Mid-day resets

I never really had the opportunity to work on my own schedule or time until I left to join the startup world. The old school big firm life always had the expectation that you were in the office or logged on during certain times and available. While my previous employer was relatively flexible in terms of working from home and whatnot, it’s still the old school mentality driving the guilt of taking an afternoon mid-day break.

Ever since I started working at Secfi, I always really enjoyed these mid-day or afternoon breaks. Most times I would run over to the gym and take a quick workout class to get my mind off of work. Nowadays, I’ve been going on runs, doing yoga on my roof, or just sitting outside enjoying the sun.

Of course, this means that I’ll work into the evening and night… sometimes right up to bed time, but this is a trade-off I’ll take any day. On top of all this, I’m much more productive in the evening anyhow. I seem to get most of my work done between 6-9pm.

My mid-day reset gives me some time to break up my workday. When I’m going through a stressful time, it helps calm my mind and reset for the tasks ahead.

How to not hate writing

I hated writing as a kid in school. I was much more of a math and science guy and english was easily my worst subject. Throughout my entire collegiate career, writing an essay was the worst of all homework assignments — I never understood kids who liked writing. It wasn’t until my upper level business classes when I started to somewhat tolerate writing. I always attributed that to the fact that business writing is succinct and to the point rather than the use of fluff words to make things sound better for an essay.

I started this blog last year partly so I could improve my writing and document my thoughts. It’s been a largely mixed bag of pleasure. Some days I feel like writing flows naturally and I’m enjoying putting my thoughts to paper. Other days I feel like I’m just reaching to get to the end of this post so I can move onto my next task. I guess I never really thought too much about what drove those emotions, good or bad, whenever I was writing.

I’m not sure if I should feel embarrassed that I’m finally realizing this now or relieved, but after 30 years of learning about myself, I finally realized the secret formula on how to not hate writing. Write about things you want to write about.

I never truly hated writing. I just hated writing about shit I don’t care about like random essay prompts given to me in high school.

I don’t like business writing because it’s succinct. I like business writing because I like writing about business.

Writing on my blog is a mixed bag of pleasure and pain because I force myself to write about something I have no interest in. It’s those times where I get excited to talk about something where things flow naturally.

With my new found revelation, perhaps I can finally say I truly love writing sooner than later. More on that soon.

To reopen or not

I took a 2 hour nap today at noon. It felt amazing and probably my body telling me that it’s tired. It’s been a long few weeks and I’ve been feeling a lot of fatigue lately. It’s going to be important to listen to my body and get more rest in these next few weeks.

On to the next…

The big debate right now is to reopen the economy or not. Shelter in place orders have gone a long way to helping flatten the curve, but people are getting restless and unemployment is skyrocketing. As much as people don’t want to say it, there will be a point where this cannot go on and we have to get going.

We’re slated for the economy to start opening in waves starting now through the summer. I’m not a medical or pandemic expert, but it appears that this will lead to another wave of outbreaks. The big question is whether this next wave of outbreaks will be an acceptable outbreak or not.

The most important item here is to protect medical and emergency workers. This next outbreak cannot overwhelm our healthcare system. If we can open the economy and not max out our healthcare system, then we should consider opening the economy. Until then, we cannot risk another outbreak where there are not enough hospital beds for patients who need it.

Financial education

We finished our second webinar today and like last time, I had a lot of fun doing it. There’s a lot to improve on and we’ve learned a lot in the last few weeks, but we’ll take it.

The best part about hosting one of these webinars or educational sessions is the feedback we get afterwards. I admit that sometimes living and breathing stock options every day does create a bit of a fatigue. Hearing from a few attendees that they learned a lot has meant a lot to me and validates my work.

At Secfi, we help people achieve their dreams and goals by helping them get the most out of their equity. A lot of what we do is simply just education in regards to their options and how they work. We’re in the business of financial education.

I love learning about companies in the financial education space for the simple fact that the American school system has failed us in providing us with the most basic financial education.

Kids turning 18 can start getting credit cards and ruining their credit scores without know what it means. Adults do not know the basics of filing their taxes and why it matters. The majority of Americans do not a savings. Not everyone needs to be a financial expert, but every American has the right to have basic financial knowledge.

