The Lego community is a funny bunch. It’s rather like Star Trek. You either get it or you don’t. As a child, you were probably one of three kids. The one who preferred video games over putting plastic blocks together. The one who leaped with excitement at the thought of ripping open the latest box and building something cool. Or the one who handled the package and its contents like gold, appreciating its worth. If you were kid number three, you’re probably making a lot of money by now.
But regardless of your intentions with your Lego, the construction toy dating back to 1934 still draws a massive–and it seems–caring community. Yes, grown adults playing with plastic toys is a bit weird. But it turns out there are whole videos on YouTube of avid Lego fans dedicated to showing off their creations. And they rack up millions of views.
So when Lego enthusiast and master creationist French model builder Louis came home to find his entire collection of 14 years stolen by opportunist thieves, the Lego community rallied.
You don’t have to be a Lego fan to get choked up watching the YouTube video with over 800,000 views in which a broken man displays an empty room where his creations used to be.
In a heartfelt and emotional recording that he shared with fans (yes, he had a Lego building YouTube channel based around the Star Wars theme–with a massive following) he said that it was not only his Lego pieces worth tens of thousands of dollars but his entire “childhood” that had been stolen. Ouch.
Lego Community to the Rescue
Luckily for the distraught Frenchman, the Lego community comes together in times of crisis, immediately setting up a Gofundme page to help Louis rebuild his collection. We may be desensitized to the war in Siria or earthquakes in Asia. But, the thought of losing plastic building blocks is simply too much for many of us to stand.
Louis said the thieves clearly knew what they were looking for, as they ignored other items of value, such as computers and watches, heading straight for his “Lego Room.”
He speaks of the horror of arriving home to a trail of bricks as he bounded up the stairs expecting the worst.
Bonne Nuit / https://twitter.com/republicattak
Louis posted a picture on his Twitter, simply saying “Bonne nuit” (goodnight).
Lego fans across the world were left shaking in distress. What if it had been their own collection? Their Star Wars models that had been vandalized or kidnapped or their childhood ripped away? The Gofundme campaign soon started blowing up and had already raised around $15,000 by Sunday evening, leading to Louis closing the campaign.
The Gofundme campaign raised thousands of dollars/ https://twitter.com/republicattak
He didn’t want to make money out of his loss. After all, many of these pieces money simply couldn’t buy. So, he closed the campaign and thanked everyone who contributed, promising to spend all the funds on a new LEGO adventure. Many donors also offered words of solace at this difficult time. “The people who did it are monsters,” one donor said.
According to a report by Aite Group, online trading is on the rise. About a quarter of all US adults with internet access are now retail investors. These self-directed investors making up a large group of around 50 million people are amateur traders. This is in stark contrast to the just 2.8 million registered professionals associated with investing.
It also means that we’re headed into dangerous territory as more and more retail investors throw money they can’t afford to lose at inflated stocks based on emotion or market hype.
In an article for Fobes, David Trainer talks about the danger–and rise–of what the industry calls “noise traders.” These are individuals who distort the market by trading with accurate or incomplete information. Self-directed investors are particularly susceptible to this type of din.
Although noise traders have been around for many years, industry professionals and academics have always brushed them off as having little to no effect on the market overall.
But over the last 20 years, which includes the .com bubble, the housing bubble, and one of the largest financial crises of our time, the influence of noise traders can no longer be ignored. And with the rise of investment platforms like Robinhood and TradeStation for self-directed investors, the influence of noise traders is growing.
Noise Traders Hype the Markets
It’s hardly surprising that interest in investing online is growing. With the rise of exciting alternative investments such as cryptocurrencies and pot stocks, along with advancements in technology allowing people to buy and sell online, it’s simply easier and more attractive to younger people than investing in paper stocks.
Anyone with an internet connection and a bank account can read a few articles, company blogs or financial media and collectively force giant market swings, as witnessed by the Bitcoin phenomenon at the end of last year.
To be fair, noise traders are not only and always inexperienced retail investors buying into the hype. Noise trading can be carried out by experienced industry professionals as well. Why? Because noise trading can pay dividends. Plenty of people make plenty of money on the hype created by noise traders.
However, the danger is that experienced traders know when to buy and when to sell. They can tell how to cut through the red flags and have the experience to look beyond the marketing to the real project. They can analyze the team, the technology, the viability, and longevity. And they make trading calls based on statistics, information, and research–not with their emotions.
