Looking back to go forward ↪️

WTF is on the road ahead

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It was a party of one at the dopamine bar.

Last Wednesday's post, Back to SPAC, caught traction on Twitter. Investing legend Bill Gurley picked it up and the engagement started flooding in.

Bill Gurley @bgurley

Interesting thread. No question about it that the rampant/worsening underpricing of traditional IPOs has created a situation where SPACs actually have a lower cost of capital. SPACs are popular now & gaining steam/legitimacy. Wouldn't be surprised to see a VC raise a SPAC.

Anuj Abrol @nujabrol

The IPO is dying Here’s a thread on why SPACs (special purpose acquisition companies) are disrupting the IPO 👇🏽

No matter how many times I clicked on the damn notification bell, another blue circle quickly popped up. 

At first I was in awe. Investing luminaries interacted with the thread. Then I became curious. A bunch of healthy debate formed. Finally, I realized ‘this is why we can’t have nice things.’ A mob of trolls crept in and debates turned into disparagements. 

David Taggart-PDMacro.com @DavidTaggart

@bennpeifert @SkeleCap @VegaVandal @EconomPic @nujabrol oh the kid who started the thread has McKinsey in his bio. He is basically a terrorist. What does he know about IPO's or SPAC's? Sorry you got slamjammed @EconomPic it doesnt sound pleasant

This new experience made me realize two things. 

First, learning in public is a net positive. Our goal is to understand what is going on. Getting to truth requires us to share our point of view first. (Note: more to come on SPACs).

Second, talking about the future matters. Instead of looking at things in the rear view mirror, we all want to know what’s coming up on the road ahead. 

The switch up

With all that, I want to lean into the second part. Have fun, learn, and form opinions about the future together. 

I was talking to a Witty reader on Friday, and he told me, 

“While the bull / bear cases help me understand what’s going on, I ultimately still don’t know how I feel.”

I agree with him. 

It’s time to try the Witty Transparency Fund (WTF) and go deeper. Revisiting the proposal from 3 weeks ago, here is what that means:

I’d put $100k into an investing account and the goal would be to invest like Chamath. WTF would focus on growth tech stocks that are both great businesses and can also change the world. 

We’d analyze these stocks in a way you and I can understand. Not some wordy memo that makes your eyes glaze over.

Everything about it would be transparent. Research about the stocks. Debates on whether to invest. Updates on positions and performance.

While in an ideal world, WTF would make tendies [gains], the real purpose is different. The aim is to understand these companies, get a better view of the future, and have laughs along the way.

What to expect from Witty

I was on big conceptual energy when I wrote that. WTF does WTF mean in reality?

Here’s what you can expect from me:

Content

The first WTF will start next week!

As usual, you expect what you need to know in this email newsletter. For the length of this series, most (not all) The Daily Wit’s will be focused on the company we choose. Each post will relate to our #1 goal: understand what is going on.

Here’s what I anticipate themes of the WTF posts to be:

• Content like we’ve done before - bull cases, bear cases, and guest posts

• New things - interviews with opinionated investors and experts, Zoom debates, and once done, a group chat for whomever takes a position

Investment

If / when we believe in the investment, I’ll put WTF’s money where our mouth is. When that time comes, we’ll figure out how much $ to put in.

I also want to be transparent with you. To make that easy, I sold all my positions in late June and balanced my Robinhood to $100k. The rest of my money is in the bank or accounts I don’t manage. Here’s a verified snapshot from Positions or Ban. 

What I need from you

To help make this happen, I need your help on two things: 

First, your input. What stock should we run the first WTF experiment on? What stocks are you interested in? Please reply to this email with the tech stocks you can talk all day about.

Second, your forward button. If we are going to have all this fun and exploration, why not share it with more people? Please share this with anyone you talk about stocks with. At the very least, it’ll give you something to talk about! 

Back to the future,

Anuj

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Notes: The Daily Wit will be Monday - Thursdays for now. I'd rather spend more time (Friday's) hanging with the Witty community!

This content is for informational purposes only. It should not be relied upon as legal, business, investment, or tax advice. Your use of the information contained here is at your own risk.