your uni degree means nothing
the books you read mean nothing
the courses you took mean nothing
the skills you master mean nothing
> unless you take action.
One of my favorite lessons I’ve learnt from working with smart people:
Action produces information. If you’re unsure of what to do, just do anything, even if it’s the wrong thing. This will give you information about what you should actually be doing.
Sounds simple on the surface - the hard part is making it part of your every day working process.
Here is Peter Thiel’s email to Zuck and Andreessen in Jan-2020 predicting socialism.
Tl;dr too much student debt and lack of affordable housing keeps young people with negative capital for too long. And without a stake in the capitalist system, they will turn against it.
If you take money out of a business as dividends, the effective tax rate is 52% (25% corporate tax + 35.5% on personal income). Through capital gains, it's just 14.95% (with cess).
Why does this matter? Here’s what you should know if you invest in IPOs.
If you're an investor (especially a VC), the math is simple: reduce corporate tax by showing minimal profits or losses. Spend (Burn) on acquiring users, build a growth narrative, and then sell shares at a higher valuation while paying much lower tax.
This spending also makes it harder for competitors to survive. To be clear, we're not discussing R&D spending here, which, incidentally, is very low in India (0.7% of GDP).
What's often overlooked is that VCs are essentially playing a tax arbitrage game. Look at most VC-backed businesses listed in the last few years, the reason they show little or no profit is partly due to this. Once you run a business this way, it's extremely difficult to switch.
Every startup that's 7-8 years old from the time of raising the first round faces constant pressure from VCs for an exit. With almost no M&A opportunities in India, IPO is often the only way out.
The government probably designed this tax arbitrage to incentivize companies to spend money and not just accumulate and distribute. But I'm unsure if the balance is correct. I think it's also creating businesses that aren't very resilient. One prolonged market downturn, and many of these unprofitable companies would struggle to survive.
Two things that make this more interesting:
Unprofitable growth gets valued at much higher multiples than steady profits. A company doing ₹100 cr revenue with 100% growth might get 10-15x, while a profitable one with 20% growth gets 3-5x. So VCs aren't just saving on tax; they're in essence creating a 3x higher exit valuation.
If you're competing against someone burning cash, you almost have to match it to defend market share, even if you don't want to, because of the quirks I mentioned above.
One of the most terrifying moments of your life will happen when you realize you have been under pressure and fear for over ten years, not the kind that transforms you either,
just the kind that robbed those years
Humans are subconsciously always stuck in ranking and comparing mode and when someone hits a misfortune our primitive brain gives us a dopamine rush as if we got a mega boost in our own rank
Schadenfreude is easy to understand if we treat world as one big zero sum game.
Time flies by when you're using addictive apps and games. But many of the most important things in life have at least soft deadlines. This is a very dangerous mismatch. If you're not careful, a lot of windows are going to close on you.
Pakistan has enjoyed decades of global indulgence, especially from the West, and particularly from the Anglo-Saxon world thanks to historical and geopolitical quirks.
The West therefore bears some culpability for building up Pakistan’s terror industry. The Islamic world is way ahead of the West in recognizing the dangers posed by Pakistan to themselves. China too, despite its master-client relationship has shown signs of uneasiness with the trajectory of the Pakistani state (Chinese workers and engineers have been attacked by terror groups there).
The United States has provided Pakistan with substantial financial aid - nearly $78.3 billion between 1948 and 2016 - making it one of the largest recipients of U.S. assistance.
This insane largesse was meant to promote regional stability and counterterrorism efforts.
The results are plain for all to see. Not only is the region a hotbed of instability. The fact that we found Osama Bin Laden hiding out in Abbottobad, just a stone’s throw away from Pakistani military and government agency HQs, is something out of an absurd comedy sketch.
This is like spending billions in education only to see US students’ reading and math scores plummet. Or increasing healthcare spending only to see chronic disease rates steadily climb while lifespans shrink.
Defence trade between US and Pakistan has been furnished since 9/11 to the tune of $20 billion. We’re talking fighter jets (F-16s), missile frigates and attack helicopters.
Why is our foreign policy like the titanic, unable to change course from its Cold War trajectory?
The calls for equivalency between India and Pakistan once again just glosses over this fact: Pakistani-origin terrorism is a problem not just for India but globally as well, and it is financed and abetted by the state which is financed and abetted by the West.