Berkshire Hathaway, Munger, Buffett v the average VC differ in that the former is investing in going concerns with tons of numbers and management whilst the VC is investing in a bloody startup. Huge difference.
The exit for BH, et al, is a loss on the sale of a stock whilst the VC is usually facing obliteration.
What is common between the two of them is the bet on the people. Buffett is adamant that he invest only with management whose CEO demonstrates integrity. VCs should have the same mindset.
Agree. If you look at the 9 boxes, I bet there is commonality in 8 of them. Total agreement in a majority. One quibble, I hate the "say no 100 times before you swing at one". What if your first pitch is Facebook?
The say "NO" thing as a theme, a caution is fine. You have to say no more than yes, but you also have to know when to say yes.
Timing in life is everything, so if you aren't ready personally or in rhythm, then you miss out on several deals says the guy who passed on the Corona distributorship in Austin By God Texas -- $1.5MM including the warehouse -- because he was afraid it was a "fad."
I did fall in love w/ my wife of 45 years on our first blind date in college, even though it took me 10 years to close the deal.
Quibbling here, but the CEO demonstrating integrity sounds like something SBF would have on a PowerPoint Slide 'I demonstrate integrity'.
I am sure Sequoia would say 'That Sam Bankman-Fried has a lot of integrity. Look at his slide. He says it right there'
Hardly anyone is going to advertise their lack of integrity. Don't see a lot of 'we cheat the other investors and pass the profits on to you' in business plans.
Say your parents were Stanford Law Professors, and your brother was a crypto regulator. You could get all the references you want on SBF and he would still be a weasel and crook.
I find it very tricky to do business with new people and am lucky to have a 24 years accumulation of somewhat trustworthy cronies to invest with.
Berkshire Hathaway, Munger, Buffett v the average VC differ in that the former is investing in going concerns with tons of numbers and management whilst the VC is investing in a bloody startup. Huge difference.
The exit for BH, et al, is a loss on the sale of a stock whilst the VC is usually facing obliteration.
What is common between the two of them is the bet on the people. Buffett is adamant that he invest only with management whose CEO demonstrates integrity. VCs should have the same mindset.
JLM
www.themusingsofthebigredcar.com
Agree. If you look at the 9 boxes, I bet there is commonality in 8 of them. Total agreement in a majority. One quibble, I hate the "say no 100 times before you swing at one". What if your first pitch is Facebook?
The say "NO" thing as a theme, a caution is fine. You have to say no more than yes, but you also have to know when to say yes.
Timing in life is everything, so if you aren't ready personally or in rhythm, then you miss out on several deals says the guy who passed on the Corona distributorship in Austin By God Texas -- $1.5MM including the warehouse -- because he was afraid it was a "fad."
I did fall in love w/ my wife of 45 years on our first blind date in college, even though it took me 10 years to close the deal.
You make mistakes on both sides of yes and no.
JLM
www.themusingsofthebigredcar.com
Quibbling here, but the CEO demonstrating integrity sounds like something SBF would have on a PowerPoint Slide 'I demonstrate integrity'.
I am sure Sequoia would say 'That Sam Bankman-Fried has a lot of integrity. Look at his slide. He says it right there'
Hardly anyone is going to advertise their lack of integrity. Don't see a lot of 'we cheat the other investors and pass the profits on to you' in business plans.
It's a diligence thing. You get references. Even then you can get snookered. Happened to me.
Say your parents were Stanford Law Professors, and your brother was a crypto regulator. You could get all the references you want on SBF and he would still be a weasel and crook.
I find it very tricky to do business with new people and am lucky to have a 24 years accumulation of somewhat trustworthy cronies to invest with.
that's correct. He had the right pedigree