Short Squeez
Posts
🍋 'Tis Private Jet Season

🍋 'Tis Private Jet Season

Short Squeez
August 29, 2022

Together With

"Delegating work works, provided the one delegating works, too." — Robert Half

Good Morning! Hope you had a great weekend. The US Open starts today, and inflation has made its way to tennis too. The signature "Honey Deuce" cocktail will cost $22, a 10% increase from last year. Souvenir cup though! One place to save money is at the movies on "National Cinema Day," where tickets will be just $3.

Fed Chair Jerome Powell let everyone know that tackling inflation will require economic pain. Tough times ahead it seems. It has already been tough times for Hyundai and Kia owners across the country, as car thieves have figured out how to jack the rides in less than a minute, inspired by a viral YouTube interviewing members of the so-called "Kia Boys."

Vanta makes compliance super simple and is used by 3,000+ companies including Calm and Quora. Check them out today.

1. Story of the Day: 'Tis Private Jet Season

Travel problems have been widespread as labor shortages and higher costs affect folks trying to get out and enjoy some of their first vacations since the pandemic. Well, for the uber wealthy, since money is no object, they've decided to forego traditional travel and ensure they get their vacays in.

Private jet use has increased by almost 33% compared to pre-pandemic levels. Europe, in particular, has seen a shift in behavior. Ibiza and Mykonos are facing stretched airport capacity. London had the most flights, over 12,000 in July, and Naples, Amsterdam, and Berlin have witnessed the biggest increase in private traffic at their busiest airports since 2019.

Richard Koe, a managing director at aviation consultancy, WingX, said, "The level of convenience is just incomparable when you're relying on scheduled airlines that have not put their game back together." The secret is out, as first time PJ use has increased by 40%. CEOs in Europe are changing it up to avoid travel problems, while Americans are taking advantage of the fall in the value of the euro.

As you might imagine, there are haters on the ground, up in arms about the jet use. Carbon emissions from the travel have sparked a debate in France as the country is trying to hit climate change goals.

Short Squeez Takeaway: As Chris Brown said, "I don't see how you can hate from outside the club, you can't even get in." The richest of the rich, who either own, or can get access to a PJ in 24-48 hours, are not worried about their carbon emissions. They're worried about getting to Ibiza on time for Martin Garrix's set. Plus, I'm sure they've got powerful friends in charge, who won't do anything to stop them from traveling this way. The way I see it, if you can't beat 'em, fly with 'em.

2. Markets Rundown

Stocks fell hard on Friday, after Fed Chair Powell's speech at the summit in Jackson Hole, depicting a long, hard road ahead, to fight inflation.

Movers & Shakers

(+) Farfetch ($FTCH) +26% thanks to a quarterly earnings beat.
(+) Everbridge ($EVBG) +17% after Bloomberg reported the software company is exploring a sale.
(–) Affirm ($AFRM) -21% because of a larger than expected quarterly loss.

Private Dealmaking

Lunar Energy, an energy independence startup, raised $300 million
Alma, a teletherapy software, raised $130 million
3T Biosciences, a preventative cancer startup, raised $40 million
Tridge, an agricultural marketplace, raised $37 million
Goldcast, a marketing startup, raised $28 million
Avenda Health, a startup designed to prevent prostate cancer, raised $10 million

3. Top Reads

Where Amazon is going in healthcare after failed Amazon Care failure (CNBC)
Why Fed’s Powell sparked 1,000-point rout in Dow (YF)
US summer stock market rally at risk as September looms (Reuters)
The merger term that could decide Twitter vs. Musk (Axios)
What Walmart sales and Rolex prices reveal (YF)
How Amazon is giving Rivian an edge in the EV industry (CNBC)
Senator Warren worries Fed will tip economy into recession (Reuters)
Citi begins winding down operations in Russia (Fox)
NASA’s return to the moon starts with critical test flight (BB)
The paradox in Powell’s big Jackson Hole speech (Axios)

A Message from Vanta: Automate Compliance, Drive Growth, & Eat Free

Compliance doesn’t have to be complicated.

Vanta makes compliance super simple and is used by 3,000+ companies including Calm and Quora.

Vanta automates the pricey, time-consuming process of obtaining the most sought-after security standards, like SOC 2 and ISO 27001.

Attend a demo with Vanta and lunch is on them.

4. Book of the Day: Wild Problems

Algorithms and apps analyze data and tell you how to beat the traffic, what books to buy, what music to listen to, and even who to date—often with great results. But what do you do when you face the big decisions of life—the "wild problems" of who to marry, whether to have children, where to move, how to forge a life well-lived—that can’t be solved by measurement or calculation?

In Wild Problems, beloved host of EconTalk Russ Roberts offers puzzled rationalists a way to address these wild problems. He suggests spending less time and energy on the path that promises the most happiness, and more time on figuring out who you actually want to be.

He draws on the experience of great artists, writers, and scientists of the past who found creative ways to navigate life’s biggest questions. And he lays out strategies for reducing the fear and the loss of control that inevitably come when a wild problem requires a leap in the dark.

Ultimately, Roberts asks us to see ourselves and our lives less as a problem to be solved than a mystery to be experienced. There's no right decision waiting to be uncovered by an app or rational analysis. Reality is harder than that and, perhaps, a little more interesting.

“A guide to decision-making when you can't crunch the numbers.”

5. Short Squeez Picks

A CEO’s 1 weekly activity that gives him the ‘very best ideas’
10 free, usual websites that should come bookmarked on every browser
To make money in the stock market, do nothing
Naval Ravikant’s manifesto on reading
The workers going into the office on Friday - and why they prefer you don’t join them

What Else To Read

If you love getting Short Squeez (which we'll assume you do), you must value getting crisp insights and actionable intel without all the BS.

The Daily Upside, founded by a team of bankers and journalists, is another great newsletter for big-brained readers. Built with investors in mind, The Daily Upside is packed with heavy-hitting analysis and stories you simply won’t find elsewhere.

It’s the perfect addition to your media diet, striking that elusive balance of gravitas and wit. There’s a reason 700,000+ readers start their days with The Daily Upside. Sign up for free here.

6. Daily Visual: Net Cost of College Attendance for Full Time Students

In 2021 dollars; by year of spring semester, 2007-2022

Source: Axios

7. Daily Acumen: Willpower vs Automatic Rules

"Eventually, everyone loses the battle with willpower. The only question is when.

Several years ago, two of my friends started eating differently around the same time. One of them went on diet. The other thought a diet was too complicated and created a rule about eating the healthiest thing on the menu no matter where he was.

They both ate out a lot for work and both found themselves in situations requiring them to make healthy choices. The dieter relied on willpower and was inconsistent. Good days were followed by bad days.

The rule-follower, on the other hand, flawlessly executed his algorithm. As weeks turned to months, their paths diverged. The dieter saw no progress and became frustrated when the rule follower shed pounds.

Rules are an effective way of creating an artificial environment. Think about it, you’ve been taught your whole life to follow the rules. Follow the speed limit. Don't run in the hallway.

Do what you’re told. Everywhere you look there are rules, rules, rules. No one taught us how to use rules to our advantage. Since rules are very powerful at shaping behavior, they can help us get what we want.

Automatic rules turn the best choice the default choice.

What do you think future you wishes present you was doing more of? Some universal answers crop up where you're currently using willpower for desired behavior. Future you wishes you'd sleep more, drink less, exercise, and eat better.

When you find yourself using willpower to make the choices your future self wants you to make, try creating an automatic rule instead."