We had another very interesting chat with Yegor from “From $100K to $1M” & More.
Check out all of our previous episodes here.
During the chat, we went over the following topics:
Buy Now, Pay Later (BNPL) & Accounting Quirks: Banter around the “Buy Now, Cry Later” brand joke, the consumer psychology of 0% interest promotions (including joking around about “girl math”), and how companies account for BNPL sales through deferred revenue, bringing future quarters forward, or monetizing user transaction data.
Bitcoin Fundamentals & Real-World Use Cases: Bitcoin viewed as “digital gold” and a store of value against fiat debasement; proof-of-work mechanics, SHA-256 encryption security, and mining energy costs (comparing hydro power in Canada vs. renewables in Germany); transaction trackability when off-ramping to fiat; and practical adoption in places like Southern Africa alongside SMS-based payment systems like M-Pesa.
MicroStrategy’s ($MSTR) Capital Structure & Debt Strategy: An analysis of MicroStrategy (Strategy Inc.) utilizing cheap convertible debt and mezzanine preferred instruments to buy Bitcoin, the risks of servicing yields when underlying cash flows are zero, and the vulnerability of holding companies to severe crypto downturns or theoretical quantum-decryption risks.
Gaming Industry Dynamics & Company Moats:
Nintendo & Console Cycles: Nintendo’s long-term moat, evergreen family-friendly IP (Pokémon, Mario, Zelda), and the strategy of pairing proprietary hardware (Switch/Switch 2) with high-profile third-party releases (e.g., Cyberpunk, Grand Theft Auto 6).
Publishers vs. Platform Holders: Why IP-only publishers face fast depreciation and must keep releasing sequels or DLC to survive, compared to console makers that control the distribution platform and generate recurring cash flow.
Other Gaming Companies: Gravity’s Ragnarok IP, activist investor pressure, and dividend payouts; TinyBuild’s founder incentives, ecosystem model, and turnaround efforts; and the impact of the upcoming GTA 6 release on Take-Two Interactive.
Trophy Assets vs. Cash-Flow Businesses: A discussion on buying sports teams (e.g., NBA franchises, Manchester United, or Wrexham) as status symbols, the “greater fool” model of flipping clubs, and potential arbitrage setups like creating European football academies for Latin American talent.
Book & Media Recommendations:
Ian Cassel’s book on his investing journey, covering wins, mistakes, and fund management.
Iain M. Banks’ Culture sci-fi series (specifically Consider Phlebas and The Player of Games), along with discussions on classic investing reads like Hedgehogging.
Research Craft & the Rise of AI: A warning against over-relying on AI summaries or shallow Substack takes instead of reading original filings and doing primary groundwork, highlighted by an anecdote about Capex quirks and local cultural practices in Eastern Europe.
Hope you enjoy!
Alejandro Yela
