#651: Legendary Investor Bill Gurley on Investing Rules, Finding Outliers, Insights from Jeff Bezos and Howard Marks, Must-Read Books, Creating True Competitive Advantages, Open-Source Strategies, Adapting Mental Models to New Realities, and More
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Bill Gurley (@bgurley) has spent more than 20 years as a general partner at Benchmark. Before entering the venture capital business, Bill spent four years on Wall Street as a top-ranked research analyst, including three years at Credit Suisse First Boston.
Bill also maintains a blog on the evolution and economics of high technology businesses called Above the Crowd.
Bill has a BS in computer science from the University of Florida and an MBA from the University of Texas. He is also a chartered financial analyst. Bill is a board trustee at the Santa Fe Institute, a research and education center focused on the study and understanding of complex adaptive systems.
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[05:51 ] The book Bill calls "the most efficient short-form MBA one can find."
[07:31 ] Sell-side analysts vs. buy-side analysts.
[09:45 ] Financial models, rules of thumb, and making (sometimes wrong) decisions.
[17:28 ] Howard Marks and Stan Druckenmiller.
[19:26 ] Micro vs. macro investing.
[20:40 ] Institutional Investor's All-America Research Team.
[24:16 ] Expanding distribution.
[27:04 ] Return On Invested Capital (ROIC).
[33:10 ] Repurposing good ideas for alternative applications.
[37:01 ] The conviction of network effects.
[38:58 ] SaaS and open source.
[42:40 ] Bet sizing.
[44:04 ] Equal partnership over hierarchy.
[50:08 ] Lessons learned from partners.
[52:57 ] Recommended resources.
[58:46 ] Problems open source can solve.
[1:09:28 ] Building a better network with the interest graph.
[1:13:42 ] Dissecting Bill's Twitter thread about risks and sudden valuation resets.
[1:23:50 ] The Metaverse.
[1:29:00 ] Revenue and earnings quality matter.
[1:31:02 ] Undervalued competitive advantages.
[1:35:02 ] Jeff Bezos: corporate mad scientist?
[1:40:42 ] The counterintuitive condemnation of company camaraderie.
[1:45:37 ] Tobi Lütke.
[1:48:51 ] Books Bill has gifted frequently.
[1:52:29 ] The Santa Fe Institute.
[1:54:35 ] Bill's board.
[1:56:32 ] Cultivating anti-tribalism.
[1:58:13 ] Twitter: what is it good for?
[2:01:14 ] Newsletters and other resources Bill relies on.
[2:03:05 ] Bill's book in progress.
[2:04:12 ] Regulatory capture.
[2:09:10 ] Predicting what America will look like in 10-20 years.
[2:10:50 ] Parting thoughts.
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