Macro Minute: Week of August 26, 2024

“What is a belief that you have that most others don’t?”  This is a common interview question that is asked. I probably have a few answers that would fall under this description, but I have been noticing lately that I have one that seems a bit more unique. I believe that in order to win in business and investing someone else does not have to lose. So much in life, especially sports, has a binary winner and loser. In business and investing it does not have to be that way.

I like to believe in an abundance mentality. Even though I studied the Malthusian principals in my economics undergrad, I have observed in my life that human innovation is undefeated in tackling the problems of scarcity. Here is a fun example. One of the most sought-after types of real estate is ocean front property. Looking at this from a scarcity mindset, one would say that they are definitely not making any more of it. But in fact, Dubai did just that when they created the Palm Islands. I will not comment on the commercial viability of such efforts, but just acknowledge the fact that they exist. Human ingenuity has met challenges again and again throughout history.  

I do acknowledge that there are tradeoffs and compromises in everything that we do in life. But sometimes those setbacks lead to greater outcomes and even sometimes the other side of a conflict can lead to synergistic outcomes not diminished ones. In investing and business there really does exist scenarios where both parties come out ahead. Because of that I try to stay in an abundant framework and reject the scarcity framework. 

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