SUMMARY
In 30 seconds
Brad Gerstner says his early venture investing taught him to consider market size and potential outcomes alongside the effort required. His view is not a guarantee of returns.
- 1Effort and scaleGerstner compares the effort of starting different kinds of businesses.
- 2Power-law outcomesHe suggests considering opportunities with potentially larger outcomes.
- 3A lesson from mistakesHe recalls spending time on ideas with limited possible scale.
Takeaways
- Gerstner argues that building very different businesses can require comparable effort.
- He encourages investors to consider large trends and markets.
- His account reflects his own investment strategy.
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01
The size of the opportunity
Gerstner discusses effort, market size and his early investment mistakes.
Brad Gerstner argues that starting a restaurant and starting a technology company can both demand major emotional and intellectual effort. He says investors should consider the market and the trends behind an opportunity.
He describes venture investing as a search for power-law outcomes and recalls spending much of his first decade on ideas that, even if successful, had limited possible scale. This is his perspective, not a promise of investment returns.
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