Sunday Briefing: On Better Collective, Seth Klarman’s Annual Letter, Lessons from a Bad Investment

Sunday Briefing: On Better Collective, Seth Klarman’s Annual Letter, Lessons from a Bad Investment

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Welcome to the Sunday Briefing newsletter where I share some of the interesting lessons in life, business, and investing that I’ve come across during the week.

Latest on Junto

My Annual Letter for 2021. A huge thanks to all of you who have reached out to me after reading the annual letter. The relationships and intellectual challenges I’ve encountered since beginning this endeavor have made it all worthwhile.

[Member write-up] Better Collective: Riding the Sports Betting Curve. On the affiliate model, sportsbook relationships, the history of Better Collective, acquisitive growth, the iGaming industry, regulatory opportunities, data advantages, and potential return.

What I’ve been reading

I (Don’t) Want My MTV: a Post-Mortem of an Investment Gone Wrong.

I’ve seen the risks of underinvestment play out time and time again. Disney and Viacom are great examples of disastrous underinvestment and smart reinvestment, respectively. Disney thoughtfully has committed to investing in its assets to transform the business, sacrificing near-term earnings and cash flow for a long-term payoff. Viacom refused (until recently with new management now following the Disney path) to reinvest and in fact laid waste to its asset base in the name of margin and earnings optimization. The long-term results were terrible.

Quote of the week

Michael Dell on growth.

“Try never to be the smartest person in the room. If you are, I suggest you invite smarter people. Or find a different room.”

A thought

If you stay with a company long enough, you will encounter change. Even the most successful companies must reinvent themselves periodically to adapt to an ever-evolving world.

Have a great coming week,
Oliver Sung

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