“To understand the boom-bust nature of the mortgage market, we’ve got to understand a bit more about its economics. When a mortgage company makes a mortgage, it doesn’t keep it on its balance sheet like a European bank would; it sells it in the capital markets. We spoke about this in Financing the American Home. When it makes the sale, the mortgage company takes a gain – the difference between the price it originates the loan at and the price it can get for it in the secondary market. Right now the spread between these two prices is around 120 basis points, although this does vary by channel. “
Mortgage Mayhem, Net Internet
“When the scale of investment is proportional to the addressable market of the project, even the smallest creators can bootstrap. Furthermore, their success is financially aligned with the goals of their audience. Equity isn’t just defined in a corporate context; it can be defined on a creator-, or even project-level.”
Creator Equity, Firehose.vc
“A big problem in investing is that we treat it like it’s math, where 2+2=4 for me and you and everyone – there’s one right answer. But I think it’s actually something closer to sports, where equally smart and talented people do things completely differently depending on what game they’re playing.”
Play Your Own Game, Morgan Housel