Pot Stocks
If you’re looking for the perfect example of noise trading on steroids, go no further than pot stocks.
Tilray Stock Freefalling
With the Tilray share price rising over 1,500% since its IPO and now displaying high volatility, Trainer comments:
“The unrealistic assumptions embedded in TLRY’s stock price, combined with the wild daily swings, make it impossible to argue that the stock is trading on any rational assessment of its projected future cash flows.”
The Solution
Noise traders like fake news and marketing hype aren’t going to die down. In fact, with the rise of internet connections, trading sites, and attractive alternative investments, they’re going to become a deafening chorus capable of distorting the market until there’s nothing behind the price but pure speculation.
Since retail investors don’t have the time or tools to get into deep financial analyses before they make a decision, there should be easier access to information.
So if you’re one of the 50 million US citizens who invest without guidance (or anywhere else for that matter), be sure to conduct your own research first. If it looks to good to be true, it probably is. Take a leaf out of Baron Rothschild’s book and buy when there is blood in the streets–not when FOMO is pumping prices to unrealistic heights and creating the mother of all bubbles.
If you’re fed up of having to travel with the herds of unwashed masses from cattle class, relax. If Singapore Airlines get their way, long-haul travel will only be reserved for the wealthy. Starting out with the world’s longest flight from Singapore to New York, the record-breaking 10,400-mile trip won’t include economy seats. Thank goodness for that.
In an age where telecom technology is constantly getting better, physically moving oneself from place to place remains a miserable experience. Passengers are forced to rub elbows with complete strangers and have their knees pressed up against the seat in front. Not anymore.
The Singapore Airlines A350-900 Ultra Long Range aircraft will bring back the class and style to flying that’s been missing ever since “low-cost” became the mantra and you had to pay to add a suitcase to your ticket price. It appears that even amid rising oil prices and dwindling airline profits, you can give your customers a 5-star experience after all.
Singapore Route will be the world’s longest
Champagne and Lobster
Technology is advancing even in the logistics world and it seems that new aircraft that guzzle less fuel than their earlier counterparts are making the 18-hour, 45-minute flight route viable again. Without inviting the paupers.
Singapore Airlines already received the first of seven Ultra Long Range Airbus A350-900 last month. These will be used for the Singapore to New York route and also for their upcoming Los Angeles to Singapore flight.
And you won’t have to expect to be couped up like a chicken on the plane either. There’s a maximum of 161 passengers featuring 67 flat-bed seats and 94 premium economy seats at the rear (naturally).
Passengers will also be able to select their meals from the airline’s Wellness Set menu including prawn ceviche, lobster thermidor, and rib-eye steak. They’ll also be able to pay for WIFI on the flight and have access to over 200 hours of movies and TV Shows.
Sleeping Pilots
Those who wonder how the pilot will make it through 20 hours of flying time needn’t worry. There are four pilots on the flight and they’re not allowed to fly unless they haven’t flown for at least 48 hours before getting on board. They’ll also be granted at least eight hour’s sleep, compared to the usual 5.5 on a typical long-haul service.
The dimensions of the plane lend themselves nicely to the claustrophobic as well. With high ceilings, larger windows, and a wider body, there’s more room to breathe on the Singapore Airlines flight. There’s also less noise in the cabin thanks to the notable lack of cattle in the back (and also due to the noise reduction technology). LED lighting will reduce jet lag as well.
Is Singapore Airlines Setting a Precedent?
With other major airlines already in the race to outperform the Asian airliner, will Singapore Airlines set a precedent? Can we expect planes of the future to come equipped with gyms, play areas, restaurants, and cabaret? Perhaps. But one thing is for sure, with the trend back on stylish travel, you’d better start saving quick. Long haul flights could soon be just for the wealthy.
Everyone loves a good old-fashioned rags-to-riches story. But you know what they relish even more? When the riches turn back to rags. There’s something so deliciously satisfying about wealthy people falling from grace, especially when they do it in a spectacular way like Einar Aas.
Einar Aas was one of Europe’s biggest energy traders for almost 20 years. He was Norway’s highest paying taxpayer in 2016. Last month, his trading positions were liquidated after one bet too many.
