Matthew Giampetroni
@matthewgiampetroni
Matthew Giampetroni
@matthewgiampetroni
Start-ups of any kind are awash in ambiguity. It’s the founder’s responsibility to hold that ambiguity for everyone, which is often a lonely job.
The research shows that companies that are more proactive in their internal resource allocation generate a higher ROA than those that are more conservative.
There is also evidence that companies that are good at internal capital allocation are also effective at external allocation
The frenetic build-up of bubbles and their violent collapse provides some of the purest examples of the mimetic process—they crystallize fear, hope, hype, overconfidence, or under-confidence
Every bubble begins with something real, which inspires entirely too much fakery
markets—these sublime machines that synthesize beliefs and aggregate them into prices—instantiate a secularized version of the sacred
Firms should invest in innovation while cutting losses when a strategy is unlikely to pay off. This is an explicit recognition of the value of quitting
as the bubble grows, it becomes an increasingly pure bet on a revolution