1/ Notes from @_ram_ episode @InvestLikeBest
A bit late to this, but I was really looking forward to listening to Ram on Patrick's podcast.
Ram is one of the most kind, humble, smart, and approachable PMs active on fintwit, and boy he did not disappoint.
Here are my notes.
A bit late to this, but I was really looking forward to listening to Ram on Patrick's podcast.
Ram is one of the most kind, humble, smart, and approachable PMs active on fintwit, and boy he did not disappoint.
Here are my notes.
2/ Lots of quick and dirty method of estimating the potential of internet.
Ram thinks global e-commerce and marketplace is a ~$40 Tn opportunity in 2040.
Show me the numbers? See the image.
Ram thinks global e-commerce and marketplace is a ~$40 Tn opportunity in 2040.
Show me the numbers? See the image.
3/ That's just products and services sold on the internet.
On top of that, you have advertisement which is typically ~1% of GDP. Advertising itself can make ~$10 Tn worth of businesses.
No wonder $AMZN wants a piece of that even if it comes at the expense of consumer experience
On top of that, you have advertisement which is typically ~1% of GDP. Advertising itself can make ~$10 Tn worth of businesses.
No wonder $AMZN wants a piece of that even if it comes at the expense of consumer experience
4/ Ram says his firm covers 45 stocks which in aggregate are worth $10-15 Tn.
But just those two aforementioned pieces alone are worth $50-60 Tn in 20 years.
Now consider payments, content, software. He believes we are looking at $100 Tn+ internet driven market cap in 2040.
But just those two aforementioned pieces alone are worth $50-60 Tn in 20 years.
Now consider payments, content, software. He believes we are looking at $100 Tn+ internet driven market cap in 2040.
5/ Four things Ram used to focus on:
Team
TAM
Growth intensity/growth culture
Unit economics
He dropped TAM because he consistently underestimated how big internet scale business can be.
Team
TAM
Growth intensity/growth culture
Unit economics
He dropped TAM because he consistently underestimated how big internet scale business can be.
6/ He's a fan of picks and shovel (think Instacart instead of $WMT or $TGT)
Prefers *brands* who are focusing on e-commerce as it might potentially expand TAM (think $LULU/ $NKE)
Also fan of infrastructure providers (think $DASH)
Prefers *brands* who are focusing on e-commerce as it might potentially expand TAM (think $LULU/ $NKE)
Also fan of infrastructure providers (think $DASH)
7/ When a business reduces friction and attains virality of consumer adoption, unit economics looks really good.
Once you have good unit economics, you can pour growth marketing dollars to scale it.
Once you have good unit economics, you can pour growth marketing dollars to scale it.
8/ About India:
"I think we're at the cusp of kind of that hockey stick opportunity because you've now got a young and extremely entrepreneurial ecosystem that all want to go and build wealth, that should remind us of America in the 1800s."
"I think we're at the cusp of kind of that hockey stick opportunity because you've now got a young and extremely entrepreneurial ecosystem that all want to go and build wealth, that should remind us of America in the 1800s."
9/ Two things matter in ad-supported internet business.
a) Scale of the users or the time spent
b) the quality of tools to onboard advertisers
For direct content subscription business, the most important thing is the quality of the content. The next question is affordability.
a) Scale of the users or the time spent
b) the quality of tools to onboard advertisers
For direct content subscription business, the most important thing is the quality of the content. The next question is affordability.
10/ For e-commerce/marketplaces, Ram looks at contribution margin excluding all the discounts. He is a big believer of the power of convenience.
11/ "On-demand is a hand to hand street fight business on the ground. Street by street, location by location, street fighter business."
12/ On payments:
"Can you add value to the merchant by increasing conversion rates, reduce transaction losses? "
I don't have a good handle on the payments space, but the fees difference between US and other places is staggering. See the second image.
"Can you add value to the merchant by increasing conversion rates, reduce transaction losses? "
I don't have a good handle on the payments space, but the fees difference between US and other places is staggering. See the second image.
13/ For hiring, Ram looks for four uncoachable traits
Deep love for learning
Incredible work ethic
Mental flexibility
Persistence/grit
"I've come to the conclusion that I want to only hire givers and not takers."
Deep love for learning
Incredible work ethic
Mental flexibility
Persistence/grit
"I've come to the conclusion that I want to only hire givers and not takers."
End/ Thanks for this conversation guys, @_ram_ and @patrick_oshag. I'm sure fintwit would love another round in a few months.
Link to the episode: joincolossus.com/episodes/22392…
All my twitter threads: mbi-deepdives.com/twitter-thread…
Link to the episode: joincolossus.com/episodes/22392…
All my twitter threads: mbi-deepdives.com/twitter-thread…
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