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The least impactful way to spend $300M?

passingtime.substack.com

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Re: The least impactful way to spend $300M?

#271
post #266

Earlier quoted context omitted.

You don't think affording free education for majorly ridiculously hard working students is going to pay dividends? Please explain your cynicism

Think about the counterfactual: a student doesn’t go to Harvard, they instead go to Duke or a public Ivy. They’re only marginally worse off. All of these schools already have enough money to where families making under $75-$100k won’t be paying anything. Donations to Harvard are exposed to extremely diminished marginal utility at this point.

I think a lot of this investment for him is personal brand. Giving millions to community colleges would probably create tens of thousands of opportunities versus marginal benefit to Ivy leaguers, but having your name on a building at Harvard versus 180 community college libraries is big difference in prestige and brand-recognition for the types of graduates you want to apply to your firm.

Re: The least impactful way to spend $300M?

#272

Earlier quoted context omitted.

Every influencer is basically an ad on two legs.

Are we talking about influencers, or “the world’s brightest minds”?

They're working together. Youtube algorithms compute the most likely influencer that is going to occupy your attention and serve you advertisements in the process.

"Nobody is addicted to ads" is true if you think only about the pop-ups and couple-second videos as "ads" - but the concept of advertisements is much wider than that. Some adverisements may not even be presented as such - they may be presented as "useful content", but which is chosen above other such useful content by the virtue of being paid for to the advertising company.

Re: The least impactful way to spend $300M?

#273

Earlier quoted context omitted.

I assume you're saying that ads are irrelevant because we have AdBlock? Ads would always exist, but think about how many great (even lifesaving) solutions we're missing out on because market decided they aren't worthy of pursuit.

I'm saying ads aren't "addictive", because they're pretty despised. They might be effective, when people see them, but I don't think anyone is "addicted" to ads.

You're nitpicking an irrelevant detail. Expand "ads" in my comment to "screen time" (for the sake of serving ads) generally and the "despised" counterargument falls apart. The whole point of my comment is that brilliant minds are working on making stuff more addictive to people, instead of making the world a better place.

Re: The least impactful way to spend $300M?

#274

Earlier quoted context omitted.

I think your argument is missing GP's point entirely. The point was that a functioning market economy would evolve so that companies that sell products or services at a self-sustaining price survive, whereas companies that lose money continuously die. However, this is clearly not the case, given that companies like Uber, as you mention, do survive without being profitable at all. Competitors that are not backed by ne…

I don't know that Uber turning a mere 14 years old is proof that the market economy isn't functioning. In a time of incredibly low interest rates and the resulting free-flowing money sloshing around looking for any possible return, I'd expect a lot of companies to reach their teens without that being proof that they can continue indefinitely without showing profits and returns to investors.

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Re: The least impactful way to spend $300M?

#275
post #215

Earlier quoted context omitted.

> To give some existence proofs, have a look at how Amazon, Microsoft, Google, Tesla etc had rising share prices long before they ever returned any money to shareholders. This was also true of Juicero and Pets.com. Moreover, the people investing in small startups are generally not huge funds. The funds buy in after the company is established. Tesla turned a profit before they were added to the S&P 500. > For that to…

> This was also true of Juicero and Pets.com. Yes, it's hard to predict the future. > Moreover, the people investing in small startups are generally not huge funds. The funds buy in after the company is established. Tesla turned a profit before they were added to the S&P 500. One reason those small startups can attract capital in the first place, is because their early investors can reasonably expect to cash out by s…

> Yes, it's hard to predict the future.

Which only makes the problem worse, because the early investors then have the incentive to create and prop up garbage companies as long as they think they can sell them to do the next guy before the crash. Which is more possible the less the funds need to pay attention to each stock, i.e. the more "diversified" each person's investments are.

> One reason those small startups can attract capital in the first place, is because their early investors can reasonably expect to cash out by selling to huge funds once the company gets established.

The funds are an abstraction over the underlying investors. Right now you have Joe Middle Class who has a retirement account which is invested in thousands of companies he has no incentive to pay any attention to because none of them individually affect his savings by a significant amount. If it was four or five companies, he would have the incentive to keep track of management decisions there. He may even be working for one of them, because he is then using an information asymmetry to his advantage when he knows from the inside how well that company is managed. But then we try to inhibit this kind of thing even though it would make markets more efficient.

