My guest this week has a fascinating background. He has a PhD in biology but has split his time as both an investor and an operator. As an investor, he’s involved in companies like Airbnb, Coinbase, Instacart, Opendoor, Stripe, Square, and Pinterest—not too shabby. As an operator, he helped both Google and Twitter scale their businesses, in the case of Twitter from 100 employees to 1500 over two years. He’s just written a book about these experiences called the High Growth Handbook.
Our talk centered on what makes for a good investment and more specifically how Elad identifies an interesting market. Operators and early stage investors will find lots of nuggets in this fun conversation. Please enjoy.
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
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Show Notes
1:31 - (First Question) – Process for evaluating a young business
2:43 – Andy Rachleff Podcast Episode
3:09 – Data factors for evaluating a business
5:08 – Reference checks
6:42 – Advice for companies that are reliant on product cyclicality
7:01 – Where to Go After Product-Market Fit: An Interview with Marc Andreessen
7:31 – High Growth Handbook
9:30 - Lessons learned from marketing and growing companies
12:09 – How do you hire the best people to improve your distribution
13:16 – How does he think about lifetime customer value vs customer acquisition cost
15:57 – Should companies just focus on the high margin power users
16:35 – Best ways to organize a company hierarchy
19:16 – His interest and background in the area of longevity research
21:52 – Changes he has made in his own life as a result of this longevity research
22:56 – Most effective use of a CEO’s time
24:58 – How he evaluates or identifies interesting markets for potential businesses
28:03 – Any markets that fit his criteria that are underappreciated by investors
30:02 – Worst practices for businesses
32:19 – Kindest thing anyone has done for him
33:20 – What would be the topic of his next book
34:40 – Biggest lessons he’s learned about markets
Learn More
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub
Follow Patrick on twitter at @patrick_oshag
For the 100th episode, I’ve brought back my good friend Brent Beshore. Brent was the 10th guest on the podcast, after we met because of a mutual interest in capital allocation. I quickly learned that Brent was one of the most unique and thoughtful investors around. He was an entrepreneur from the moment he left school, trying many different things before finding a fit buying smaller business with the intention of owning them forever.
What amazes me about Brent is his encyclopedic understanding of business and the nuances of different business models and deal structures. This comes from reps. He and his team have looked at about 12,000 deals over the years, at every kind of business that you could imagine. I’ve been with him when he goes through this process and it’s fun to hear what makes certain businesses stand out from others, which is largely the topic of this conversation.
You all know transparency is key for me, so it’s important to know that my family and I are investors in a fund called permanent equity, run by Brent and his firm Adventure.es.
To commemorate this milestone episode, I can think of no one better than Brent, because he exemplifies what has made this podcast so fun for me: learning from other people who are willing to share what they themselves have learned through fun, blood, sweat, and tears. Please enjoy our conversation, and thank you so much for coming along on this journey. I can’t tell you how much it means to me.
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
Follow Patrick on Twitter at @patrick_oshag
Show Notes
2:02 - (First Question) – How does he think about optimizing risk in terms of the capital stack when looking at deals
5:27 – What conditions would they add debt down the road after investing in a company
6:52 – What business sectors are most intriguing for Morgan to invest in right now
6:57 – Trent Griffin Podcast
9:34 – Why no HVAC businesses if it’s such an attractive sector
13:56 – thoughts on rolling up similar businesses and horizontal scale
16:04 – Another industry Brent would focus on
18:02 – Difference between property management in larger cities vs smaller metro areas
18:51 – What role does profit margin play when Brent is evaluating a business
22:46 – The appeal of a hyper cyclical business
22:52 – Brent Beshore Podcast Episode
27:27 – Favorite counter cyclical business
28:14 – How they judge assets, tangible vs intangible assets
33:58 – How does he think about wage inflation when considering the cost of a business
37:21 – His fascination with pet crematoriums
38:57 – History of the permanent equity fund and the changes by having a larger pool of capital
43:48 – Pitching investors on a new structure for the business
46:14 – How will this business model scale
Learn More
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub
Follow Patrick on twitter at @patrick_oshag
Today’s conversation is a continuation of my discussion on applying the lessons of tracking animals in the wild to tracking in your own life. I encourage to listen to that episode first.
In this second part, Boyd’s sister Bronwyn joins and offers perspective on business and life. Given that Boyd and Bron grew up in this wild place, their perspective on the world is refreshing and very different. We discuss a wide range of things, But the section on restoration near the end is just phenomenal stuff.
Please enjoy part two of my conversation with the Varty family.
