On Life and Blackstone
Stephen Schwarzman is one of America’s most well-regarded philanthropists and business magnates. Stephen speaks to the creation of his firm Blackstone, his life, and the legacy he’d like to leave behind. Highlights include his biggest mistake – turning down a large seed investment in Bloomberg, and what it was like trying to raise his first fund. In his words:
“If you like pain and suffering it was really terrific”
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The Science (and Business) of Sleep
One in three adults don’t get enough sleep, according to the American Academy of Sleep Medicine. That’s a big problem. Despite significant recent efforts by scientists, businesses and technology enthusiasts, we still don’t know the basics of what it takes to get a good night’s rest.
Even though the sleep science is still in its early stages, businesses are nonetheless making a tremendous push to alleviate sleep deprivation. In a companion piece by the New York Times, we learn about the Seattle Seahawks’ effort to become “sleeping giants”, and how they are going about embracing technology to try to gain an edge:
“…in the never-ending search for an edge, teams have opened their eyes to sleep as a priority, backed up by science that increasingly points to its importance for physical and mental health”
The Science and Business of Sleep
Sleep as a Weapon
The American Election
As we approach the election, we thought we would continue your media saturation on the matter with a few articles we have enjoyed. Up first, a few words of wisdom and caution from Barack Obama on capitalism as a force for good and how his successor can try to restore economic dynamism:
“America’s political system can be frustrating. Believe me, I know. But it has been the source of more than two centuries of economic and social progress. For all the work that remains, a new foundation is laid. A new future is ours to write. It must be one of economic growth that’s not only sustainable, but shared. To achieve it, America must stay committed to working with all nations to build stronger and more prosperous economies for all our citizens for generations to come.”
The second piece explores the growing divide between formally-educated voters and those without a college degree:
“Four years ago, the college-educated vote was almost evenly split, with graduates favouring Obama over Romney by a narrow margin of 50 to 48. Recent polling puts Trump’s lead over Clinton among white men without a college degree at a sobering 76 to 19.”
The Way Ahead
The Education Gap is Tearing Politics Apart
MailChimp and the Un-Silicon Valley Way to Make It as a Start-Up
Unlike most start-ups these days, MailChimp stands out as rather unique. Over the past sixteen years, the founders have been building the company slowly and steadily, without ever taking in outside capital. Today, MailChimp operates as one of the most important marketing solutions small and medium-sized businesses can leverage.
“No venture capital, no Bay Area presence, no crazy burn rate: MailChimp’s founders built the company slowly by anticipating customers’ needs and following their instincts.”
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Hot Mess: How Goldman Sachs Lost $1.2 Billion of Libya’s Money
Incentives rule the world. The story of Goldman Sachs and Libya is certainly no exception. In a powerful example of the impact of information asymmetry, Libya’s lack of financial sophistication ended up costing its citizens more than a billion dollars. Unfortunately, this is a practice which is consistently replicated across the industry, albeit at a smaller scale.
“When Wall Street’s most aggressive bank took on the world’s most incendiary client, someone was going to make a killing.”
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The Industry That Was Crushed By The Obama Administration
When Barack Obama took office, America’s seven largest publicly traded college operators were worth a combined $51 billion, with more than 815,000 students enrolled at campuses spread across the country. Eight years later, the industry has been decimated, with the seven largest listed operators worth just over $6 billion.
Exploitive industries such as for-profit education have always been shunned from an investment perspective for us. The moral reasons are obvious, while our underlying reasoning is that excessive profits that are not truly “earned” are very likely to attract unwanted government regulation over the long-run. Investing in businesses and people you respect naturally reduces risk.
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