Moneyball is an important idea because it represents hidden value.
Things that are valuable but not perceived as valuable cost less.
Things that are valuable can be exchanged for other things that are valuable.
We can call this idea “capital”.
Leadership capital. From Jocko Willink, when leaders make sacrifices for their team, their team will make sacrifices for them.
Social capital. The quality of a person’s relationships. This is difficult to measure.
Career capital. From Cal Newport, rare and valuable jobs require rare and valuable skills. For example, George Lucas cashed in some career capital in exchange for time capital to work on Star Wars.
Financial capital. Like emergency funds, an exchange of money for time.
Institutional capital. Financial capital with a specific set of terms: who, what, and how.
Venture capital. Financial capital with less specific, if any, terms.
Working capital. A business’s oxygen. There is a lot of gasping in Shoe Dog (Nike), The Inside Scoop (Ben & Jerry’s), and Chocolate Wars (Hershey, Cadbury).
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The Bored Apes of 2021 was a capital arbitrage. Early crypto adopters spent thousands to buy cryptocurrencies which appreciated to hundreds of thousands and they bought Bored Apes. Were the Apes worth 1,000 or 100,000?
These capitals offer arbitrage too. It’s just up to you.