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Invest like a legend: Peter Thiel
Jan. 30 2014 | The Globe and Mail | Alec Scott.Special to The Globe and Mail.

Is tech investing different from other sorts of investing?

It’s incredibly hard to get people to adopt new tech solutions, and you only get adoption of something if it’s 10 times as good as the next best thing. Amazon had 10 times as many books. PayPal was at least 10 times as fast as cashing a cheque....How do your years of competitive chess-playing help you invest?

Chess champion José Raúl Capablanca said, “In order to improve your game, you must study the endgame before everything else.” Successful businesses have a very long arc. In 2001, we concluded that three-quarters of PayPal’s value would come from 2011 and beyond. The same thing applies to all the big tech companies currently—LinkedIn, Facebook, Twitter. Most of their value comes from the 2020s, 2030s and beyond. And so one of the critical questions is, what does the endgame look like, not how they will do in the next month.
Peter_Thiel  endgame  chess  Palantir  start_ups  long-term  market_risk  strategic_thinking  customer_adoption  personal_finance  orders-of-magnitude  Big_Tech  10x 
february 2014 by jerryking
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