The Sunday Drive - 11/05/2023 Edition [#83]
The Sunday Drive - 11/05/2023 Edition [#83]
Musings and Meanderings of a Financial Provocateur
đđŒ Hello friends,
Greetings from Saratoga Springs, NY! Let's take it easy and enjoy a leisurely Sunday Drive around the internet.Â
The Sunday Drive is also published at NewLanternCapital.com.
đ¶ Vibin'
The untimely death of actor, Matthew Perry (RIP) last week was tragic and profound on so many levels. For me, it also brings back the memory of another extraordinary talent lost at an early age. Donny Hathaway (RIP) died in 1979 at the age of 34.
This week, Iâm vibinâ to a song written by Leon Russell and covered by such talented artists as Whitney Houston, Ray Charles, Michael BublĂ©, Amy Winehouse, The Carpenters, Willie Nelson, Christina Aguilera, Elton John, Aretha Franklin, and CĂ©line Dion.
Perhaps the most well known cover of A Song For You is that of Donny Hathaway. Enjoy.
đ Â Quote of the Weekâ
âAt first glance, nostalgia is a longing for a place, but actually it is a yearning for a different timeâthe time of our childhood, the slower rhythms of our dreams.â
â Svetlana Boym
BONUS QUOTE
âThe greatest trick the devil ever played was making you believe that the pessimists are the good guys.â
â Packy McCormick
đ Â Chart of the Week
We often hear about the housing affordability crisis, but this weekâs Chart really makes the point. The gap between the cost of homeownership and renting has never been so wide. There are many reasons for this. Among them are:
Much higher current mortgage rates than rates a few years ago,
Many current homeowners essentially trapped in their homes by very low mortgage rates if they bought or refinanced during the period of historically low interest rates,
Given lease lengths, rents adjust more slowly than mortgage rates,
Limited pace of new housing construction due to labor and material shortages.
I believe that the gap between owning and renting will narrow over the next few years but more slowly than some might expect. Mortgage rates should moderate as inflation expectations come down, making homeownership more affordable.
I also believe rents could actually increase as leases are renewed at higher market rates. Unfortunately, higher rents will work against monetary policy efforts to bring down the rate of inflation, which could make the narrowing of the own/rent gap take longer than it otherwise might.
đ Interesting Drive-By's
This week we have articles on Building, Friends, Growth, and Diversity:
đĄ If You Want to Build, You Have to Believe - from Simone Stolzoff
In the lore of almost every company, there is a moment where faith outpaces proof. In the mid-1970s, Larry Ellison came across a paper in IBMâs Journal of Research and Development that described a working prototype for a relational database management system. The software industry was nascent, and no company had attempted to commercialize such a database before. But Ellison and his partners Bob Miner and Ed Oates had faith that they could.
At its inception in 1977, Oracle (then called Software Development Laboratories) wanted to build a relational database that was compatible with IBMâs System R database, the first database system to ever use SQL. But Ellison and team hit a roadblock when IBM refused to share System Râs code.
Rather than resign to the rationalist's viewâwho would want to compete with IBM?âthe Oracle trio decided to build their own database software from scratch. Less than a decade later, Oracle was the largest data management platform in the world. [link]
đ The One Where We Lose a Friend - from Brian Clark
Note: I had intended to write something that spoke to the loss of Matthew Perry and the meaning of the TV show Friends to so many of my generation. When I read this piece from Brian Clark, I knew he captured it far better than I ever could. Worth the read.
The year is 1994.
In February, the film Reality Bites debuts, designed to chronicle the unique experiences of a new generation.
In April, Kurt Cobain â the reluctant voice of that generation â is found dead from a self-inflicted shotgun blast.
And in September, a new show called Friends premiers on NBC, becoming the surprise sitcom for a generation. [link]
đ How CFOs Can Adopt a VC Mindset - from McKinsey & Co.
A high-tech pioneer describes how technology has continually disrupted business, why generative AI is accelerating todayâs disruption, and what leaders can do to stay ahead. [link]
đ€ Fast-Twitch vs Slow-Twitch People - from David Perell
People exist on a spectrum between fast-twitch and slow-twitch thinking.
Fast-twitch people speak fast, work fast, and crave novelty. Socially, they're quick and witty. Throw a problem their way and they'll come up with 3â5 solutions in a matter of minutes. They're the people you want in the room when you're brainstorming an idea.
Slow-twitch people are different. They think much more deliberately. Throw a problem at them and they'll ask for time to think about it, only to come back with something deeper, more polished, and more organized than a fast-twitch person could ever generate.
There are direct tradeoffs between the two.
Out of frustration comes harmony: Fast-twitch people get frustrated with slow-twitch people for being slow, while slow-twitch people get frustrated with fast-twitch people for being scattered.
You need both kinds of people for a group to be successful. [link]
đđŒ Parting Thought
Donât forget to turn your clocks backâŠ
If you have any cool articles or ideas that might be interesting for future Sunday Drive-by's, please send them along or tweet 'em at me.
Please note that the content in The Sunday Drive is intended for informational purposes only, and is in no way intended to be financial, legal, tax, marital, or even cooking advice. Consult your own professionals as needed.
âI hope you have a relaxing weekend and a great week ahead. See you next Sunday...
Your faithful financial provocateur,
-Mikeâ
If you enjoy the Sunday Drive, I'd be honored if you'd share it with others.ââ
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