Einar Aas Was Norway’s Biggest Trader
Einer Aas was Norway’s biggest trader for almost two decades, seeing significant success in the power markets. He was also a staunchly private person to the point of paranoia. Aas bought a large house on the water in Grimstad, three hours south of Oslo. He then set about building properties around his own to further protect his privacy. Making small talk with neighbors was not part of Aas’ routine.
Grimstad Norway
Yet Einer Aas was well-known in trading circles. His name, that is, not his face. Unlike plenty of other uber-wealthy traders, Aas was also known as a phantom trader on the circuit. He didn’t attend any trader meetings or industry conferences. He wasn’t in the public eye. And he never gave an interview.
He didn’t gad about town lavishly spending his wins. He simply amassed his fortune betting on Nordic power from his own seaside home surrounded by empty buildings.
Einar Aas Early Days
A straight-A student, it was evident from early on that Aas was going to be a success. In fact, he was described in his school yearbook as the “bookmaker of the class.” According to Bloomberg, he was also known for his love of gambling, frequently betting on horses and playing poker.
He graduated from Norway’s top business school, the Norwegian School of Economics, whose elite alumni include the CEO of energy company Equinor ASA, and Head of Norway’s $1 trillion wealth fund.
Aas broke into the world of trading as a risk manager for Interkraft Trading, where he was able to marry his passions for numbers with his lust for gambling. With unwavering dedication, Aas soon became the company’s best trader before leaving to set up his own energy company with three colleagues.
He then established a private investment company with just 250 000 NOK in initial capital. Aas then traded in his name directly as of 2005.
His old boss at Interkraft said that Aas was always the first person in the office and that he had a very good understanding of the relationship between risk and return.
Making Big Investments
Aas is best known for trading in the Nordic power market, but he also invested a significant amount in property as his fortune grew. He bought a luxury apartment in one of Oslo’s most exclusive waterfront districts.
Despite energy markets taking a pummeling around the world in recent years, Aas rolled with the punches, posting a total taxable income of 3.5 billion kroner ($420 million) since 2002. After an exceptionally profitable year in 2016, he became Norway’s highest individual taxpayer of the year. Tax records are public property in this Nordic country.
Things couldn’t get better for the man with the Midas touch and he was known by his peers for taking the biggest and best bets in the market.
A Gamble that Didn’t Pay Off
Last month, Aas took one gamble too many and it would be his last as a trader. The 47-year-old was expelled from the Nasdaq after racking up losses of hundreds of millions of euros. It seems that Einer Aas miscalculated the risk/return ratio on this occasion, betting that the spread between the German and Nordic power would narrow. It didn’t.
Instead, carbon emission allowances went on a bull run pushing up the German energy market, and poor weather forecasts pummeled the Nordic market.
German-Nordic Spread
In a statement to Norway’s Dagens Naeringsliv, he admitted to taking a position that was simply too big in relation to the liquidity in the market. After massive adjustments in prices in both the German and Nordic contracts, Aas was forced to pay out his last free liquid funds to the exchange. But it wasn’t enough.
On Tuesday, September 11 Aas was declared in default and placed under administration. His portfolio was liquidated the next day.
The Nasdaq called it a true “Black Swan event.” Aas’ fall from grace isn’t just a blow to the former multimillionaire but also for the stock exchange who bought the market in 2010 in a bid to move into commodities.
The world’s oldest power market used to be the pinnacle of electricity trading. Today it is at its lowest level since 1999. An aging and weak market mourning the loss of one of its biggest traders.
But How Was This Possible in the First Place?
In normal circumstance, traders are overseen by a clearer, otherwise known as a guarantor of trades. Aas had none. A clearer could have acted as the safeguard to stopping his bets earlier by demanding collateral.
The absence of this key safeguard is now a question that Nasdaq Clearing will have to answer. How was Aas allowed to operate outside the usual trading protocols?
Furthermore, it isn’t only the Nasdaq who had to front the loss. Other clearing members including brokerages, banks, and utilities had to step in to top up Nasdaq’s default fund to cover Aas’ losses of over 100 million euros.
A temporary Junior Capital facility was set up to help replenish the fund with around 19 million euros and, in fact, by the following Monday morning, almost 90% of the lost funds had already been replaced.
