8 Lessons from Bill Gurley's Conversation with Tim Ferris
Bill Gurley is worth Billions and is considered a legend in the investing world.
He recently appeared on The Tim Ferris Show and their conversation is a must listen for investors.
Here are 8 highlights from their conversation.👇
1. Build your Bedrock
To be a good investor, read as much as possible.
Start with the classics: Buffett’s letters, A Random Walk Down Wall Street, Expectations Investing, etc.
Branch out from there: Industry blogs, substacks, etc.
Read. Read. Read.
2. You Have to Be Right and Contrarian.
Look for a reality you think will emerge that isn't priced into the stock.
This requires you to know where the world is going and what expectations are already embedded.
3. Be flexible: Strong Opinions Loosely Held
Things change - there are several variables, and they're constantly evolving.
The minute you set a hard rule, you set yourself up to make a mistake.
4. Play Devil's Advocate on the Positive Side
Asymmetric results should give you a bias toward the positive.
Instead of worrying about what can go wrong, ask, “What could go right?”
Find the outliers.
5. Have a Really Big Tent
Be open-minded.
Take the time to build a big network.
Be kind and be available.
You never know where good ideas will come from.
6. Write it Down
“The process through which you actually put the words to paper and structure the paragraphs, structure the argument, you get smarter. Sometimes you decide, ‘Oops, I was wrong.’ You learn by putting it all together.”
7. Borrow Ideas
The biggest breakthroughs come from people who can implement frameworks from other fields.
Who can borrow ideas from farther away?
The ones who can are often the most successful.
8. Disruption Creates Optionality
If you feel like something is disruptive and it's unlocking things, your optionality to build on top of that will be spectacular.
Disruption = Optionality = Opportunity
Summary:
Be Flexible
Borrow Ideas
Write it Down
Have a Big Tent
Build Your Bedrock
Be Right & Contrarian
Be a ➕ Devil's Advocate
Disruption Creates Optionality
What do you think?
I’d love to hear your thoughts. Listen to the podcast and let me know one of your biggest takeaways.