things I read recently

Aaron Sittig: Then pretty much unheralded and not talked about much, Facebook launched in February of 2004.

Dustin Moskovitz (Zuckerberg's original right-hand man): Back then there was a really common problem that now seems trivial. It was basically impossible to think of a person by name and go and look up their picture. All of the dorms at Harvard had individual directories called face books—some were printed, some were online, and most were only available to the students of that particular dorm. So we decided to create a unified version online and we dubbed it “The Facebook” to differentiate it from the individual ones.

There was something a little rough about MySpace.

Mark Zuckerberg: So MySpace had almost a third of their staff monitoring the pictures that got uploaded for pornography. We hardly ever have any pornography uploaded. The reason is that people use their real names on Facebook.

Adam D’Angelo (Zuckerberg's high school hacking buddy): Real names are really important.

Aaron Sittig: We got this clear early on because of something that was established as a community principle at the Well: You own your own words. And we took it farther than the Well. We always had everything be traceable back to a specific real person.


https://www.wired.com/story/sex-beer-and-coding-inside-facebooks-wild-early-days

Ding Yan Zhong — known to industry insiders as “Mr. Ding” — has managed the flow of fireworks for a decade through the two companies he founded, Shanghai Huayang and Firstrans International.

He has broadened his empire by consolidating power in China, expanding his reach into California and becoming the most important player in fireworks logistics on both sides of the Pacific Ocean.

Now, Ding’s control of the fireworks delivery chain is nearly complete, according to two dozen shipping and fireworks executives, more than 40,000 fireworks shipping records, numerous court documents and other sources.

https://www.washingtonpost.com/graphics/2018/business/the-largest-supplier-of-american-fireworks-is-from-china/?utm_term=.9e9cf57676b6



The most important component of good management, good leadership, and good stewardship is making sure that you have diversity of mind. When you recruit young people from different universities—and we generally hire around 400 to 450 young people [a year]—they all can’t come from an Ivy League school. You have to start from the foundation that people come from different experiences, and they have different opportunities. If you don’t interview a diverse group of people from different universities, different state schools, and different parts in the world, you are not going to get diversity of mind. If you hire all business majors, all engineers, or all people who have one field of expertise, you’re going to fall down.


There are limits to this archenemy motif. Alibaba and Tencent attack the market differently, in ways that have often allowed them to grow without butting heads. Alibaba’s is largely a strategy of buying controlling stakes in businesses that are a fit with its commerce platform; Tencent takes hundreds of minority stakes in an array of businesses to win over partners and gain access to their technology. What’s more, the competition is hardly a zerosum game, thanks to the rapidly expanding Chinese middle class.
Still, the companies can and do play hardball. In an economy in which e-commerce is dominant in ways unthinkable in the U.S., each company stymies the other’s payment service on their main platforms. And when Tencent and Alibaba sign on investment bankers, they reportedly make it a condition that the bankers work exclusively for them. (Many companies impose such restrictions, but they have greater consequences coming from Tencent and Alibaba given that the two also are major venture capital investors and the prohibitions could impinge on work with the companies in which they invest.) Even if the world is big enough for both of them, Tencent and Alibaba increasingly are in conflict. “Until recently, everyone played in their own sandbox,” says Deborah Weinswig, New York–based CEO of the China-focused retail consultancy Coresight Research. “Now the sand is starting to spill over.”


HAS THE INTERNET failed? Sitting in his office at Christ Church College,
Oxford, Sir Tim Berners-Lee, the inventor of the world wide web, has his
answer ready: “I wouldn’t say the internet has failed with a capital F, but
it has failed to deliver the positive, constructive society many of us had
hoped for.”
Two decades ago he would have scoffed at the idea that the internet
and the web would do anythingbutmake thisplaneta betterplace. In his
autobiography written in the late 1990s, “Weaving the Web”, he concluded: “The experience of seeing the web take off by the grassroots effort of
thousands gives me tremendous hope that…we can collectively make
our world what we want.”

At the heart of their disenchantment, this special report will argue,
is that the internet has become much more “centralised” (in the tech
crowd’sterminology) than itwaseven ten yearsago. Both in the Westand
in China, the activities this global network of networks makes possible
are dominated by a few giants, from Facebook to Tencent. In his latest
book, “The Square and the Tower”, Niall Ferguson, a historian, explains
that this pattern—a disruptive new networkbeing infiltrated by a new hierarchy—has many historical precedents. Examples range from the invention ofthe printing press to the Industrial Revolution.

Source: Economist June 2018

Monday, July 9, 2018

Some things I read recently - 09/07/2018

Access to management is obviously not easy at FANG. But one of the top value investing firms has invested in Amazon/Tenecent ... is value investing finally changing? 