The world of energy trading in Norway will carry on without the phantom trader whose extravagant bets will be missed. As will his fat tax contributions in the seaside town of Grimstad.
And as for Aas? One can’t help but imagine him coming to terms with his losses as only he would. Alone. Staring out at the waterfront, sipping on Akvavit and wondering what gamble he’ll take on next.
Let’s face it, when it comes to online search, Google takes the cake. The tech giant is also pretty good at analyzing data, targeting ads, and helping people find their way around cities. But one area in which it hasn’t emerged victorious is social media. Perhaps it doesn’t matter since they own YouTube anyway and between them and Facebook account for some 70% of all internet traffic.
But something about a failed business has got to hurt somewhere. Yesterday, in the wake of a security vulnerability that put user data at risk, the search company decided to shut down Google+, a social network it once hoped would challenge Facebook.
Google+ An Accident Waiting to Happen
Google took a slamming yesterday from its critics for failing to announce a security lapse at Google+ that left user data exposed. The vulnerability had actually been in place since 2015, although the company only discovered it this year. They then promptly set about fixing it before the news hit the public sphere. In fact, Google clearly hoped that the news would never hit the public sphere.
Now the tech behemoth has been accused of “lack of transparency.” Its critics say this type of behavior is exactly what led the European Union to impose stricter laws for protecting consumer data. In the wake of Cambridge Analytica, the vulnerability in the flailing social network being kept so quiet was hardly an accident. Google was clearly trying to distance itself from Facebook and its angry mob of haters.
Avoiding Regulatory Scrutiny
Now Google isn’t just suffering from a lack of interest from the Google+ user base or even a security vulnerability. The company comes over as underhand, unethical, and ever-so-slightly incompetent.
Labeled as a ‘bug’ in the Google+ service, as many as half a million users’ data was exposed to developers of some 438 third-party apps who could have used it to improve their own services.
Europe’s GDPR
Google says that its decision to keep the information about the breach quiet was based on a couple of reasons. Firstly, they were unsure of the extent of damage done (or in fact, if any information had even been compromised). Second, the data was not “deeply sensitive” (the information contained names, occupations, and email addresses). Moreover, the company was unsure which users had been affected.
However, the revelations by the Wall Street Journal over Google’s internal decision making on the breach placed the tech giant under scrutiny. Being thrust under the microscope by regulators in the US was something they clearly wanted to avoid. Conveniently, the company fixed the breach before the GDPR came out in May, keeping it quiet at a time when corporations are under attack for their misuse of data.
Google Will Always Be Under the Knife
The bigger they are, the harder they fall. Google will always be under public scrutiny and even ex-Google employees are going into direct competition with them. Launching data privacy apps, blockchain companies for data transparency, and other disruptive services.
Just after the news of Facebook and its latest breach, there are calls for even tougher regulation in the US and Europe. After all, if there was an issue with Google+ who’s to say there isn’t one with a number of Google’s applications? Alphabet stock closed in the red at by 1.02% down yesterday.
Alphabet Stock Plummeted
As the company fixed the Google+ flaw before the EU’s GDPR came out this May, they will be exempt from any fines. They will also be placing tighter restrictions on the types of user data they will reveal to developers.
In your quest for financial freedom, you probably find yourself getting creative. Investing in crypto, checking out pot stocks, or scouring the classifieds for a passive income. That’s great. Your hard work will eventually pay off. But you can start getting richer right now by simply cutting out the ways you’re wasting money.
According to a report by CNBC Money, if you’re like most young people in your 20s and 30s, you’re leaking money like a damaged faucet from sources you never consider. Some of the most common offenders include using the wrong ATM, paying for a gym membership you never use, or buying items from the closest store and missing out on cheaper prices just a few yards away.
Moreover, with the rise in interest rates, especially in the US, borrowers will find themselves paying more on their credit card balances and other repayments. This will see you splashing out even more cash than before. Before you can start thinking about becoming a billionaire under 30, let’s start with the basics. Here are a few ways to start getting richer right now by stopping wasting money.
Pay Down Your Debt
You work hard. Of course you’re inclined to spend that unexpected bonus on a night out with friends. But if you’re paying off a debt, like a student loan or credit card, that should always be your first priority. It’s basic economics. You should never try saving money while you’re still repaying your debt. Anything outside your mortgage has to be your first priority.
