How to Invest like a Contrarian #tech #venturecapital #startups #allinpodcast
00:00:00.000 | Dustin the Dad asked, "The all-in pod has a contrarian streak. Do you find a similar
00:00:05.040 | mindset useful when investing in early-stage ventures?" I think it's necessary to have
00:00:09.760 | outsized returns in venture be based on making investments that other folks are not making.
00:00:16.800 | If the market appears to be de-risked, it's likely because there are multiple
00:00:21.040 | players or participants that are all chasing the same thing, which means that the market
00:00:25.200 | will likely get competed away over time. If you're investing where everyone else is investing,
00:00:29.440 | typically prices inflate, costs inflate, and your multiples reduce. The best investments
00:00:34.160 | are the singular ones, the ones that don't look like anything else. Those are very hard
00:00:38.000 | investments to make because other people aren't making them, so you don't get social validation
00:00:42.080 | that indicates that this is a good investment. A lot of investors look for that social validation
00:00:48.160 | because they consider themselves participants in a marketplace and that that marketplace
00:00:52.240 | ultimately needs to agree with them for them to get paid.