We have seen a new age of finance that have democratized investing to everyone with apps like Robinhood. Challenger banks such as Chime have provided a new age of banking for the under served.

People now have access — the next step is creating better behavior through education. I expect to see some major names start to emerge in this space in the next few years. My prediction is that an app that can “gamify” financial education will start to spread among the younger generation.

When I grew up, we had Pokemon cards and sneakers to show off to our friends. The younger generation live on games like Fortnite and show off in-game purchases. The new cool will be trophies and awards in apps.

The gamification of education, specifically financial education will be a trend that’s going to be fun to watch over the next few years. I hope for the day that my kid is excited to show me his reward for learning compound interest.

Sticking to your guns

We have a team slack channel for those who want to discuss the markets and investing. I feel like every day someone is posting some ridiculous fact about something unprecedented in the market. I’m happy I started nibbling last month and bought some $GOOGL. It’s been a nice return so far.

I can only imagine what it must feel like right now to be that person proclaimed that the world is falling apart and sold everything in March. I already have major FOMO from not buying more earlier this month.

There’s a lot of chart porn out there on Fintwit right now, but my favorite chart of a company in my portfolio is $RH.

Restoration Hardware $RH 1Y Chart

I bought $RH last March when Rob from Koyfin.com sent out a newsletter. I bought in at right around $105 and saw the stock drop to $85 in the following few months. The stock price peaked at about $250 in mid-February. After the crash, there’s been a great rally and I’m back to a nice return on my one-year position.

Of course, we all wish we could’ve bought at $85 and sold at $250 but the markets don’t work that way. Investing is an emotional rollercoaster. There’s lots of ups and lots of downs, but you need to stick to your guns during the good and bad.

Work from home burnout

I’ve been speaking to a lot of friends and clients lately and it appears that people starting to hit their edge with working from home. Weekends and weekdays are effectively blended into one during this quarantine. People get bored and perhaps cope with the boredom by doing more work. While I started the quarantine in good spirits, this work from home burnout has definitely set in.

Most of us are hitting that 6+ week mark of quarantine and the reality is that this isn’t likely to be over anytime soon. The planned vacations, social events, sports, etc. that I once lived for are now gone for the foreseeable future. It’s hard to get going as there’s just not a whole lot to look forward to.

In order to get through this with my sanity, I’m going to start implementing some more changes around work hours and weekend routines.

First, I need to further separate work and leisure. I have gotten bad habits of working later into the evening as I tend to hit a real productive streak right around 6pm. I need to get back to normalizing work hours better and cutting off when it’s time. There’s no office to separate work/life right now so it’s going to be a difficult initiative.

Secondly, I want to take advantage of weekends and do more. I realize that we may not have restaurants, bars, and other social activities, but we can still go on drives and do other safer outdoor activities.

It’s going to be a difficult time ahead, but I realize that we’re in this for the long-haul so I need to control what I can in order to set myself up for success.

Strategies for your options during COVID-19

Next Thursday I’ll be presenting on my second webinar, Navigating Equity Compensation: Strategies for Your Options during COVID-19.

These webinars have been a fun change of pace in my day to day at Secfi. One of the perks of being a small team is that you get to have your hands on a lot of things. I’ve had a lot of fun helping out with the marketing and creation of these webinars. We’ve had some decent early success and gotten a lot of constructive feedback so we’re excited to improve every time we host one.

I’m especially excited for this webinar’s topic. Dealing with the global pandemic has been difficult for many in the startup community and we’re hoping we can do our part to help out.

Bouncing back

I listened to Barbara Corcoran on Pardon My Take a couple weekends ago and she mentioned that the secret sauce for those who sell most in real estate are the ones who bounce back the best from the losses.

Of course she is referring solely to sales numbers, but you can probably use this and extrapolate this across nearly everything you do in life cause everything is sales one way or another. Whether you can raising a new round, asking for a raise, or interviewing for a job, you are selling something.

In the sales and business development world, you’re always bound for losses. No one can bat 1.000 no matter how good you or your product you are selling is. The hardest part about business development isn’t getting a deal closed, but taking one on the chin and recovering from it.