The average American has a credit card balance of $6,375 with the total credit card debt reaching over $1 trillion last year. So, that Starbucks on your way to work or that rolling subscription to that running app you forgot you had? Cut them out and put the extra cash towards paying down your debt first.
Stop Eating Through Your Money
One of the greatest expenses for this age group is eating out with friends. While we all know that cooking at home is cheaper, it can be a hard pill to swallow. Especially with growing numbers of millennials working from their home office.
Stop Eating Through Your Money
If it’s the social interaction you crave, why not eat out at each other’s houses? If you despise cooking and want the ambiance of a restaurant, start getting friendly with coupons. You can also try cutting out the alcohol since wine and liquor are the highest profit margin in any restaurant. Why not try being really cheap and having a few drinks before going out?
Cut Down Your Bank Fees
One of the biggest and most silent culprits is ATM fees, which can add up to hundreds of dollars every year. So, if you’ve gotten into the bad habit of going to an ATM because it’s closer to you or easier to park, get out of it.
Going to the wrong ATM five times a month is an easy mistake to correct and a quick way to start saving money. When you go to the wrong ATM not only are you paying your own bank’s fees, but you’re paying the other bank’s fees as well. You’re literally taking out your money and handing it to the men at the bank.
Save on Transport and Living Expenses
You may not be willing to cut out your car and ride a bike to work, but there are other cutbacks you can make that aren’t so dramatic. Think about sharing your living expenses by living with a roommate. Try to shop around for a new cell phone plan, or cable TV rather than getting stuck with a bad deal, and be sure your health insurance plan is still right for you. Beware of enticing deals for six months that suddenly shoot up in price and lead to wasting money without realizing.
Stop Wasting Money Today
Looking after your money isn’t exactly sexy. And fumbling around in your wallet for a 10% OFF coupon won’t make you feel very successful. But the message is basically this:
You don’t have to become a sewer rat to start developing better habits. Before you can think about saving or even investing, get rid of your bad debt first and cut out all the unnecessary payments from your life. You may even find you start enjoying it once you watch the extra money pile up.
In case you haven’t noticed, there are plenty of people making money trading pot stocks right now. Getting high on marijuana? Yes. In some cases, positively flying. Just look at the Tilray (TLRY) cannabis company, whose shares increased by over 1,160% since its IPO to reach a market cap bigger than Twitter.
So what’s the deal with this quasi-legal industry that brings back memories of sitting in the principal’s office after school? Is it possible that the mother of all come-downs is about to catch up with pot stocks? If Bitcoin is a bubble, pot stocks are going up in smoke. Here’s why.
Cannabis Is Getting Legal
Cannabis is being increasingly legalized across North America. In fact, Canada is on the brink of becoming the first industrialized country ever to legalize recreational marijuana. Instead of a clandestine handshake in the back of a nightclub, you’ll actually be able to buy weed straight over the counter. Although, where’s the fun in that?
In the US, though, there are still some mixed feelings towards the drug. But since lawmakers started opening up to the idea of medicinal cannabis and even recreational pot, talk of marijuana IPOs and pot stocks has been gripping the wider public.
Currently, there are 10 states, including Washington, D.C., that have legalized recreational marijuana, with 29 more legalizing medicinal cannabis. The industry that used to be brandished as criminal is now a seething hotbed of M&As, deals, and IPOs. And investments this year have already surpassed the $5 billion mark.
Beyond Tilray’s mindbending IPO, Aurora Cannabis (TSE: ACB) pulled off the largest marijuana acquisition in history with a $2.5 billion buyout of Ontario’s MedReleaf. And the North American Marijuana Index that measures the largest cannabis industry players has almost tripled in value, up some 650% since February 2016.
No way dude. Cannabis is finally having its moment in the spotlight. But it’s a classic case of smoke and mirrors.
Hype, Hype, and More Hype
As Canada prepares to reshape the cannabis industry forever, marijuana companies of all stripes are finding their way to the mainstream. The marketing term they weren’t allowed to use is now the buzzword du jour.
From recreational-style products to life sciences, medical, and even hemp clothing and beauty products, with less than 10 days to go, the hype is reaching fever pitch.
There’s a decent amount of FOMO in pot stocks right now. So it’s a great idea to invest if you love buying at an all-time high and watching your stock promptly dwindle. Sound good? Check out the hottest pot stocks right now if you’re looking to win (then lose) a fortune.
