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Circle of Competence Issue #105


"Never in the field of human conflict was so much owed by so many to so few." - Winston Churchill


Scratch Notes on SoftBank

SoftBank was busy this week. It agreed to sell off part of its stake in Alibaba to deleverage its balance sheet and buy back stock. It also backed out of its deal to rescue WeWork as well.

I've written a two prior pieces on SoftBank's Vision Fund and its investment in WeWork, so I won't rehash those here.

- WeWork - a case study in the lollapalooza effect

- Masayoshi Son's Big Bet

What SoftBank is essentially doing is it is harvesting some of its massive gains from a very mature company (Alibaba) to deleverage its balance sheet into what could be a very significant recession. I agree with the moves for two reasons: SoftBank doesn't throw more money into a losing investment (WeWork) and prepares its balance sheet for turbulent waters. Golf clap for Masa, but he still has his work cut out for him to deliver the promised returns on the Vision Fund.

Taking Flight

I have a small obsession with any form of innovation in human flight. I have always been fascinated by Musk's Spacex, Bezos&