It sounds easier and we all want to think we’re resilient but tough situations happen all the time. We all take L’s. At Secfi, we’ve had to deal with a lot over the last few months. We’ve had some great wins but it’s always the losses that keep me up at night.

There’s no silver bullet for this. Everyone copes with it differently, but one thing is obvious: the great ones always bounce back one way or another.

Free oil and trader education

Never thought I’d ever say that I'm happy to have a sunburn but here I am. Did a bit of yoga on my roof this morning as a way to switch up my typical programming of runs and prison workouts. It was the first time I truly enjoyed yoga much although some of that may have been aided by the sun.

On to the next…

Yesterday was a historic day in the annals of the stock market. The price of oil dropped to negative for the first time in history. As commodities require delivery upon settlement of the contract, people were literally paying others to take the oil off their hands.

It was a bizarre day and largely amusing for most people. The fintech memes delivered and were great as usual. Fintwit was live and well. Of course this was probably not as amusing to oil and gas traders as well as those who acted on tips to buy oil last month during the Saudi/Russian oil war.

I recall a few friends talking about “buying the dip” on oil recently. Needless to say, I haven’t heard much from them in regards to their investments in oil. That also reminds me, it’s been awhile since I heard my friends talk about all the money they’ve made on shorting the market also.

Apps like Robinhood that allow pretty much anyone to start trading is a blessing and a curse for most people. I love the idea of democratizing access and allowing everyone to learn and start investing. On the flip side, this is real money at stake and people make really stupid and piss poor decisions without really knowing what they are doing.

I’m not sure what my solution for this is. By no means am I advocating that people need licenses to trade stock or invest and perhaps individuals need to get burned a couple times to truly learn. It’s almost a rite of passage in the world of investing.

Paycheck Protection Program

I helped my Dad apply for the Paycheck Protection Program over the weekend. He runs a travel agency. It’s a dying business but he’s had a lot of loyal customer for years now so he’s been somewhat surviving over the last few years until now. Unfortunately, I think this might be the death sentence for his company as we know it. It’s sad, but at the same time he’s had a very good run being in business for almost 30 years. It’s about time he starts to retire and enjoy life.

I advised him to apply for the PPP to help cover payroll costs for his two employees for the next couple months. He had a lot of trouble with the application. First, he went to Bank of America who told him that the only way to apply was to do it online. Then the application online was very difficult. He’s not the most technologically gifted person but he does work on computers every day. I decided to take over to help him out.

I am a native English speaker, CPA, and I’ve run a couple small businesses on the side before and this application was pretty darn confusing. I don’t see how an average small business owner can fill this out accurately and quickly.

Probably the most alarming part of this was that there was not a standard set of instructions to help you fill out the form. You literally get instructions for the most menial things such as how to clean your water bottle after you buy it. How can an application to get thousands of dollars online not come with a set of instructions to help you fill out the form?

With nearly every small business likely applying for this loan, I can only imagine what a mess this process is for all these banks. I have no idea on the status of my Dad’s application and I’d imagine we won’t know for awhile as banks figure out how to process everything. Imagine how many small businesses are struggling right now to pay employees as they await help from the government only to be held up by this awful system. What a wreck.

Zoom presentations

I hosted my first webinar for Secfi on Friday. Producing regularly scheduled webinars has been on our list for many months so we’re happy to finally have kicked it off.

I’ve been fortunate to have a lot of experience with presentations in my short career so I don’t typically get too nervous anymore speaking in front of a crowd. However, the webinar was almost an entirely different animal and my nerves were definitely kicking in a bit before hand.

There is just something different in not having people in front of you to interact with or ask questions. There’s no ability to really read a room or try to use humor to lighten up the situation. There’s also something inherently weirder in speaking to my computer rather than directly to someone’s face.

On top of all this, there’s just a lot of to prep for in regards to technology in these presentations. Lighting, microphones, and backdrops all need to be considered. While the Zoom virtual background feature is nice, it’s far from perfect and creates for awkward viewing at times.

We had great reception and there were not many technological issues so it’s hard to really complain especially in times like these. But much like video conferencing in general, there’s just so much more left to be desired with Zoom’s webinar function.

I’m really excited for the evolution of video conferencing. It’s going to be great to see entrepreneurs build great software and hardware to make our remote work lives easier.

