The Unexpected Magic of Feedback Loops
#147 - Reflections on investing and life from building my holding company
3 Paragraphs to think
Disney’s business model isn’t powered by movies—it’s powered by feedback. The films exist to make children fall in love with characters; the parks exist to monetize that love. When families leave with a bag of plush toys and memories, the loop closes—and begins again. Every movie fuels a visit, every visit fuels a purchase, every purchase reinforces the brand. It’s not art; it’s architecture.
What most companies call “marketing,” Disney turned into world-building. The parks are the emotional engine of the empire, not the by-product. By designing for delight first, Disney captures value through immersion—selling not products, but continuity. The magic isn’t in Mickey—it’s in the loop that ensures Mickey never leaves your life.
Feedback loops like this are everywhere, hidden behind the illusion of spontaneity: in social media, in politics, in fitness, in love. What starts as attention turns into identity, and identity feeds back into attention. The loop is the real story. The only question is who designed it—are you the engineer or the experiment.
2 Resources to pro
1. The Disney’s flywheel
1. Movies as Marketing
Films exist to create emotional attachment — characters, worlds, and songs children fall in love with. Storytelling is the entry drug.
2. Parks Drive Revenue
Once that attachment is built, kids beg their parents to visit the parks — the only place those fantasies can be lived, touched, and photographed. The parks are where the magic gets monetized.
3. Strategic Merchandising
Every attraction exits through a gift shop for a reason. Families leave rides in a carefree, emotionally elevated state — the perfect buying mood.
4. Home Reinforcement
That $29 plush toy sitting on the child’s bed isn’t random. It’s a recurring advertisement that reactivates nostalgia and desire to go back.
5. The Cycle Repeats
Movies fuel the parks. Parks fuel merchandise. Merchandise fuels memory. Memory fuels demand for the next trip — and the next movie.
The genius of Disney isn’t fantasy. It’s feedback loops.
2. Less jr investment bankers are needed.
1 chance to smile
Have a great weekend,
Simone