The bigger cause of the problem is that companies are huuuge, so that they can't be owned by any reasonable number of people. A trillion dollar company has to be owned by millions of separate individuals because even the 99th percentile individual doesn't have enough wealth to own a significant fraction of a company that size. But why do we need companies to be that big? Break them up. They could have the same total valuation as many separate companies, without each being so unmanageably large.

Potentially even higher total valuations, because the need to do the following is less when each company is smaller and less complicated:

> As an investor, you can go by the maxim of 'guilty, unless proven innocent'. So if a company does not have that transparency, you should value them as-if they have skeletons in the closet.

And that's the point. The transparency isn't possible, not because the company doesn't publish the numbers, but because it's not worth deep diving into their conglomerated operations when they're only 0.2% of your portfolio. And when investors will be doing this regardless of whether the company is actually sacrificing long-term prospects for short-term numbers, the company has the incentive to do just that.

Re: The least impactful way to spend $300M?

#276

Medical devices and medical innovation in general. There are so many medical devices and therapies that are technically possible, exist in some form or another, but do not meet the 10x returns that typical VC and big medtech players demand on their products. There are so many opportunities to really help people that are suffering that may not be super profitable, but aren't money loosers either.

You’re answering the question of how least useful to donate it?

I'm answering the most impactful. I thought that was a much more helpful question to ask and answer.

Re: The least impactful way to spend $300M?

#277
post #246
post #221

Earlier quoted context omitted.

True, although as I understand it China has risen further and faster. Point taken though. Nigeria is one to watch on this.

Yes, China's rise has been astounding. However keep in mind that China is still only about as rich as Mexico or Russia in terms of GDP per capita. So hasn't joined the rich world, yet. Ethnic Chinese people are very successful around the world. Mainland China actually has on average the poorest Chinese people. Compare eg Singapore, Taiwan, or even the ethnic Chinese populations in Thailand or the US. (Not completely…

Not yet, you're right - but if the World Bank is to be believed, it has raised 900 million people out of extreme poverty. That's astonishing compared to how everywhere else seems to be doing.

> weather is a bit muggy

On a rainy day in England, I can very much sympathise!

Re: The least impactful way to spend $300M?

#278

Earlier quoted context omitted.

Let's say charity X can save one life per $10,000 spent on average. Then $300M can save 30,000 lives. If you choose to burn that money instead of donating it to charity X, 30,000 people who could have survived are now dead. That doesn't seem like a fantastic outcome to me.

> If you choose to burn that money instead of donating it to charity X, 30,000 people who could have survived are now dead. That doesn't seem like a fantastic outcome to me. This statement forgets that the person who donated doesn't care. They actively like to hurt companies who don't deserve it and profit from it (unlike Hindenburg Research).

I could say about someone who kills a million people "well, they don't care. At least they didn't kill two million people." That doesn't seem like the right way to evaluate ethical claims. If we're talking about what would have been the right thing to do, it would have been to kill 0 people, regardless of what personality traits they have.

Re: The least impactful way to spend $300M?

#279
post #211

Earlier quoted context omitted.

I have a theory that every internet comment that starts with Eh is always wrong. So far I haven't been let down. I don't understand how you could possibly say education has negative impact on society. Top universities can and do hire faculty for the purpose of research alongside teaching. Top minds performing research obviously benefits everyone as they can make new discoveries and innovations. That has the side effe…

Education has a negative impact on society, because we are forcing young people to waste years of their lives that they often neither enjoy nor do those years make them more productive. They don't get those years back, and even pay dearly for that privilege. Individuals benefit from getting more education, but only in the sense of getting ahead in a signalling. Perhaps an analogy helps: an individual tree benefits fr…

Do I understand correctly that you're making the argument that education is zero-sum? That's surprising to me, I feel like I have gotten a lot out of my education. In fact I would say that while most people agree that education system isnt perfect, we do gain quite a lot from a society where for example as a baseline everyone can read and write, and at a more advanced level understand at least the basics of other people's jobs.

At a university level, I can't say I have studied every course or "type" of education, but it would be really surprising to me if there were any that gave nothing at all to their students

Re: The least impactful way to spend $300M?

#280

It’s his money and he can do whatever he wants. But I can also form whatever opinions I want: That man is chasing after something that he will never find.

A lower tax bill? People sucking up to him every time he goes to Harvard? The ability to get anyone he wants admitted?

> A lower tax bill?

No one ever comes out ahead by donating to charity, this is a common held misconception.

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