I am working on a new “mental models” series for the blog. The writing is taking a bit longer than I thought, so in the interim here is something light. I have paired each movie quote with an appropriate Charlie Munger quote.
- “Buy low, sell high. Fear? That’s the other guy’s problem.” Louis Winthorpe III. Trading Places.
Charlie Munger: “Look for more value in terms of discounted future cash flow than you’re paying for. Move only when you have an advantage. It’s very basic. You have to understand the odds and have the discipline to bet only when the odds are in your favor.”
- “Don’t you see what’s happening? Potter isn’t selling. Potter’s buying! And why? Because we’re panicking and he’s not. That’s why. He’s picking up some bargains.” George Bailey. It’s a Wonderful Life.
Charlie Munger: “For a security to be mispriced, someone else must be a damn fool…
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“What these [Wu-Tang clan] guys have done — without taking a single business school course — is to go right to the head of the class in terms of strategy development.” James Cash, Harvard Business School (New York Times, 1996)
Rza (Robert Fitzgerald Diggs) grew up in Brooklyn and Staten Island. He learned about business by actually being in business on the street from an early age. As Warren Buffett likes to say: “Can you really explain to a fish what it’s like to walk on land? One day on land is worth a thousand years of talking about it, and one day running a business has exactly the same kind of value.” Rza hustled and learned early in life how to operate and negotiate as an entrepreneur. Buffett says the earlier in life you are in business the better it is for your business skills since you can learn…
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1. “Capital just isn’t that important to the early triumph of a company anymore. Much more vital in those inaugural days is collaborating side by side with a founding team that controls its own destiny. Entrepreneurs who are empowered by seasoned advisors, but free to frame achievement for themselves, are much happier.” “When you’re just getting started, I’m the guy you want in your room to help design your product, build the funnel to convert, help you recruit your first couple of employees, get that shit done.” Not all investors are created equal. The winners are persistently the same relatively small groups of investors time after time. Success not only has positive signaling effects in attracting the factors that drive success, but also talent enhancing effects for the venture capitalists themselves.
In short, the best talent, investors and partners are attracted to each other in ways that are self-reinforcing. By getting to…
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- Introduction (by Marc Andreessen)
- A New Soft Technology
- Getting Reoriented
- Towards a Mass Flourishing
- Purists versus Pragmatists
- Agility and Illegibility
- Rough Consensus and Maximal Interestingness
- Running Code and Perpetual Beta
- Software as Subversion
- Prometheans and Pastoralists
- The Allure of Pastoralism
- Understanding Elite Discontent
- The Principle of Generative Pluralism
- The Future in the Rear-View Mirror
- A Tale of Two Computers
- The Immortality of Bits
- Tinkering versus Goals
- The Zemblanity of Containers
- Free as in Beer, and as in Speech
- The Serendipity of Streams
- Breaking Smart
There have been so many truly extraordinary twists and turns in the saga of Caesars Entertainment [fortune-stock symbol=”CZR”] over the past eight years that it’s hard to pinpoint exactly when the whole thing went off the rails. After all, an $18.4 billion bankruptcy filing at one of the biggest gambling empires in Las Vegas tends to result in a lot of finger-pointing. But for symbolism alone, nothing can beat the evening of Nov. 17, 2012.
That was the night that David Bonderman, the billionaire founder of private equity firm TPG Capital, threw himself a 70th birthday party. It made sense for Bonderman to have it in Vegas. He and his wife had planned a lavish celebration with 1,000 of their closest friends. Actor and comedian Robin Williams would serve as the emcee, with music legends Paul McCartney and John Fogerty rocking out. Bonderman had also agreed to make a $1,000…
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