The hottest Capital Substack posts right now

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Late-Cycle Investment Theory

European Straits • 49 implied HN points • 06 Jun 25
💼 Business Investment Strategy Economics Markets Capital
  1. We're in a late phase of technological revolution where innovation focuses more on efficiency rather than creating new disruptions. Companies now need to refine their strategies and embed existing technologies into the real world to succeed.
  2. As traditional tech models mature, new strategies will emerge to manage complex global systems, shifting the power dynamics within organizations and industries. It's no longer just about being innovative but being smart about implementation.
  3. Countries like China are emerging as leaders by mastering manufacturing and integrating it with new technologies, especially energy management. This trend suggests that future economic dominance will hinge on industrial capabilities rather than just financial prowess.

Wafer Scale - Trilogy Systems: Part 2

The Chip Letter • 4149 implied HN points • 27 Oct 24
🕹 Technology Computing Startups Innovation Integration Capital
  1. Trilogy Systems, founded by Gene Amdahl in 1979, aimed to revolutionize the mainframe market with a new technology called Wafer Scale Integration, which promised to be faster and cheaper than existing solutions. However, the company struggled with technical challenges and internal issues.
  2. As delays mounted and financial troubles grew, Trilogy abandoned its mainframe plans and, ultimately, its Wafer Scale technology. Distractions like personal tragedies and a lack of cohesive vision contributed to the company's downfall.
  3. After losing credibility and facing mounting losses, Trilogy merged with Elxsi, but that too did not lead to success. Amdahl felt a deep personal responsibility for the failure, which haunted him even after the company's collapse.

The Great Reallocation

Renewable Revolution • 799 implied HN points • 12 Jan 24
🌞 Climate & Environment Energy Renewables Capital Economics Policy
  1. Renewable energy doesn't actually need a huge increase in investment compared to fossil fuels. As fossil fuel spending goes down, the overall increase in spending is only about 2% a year.
  2. Investing in renewables is expected to grow significantly, doubling in the coming years while fossil fuel investments will decline. This shift is possible because renewable technology costs are dropping.
  3. The transition to a cleaner energy system is doable without needing massive funds. The main challenge is making sure that investments focus on developing the right infrastructure and policies.

The Hidden Bank Panic

The Dollar Endgame • 259 implied HN points • 12 Mar 24
💰 Finance Banking Economy Regulations Capital Assets
  1. Institutions are requesting the Fed to exclude Treasuries from their leverage ratios post the Bank Term Funding Program, which is causing concern within the financial industry.
  2. Capital requirements in banks are crucial for preventing insolvency, with risk-based and leverage ratios being the two main types of requirements.
  3. Leverage ratios do not consider the risk levels of assets and require banks to maintain a specific ratio of capital to assets, helping ensure financial stability.
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"Anonymous" Crypto Debit Card Startup Sues BaaS Platform, Ex-Evolve Partner Solid

Fintech Business Weekly • 66 implied HN points • 15 Dec 24
💰 Finance Banking Investing Fintech Fraud Capital
  1. Fraud and scams are becoming bigger issues for businesses compared to individuals. Companies need better tools to protect themselves from these threats.
  2. Many fintech companies are raising significant funding, which shows growth in the industry. Some are also getting ready for potential IPOs in the coming years.
  3. There's a legal battle between a crypto debit card company and its banking partner. It highlights the risks and challenges in the fintech sector, especially in compliance and service delivery.

The Gravitational Force of Tech Money

The Future, Now and Then • 167 implied HN points • 13 Mar 24
💼 Business Tech Wealth Economy Capital Finance
  1. Gravitational impact of money increases with scale, where extreme wealth creates societal problems beyond personal purchasing power.
  2. Tech billionaires accumulating astronomical sums of money have industry-warping and societal impacts, shaping the future and institutions.
  3. The concentration of vast capital in the hands of a few leads to comical ineptitude and problems society struggles to address, highlighting flaws in the tax system.

OSD 300: Open Source Defense Capital

Open Source Defense • 59 implied HN points • 19 Nov 24
💼 Business Startups Capital Investing Technology Defense
  1. Modern tech is changing the civilian defense industry, making it more about community and content creation than just products. Companies are now focusing on building strong organizations and engaging their customers online.
  2. Founders in the civilian defense space face challenges due to a lack of resources and funding, which makes it harder for them to grow. This is different from the tech startup ecosystem, where support is abundant.
  3. To improve gun rights, it's important to create and promote high-quality gun products. Great products can help change laws and build a supportive community around them.

US Innovates, China Replicates, and India ???

Sector 6 | The Newsletter of AIM • 19 implied HN points • 13 Jun 24
💼 Business Innovation Funding Capital Technology Education
  1. The US is known for innovation, while China focuses on replicating those innovations. This creates a unique competitive landscape in the tech world.
  2. India's struggle with innovation is tied to a lack of funding for research. They receive much less public funding compared to other countries, especially the US.
  3. For India to improve its innovation capacity, it needs to invest more in human, physical, and financial capital. These resources are crucial for developing a strong innovative system.

Peacetime Bank Stress Tests: Who's That For?

Without Warning • 39 implied HN points • 19 Feb 23
💰 Finance Banking Capital Regulation Risk management Investors
  1. The purpose of stress tests for banks in peacetime is not necessarily to predict future crises, but to ensure banks have enough capital and that the tests are tough and variable.
  2. It's important for stress test scenarios to change and remain tough to prevent banks from manipulating their capital levels and misrepresenting their financial health.
  3. The public stress test process during peacetime may not have a significant impact on capital allocation to the banking sector, unlike crisis-time stress tests.

Higher bank capital requirements work

Klement on Investing • 1 implied HN point • 20 Feb 25
💰 Finance Banking Regulations Capital Economic Growth Risk management
  1. Banks now have to keep more money in reserve, which helps prevent risky behavior and protects the economy. This rule came after the 2008 financial crisis.
  2. Even though higher capital requirements may lower banks' profits, they do not slow down overall economic growth. The economy remains stable without large drops in growth.
  3. Overall, increased capital requirements reduce the chances of serious economic downturns, which is a big win for financial stability. It seems like this regulation is working well.

Preferred Stock: Fish or Fowl?

Musings on Markets • 0 implied HN points • 21 Mar 09
💰 Finance Investing Stocks Capital Economics Market Analysis Stock Market Capital Structure Dividend Policy Corporate Finance
  1. Preferred stock is tricky because it behaves differently in the U.S. compared to other countries. In the U.S., it mainly gives fixed dividends, while in places like Brazil, it acts more like common stock with variable dividends.
  2. When figuring out a company's cost of capital, preferred stock can be confusing. If it makes up less than 5% of the company's value, it's easier to ignore; if it's more, you need to treat it as a separate source of funding.
  3. Although preferred stock is like expensive debt without tax benefits, some companies still use it to raise money. The reasons for this will be discussed in more detail later.

Alert: Central Bank of Nigeria Circular BSD/DIR/GEN/LAB/09/048

RegAlert • 0 implied HN points • 14 Jun 23
💰 Finance Regulation Banking Capital
  1. The Central Bank of Nigeria has issued a revised guideline on regulatory capital for non-interest banks in Nigeria.
  2. Financial institutions in Nigeria are required to adhere to the updated capital requirements outlined in the guidelines.
  3. The Exposure Draft of the Revised Guidelines on Regulatory Capital for Non-Interest Banks in Nigeria is available for download on the CBN website.