Time to build

Marc Andreesen wrote an essay and it’s a great read. You should read IT’S TIME TO BUILD if you’re looking for motivation to start building something or just need an extra kick to continue building something. I won’t ruin too much of the essay, but the premise is simple: we’re missing a lot of things in the U.S. and the world and it’s time to build them.

I’m taking most of today off from work to relax and recharge, but this gave me a lot of motivation to get back to it tomorrow and continue building Secfi.

Confused and paper rich

I wrote about Post CoVid-19: The new normal about a month ago in mid-March followed by a couple posts on some predictions for the new normal. I read an article on CNN titled America’s ‘new normal’ will be anything but ordinary. People who think things will return to as they were before coronavirus need to reset their expectations. This will be a long road to recovery and even when a vaccine is available, we’ll probably still be in masks every winter and bumping elbows instead of shaking hands.

On to the next…

Despite being in the business of helping startup employees and founders with their stock options, I really don’t write about stock options much on this blog. I suspect that it’s because I spend my day job writing and talking about stock options all day, and by the time I get to writing here all I want to do is talk about something else.

It’s always funny when I try to explain to people in the startup world what I do. I’ve been having a lot of Zoom happy hours with Sophia’s friends and the conversation inevitable comes up. I’ve gotten my general 1000 feet in the sky pitch down, but I always run into trouble when people start asking questions and get curious. What’s so complicated about stock options that a company like yours needs to exist?

Well…. stock options are inherently very complicated. They touch on pretty much every aspect of finance: investing, taxes, valuation, portfolio management, etc. Experts in each one of these topics alone get paid a lot of money to specialize in these fields. Combine them together into one great financial product called a stock option and you have a perfect storm.

Did I also mention that information isn’t readily available in the private space to make informed decisions? Yes, companies seldom provide financials, data, or offering any help whatsoever so their employees can make the best decision.

If my friends haven’t hung up on me yet by the time I get done explaining the above, they usually change the subject really quickly.

A client said to me the other day that she’s sick of of stock options cause they’re confusing as all hell and at the end of the day it’s paper money. I laughed and told her that she’s right, but it’s paper money that may be worth a large chunk of your net worth one day.

Corona layoffs or trimming the fat?

I was working out in the park by my house today. To my 4 o’clock was a couple doing some kind of tantric yoga thing. To my 12 was a group of kids doing a social distance toke session. And to my 8 was a social distance wine lunch. Got to love San Francisco.

On to the next…

I saw this tweet today by Justin Kan and it resonated with me.

If you can avoid doing layoffs right now, you should. It is the patriotic and prosocial thing to do to minimize mass unemployment at this time.

— Justin Kan (@justinkan) April 15, 2020

To no one’s surprise, there’s been a lot of layoffs in the startup community lately. I understand a lot of businesses need to make the decision in order to survive and make it through this. That’s an unfortunate reality of this pandemic. They’ll need to do everything they can to survive and it’s unfortunately understandable.

Of particular interest to me has been the businesses that seemingly are doing well or okay during these times, but are taking advantage of the coronavirus as an excuse to layoff staff. In my eyes, this is complete bullshit.

As some background here, I sit on the pro-business side of the aisle and likely am more understanding to tough business decisions than most. Sometimes companies need to make tough decisions to do what’s best for the company. Firing, lay-offs, and cost cutting sometimes have to happen in business.

With that said, using a global pandemic as an excuse to layoff staff is disingenuous at best.

Companies have the right to rightsize their staff. Employees deserve the right to transparency and truth. Don’t hide under the veil of coronavirus as the primary driver. Be honest and tell them why they are being laid off. The truth hurts, but they will be better off afterwards.

Plants and corona

On Sunday, I ordered $220+ worth of plants from PlantsAndFriends and had them delivered today. I’ll be honest and admit that it’s probably slightly ridiculous that I did this. But I wanted to do my part to support local businesses and have no buyer’s remorse. I have never met the team in person, but they seem to be hard working group of entrepreneurs that I was excited to support. Go check them out @plantsandfriends

On to the next…

What’s more likely at this point in the market… a) new all time highs, or b) the market dropping sharply again? The S&P was up almost 3% today and I think everyone is confused. If you predicted this, you’d be a really rich person right now.

