the bigger the goals the more significant the consequences
since you can only do one important thing at a time, always pick the most important one to start with
most important lessons are learned at inflection points between when failure turns into success
the best executives are made not born, they absorb info, study their own experiences, learn from mistakes and evolve
The goal of education (questioning and thinking) as a discipline is to learn how to think, it only ends when you die
there are as many realities as individuals, study more individuals
find a great mentor
Cultivate inner fortitude: Helps preserve morality and ethics in the face of fear and greed
The harder the problem the more limited the competition
The first job is foundational. Always look for one with a steep learning curve and strong training.
when caught in a tight spot, don’t become fixated on your own problem but on someone else’s
when seeing a huge transformative opportunity don’t worry that no one else is pursuing it.
never get complacent
make decisions when you are ready not under pressure
objectively assess the risks of every opportunity.
On finance and trading
master uncertainty: finance is a dynamic world where you will need to adjust to situations, people and new information quickly
build a model to explain a certain phenomena and then test it
do not mistake interest in making money versus interest in psychological comfort
market tops
loose credit conditions and a rising tide
buyers generally overconfident
number of people you know who become “accidentally” become rich
number of IPOs increase at the top, so does the valuations and size
market bottoms
very hard to bring companies to IPO
difficult to detect
markets are declining and economy weakens
most buy too early or under-estimate the severity of recessions
usually takes a year or two for market to get out of recession. even then asset value takes time to recover
risk is the least after a crash
best time to enter is after position has experienced 5-10% recovery from a crash
practice discipline and sound risk assessment
wait till the cycle fully plays out
Cycles are powered by supply and demand characteristics
understand and quantify them
e.g. real estate top is when building is valued significantly above replacement cost
Sometimes a trend especially negative ones will exhibit symptoms spread across various territories (escalating land prices Spain, India and US prior to 2008)
On building a company
fund raising from an LP for a new fund you are starting yourself will be harder than the prior company whom the LP already has a relationship with.
make sure there is not sole decision maker for important decisions to avoid getting blind sided
Accessing an idea
big enough for you to devote your life
unique enough as an offering that people will want it
timing must be right
transition from gut to system during the middle of the life cycle to continue further scaling
a business is an integrated system. Understand how one part works by itself as well as in relationship with other parts. Information is the most important asset in business
On management
being a strong and accurate accessor of talent is the most critical skills of entrepreneurship.
look for cultural fit.
Get the candidate into conversation mode
its as hard to start and run a small business versus a big one. Choose one with potential to be huge. Why waste time asking for 5-10 million USD when you can ask for 50-100 million USD?
find people who sense problems, design solutions and takes the business in new directions
be proactive in addressing personal differences over day to day operations
On deal making
ultimately comes down to a few key critical points
clear away the clutter and focus on these points to be effective
