Sequoia's Roelof Botha

"Coming to grips with being wrong, not 5% of the time, but 30% of the time, 40% of the time, really eats at your self-confidence, honestly,” Botha said. “I nearly quit the business.”
“That's part of the beauty of this business. Even though you could make big mistakes, there's another at bat tomorrow, because people are starting interesting new companies.
If you're willing to swallow your disappointment, buckle up, get back on the bicycle, get back on the horse, get back on your skis — whichever thing it is that you can identify with – you just try again.”
You do want a team where people share self-made snacks😭

Doug Leone had grown basil and brought him a container of homemade pesto sauce one weekend.
“It’s a small thing in the grand scheme of things, but it made a difference,” Botha said.
“It's very dangerous for us internally to attribute any activity we do to just one individual,” he said.
protocol.com/sequoia-roelof…

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More from @NeckarValue

Feb 10
Fantastic episode.

On Murdoch: "Almost every one of those big initiatives was an act of wild bravery"

"If you put your head down, if you're constantly correcting, you'll get almost everything right. Unless you run out of capital."
"The broadcast networks were surviving on stuff that was inoffensive to the largest number of people. What's happened is the middle in every single business is gone, gone, gone forever."
Hulu's innovator's dilemma

"I was concerned if we didn't get our stuff onto the web somebody's going to steal it. Every single person in my company and NBC hated it. “You're going to destroy my advertising.” "You can't give our broadcast shows, and destroy our book of business.”
Read 5 tweets
Feb 9
David Tepper is one of my favorite investors. He marries macro and bottom-up, he's ballsy, and he's having a ton of fun.

From 1993-2013, he compounded at 29% net of fees!

Three times was he down more than 25%, each time he came back stronger.
"Investing with David is like flying, with hours of boredom followed by bouts of sheer terror. He's the quintessential opportunist, but you have to have a cast-iron stomach."

"The media says that hedge funds are the new masters of the universe. We're just a bunch of schmucks."😭
Tepper grew up lower middle-class in Pittsburgh.
A “big kid” and “a joker” he had knack for math and got into investing.

“I used to think buildings were black because that was just the color they made them. But they were black because of the soot.”
Read 28 tweets
Feb 3
Baupost 2021 letter (redacted).

Lengthy, lots of takes on the economy, COVID, yadda yadda. Some discussion of process. No investment takes.

[Marlon Brando voice] "In 1982, four families came together ... Each had significant concerns..." Image
"high and rising interest rates of the period could crush the economy, financial institutions could
fail, and financial markets could falter.

They were seeking reliable compounding while avoiding wrenching downside volatility"
"opportunity regularly migrates across markets, industries, and geographies, as capital flows
inflate the prices of some investments while leaving others orphaned. We employ an investment approach that is fixed in its general principles yet
flexible in its implementation."
Read 10 tweets
Feb 3
Really enjoyed this conversation with @DaveNadig and @jposhaughnessy

"I'm pretty deeply uninterested in trying to point out, why where we are is broken. I've become less and less interested in that. Not because I think it's unimportant or it's uninteresting...
I just don't think I personally have much of an effect by wading into that. And I think it's much more interesting to focus on what's being built."

"Every day I wake up and this is where I live and I don't live then, I live now and I'm trying to get to tomorrow."
"I feel like that's where guys like us have a little bit of an opportunity to contribute because we have a really strong understanding of the state of play when we woke up this morning.

And you have to start where you wake up, you don't get to start yesterday."
Read 6 tweets
Feb 2
Intersting Bloomberg piece on multi-strat hedge funds and institutional allocators.

"Clients increasingly willing to pay high fees to gain access to... scores of traders who can be easily replaced. A stark contrast to old business model: Launch a fund, call the shots, profit."
What do a lot of institutional allocators want? Steady returns. No blow-up risk. A risk profile that matches that of the allocator seat where upside is limited.
Similar dynamic in private equity and credit. Deploy large checks in brand names that have a portfolio of strategies = efficient due diligence. Trade fees for protection from the brand. Power law kicks in and the rich get richer.
Read 9 tweets

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