Meanwhile in real life, California Gov. Gavin Newsom tweeted out his 6 principles for opening the state back up. Considering that California has done wonders in regards to containing covid, it’s hard to argue with his plan. Follow the science, not politics. Good job Gavin.

Given that we have a Governor who has done a great job here in managing the situation, I can’t help but predict that this is going to be take longer than what I initially predicted. Unfortunately, I do not see sports continuing with fans anytime soon. I can’t imagine large gatherings until we have a vaccine in place. The risk is too high and going into another shelter in place will freak people out more than they already are.

We’re in this for the long haul. We’ll start to see some things go back to normal in May and June, just don’t expect everything.

The new normal - offices and work-life balance

On Friday, I wrote about how I don’t see the end of commercial real estate and offices in general. In summary, while I don’t see offices completely going away, I do see most companies downsizing offices and likely cutting benefits such as free lunch. Things will be different, but I’m not convinced as some that most startups will just go full remote. Not yet at least.

As someone who is currently searching for an office for my startup, I have been doing a lot of thinking and planning for the “new normal” after lockdown ends. For better or worse, people will develop new habits due to being forced to work from home. Whenever the dust settles, people will start to go back to offices and coworking spaces with a new outlook and preferences for work style.

One habit that I’ve noticed that myself and others on the team have been taking advantage of is the flexibility in work hours. Without commutes or standard hours where we’re all expected in the office, people are taking advantage of the day more to do things such as workout, go to the grocery store, or just enjoying the outdoors.

It was a gorgeous day outside today so I wanted to take advantage of the weather and get some Vitamin D. I did an hour of yoga on my roof from 11-12. Took calls from 12-2. And then relaxed on my roof from 2-3. Of course, I’ll need to make up the hours lost with more hours in the evening, but this lifestyle largely suits how I like to work.

I suspect I am not the only one here. People are going to start realizing that going to the gym or picking up groceries at 3pm is much more desirable than during the 5pm rush. So my prediction here in the new normal: offices will not go away, but office/work hours as we know it will largely disappear. It will be much more acceptable for people to step out of the office for errands and even leisure during the day as people start demanding more flexibility to fit their work styles.

The "free" market

I woke up to this tweet by Mayor London Breed.

Restaurants are struggling to survive and delivery is their main option for staying open. I'm instituting a cap on the fees that delivery services can charge restaurants during this emergency, because it can make the difference between them staying afloat or laying-off staff.

— London Breed (@LondonBreed) April 10, 2020

In a city where politicians never cease to amaze, Mayor London Breed has done it again. I do believe Mayor Breed has the best of intentions here, but someone really needs to tell her to pick up an Economics 101 book. This policy is a rash decision that is going to have unintended consequences and will likely result in MORE restaurants going under.

The delivery services is a great example of the free markets at play. There are many big name delivery players including Uber Eats, DoorDash, Grubhub, Caviar, and Postmates. In the free markets, pricing takes place at the intersection of supply and demand. In other words, the free markets will set the price of delivery by itself.

This is not a monopoly where one company can set the price and gouge customers. In fact, DoorDash has actually already reduced fees to help in this crisis. If one or more of these services decides to be evil and try to price gouge customers during this crisis, then restaurants will just work with the other competitors. These delivery services are in turn forced to price their services accordingly. This is the free markets at work and the result is consumers being able to order food delivery at will at prices they are willing to pay.

Mayor Breed enacting a 15% restaurant commission cap is an unnecessary price on delivery as one already exists. What does this mean for consumers, delivery drivers, and restaurants?

There is likely going to be a shortage of deliveries. If a company’s margin on these services are now shifted, then this cost will be placed somewhere else… likely on the delivery driver’s cut. Reduced fees for the delivery driver means less delivery drivers. Less delivery drivers means less deliveries. Less deliveries means less business for these restaurants.

We’ve now come full circle. The very people Mayor Breed is trying to save are now going to be negatively impacted by silly policy. Apparently, Economics 101 is a class that isn’t required to be taken to be Mayor.

The end of commercial real estate?

I was scrolling Twitter today and today’s tech twitter debate was about the end of commercial real estate. To no one’s surprise, many CEOs and employees of startups starting to realize how great working from home is and how much they can save by cutting office and food costs.

