Idea Almanac

“By the late 1990s, Soros had no doubt as to which side of his persona should dominate. He wanted to be a thinker, a statesman, a great public figure; he did not want to be a neoimperialist and smasher of small currencies. Inevitably, there was a risk that this preference might color his investment views: In a discussion with David Kowitz and Rodney Jones during the Hong Kong meetings, Soros declared confidently that the time for shorting Asian currencies had passed, even though Mahathir’s outburst against markets had triggered a new sell-off in the region. The lieutenants had doubts about the boss’s rosy prognosis, but Soros was not in the mood to listen. Although he would not micromanage the funds’ decisions—he would leave these to Druckenmiller and the team—his optimistic bias was evident.”

Excerpt From: Sebastian Mallaby. “More Money Than God: Hedge Funds and the Making of a New Elite.”

Idea Almanac

Which brings us back to Vinod Khosla. In the two decades he spent at Kleiner Perkins before starting his own venture firm, he learned not to worry about the bets that went to zero. All he could lose was one times his money.” What Khosla cared about were the bets that did pay off, and in the mid-1990s he fastened on an especially audacious and contrarian notion: that, with the coming of the internet, consumers would not be satisfied with a mere doubling or tripling in the capacity of traditional phone lines. Rather, they would clamor for a step change in bandwidth, involving routers that handled data flows a thousand times larger. While the telecom establishment snickered at this sci-fi babble, Khosla set out to kick-start the companies that would make the step change possible. The startups that Khosla backed are largely forgotten names: Juniper, Siara, Cerent. But they illustrate what venture capitalists do best and how they generate both wealth and progress.

The Power Law: Venture Capital and the Making of the New Future

Book Review

The book revolves around the 7 questions every business or in this case every startup must answer. If the company fails to answer even one, than it might not be successful. ( Tesla got 7/7 )