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
Follow Patrick on Twitter at @patrick_oshag
Show Notes
1:21 - (First Question) – Concept of shame and the role it plays in the lives of the people that visit
3:11 – Bron’s take on shame and if this is uniquely male issue
5:15 – How the Varty’s think about the concept of presence, and time with Nelson Mandela
13:34 – Selfishness as an impediment to presence
20:26 – Tending the cup
20:37 – Life is not a zero-sum game
23:15 – How they run the reserve as a business
30:18 – Importance of motivation as a business
33:55 – Cultivating a culture that makes a business a family
40:15 – How they help other family businesses
45:29 – The idea of restoration as a business and legacy
51:23 -Restoration model in investment
53:49 – The age of restoration will be born on the age of information
54:48 – Places that have given Varty’s deep connections (other than Africa)
1:00:46 – Kindest thing anyone has done for Bron
Learn More
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub
Follow Patrick on twitter at @patrick_oshag
An interesting question that I think about a lot: how do you balance exploring the new with savoring what you already know and love? Most of the time I prefer to explore, but the best part of this podcast experience for me has been meeting people who become close friends. For episodes 99 and 100, I’m bringing back two of the most popular past guest who are both now dear friends.
This week’s episode is split into two parts, today and tomorrow. Today’s episode is with Boyd Varty and tomorrow is with both Boyd and his sister Bronwyn. The incredible Varty family hosted me in South Africa, so you’ll hear birds and elephants in the background as we talk.
This conversation with Boyd is about our shared experience called “track your life” which I couldn’t recommend more highly. We tracked animals on foot for five days, and learned a lot from the environment itself. While we discuss our time together, this is much more about how to live. My original conversation with Boyd had a huge impact on me, and this continues the exploration of Boyd’s idea that we should all be going our own way, in the right way, instead of simply following well trodden paths.
I hope you enjoy this conversation with Boyd and check back tomorrow for another conversation with the Vartys.
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
Follow Patrick on Twitter at @patrick_oshag
Show Notes
1:55 - (First Question) – Encounter with five wild dogs
10:19 – The idea of a perfect day on the track
15:59 – The importance of silence
19:42 – Why we could all benefit from the power of silence
21:37 – Side effects of being on the track
23:49 – Following the smaller paths
25:20 – How culture can keep us from forging our own path
29:34 – The stress he puts on the watch at night
33:34 – The power of going from alert to rest and back again
35:11 – Why Zebras Don't Get Ulcers
38:25 – Disconnecting from the modern world and reconnecting with your life’s purpose
41:42 – How much does skill play into finding your life’s calling
43:23 – Common objections to what they do
49:58 – Importance of end of day on the track
52:33 – Silence and feeling of thousands of years of time passing through hallucinogenic
56:22 – His experience with bees
Learn More
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub
Follow Patrick on twitter at @patrick_oshag
Ryan Selkis - The Crypto Barbell and Token Curated Registries - [Invest Like the Best, EP.98]
This week’s conversation is for those interested in the nitty gritty of cryptocurrencies and for those who, like me, are fascinated by that world but more than a bit skeptical of the investing prospects for the many cryptocurrencies now in existence.
My guest is Ryan Selkis, who I met at an event hosted by Union Square Ventures and Blocktower Capital. At that event, in a crowd of many brilliant people, Ryan was consistently asking hard questions and raising counterpoints.
I love his perspective because he is both passionate, but realistic, excited about crypto, but worried about many aspects of the ecosystem.
We discuss many new topics like his barbell analogy for thinking about different kinds of coins, token curated registries, and the need to better transparency around decentralized projects.
Hash Power is presented by Fidelity Investments
Please enjoy our conversation.
March for the Fallen
Want to meet other curious investors, get in good shape, and support a fantastic cause? Consider joining a great group to hike 28 miles in honor of those who have fallen in defense of our nation.
Learn more and sign up at alphaarchitect.com/mftf.
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
Follow Patrick on Twitter at @patrick_oshag
Show Notes
2:55 - (First Question) – how he best explains blockchain technology
4:12 – How does he categorize each cryptocurrency
9:11 – How Numeraii is valued
10:04 – Explaining token curated registries (TCR)
12:58 – How Token Curated Registries are being applied
15:05 – Innovations that will protect against nefarious actors in the crypto space
16:37 – How do you convince investors to commit to TCR’s
18:40 – Biggest headwinds to this industry
22:12 – What are the quality filters to root out the bad actors
25:42 – Thoughts on the ICO market as an alternative to capital raising
29:23 – Litmus test for who should use an ICO to raise capital
34:28 – What is unique about creation of a token vs the normal exchange of cash to determine if a company needs a token
36:21 – How many ICO projects are really necessary
38:28 – How should people form an investment opinion about this space
41:35 – Core mission of his company
44:28 – What are some of the reasons his goals won’t happen
49:30 – Lessons learned while working at Coindesk
49:58 – What is he most excited about for the future of this space
52:56 – Kindest thing anyone has done for Ryan
Learn More
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub
Follow Patrick on twitter at @patrick_oshag