This was a trend that had roots many years ago even prior to when coronavirus was born. More and more companies are becoming distributed due to higher cost of living, improving technology, and cost savings to the company. Secfi operates with my product and engineering teams based in Amsterdam and our business/operations team based in San Francisco.

Distributed teams are the future, but is coronavirus truly the end of offices? I don’t see it. Yes, I have no doubt many companies will shift to start working from home more and shrink office spaces in general. Some companies will do this willingly. Some will be forced to. This was the trend we were seeing prior to covid, and this virus will accelerate the trend.

With that said, removing the ability to work from an office is a consequence that may likely result in less camaraderie and sense of belonging. Employees want to be given the option to work from home or the office for convenience, not to be permanently stuck working from home.

I sense people being forced to work from home fall within two camps, 1) those who cannot wait to go back to an office, and 2) those who cannot see themselves working from an office again. Offering only one of those options hurts your ability to recruit and attract top talent. I for one would be more reluctant to work for a company that has no office presence.

My prediction for the new normal is that almost every tech company will be much more open to working from home and there will be less pressure to go into the office. Leases will shrink and be more flexible, but there still be office space for those that want to come in.

Fact is that having an office and having employees come in can promote efficiency and team building if done correctly. I love seeing my coworkers in the office. Not everyone feels like me and that’s okay. Everyone works differently, but companies will need to cater to both ends of the spectrum.

Fighting the fed

On Tuesday I wrote how it seems all quiet on the western front and talked about how calm things have been relative to the pre-covid era. As luck would have it, that led to a hectic Wednesday where I was drowning in work and emails. Funny how things work.

On to the next…

Unemployment is skyrocketing. Businesses are on the verge of bankruptcy despite government bailouts. Banks and experts are saying we’re destined for a recession. Yet the S&P is up 11.14% this past week and the market is continuing to rally. This morning I put in a few limit sell orders, went to meditate, and came back to see them all fulfilled.

The Fed has made it clear that they’re going to do everything possible to prop up this market. Today they announced plans to inject another $2.3T into the economy which helped the rally going into the holy weekend.

I have friends that are still shorting the market and learning the hard way that they can’t fight the fed. I do think there’s a lot of price manipulation right now with the fed and government injecting this much cash into the economy to try to get us through the corona economy.

I’m enjoying this rally but some sold stocks on the way up today. I don’t think we’re close to clear yet. There is still a bearish sentiment and the government is going to need to prop up a lot of businesses and people for the foreseeable future. The Fed and Congress can’t continue to pay people forever and we have millions of people to place into jobs in the next few months until we can officially call this over.

All quiet on the western front

There’s a lot of opinions going back and forth on the current situation. The Surgeon General said over the weekend that this will be the most critical week raising concerns that the death toll could be over 100,000 once all said and done. Today, the CDC said the death toll could be much less.

I don’t really know what to believe at this point. Based on what I’ve seen, the optimist in me is starting to think that we’re going to start seeing things going back to normal in early May, but then some really smart people telling me that they see this going on for many more months.

I understand the need to err on the side of caution as lives are at stake, but on the other hand you can’t just completely ignore the impact this has on the economy and therefore peoples’ jobs and businesses. It’s an insanely difficult decision and I’m just happy I don’t have to be the person to make it.

While I wait this out like the rest of America, I couldn’t help but think that things are all quiet on the western front. My inbox is as quiet as I’ve seen it on a Tuesday. People are generally in less of a rush nowadays.

Perhaps people are realizing the potential severity of the situation and taking more time to prioritize family and work-life balance. Maybe working from home has forced people to have more focus on work-life balance. Very likely it’s a mix of both.

There’s never a shortage of things to do in startup land. I wouldn’t call the last 3 weeks pleasant from a work standpoint by any means, but I’ll admit that it has been nice to have a bit of quiet so I can catch-up on a lot of internal projects.

I realize that these times won’t last. We’ll go back to the typical startup frenzy sooner than later, but I’ll be sure to enjoy this time to get caught up on things. Soon enough we’ll go back to the hectic days of office searches, candidate interviews, and meetings at companies and we’ll miss these few weeks/months that we had where things were all quiet.