Tilray Stock Freefalling
1. Canopy Growth (NYSE: CGC)
Already one of Canada’s major medical cannabis producers, Canopy Growth is well-placed to ride the transition to recreational users as well. Thanks to a vast production capacity, millions of square feet of space to grow on, and even some facilities outside of the country, this is set to be one of the largest producers around.
The company has also been busy establishing its distribution network. With supply agreements all over the country, Canopy now has legal POS for all their crop. Even better than that? In an attempt to straddle the mainstream further, they’ll be launching cannabis-infused beverages with partner Constellation Brands soon. Of course, regulation of these won’t be finalized until 2019, but you have to love the idea of getting high drinking a soda.
2. Aphria (TSE: APH)
Alongside Canopy, Aphria’s production capacity is not to be sniffed at either. In fact, they’re looking at producing some 225,000 kilos a year by 2019, overshadowing Tilray and becoming the third largest grower in terms of capacity. They’ve also been astute when it comes to networking, having lined up agreements across Canada’s provinces.
The company further signed a deal with Emblem Cannabis to supply 175,000 kilograms of cannabis over a five-year period beginning in 2019. Oh, and Coca-Cola is reportedly looking for a cannabis partner to make marijuana beverages as well.
Whether Aphria will sign the line with the FMCG giant or not is TBD. But there are plenty of beverage companies in the works that would allow Aphria to further deepen their foothold in the recreational space. And the speculation does wonders for their stock.
3. Aurora Cannabis (TSE: ACB)
Making history through its Medreleaf M&A, Aurora Cannabis has been acquiring cannabis producers left, right, and center. This means it has some pretty deep roots in this burgeoning industry that leave it well-positioned to be one of its biggest players.
With a current capacity of 150,000 kilograms by the end of this year, we should soon see this leap to around half a million kilos thanks to all this company’s buyouts.
There are also plans in the works to list their stock outside of Canada on a major U.S. stock exchange, giving the company greater exposure to US investors. Who may or may not be interested after the pot stocks go puff.
Invest in Pot Stocks?
There are plenty of reasons to invest in pot stocks right now. Firstly, because everyone else is doing it. Secondly, because, if you like taking baths, the mother of bubbles is about to burst. And finally, because no one is really sure how high demand for the legalized product will be. It could be explosive leading to shortages in supply(!!). Or, we might just find that people were pretty happy with their neighborhood provider after all.
Analysis from ArcView Market Research and BDS Analytics estimates that the Canadian recreational marijuana market will reach around $2.1 billion next year, with around another $600 million for medical cannabis. These are some bullish projections, to say the least, indicating that share prices could indeed continue to rise. Or, on second thoughts, probably contributing to their high prices currently.
Over-hype, escalating FOMO, and unconfirmed levels of demand… Remember the Bitcoin “bubble“? Pot stocks are headed for a similar fate, get on board now if you don’t want to miss out.
If you’re dreaming of amassing fortunes in the billions and you haven’t hit your third decade yet, you’d be joining a pretty small club. There are just nine billionaires under 30 according to Forbes. That’s an exclusive set indeed.
But what about all the unicorn startups and rags-to-riches stories we hear about so often? Don’t confuse starting a company valued in the billions with raking in the billions in private net worth.
Making (a shit ton of) money isn’t easy. The laws of physics (and stock prices) indicate that it requires time, experience, and something extraordinary. Especially if you’re not next in line to inherit a gargantuan sum any time soon.
What about the likes of Mark Zuckerberg and Brian Chesky? Oh, they’re in the club alright, just not the billionaires under 30 one. They don’t get asked for ID when buying drinks anymore.
Self-Made Billionaires Are an Even Rarer Beast
Now we’ve established that your chances of joining the billionaires under 30 club are on a par with a camel passing through the eye of a needle, take heart. There’s more than a sprinkling of privilege in this club-of-nine list as well.
In fact, of the nine billionaires under 30, the majority are not self-made. The truly extraordinary individuals who have made their own fortunes from scratch are a grand total of just four. The other five had their wealth handed to them on a silver platter.
So, let’s take a look at the four self-made. Who are they and how did they make their money? It seems that the worlds of social media and fintech (AKA tech billionaires) walk away with the prize. The four richest people under 30 are the co-founders of Snapchat, and Stripe respectively.
