Here’s the difference between business owners with controlling voting rights Vs money managers. 1. Profitable business owners are creating value in the market place and have free cash flows that they can bank onto their balance sheet. It’s not a big deal if they... /1 https://twitter.com/skwp/status/1353495278897270785

purchase an asset/marketable security with volatility if they continue to be cash-flow positive. The assets generating revenue and bottom line profit are up impacted by the volatility of non-operational asset volatility. The thing they care about is protecting their... /2

Company’s buying-power over the strategic long-term. 2. Money managers on the other hand are interested in trying to outperform an index, but with less volatility. Volatility typically means clients get spooked and take their money to a different manager. At the end of... /3

The day it’s about doing well enough so you don’t loss any of the AUM because their fat general partner pay is directly related to their AUM & nominal yield above 0%. This is why you see the Paul Singers of the world underperforming the Nasdaq by -37% in 2020, yet it hits the../4

Bloomberg headline with “Singer’s Elliot returns 12.7% in 2020.” Probably marketing dollars well spent. I bet his volatility on the 12% was exemplary too, the thing that keeps the AUM up. Don’t get me wrong money mangers still need to produce returns, but they are managing.../5

Clients as much as they are managing money. If you want to understand why so many business owners are flocking to Bitcoin like Yan is pointing out, look no further than the disparity between the two incentive structures.../END