Source: Sequoia transcript 06/2018

Some interesting things I read recently


The episode hits on exactly what Hoffman, Hilbe, and Nowak describe in their paper. “Donations are never fully anonymous,” they write. “These donations are often revealed to the recipient, the inner circle of friends or fellow do-gooders,” and these “few privy observers, in turn, do not only learn that the donor is generous” but are “also likely to infer that the generosity was not motivated by immediate fame or the desire for recognition from the masses…”—exactly what everyone seemed to figure was true of David, to his chagrin.

What’s intriguing about anonymous giving, and other behaviors apparently designed to obscure good traits and acts, like modesty, is that it’s “hard to reconcile with standard evolutionary accounts of pro-social behavior,” the researchers write. Donations fall under a form of cooperation called “indirect reciprocity.”

http://nautil.us/blog/larry-david-and-the-game-theory-of-anonymous-donations

On the Model 3 body line on a Tuesday afternoon in early June, everything is still. Tesla Inc. is just coming off a week of downtime during which workers added a new production line, improved ventilation after a fire in the paint shop, and overhauled machines across the factory. But even after the changes, there are kinks to work out.

Suddenly, dozens of robots snap into frenzied action, picking up door panels, welding window pillars, taking measurements, and on and on. This robotic dance is a visceral representation of what Tesla chief executive Elon Musk has dubbed “Alien Dreadnought,” a code name for the factory that evokes an early 20th century warship, but with extraterrestrials.

Tesla says there isn’t any single problem slowing production down now. Instead, the heavy reliance on automation and new production methods have created a galaxy of smaller problems that must each be addressed individually. Musk’s claim is that once the process is tuned, the company will set a new standard for speed, precision, and scalability in manufacturing.

https://www.bloomberg.com/news/features/2018-06-08/tesla-model-3-photos-of-elon-musk-s-factory-in-fremont

Croatia is about half as rich as Denmark (per capita GDP around $25,000 PPP-adjusted). But Croatia, or at least one very small part of it, used to be much richer: what is now Dubrovnik, and what was then (usually) called Ragusa, was once a little Mediterranean Singapore. In contrast to Denmark, Ragusa was a small trading port and a city-state, and its elite was a trading elite. What kind of elite would one want in a trading port? In an age where long-distance trade was dangerous and uncertain, anyone who controlled a vital route could extract rents.

What this suggests to me is that the value of institutions over endowments has been somewhat overplayed in the recent economic literature. To be sure, ‘institutions’ (in this instance, the characteristics of political elite) can be more or less appropriate to a particular endowment of the factors of production (broadly conceived), and to the historical circumstances. If Britain had not specialised in manufactures in the nineteenth century—and hence begun to import butter from Denmark—then the demand for a butter export industry may not have been sufficient for Denmark’s excellent institutions to matter all that much
http://decompressinghistory.com/post/croatia-vs-denmark/


“The first word out of everybody’s mouths in meetings is, ‘How do we deal with Netflix?’ ” says one longtime TV-industry executive. “‘How do we compete with Netflix? What are they doing?’ ” Disney’s pending purchase of much of 20th Century Fox’s film and TV assets — which has prompted a counterbid by Comcast, parent company of NBCUniversal — is in no small part a reaction to the rise of Netflix.
Mysterious though it may seem, Netflix operates by a simple logic, long understood by such tech behemoths as Facebook and Amazon: Growth begets more growth begets more growth. When Netflix adds more content, it lures new subscribers and gets existing ones to watch more hours of Netflix. As they spend more time watching, the company can collect more data on their viewing habits, allowing it to refine its bets about future programming. “More shows, more watching; more watching, more subs; more subs, more revenue; more revenue, more content,” explains Ted Sarandos, Netflix’s chief content officer.
Netflix doesn’t necessarily care if you binge-watch an entire season of a show within a couple days of it launching. “We’re not trying to encourage that,” Sarandos says. “The completion of a single episode is a more important trigger. We wouldn’t be looking at, ‘Are people plowing through it in the first weekend?,’ because the number of people who do that is pretty slim.” But one metric I heard repeatedly during my visits to Netflix was 28-day viewership — basically how many people completed a full season of a show within the first four weeks it’s on the service. Sarandos also tells me the company looks at which shows new subscribers watch first: It lets them know if a show is driving people to sign up for Netflix.
“When we are not growing the subscriber base or hours of engagement per subscriber,” he says. “When you start seeing them plateau, then you say there’s a point of diminishing returns on the continued expansion of the library. But we are not seeing any evidence in either metric yet.” Sarandos also points out that while Netflix users are spending more time watching the service than ever, it’s still “a very small portion” of the overall amount of time we spend on our TVs and cell phones. “There’s tons of growth in user screen time on Netflix,” he says. “If you think about the addressable market for Netflix as being paid TV households, it’s relatively small. Everyone with a phone has a screen and access to the internet. That is our addressable market. The world’s taste, and the world’s time, is what we’re after.”

http://www.vulture.com/2018/06/how-netflix-swallowed-tv-industry.html