Snapchat Cofounders
Snapchat (NYSE: SNAP) Cofounders Bobby Murphey (29) and Evan Spiegel (28) got the recipe right with their self-destructing messages and allowing people to take selfies with bunny ears. But like everything social media, trends are only popular for a while. It wasn’t long before even our ugliest friends having profile pics looking like Disney princesses started to get old.
Snapchat has had a turbulent year and so have its cofounders. From a historical high of 27.09 USD in March 2017 to its October 5, 2018 price of 7.77 USD, the Stanford frat brothers saw around 40 percent of their net worth wiped off this year. They still top the rich kids’ list, though, with a net worth of $2.5 billion.
Snapchat’s 200 million users (mainly between 18 and 34) users are a fickle bunch. Look to why the social media giant is losing popularity and it seems many fingers point to a Kylie Jenner tweet. Influential people complaining about the redesign saw a $1.3 billion drop in Snapchat’s worth.
Stripe Cofounders
At the age of 27, Irish brothers and Stripe Cofounders John Collison and Patrick Collison are on the fintech hall of fame with an estimated net-worth of around $1 billion as of February this year.
What’s Stripe? For those of you who don’t know, Stripe is a fintech unicorn that lets companies and individuals accept payments online easily. Another idea to be incubated in a college dorm room, Stripe processed its first payment when the brothers were vacationing in South America.
In 2016, Stripe was valued at around $9.2 billion. But Stripe’s valuation has recently be recalculated to around $20 billion, making it the sixth most valuable venture-backed startup in the US, alongside WeWork, and Palantir.
No plans to take the company public, millions of businesses already using Stripe and an estimated 80% or more US consumers having used it for payments, they see no need for an IPO. Some of Stripe’s most famous investors include Elon Musk and PayPal co-founder Peter Thiel.
The Takeaway
The common threads between these self-made billionaires under 30 are technology and college. But with social media able to shed billions of value on the back of a celebrity tweet, fintech may be a more stable ground on which to build your empire. Moreover, college is really just a yardstick since some of the most successful individuals in the world are college dropouts–just ask Richard Branson and Steve Jobs. Neither of them were billionaires before 30 either.
Featured Image credit: De cellanr – Flickr: Evan Spiegel, founder of Snapchat
Ever heard the expression of not seeing the wood for the trees? Or just having the feeling that you’re too close to a project to see the bigger picture? According to serial entrepreneur and multimillionaire Halsey Minor, a lot of startups fail because their owners get “lost in the weeds.”
Like a dog chasing their tail, they’re caught up in an endless cycle that may keep their business afloat but doesn’t bring in the big bucks.
Who Is Halsey Minor?
If you’re wondering who Halsey Minor is, he’s made a long career out of building successful companies around emerging technologies. As Founder of CNET (one of the first internet media sites to focus on technology, consumer reviews, and videos), Halsey presided over one of the web’s first profitable companies. CNET became a NASDAQ 100 company and was acquired by CBS Corporation for an eye-watering $1.8 billion in 2008.
He was also a co-Founder and early investor in Salesforce in 1999 (to the tune of $19.5 million), co-Founder of Google Voice, Founder of Uphold, an early Coinbase competitor in 2014, and latterly, immersive video company Live Planet, and blockchain startup VideoCoin. Are you keeping up?
With a host of other accolades to his name, you could say that Halsey knows a thing or two about running a successful company. He’s also used to building businesses around technology and ideas that don’t exist yet. And surviving boom-bust cycles and speculative bubbles with dexterity and skill.
So how did he find success while other companies were going under? How did he steam forward without losing focus on the finish line? I caught up with Halsey at the World Blockchain Forum in London last month to find out.
See the Bigger Picture
The only way you can be a visionary and maintain your self-belief while others around you are folding is by standing back from the day-to-day. Having started multiple high-tech businesses, you might imagine Halsey sitting at his desktop writing code or leading the development effort. But that isn’t the case.
“I did some programming in college, but I’m not going to sit down with the programmers every day and check every line of code. A business owner shouldn’t get lost in the weeds.”
A recurring complaint from millennial employees is that owners and managers don’t give them the space they need to do their jobs. The fact that they need mentors, not managers ties in well with what Halsey is saying.
