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The Full Ratchet

Investor Stories 416: Lessons Learned (Niehenke, York, Hsieh)

4 min episode · 2 min read
·

Episode

4 min

Read time

2 min

Topics

Investing

AI-Generated Summary

Key Takeaways

  • Feedback receptivity: Actively seek criticism from CEOs, partners, and employees about board performance, deal presentations, and interpersonal behavior to continuously improve, because people stop giving feedback when you stop listening to it.
  • Investment discipline: Avoid investing outside your core thesis and skill set areas where you can add value; random investments in unfamiliar categories like hot sauces or NFTs typically fail due to lack of domain expertise.
  • Pattern recognition traps: Guilt by association works both ways—rejecting deals because similar companies failed or backing deals because similar companies succeeded both lead to mistakes; assess each opportunity on individual merits given high outcome variance.

What It Covers

Three venture investors share career mistakes and lessons: Alex Niehenke on accepting feedback, Kyle York on investing outside expertise, Vince Hsieh on pattern recognition pitfalls.

Key Questions Answered

  • Feedback receptivity: Actively seek criticism from CEOs, partners, and employees about board performance, deal presentations, and interpersonal behavior to continuously improve, because people stop giving feedback when you stop listening to it.
  • Investment discipline: Avoid investing outside your core thesis and skill set areas where you can add value; random investments in unfamiliar categories like hot sauces or NFTs typically fail due to lack of domain expertise.
  • Pattern recognition traps: Guilt by association works both ways—rejecting deals because similar companies failed or backing deals because similar companies succeeded both lead to mistakes; assess each opportunity on individual merits given high outcome variance.

Notable Moment

One investor warns that distraction during critical meetings—from family issues or missed workouts—can cause you to miss a twenty billion dollar business opportunity that day.

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