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The Chomp #058 - A New Home

The Chomp
The Chomp #058 - A New Home
By Cody McCauley  • Issue #58 • View online
🎧 You can now get The Chomp straight in your ears: Listen on Apple Podcasts, Spotify, or your podcast player of choice.
Hey Everyone 👋 ,
Welcome back to The Chomp—your biweekly dose of the best strategic thinking content and top emerging business trends from the internet and beyond.
If you’ve been sent this email and you’re not a subscriber, you can subscribe down at the bottom of this email or by clicking the ‘view online’ link above. 
With that, let’s dive into it.

📢 A Couple of Quick Announcements...
You might have noticed some exciting news at the top of this issue—you can now listen to The Chomp! Most issues will now have an accompanying audio version that you can listen to via your podcast player of choice. The audio version will include the same content + a few additional comments on various topics here and there.
Fair warning that I don’t have the voice of an angel, nor the equipment to make me sound like one (aside from a proper mic). But I’ve heard from a number of readers that they’d love the option to listen to The Chomp instead of reading it, so hear (sorry) you go.
Make haste and subscribe now to get new episodes sent straight to your library.
New Platform, Same Newsletter
You also might have noticed that this issue of The Chomp came from a new email address and looks a bit different from the past 57. That’s because I’ve moved the newsletter over from Substack to Revue, which was acquired by Twitter last week.
I’m pumped about the new features that Twitter announced will be coming to Revue, including new settings for writers to host conversations with their readers. With Twitter launching Spaces, as well as acquiring social podcasting app Breaker, it’s an exciting time for creators to start leveraging the platform in new ways.
Twitter has infamously dropped the ball on maximizing prior acquisition, but with renewed fervor following last year’s run-in with activist investor Elliot Management, there’s reason to believe that this time it will (actually) be different.
Previous Issues of The Chomp
I’m not currently able to migrate previous issues of The Chomp over from Substack, so for the time being they will remain there. You can access the archive here.
✍️ Deep Dive
GameStop & Meme Stocks Galore
I’d be remiss if I didn’t acknowledge the GameStop saga that’s been dominating headlines over the past two weeks. As the situation continues to unfold, there has been no shortage of prognostications on what this all means for the future of financial markets. Based on who you speak, to or what you read, this situation could either result in long-lasting systemic changes, or it will blow over and be an afterthought in a month from now.
From my perspective, I get the sense that we’ll land somewhere in the middle. I think the past few days have been the most telling on how things will ultimately shake out. Since peaking at $483 less than two weeks ago, GME closed out on Friday at $63.77. In tandem with the stock collapsing over the past week, a wealth of high-quality information emerged raising questions to the public narrative of how the price ran so wild in the first place. Was it reallyRedditor’s and retail traders writ large that drove this rally, or were there other, less headline-worthy, forces at play here? The data will tell you that it was most likely the latter and the hedge funds actually had the last laugh.
That said, and regardless of the true impact that retail traders had on the price moves, there are real societal implications here. No matter if GameStop and other related meme stocks quickly fall into obscurity, the cat is out of the bag on many of the disparities that currently exist in the equity markets. While I support the push towards further democratization of finance, I don’t necessarily believe that hedge funds and institutional traders should be cast as the villains they’re made out to be. Given I recently spent nearly three years working at D. E. Shaw, I can attest firsthand that much of the narrative painted by the media about hedge funds is far removed from reality.
With that in mind, as I’ve spent more time trying to get a better feel for what this all actually means, a few key takeaways have emerged for me. Most notably, are the forces of reflexivity, the exposure of Wall Street’s double standard, and the importance of discipline. Related to discipline, I don’t mean staying disciplined in the traditional sense that you may be thinking of.
My understanding of discipline has changed since coming across Venkatesh Rao’s working definition of the word in his excellent essay, Daemons and the Mindful Learning Curve. In it, Rao shares the following,
“I used to think discipline was about machine-like predictable performance. Now I believe discipline seems to be about showing up like clockwork, and accepting whatever happens: peak performance, trough performance or anything in-between. And then showing up again.”
Through this lens, discipline becomes more about the process itself rather than a rigorous means to an end for achieving some goal.
Tying this back to GameStop, I believe viewing discipline in this sense helps gives clarity to how Investors, both professional and retail, can apply learnings from this situation going forward. Realizing, and accepting, that some days you’ll hit peak performance and others the opposite, makes it easier to establish and follow a chartered course. This ultimately allows you to better avoid the hype and distractions that abound with situations like Gamestop. To that end, you can dismiss the noise associated with these types of events, like Redditor’s minting (paper) millions on YOLO options, as exactly that—noise.
Now that I’ve shared my view and takeaways on this whole ordeal, I want to reiterate that they are just that—my views. It’s not my goal to try and persuade anyone else to think about this situation in the same way that I do. Rather, I implore you to come to your own independent conclusions. And I’m sure many of you already have.
🔗 Chum Bucket
🗓 Tweet of the Week
Dr. Parik Patel, BA, CFA, ACCA Esq. 💸
Jeff Bezos is retiring at the old age of 57! Did you know that you could retire much earlier by making your coffee at home and investing in a low cost S&P 500 index fund?
🎵 Song of the Week
📚 Books
Currently Reading
Recently Read
💭 Parting Thoughts
This Week in History
On February 3rd, 1966, the unmanned Soviet Luna 9 spacecraft made the first controlled rocket-assisted landing on the Moon. It was the first spacecraft to make a soft landing on any planetary body other than the Earth. (Source)
“If you want to determine the nature of anything, entrust it to time: when the sea is stormy, you can see nothing clearly.”
- Seneca
If you found something that piqued your interest this week, please help me out in expanding the reach of The Chomp by forwarding it along to a friend or sharing it with others in your network. Until next time. ✌️
This newsletter is created and authored by Cody McCauley and is published and provided for informational purposes only. The information in the newsletter solely constitutes Cody’s own opinions. None of the information contained in the newsletter constitutes—or should be construed as—investment advice.
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Cody McCauley

The Chomp is a roundup of the most interesting content I've read, along with occasional musings on technology and the world. You can expect to find a mix of sub-topics including web3, tech, investing, philosophy, and culture.

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