Weekend Reading #158
Photo by freestocks on Unsplash
This is the hundred-and-fiftieth-eighth weekly edition of our newsletter, Weekend Reading, sent out on Saturday 5th March 2022.
To receive a copy each week directly into your inbox, sign up here.
*****
What we're thinking.
Instead of writing yet another blogpost this week on Russia and Ukraine on top of the zillions you have read already, we decided to take another break this week from writing a long-form post. Sometimes one has to take a step back and think really big picture. The blogpost to write this week would probably be something less to do with what to invest in, but rather whether (and when) there is a time to not invest at all. Our investment product is not one that is anchored on long-term investment theses and riding through drawdowns, and as such we are not looking for low longer term entry points per se. Rather, we aim to compound healthy returns over time through active trading and to protect capital not only over the longer term but over the short term too. To that end, the same amount (if not more) of energy goes into deciding whether to invest at all and how much capital to place at risk as goes into deciding which themes to invest in and which instruments to choose. So much of what we see bandied about is championing “right” investments but the question to really ask is how to allocate risk appropriately. There is no prize for getting that right on any given day and no amount of sexy writing can inspire success in that regard. The only way to know if good risk management has been employed is over the passage of time.
What we're reading.
Over the past few years, the success of golfer, Bryson Dechambeau, has fascinated me. He is an extremely unusual character and his unconventional approach to golf combined with his brusque personality has certainly shaken things up in recent times. This wonderful article by a Chris Jones, who I follow on Twitter, is a deep dive into the mind of Dechambeau and his recent struggles on tour. It goes to the very essence of all of us. What is Dechambeau aiming to achieve and what does it mean for him? It delves deep into his mental state and probes right to the core of the game of golf itself and its traditions. Elite sportsmen and women face a constant mental battle with themselves that I often think is very similar to hedge fund managers. From elation to self-revulsion all in a single day, with only the passage of time to show one’s results, it is mentally draining. I am fan of Dechambeau and for one I hope he finds his inner calmness and keeps ruffling as many feathers as possible on his way to great success.
Arthur Hayes has many critics, and his blogposts are not for everyone, but I enjoy his intellect and his musings. His most recent post takes us through a few scenarios of what the world looks like going forward and how he would position his portfolio. Bear in mind this is coming from a crypto native perspective but also touches on overall asset allocation. It's worth going through the various scenarios and thinking how each of us would weather any potential storm. Food for thought! DC
What we're watching.
Ah, escapism. In a week where it’s been hard to look away from the rolling news, one series on BBC iPlayer has provided a little respite, especially when it is one as enjoyable and frivolous as Stanley Tucci’s adventures around Italy. Searching For Italy is a simple format: it’s Tucci wandering around Italy eating the best food that the best country for food on earth has to offer. Like so much Italian food, the series is simple and thoroughly enjoyable, especially the episodes in Tuscany and Bologna. With travel opening up, the family and I have a trip planned to Italy later this month, which is hugely exciting, and Tucci’s travels were a perfect way to whet the appetite. Having not eaten bistecca fiorentina, Fegato alla Veneziana or Bucatini all'Amatriciana in their native homes for over two years, I cannot wait to be back in Italy. Until then, watching Tucci do it in my stead will have to do. EJP
What we're listening to.
This interview between Lex Fridman and Mark Zuckerberg is one of the best interviews I have ever seen. Lex is now firmly entrenched as my go to podcast for the sheer quality of the interviewing. He is just so real. He insists on interviewing in person, which means he turns down many opportunities and he requests a meaningful chunk of the interviewee’s time for each conversation. The questions posed to Zuckerberg in this interview are really good and in my view Zuckerberg was fantastic. We are primed to thinking negatively about him given the negative press and the many times we have seen him being bombarded by US politicians and it is easy to forget that this is a man who created one of the greatest companies of all time and that he is still not yet even 40 years old. The best question (and answer) was when Lex asked him what he thinks of the fact that 54% of people surveyed disliked him compared to Elon Musk with just 23% disliking him. In the interview, Zuckerberg talks Meta, the future, the past, his children and his bed-time routine with them and much much more. If you watch one thing this week, this is it. I decided to watch (rather than listen) and did so at normal speed (rather than the usual 1.5-2x) so that I could see his body language and the interplay between him and Lex. Good luck to those betting against Zuckerberg. Simply superb interview.
One of the few reasonable takes on Ukraine I came across this week was unsurprisingly Baris Weiss’s Honestly podcast in which she hosted a round table with Niall Ferguson, Walter Russell Mead and Francis Fukuyama. In a polarised media world, Weiss has built a publication which is actually like journalism used be – about truth. This roundtable is full of disagreements, particularly between Mead and Ferguson and as a result the listener is left much more informed all round. An example is early on when Weiss askes the panel their thoughts on Biden’s role. Fukuyama speaks highly of how brilliant Biden has been (against the narrative of the feeble old man we see everywhere) and Ferguson quite literally thinks Biden has played the role of Dostoevsky’s idiot. Again, highly recommend.
Finally, I stumbled across a chat between Tim Ferris and Arnold Schwarzenneger in which I was just blown away by Schwarzenegger's positivity, geniality and his intellect. His stories from his younger years are instructive for anyone and he general approach to life is to be much admired. It was only at the end that I realised the interview was from 2015! A lesson to me not to only listen to newly released podcasts. DC
Without wanting to wade too deeply into the murky topic of Russian money in London, I listened to an enlightening podcast this week about how easy (or expensive) it is to buy influence in the UK. Tortoise is a great “slow media” organisation, producing high quality and thought long form content in both written and audio form. This week, the Slow Newscast pod focused on Evgeny Lebedev’s rise from being the Russian-born son of a KGB agent to a seat in the upper house of Britain’s parliament. The story becomes more surprising when you learn how the House of Lords Appointment Commission, which reviewed the offer of a peerage, took advice from the intelligence services and advised Boris Johnson not to proceed. The prime minister ignored the Commission’s advice, and neither parliament nor the Cabinet Office is willing to publish it. With a seat in parliament at stake, that surely cannot be right. A strange story, but a believable one in Londongrad. A fantastic listen. EJP
...and away from matters relating to Ukraine, which pretty much covered almost all the content I consumed this week, I saw England rugby great, Jonny Wilkinson, was bringing out a podcast and couldn't wait to listen. The first episode dropped this week, and it isn't what you'd expect. As some may know, Wilkinson was known as a ferocious tackling fly half in his rugby days but also a man who, quite publicly, was plagued by both physical and mental health problems throughout his career. Since retiring, Wilkinson has been on a spiritual journey, trying to find out why, despite conquering the world of sport and winning a Rugby World Cup with England, he never found true happiness when playing. This podcast series, entitled I Am, explores the remarkable transformations that can take place within individuals when they listen to themselves on a spiritual, non-dual (i.e. mind + body) level. The aim of the podcast, so says Wilkinson, is to redefine concepts of health and well-being, performance, purpose, leadership, relationships and human potential, and the first episode is Wilkinson in conversation with writer and spiritual teacher, Rupert Spira. Together Jonny and Rupert cover a lot of ground, from the fact that so much of our lives are seemingly spent in the quest of happiness, what it means to truly be in the zone as a sportsman, the close correlation between physical body and emotional state and what Rupert calls the Illusory sense of self. It is a beautiful listen. Inspiring and interesting in so many ways, but above all, it's wonderful to hear such a talented yet tormented man seemingly so incredibly happy and grounded in his new life and standing so firmly on a bedrock of spiritual contentment. It's a pleasure to be able to listen in to it and pick up a couple of spiritual hints and tips. EJP