Colin Charles Agenda

I just read this in Bloomberg Businessweek: Silicon Valley Hears Echoes of 1999. Key takeaway:

IPOs were priced at a median of 30 times sales in 2000, compared with 5.2 times last year, the data show. MarketWatch traded at 46 times 1999 sales on its first day, while Rocket Fuel’s valuation was 7.6 times 2013 revenue.

The average age of companies also went up for IPOs – from 6 years to 12 years. That said, the valuation’s have become saner.

For further reading, how do you value a business by Fred Wilson: 

I learned in business school that the multiple of earnings one should pay for a business is roughly the inverse of interest rates. The reason for that is if you buy a business that makes $10mm a year and pay $100mm for it, then you are effectively getting a yield on your investment of 10% (annual earnings/purchase price). This math is terribly simplistic but fine for the purposes of this post. If interest rates are 5% instead of 10%, then you would pay $200mm for the business ($10mm/$200mm = 5%). So the math here is interest rates = annual earnings/purchase price. Again this is very simplistic because it does not deal with the important questions of what interest rate you use, how you deal with earnings that are growing or declining, and a host of other issues. But at the end of the day, this math [annual earnings/purchase price = yield] is fundamental and everything about asset values, capital markets, and valuations stems from it.

I think things are different now. That said, downturns are cyclical. 

I use Google Authenticator for 2-factor authentication for some of the services I access. I had trouble accessing some of my sites due to getting an invalid token, and I was wondering what was going on.

Turns out, the time on my phone was off. You need to let the network set the time, and you will suddenly be generating sensible codes again. This is documented for Android (you can do this within the app), but on iOS it is a system-wide setting.

I was just listening This week in google #236, and they were talking about device ecosystems. The topic of smartwatches came up obviously. The first Samsung Galaxy Gear was apparently not a good seller because it had a limited app ecosystem and it was tied to just a few devices (I only know one person who has said watch, and wears it regularly).

If Apple builds an iWatch, they will tie it into the iOS ecosystem. This is why Leo Laporte the host likes the Pebble – it works with all his devices.

How many people are Leo with an iPhone and an Android phone? And whatever else is compatible with the Pebble? End users (consumers) usually have one phone. There’s nothing wrong with the iWatch to be tied into the iOS ecosystem — its an awesome ecosystem. Soon you may get cars with iOS on it (just like you can get cars with Linux on it).

The iWatch if Apple makes one will probably be compatible all the way back to the iPhone 4S. It should cover most iOS/iPhone users. And just like the apps you buy in the app store when the iPad came along (first you had iPhone only apps, with double-size; then you had separate iPad apps that would cost more; nowadays many apps are “universal” to work on both and cost the same), I expect something similar will happen with the iWatch. 

That said, I like my analogue watches. I had no interest in the Pebble or the Samsung Galaxy Gear. I’d be interested to see what they do with version 2, which has Tizen (even less apps maybe?). When Apple releases an iWatch, you can be sure I’d probably buy it — I have seen things from all sides, and I like their ecosystem.

How WhatsApp’s Arora Sealed Facebook Deal – Digits – WSJ: Time spent on PR is time not spent ‘making your users happy,’ Arora said. ‘The users you get from press and hype are not the best users.’

Microsoft has its third CEO in its entire history (started 1975), Satya Nadella. Some choice quotes & thoughts…

Via WSJ:

What drives me every morning and what keeps me up every night is one thing: this business is not about longevity, it’s about relevance.

Via his letter to his employees:

Our industry does not respect tradition – it only respects innovation.

Many who know me say I am also defined by my curiosity and thirst for learning. I buy more books than I can finish. I sign up for more online courses than I can complete. I fundamentally believe that if you are not learning new things, you stop doing great and useful things.

This starts with clarity of purpose and sense of mission that will lead us to imagine the impossible and deliver it. We need to prioritize innovation that is centered on our core value of empowering users and organizations to “do more.”

I truly believe that each of us must find meaning in our work. The best work happens when you know that it’s not just work, but something that will improve other people’s lives.

Not sure about this “one microsoft” idea (I hear too much of 1Malaysia), but the elements required to aspire to change the world stand strong: talent, resources, and perseverance.

Definitely an exciting time to see what Microsoft can bring to the table. Not to mention that opensource and cloud computing is pretty much everywhere these days…

News today: Genneva (gold trading company, launched by former Prime Minister Mahathir) Malaysia director charged with accepting deposits without a license.

So if you’re thinking of a Bitcoin exchange in Malaysia, think again. Bank Negara Malaysia obviously doesn’t think much of Bitcoin. How will you accept deposits without a license? 

Singapore on the other hand proves itself to be in the forefront of finance: treat Bitcoin like a product. Read the full IRAS statement. Singapore is about to get its first Bitcoin ATM soon.

For further reading, see the BAFIA 1989, in its entirety. Once again, laws that prevent innovation.