By focusing on the bigger picture, you can steer your company forward while keeping your employees engaged and productive at the same time.
Hire the Right People
Obviously, a successful business isn’t one in which the owner is out playing golf and the minions are updating their Instagrams. But running a money-making company isn’t just about giving your employees space; it’s about hiring the right people for the job, giving them the tools they need to do their best work and then getting out of their way. Halsey is very clear on the need to hire the best talent and let them take the lead.
“I’m very good at getting the best people working on projects. I hired Devadutta Ghat to build the cloud for Live Planet.”
To give you some context, Ghat isn’t just good at what he does. He’s one of the only people who does what he does, having built Intel’s video streaming cloud. “He’s one of the few people in the last 10 years who’s actually built a video streaming cloud,” Halsey explains.
When you hire the right people and are confident that they’re doing their jobs, you can continue growing your business. Ghat is now one of Halsey’s not-so-secret weapons. He brings with him not only experience in building software but also running data centers, encoding, storage, and streaming.
“We’ve got some interesting companies [Live Planet and VideoCoin], we’ve got very deep crypto experience, in my case back to 2012, we’ve got deep experience in video and a highly profitable business.”
Be Better Than the Competition
Ask Halsey what he’s passionate about and he probably won’t tell you it’s customer relationship software, emerging technology, or even making money. It’s more about the challenge of taking on the competition and winning.
“With Salesforce, we went after big companies and their customers,” he says. “With CNET we forced many Internet giants out of business.” And that’s exactly what he’s got in mind for VideoCoin.
The company isn’t about competing with the likes of Google Cloud or Microsoft Azure; it’s about knocking them out of the picture completely.
Would Halsey say he was somewhat addicted to the challenge, to the adrenaline of taking on the big players and winning? “I think that’s why we all do it,” he laughs. And it’s a pattern that emerges starting with CNET all the way up to his latest venture VideoCoin which, unsurprisingly, sees Halsey venturing into exploratory terrain again.
Go Big or Go Home
A quick peek on VideoCoin’s website may lead you to brush the company off as another blockchain content platform trying to fix the broken system. But, VideoCoin isn’t about individual customers. Halsey doesn’t believe in aiming small. And in fact, VideoCoin isn’t just about taking on the likes of Facebook and YouTube either, but AWS as well.
In true Halsey Minor style, he’s looking for large corporations as clients, like 20th Century Fox Film Corp and AT&T Entertainment Group. VideoCoin is as much about decentralized storage space as it is video content distribution. Large corporations make the perfect target since they have excess server capacity. These are otherwise known as “Zombie Servers” that could easily be monetized.
In fact, it’s estimated that around one-third of virtual servers are zombie servers that many companies are running without external communications. They consume electricity but serve no purpose. Through VideoCoin’s decentralized computer storage on the blockchain, Halsey’s created a whole new business model again.
Solving a problem, tapping into a need, and allowing businesses to utilize this computer space that’s going to waste.
“That’s how I invented Google Voice [Grand Central Communications, the technology Google Voice is built on was sold to Google in 2007]. I was on the road a lot and no one could reach me and I needed some way of getting all my notes and messages in one place. A lot of my businesses were designed to solve problems that I had and ended up being useful to others as well.”
Business Acumen Counts
You’ve probably heard enough times about the importance of a strong leadership team when investing in a project. But you may wonder why bringing in advisors and CEOs from non-related business fields or different disciplines helps. It’s because business acumen counts. Experience counts.
And when it comes to churning out money-making businesses one after the other (even withstanding the dotcom bubble) you don’t get more storm-seasoned than Halsey.
When asked about the changing regulation surrounding the ICO space and the reason so many ICO companies fail he says, “It doesn’t make sense to ask people to invest in an idea. You have to show them a working product.” It may sound simple, but after seeing blockchain startup after blockchain startup requesting funding for non-functioning ideas, it’s also extremely logical.
The Takeaway
Want to run a successful business? Start big picture thinking. Not just what’s already in the market, but what could be in the market. Don’t try to stay on top of every last detail, but understanding the importance of hiring the right people and letting them do their jobs. Evolve with new technology, find solutions to people’s problems, and go all-in on your idea. It’s worked for Halsey Minor. It may just work for you, too.
