🍋 From Tennis to Term Sheets

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Short Squeez
August 31, 2022

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"It takes character to sit there with all that cash and do nothing. I didn't get to where I am by going after mediocre opportunities." — Charlie Munger

Good Morning! Did you get a pumpkin spice latte yesterday? Maybe next you can try a cannabis drink, which is becoming more popular as companies are betting on different opportunities in legal marijuana. In India, Gautam Adani became the world's third richest man with a net worth of $137.4 billion, behind only Elon Musk and Jeff Bezos. Cameron Smith, the second highest ranked men's golfer in the world, is also making moves and joined the breakaway LIV Golf league. Pro golf is a mess, but the US economy is even messier, as surprising US confidence and job opening indicators open a path for another 75 bps hike.

Sweater gives regular investors access to some of the world’s most exciting startups, letting you diversify your portfolio and long-term strategy with venture capital. Download the Sweater app to add venture capital to your portfolio.

1. Story of the Day: From Tennis to Term Sheets

This year's US Open has been all about Serena Williams' retiring from tennis. Well, that retirement may come today, as she plays women's second seed, Anett Kontaveit, in her second match at the US Open. Even if it ends up being her last, I've got a feeling she's got a successful career ahead of her.

Williams said after her tennis career is over, she plans to focus on her family and her venture capital firm, Serena Ventures, hoping that one day the latter will grow into a billion-dollar fund. "It's what I'm into, and what I really like doing. I like talking to founders and asking questions and learning about businesses," said Williams.

She's obviously known for her prowess and legendary career on the court, having won 23 Grand Slams over 27 years, but don't let that overshadow how great she is in a conference room. She raised $111 million this year from banks, family offices, and individual investors, all while being a professional tennis player.

Williams has been an angel investor for years, with well known portfolio companies like Impossible Foods, Daily Harvest, and MasterClass under her belt. Aside from the fund, Williams is also a part owner of the Miami Dolphins, has a fashion line, and partnerships with brands like Nike, Gatorade, and JPMorgan Chase & Co.

Short Squeez Takeaway: To all you haters out there who are saying, "Ah it's easy for a pro athlete to start a fund! She's already rich! She's already got connections," I say darn right she does. You know how hard it is to become as good at anything as she is at tennis? Let her reap the rewards of her status that came from hard work! Early signs show Serena Ventures is doing well and if Serena is even half as successful in the board room as she was on the tennis court, I'd say she'll be alright.

2. Markets Rundown

The selloff continues and for the first time since January 2013, the S&P as more than 5% off of its all time high for 90 days.

Movers & Shakers

  • (+) Big Lots ($BIG) +12% thanks to a smaller than expected loss in the last quarter, and a revenue beat.

  • (+) First Solar ($FSLR) +1% after the company announced it will invest up to $1 billion into a new solar panel manufacturing facility in the states.

  • (–) Jack in the Box ($JACK) -10% after the California state legislature passed a bill forming a statewide panel to regulate wages for fast food workers.

Private Dealmaking

  • Abacus, an insurance-focused asset manager, raised $600 million

  • Nikola to raise up to $400 million in stock sale

  • LifePoint Health, an Apollo portfolio company, bought hospital organization Springstone for $250 million

  • First Solar is investing $1.2 billion in US factories

  • MedGenome, a genomic solutions provider, raised $50 million

  • Xterio, a web3 games provider, raised $40 million

3. Top Reads

  • Pandemic-era splurging on pets could be over (CNN)

  • S&P 500 slumps as new bear market fizzles (Axios)

  • Goldman says brace for an even bigger housing downturn (CNBC)

  • For job seekers, $20 per hour is the new $15 (Axios)

  • Wall Street falls as job openings data adds to rate hike jitters (Reuters)

  • The Jackson Hole consensus - a more volatile world is here to stay (Axios)

  • Corporate stock buybacks are saving this market from an even bigger rout (CNBC)

  • How the Inflation Reduction Act affects corporate net zero policies (YF)

  • Credit Suisse goes underweight stocks, says next few months will be painful (CNBC)

A Message from Sweater

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Oh, and one more thing: You can do it all from your smartphone. Genius, right?

Sweater gives regular investors access to some of the world’s most exciting startups, letting you diversify your portfolio and long-term strategy with venture capital. Plus, it’s all managed by their professional VC investment team, so you know your investment is in good, steady, experienced hands.

Bottom line: If you’re looking to get your money involved in companies and opportunities usually reserved for people yachting around the Mediterranean, try Sweater on for size.

4. Book of the Day: Compelling People

Everyone wants to be more appealing and effective, but few believe we can manage the personal magnetism of a Bill Clinton or an Oprah Winfrey.

John Neffinger and Matthew Kohut trace the path to influence through a balance of strength (the root of respect) and warmth (the root of affection). Each seems simple, but only a few of us figure out the tricky task of projecting both at once.

Drawing on cutting-edge social science research as well as their own work with Fortune 500 executives, members of Congress, TED speakers, and Nobel Prize winners, Neffinger and Kohut reveal how we size each other up—and how we can learn to win the admiration, respect, and affection we desire.

“Anytime you are heading into a situation where you want your body and mind to feel powerful, adopting strength poses a few minutes in advance will help make that happen.”

5. Short Squeez Picks

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6. Daily Visual: Where are Americans Living the Longest?

Life expectancy at birth, in years, 2020

Source: Axios

7. Daily Acumen: Ideas

Peter Principle: Good workers will continue to be promoted until they end up in a role they’re bad at.

Friendship Paradox: On average, people have fewer friends than their friends have. Occurs because people with an abnormally high number of friends are more likely to be one of your friends. It’s a fundamental part of social network dynamics and makes most people feel less popular than they are.

Second Half of the Chessboard: Put one grain of rice on the first chessboard square, two on the next, four on the next, then eight, then sixteen, etc, doubling the amount of rice on each square. When you’ve covered half the chessboard’s squares you’re dealing with an amount of rice that can fit in your lap; in the second half you quickly get to a pile that will consume an entire city. That’s how compounding works: slowly, then ferociously.

Hawthorne Effect: Being watched/studied changes how people behave, making it difficult to conduct social studies that accurately reflect the real world.

Source: Collaborative Fund

8. Crypto Corner

9. Memes of the Day

 

 

 

 

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