"I developed a theory: in between 2011 and whenever hedge funds got around to hiring full-time Internet analysts again, they would need all the help they could get analyzing Internet stocks. And who better to help them than a former stock market junkie turned digital marketer?"
"Hiring someone with a weird background, who gets rejected at the first-pass HR filter, is a non-correlating bet. And portfolio theory tells us that even if your non-correlating bet doesn’t do great on its own, your whole portfolio will do better if you take those bets."
Lessons:
-Type, press ‘send’, repeat: I promoted my equity research and consulting with an email newsletter... it’s easier to sell when you’re reminding people of your existence at least once a week
"Exploit luck relentlessly: When I did luck out, I pushed every lucky break as hard as I possibly could. A value investor might call this only taking the high risk/return opportunities. A trader might call it letting winners run"
h/t @tomowenmorgan who always makes the connection with the next relevant piece of content #FF
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The story of Chobani is so wholesome and also a good example of how companies can get funded outside of VC.
Taking big risks, Chobani founder Hamdi Ulukaya went all-in betting on his heritage and a powerful emerging consumer trend.
Ulukaya grew up in a Kurdish dairy-farming family. After being questioned by police over his interest in the Kurdish-rights movement, he wanted to leave.
A fried recommended America. Ulukaya hesitated: “We thought capitalism was the reason for the suffering of poor people."
But in 1994, he made the move. First to Long Island, then upstate New York where he worked on a farm while studying.
With almost no English, he was "extremely scared. I was aware that this was going to be very, very difficult. But I was excited.
This is from 1988, the beginning of the final leg of the Japanese bubble. Reminder that you can always find bull and bear arguments and rationalize what's going on.
In 1987, Fortune found only four tech billionaires: Bill Gates, David Packard, Bill Hewlett, and Ross Perot. Gates was the only one still running his business!
Olsen of Digital Equipment would have been another but he sold 77% of his stock for $70k in the 50s (worth $5bn by 87).
Gates: "The company is a high-tech stock, and high tech stocks are volatile. The price is not a reflection of the contribution we're making."
Ben Rosen, VC who invested in Lotus and Compaq:
"It seems like the three companies grew very rapidly, but they really didn't at first. Hewlett and Packard, and Gates didn't have to sell their shares to raise capital, so they wound up owning a lot of their companies."
Bank One was being hit by the recession and loan losses were exploding.
"I was slow waking up to the problems" Dimon admitted.
"They said we'd peak losing 70 basis points. History told me it would be around 100," says Dimon. "The losses hit 180!" money.cnn.com/magazines/fort…
In his annual letter, Dimon starts with the bad news:
"Bank One had an extremely difficult year in 2000. We lost $511 million. ... These results are absolutely un acceptable — to you and to Bank One’s management."