Deep dive interview with @mcannonbrookes of $TEAM

"We were voracious readers. ...every business book between 1998 and 2004. Half of it was bullshit, red herrings, endless amounts of crap. But we decided that we had to evolve into a software company.."
"We ran the business cheaply for long enough, revenue was always higher than expenses on a cash basis. This seems crazy now...

if you have technical founders, as long as your own salaries are low enough, ...you can get a wheel going.

We could afford to be a little slower."
"I always try to be very intentional with my time. Time is the one thing you can't get back. By intentional, I mean that I choose as carefully as I can where to spend my time. Everything flows from that as it creates constraints."
"One of the things that's really hard in a larger company is sharing and repeating stories. This is less about the company’s founding and such, but rather “What is our strategy? What are we trying to achieve? What are we doing?”
"people can look up our OKRs, it's not quite the same."
"It's different than if they hear repeatedly in different forums that we’re guiding the ship towards a few sets of goals. I think storytelling is incredibly important and that takes a lot of forms."
"Because of this, I try to divide my time evenly between product strategy and scaled storytelling—town halls, presentations, et cetera. Ironically, working from home has been amazing."
"A founder’s three roles:
-Culture and Storytelling
-People and Hiring
-Promoting and Killing New Things

My number one job in the area of creation and innovation is to find new, exciting things and protect them so that they have a chance to succeed."

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More from @NeckarValue

2 Nov
Finally got around to reading the letters of Nick Sleep and Zak Zakaria's Nomad Partnership. These guys crushed the market and left behind a legacy of insights and worldly wisdom.

Going to share some favorite lessons and quotes: Image
Sleep was an analyst at Marathon Asset Management and Zakaria at Deutsche Bank. The two connected over finding cheap stocks after the Asian financial crisis. In 2001, they set up their own investment partnership.

They closed it after 13 years. Such a mic drop.. Image
Intrinsic motivation.

They ran their partnership because they loved the intellectual challenge and craft, not just for money (but yes, they did earn enough to retire from performance fees). They closed the fund repeatedly and kept management fees low.
Read 26 tweets
2 Nov
As you gain experience it gets harder to change how you invest. How do you know whether you're adapting to a changing world or just chasing the latest fad?

Rather than looking for a eureka moment, build a mosaic of incremental insights that connect and get you to the next level.
I wrote a little case study about @B3_MillerValue, who was criticized for investing in Amazon, and his early integration of value investing and technology/internet companies.

It was a learning journey connecting different disciplines and the deep study of new business models.
He grasped that accounting failed to capture value creation for a new crop of companies: “we are interested in the underlying economic reality of the business and not how they report what is going on."

But what may seem obvious today required a departure from dogma and tribe.
Read 5 tweets
26 Oct
How did an overambitious Apple engineer end up owning the Grizzlies NBA team?

@RobertPera started his networking firm Ubiquiti with $30,000 from savings and credit cards. Today, it's a $20 billion company.

The crazy part: he still owns 89% of the stock!
Pera left UC San Diego with degrees in engineering and Japanese and joined Apple in 2002 to work on Wi-Fi

"I wanted to build products. I idolized Steve Jobs."

Pera wanted to join a design group but his manager told him to slow down. Pera got a 2-out-of-5 performance rating.😔
Pera noticed Apple could boost the signal and range of its routers. But nobody was interested.

You can guess what happened next: He spent nights and weekends building his own prototype.

In 2005, he left - just when his manager told him he was "finding his stride."
Read 25 tweets
11 Oct
If you wear glasses – prescription, shades, even Facebook smart glasses – you’ve likely dealt with EssilorLuxottica.

The conglomerate was built by Leonardo Del Vecchio who rose from penniless to being the 2nd richest Italian.

His story is master class in business strategy.
After the 2018 merger of Del Vecchio’s Luxottica with the French Essilor, the company dominates global eyewear with
-140,000 employees
-€14.4bn in 2020 revenue
-11,000 stores
Brands including Ray Ban, Oakley, Oliver Peoples, and partnerships from Armani to Prada.
Del Vecchio was born in Milan in 1935. His father died when he was only five months old and his mother was forced to send him to a local orphanage at age 7.

The boy became an apprentice at a tool factory and graduated in 1958 with a degree in metal engraving.
Read 21 tweets
10 Oct
"How I Learned to Stop Worrying and Love Big Government"

"Musallam figured out that defense contractors would be fertile buyout targets for funds willing to deal with the idiosyncrasies of government contracting."

>Defense, healthcare IT, cyber security
forbes.com/sites/nathanva…
“I and the firm maintain a very close proximity to government because government is at the forefront of all the complexities and issues that confront us”
“He has quietly built an extremely valuable business being at the intersection of government-regulated markets and technology"
“The U.S. government is the largest single investor in technology, bar none, by multiples of what the entire venture capital community invests—dozens of different federal agencies investing directly into companies,” Musallam says.
Read 5 tweets
8 Oct
What is an alter ego and why should you care?

It means 'another self' or 'the other I' - Cicero called it "a second self, a trusted friend"

It's Clark Kent without the glasses - Superman.

Entertainers, athletes, and others use this concept (though few admit to it).
They channel it in challenging moments

Beyoncé had Sasha Fierce

"The moment right before, when you're nervous, that other thing takes over. Sasha Fierce appears in my posture. Everything is different.

It's like becoming the character when I do a movie."
David Bowie created several alter egos, including Ziggy Stardust

“What I did with my Ziggy Stardust was package a totally credible, plastic rock & roll singer. And that was what was needed at the time.”

rollingstone.com/music/music-ne…
Read 13 tweets

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