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21 results for “power law”
Concept5 mentions across episodes
power law
Concept2 mentions across episodes
power
“Why most VCs fail: You need a proprietary edge to find power law companies”
...power law companies. They have companies that return the fund. Like, that's just the nature of of our business. So I think as a young investor, you wanna believe that you're working on a firm that has
5:19 / 5:52
framework5:19 – 5:52
“Why missing power law winners should be your biggest wake up call”
we live in a power law world as investors. And, you know, like, there are only so many companies that get to massive scale. And, if you if you have the privilege of of looking at one and you don't inv
3:23 / 4:02
personal lesson3:23 – 4:02
...power law, like maybe the eggs and the milk, you know, outperformed everything else.
2:09 / 3:16
from transcript2:09 – 3:16
...a power law, which actually makes a lot of sense. You're gonna get, you know, one or two or three heavy magnitude earthquakes a year and then a lot of small ones. But also if you plot the frequency of every word in the book Moby Dick, that actually a
29:01 / 30:57
from transcript29:01 – 30:57
...power law dynamics. That's honestly a big part of when we're looking for optionality, that's what we think about. It's like, is this a company that is relatively earlier stage in public markets that has the opportunity to power law, you know, a large
29:55 / 31:50
from transcript29:55 – 31:50
...It's like, power law distribution just plays out everywhere. And, like, once you see it, you can't unsee it. It's it sort of plays out in many dynamics. People tend to think that, like, the world plays on a more linear relationship where the x and y
1:00:42 / 1:01:56
from transcript1:00:42 – 1:01:56
“Why young VCs struggle with the harsh reality of startup failure rates”
the power law concept basically describes this idea that a very small number of companies generate the vast majority of returns of our asset class. And that's been true across cycles, across decades,
4:00 / 4:33
framework4:00 – 4:33
...the power law. And that's one of the things that I remember when Peter Thiel was giving his his lectures and then wrote the book zero to one. Right? The power law was kind of this novel thing and, oh, people underestimate the potential of the best co
10:34 / 11:53
from transcript10:34 – 11:53
...a power law business, you wouldn't think from the outside you could put a pricing model together and it would have any accuracy. Because what you really care about are those power law winners. So how does it work? That's right. And we don't believe y
34:18 / 35:33
from transcript34:18 – 35:33
...capitalism. Power laws rule everything around us. It feels like in the stock world, I feel like this really hit the mainstream with the Besson Binder study, which, you know and I used to give not doing this to Hank. This goes back way way earlier. We
5:20 / 6:22
from transcript5:20 – 6:22
...power law players who, if you land them, your team is in the playoffs and, you know, getting to the finals or just gonna be a perennial playoff team, perennial top five, six, seven team. And that's why people really try to get those parallel players.
18:32 / 19:45
from transcript18:32 – 19:45
...And there are power laws all over the place. Right? But we don't always know what the causal mechanisms are. You know, we can build mathematical models that generate power laws, but they may not be representative
56:59 / 58:09
from transcript56:59 – 58:09
...power law more broadly is that people who are in the top 10%, the top 5% don't just get 10 or, you know, 20% more reward. They get 10 x the reward or 100 x the reward. It's really dramatic. Entropy, the second law of thermodynamics, this is a very si
1:01:24 / 1:02:37
from transcript1:01:24 – 1:02:37
...about power laws in our business too. I didn't choose the title of this slide.
41:58 / 43:05
from transcript41:58 – 43:05
...in venture, the power law, these are two laws that I think rule and dominate our lives. Here's a hundred twenty eight years of Moore's law. Walk people through this Sure. And why it's so important and why you'd think about it so much. It's the thing
26:09 / 27:34
from transcript26:09 – 27:34
...the power law, these are two laws that I think rule and dominate our lives. Here's a hundred twenty eight years of Moore's law. Walk people through this Sure. And why it's so important and why you'd think about it
25:10 / 26:30
from transcript25:10 – 26:30
...to moats? Is power the means by which you create a moat for a business, or is it something different? There are two necessary and sufficient conditions for power. There's a benefit. So you've gotta come up with something that's better than what other
15:46 / 16:53
from transcript15:46 – 16:53
...People are power laws. Like, if you have the best guy, you're just always in the mix. Maybe that's Lester in football or soccer or something like this. And I think of startups where certainly early on, it's a small team, but it gets very, very big. D
42:40 / 43:46
from transcript42:40 – 43:46
...powers that he's identified of he would characterize a power as both a benefit and a barrier. Like, it's probably closest to the concept of a moat, you know, the Warren Buffett classic, defensibility moat, concept. But it but it's also it's like it h
1:09:01 / 1:10:05
from transcript1:09:01 – 1:10:05
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