Metadata
- Author: Benn Stancil
- Full Title:: Is Being Data Driven a Fad?
- Category:: 🗞️Articles
- Document Tags:: Data Team Vision and Mission,
- URL:: https://benn.substack.com/p/is-being-data-driven-a-fad
- Finished date:: 2024-10-18
Highlights
you should value it the way you would value those things: By betting on what you think other people will think it’s worth. (View Highlight)
As of this morning, the market values TMTG—a magic box that can, every three months, turn 770,500, and declining—at 270 million in revenues, spent 20 million of profit, at $4.63 billion. (View Highlight)
I have written and thought a lot about meme stocks over the last few years, and it has made me a bit nihilistic. Sometimes I suggest that perhaps fundamental analysis—the idea that the prices of financial assets reflect the present value of their future cash flows—is a temporary phenomenon; people were trading stocks based on vibes and gamesmanship long before anyone built discounted cash flow models, and perhaps they’ll keep doing so long after. I mostly think of that as a social phenomenon: The available information about companies keeps getting better, but there is no law of nature that forces people to pay attention to that information. You can just buy GameStop because your friends are buying GameStop. (View Highlight)
If the only true anchor for a stock’s price is what other people will pay for it, are vibes a worse measure of its “fundamental value” than recurring revenue?4 A company’s hype factor may not be a red flag; it might be its only ground truth. (View Highlight)
In this new era of Silicon Valley, taste isn’t just an advantage—it’s the future. The most compelling startups will be those that marry great tech with great taste. Even the pursuit of unlocking technological breakthroughs must be done with taste and cultural resonance in mind, not just for the sake of the technology itself. (View Highlight)