The fisherman and investment banker

The fisherman and the investment banker

Last week, I flew to the Bay Area. This brought back memories. Almost 10 years ago, I starting my career as an investment banking analyst in San Francisco. I lived in a 2 bedroom apartment with 2 roommates (we converted the living space to a 3rd bedroom to make rent affordable).

After spending last Wednesday and Thursday in San Francisco, on Friday I drove 5 hours north to Trinidad. The town is absolutely gorgeous.

Someone described Trinidad as a drinking town with a fishing problem. Besides making me laugh, this reminded me of a story that an old professor told me when he learned that I would be working in investment banking.

Below the photo of last weekend’s Trinidad to Clam Beach Run (which had an awesome turnout of 900+) is the story. Enjoy!

A man lived in a 1 room hut on an island (I picture it similar to Neville’s hut in the show Bad Monkey, which received 93% on rotten tomatoes and I truly enjoyed!)

The man had little money and few possessions besides his 1 room hut and a small fishing boat. Everyday the man would rise with the sun to fish. He would catch 2 fish then return to shore where he would sell 1 fish to a local tavern to serve as the night’s ‘catch of the day’ and take the second fish home for his dinner.

Some days he would catch 2 fish in 20 minutes. Other days it would take him 5 hours. But he always caught 2 fish before returning to shore. No more, no less.

One day, as the fisherman returned to shore, he saw a large yacht. Such a large vessel was unusual for the island's harbor, which typically only had small fishing boats.

On this day, it had taken the fisherman 1 hour to catch his 2 fish. As the fisherman walked off the dock, a man dressed like a royal sailor approached.

The man was an investment banker on vacation. He exclaimed to the fisherman, “My, what a beautiful island!” The conversation continued:

Fisherman: "Yes, beautiful." (confused and skeptical)

Investment banker: "By chance, is that fish served at the local tavern. I ate dinner there last night. I’ve never tasted fish so good in my life!"

Fisherman: "Yes. This fish will be served as tonight’s ‘catch of the day’ at the local tavern."

Investment banker: "Wow, you are an incredible fisherman. Are you dropping these at the local tavern and going to catch more?”

Fisherman: “No. I’m done for the day. I will drop the fish at the local tavern then go home.”

Investment banker: “Done for the day! What are you going to do?” (exclaiming with confusion)

Fisherman: "My work for the day is done. Everyday I catch 2 fish then go home."

Investment banker: "It's so early! My, how many fish could you catch if you stayed out all day?"

Fisherman: "At least 20."

Investment banker: "20 fish! With how good they taste and how big they are, I bet you could sell each for $50 at least. You could be making $1,000 a day!"

Fisherman: "You're right. I could catch 20 fish and make $1,000 every day. But then what?"

Investment banker: "With that type of money, you could buy more boats and hire others to help you fish. With 10 boats and 10 fisherman, you could catch at least 200 fish a day! Then you would earn $10,000 every single day. And I could help! That’s actually my specialty as an investment banker." (getting excited)

Fisherman: "Wow, 200 fish and $10,000 everyday. Sound great! But then what?"

Investment banker: "With that type of money, you could setup locations on nearby islands. You could buy more boats and hire more fisherman. We could be catching 2,000 fish a day! That means you would earn $100,000 every single day."

Fisherman: "Wow, 2,000 fish and $100,000 everyday. Sounds incredible! But then what?"

Investment banker: "With that type of money, you could turn it into a global enterprise. We’d setup fishing boats and teams of fisherman all around the world. You’d be the industry leading fishing company! You would be catching 20,000 fish every day. Since there are over 3.5 trillion fish in the world, the market opportunity is limitless. You would be making at least $1 million everyday."

Fisherman: "Wow, $1 million every day. That would be remarkable. But then what?"

Investment banker: "With that type of money, I'd help you sell the business. I’m confident there would be many interested buyers, so I would deliver you over $500 MILLION dollars, even after fees. Like I mentioned, I'm an investment banker."

Fisherman: "Wow I would have $500 million. Awesome! But then what?"

Investment banker: “With that type of money, you’d be set for life. You could retire, move to a beautiful island and go fishing every day!"

— Ian

Young adults prefer dark mode

Many people ask me why we built Run The Day’s platform with a black background. Here is why:

• 73% of Gen Z prefer dark mode: 

  • A recent survey by Adobe reported that Generation Z (people born between 1997 and 2012) prefer dark mode over light mode.

  • Dark mode is preferred for its aesthetic sensibility (sleek appearance with modern and minimalist interfaces) and digital wellness (promotes eye health and reduces strain during prolonged screen time).

• The biggest tech companies use dark mode: Apple, Android, Instagram, Slack, YouTube and X all use dark mode.

• Data supports a cultural shift toward darker interfaces:

  • Google data shows apps with dark mode increase user retention by 20%.

  • 90% of X users opted for dark mode shortly after launch, which increased user engagement by 10%.

  • 80% of respondents to a 2023 survey indicated that they use dark mode on at least one device.

The bottom line: Dark mode is the future.

Read more here.

Race timing

⏱️ 20+ years of race timing experience

⏱️ Bibs supplied

⏱️ Custom age groups

⏱️ Results posted online and emailed

⏱️ Avoid spreadsheets with dynamic bib assignment

⏱️ Good vibes for your community

Industry news: $300 million in unlawful fees

Many people ask me about Run The Day’s platform fees. Our fees are 5%-7%+$1, get paid by participants and include everything (customizable race page, mobile app for race day check-in, marketing analytics, registration & fundraising reporting, email blast feature, etc.). The fees are industry standard.

Another registration platform has been charging fees that are NOT industry standard. Jess and Jessica covered it in a recent article for the U. S. Sun. These fees are selected (often unintentionally) by a participant when registering and get charged a month later. They recur every year, unless canceled.

I’d encourage everyone to read the full article by Jess and Jessica. If you are short on time, the summary is:

• ACTIVE Network is fighting a lawsuit from the Consumer Financial Protection Bureau (CFPB)

• The lawsuit claims that the company generated over $300 million in fees from 3 million consumers using “unlawful tactics.”

• The CFPB claims that ACTIVE Network automatically signed up customers to a membership club without their knowledge or consent.

The bottom line: A dad (and 3 million others) were tricked into subscribing to a $100 annual fee when registering.

Read more here.

Fastest registration ever

Ian update

📖 What I’m reading: Greenlights by Matthew McConaughey

🎙️ What I’m listening to: Ray Dalio | The All-In Interview

🎧 My most played song of the week: Money Trees by Kendrick Lamar, Jay Rock