One of these is that we understand some of the dynamics that drive culture and commerce. This gives us a leg up when it comes to investing, and THIS gives us an opportunity to turn our active curiosity into cash, cash, cash! (As long as the academy continues to do a dreadful job understanding contemporary culture, we must find our own funding.)
Of course, we have to get better at reading and understanding the dynamics of culture and commerce, but as we do, we pull away from our chief competitor, the Wall Street analyst.
Pip Coburn offered a thought in this direction yesterday in his weekend newsletter:
We look to invest in situations involving monumental change. We look for situations where the pace of money coming into "the machine" to out of "the machine" will be materially altered. The underlying premise is that monumental change may lead to an immediate alterations of inherent value. If we are able to have clarity and conviction regarding the monumental change, we will be able to make money since Wall Street is poor at assessing monumental change but rather lives in a space of considering that change happens only incrementally. (reproduced by kind permission of Pip Coburn)
Pip’s newsletter is on restricted circulation, but see his recent book for a general statement of his view.
Coburn, Pip. 2006. The Change Function. New York: Portfolio. at Amazon here.
Conflict of investment declaration
I am a "change fellow" at Coburn Ventures.