Episode 014: Built on the bedrock of practical wisdom and a long-term perspective, Phronesis Fund believes in forging genuine partnerships rather than chasing fads. This commitment allows them to do more than invest. It's about building a foundation for shared success, thoughtful partnerships, flexible investment strategies, and a financial future as unique and enduring as the client.

In this episode of Alternative Universe, Steve is joined by John Candeto, Founder and Managing Partner of Phronesis Fund. John shares his journey from operator to investor and explains how his background in building businesses has shaped his investing approach. He discusses his investment philosophy and the importance of practical wisdom in long-term investing. John also shares his insights on risk management, the power of curiosity and capability, and the power law in investing.

Join us as we discuss:

• [01:42] - How Phronesis Fund got its name.
• [02:23] - What investment partnership means to John.
• [05:27] - How Phronesis Fund finds the best partners.
• [07:44] - The flexibility to invest in public and private companies.
• [11:20] - How John qualifies potential partners.
• [13:36] - The economy of time.
• [18:00] - How curiosity relates to your ability to serve others.
• [19:51] - The power law in venture capital.

Key Takeaways

• Phronesis Fund is built on the principles of practical wisdom and long-term thinking. It focuses on serving partners rather than trying to be all things to all people.
• Phronesis Fund's structure allows for flexibility and concentration in investments, with a higher bar for private investments due to the operational intensity involved.
• Time is the only asset we cannot get more of. Balancing work and personal life to maximize fulfillment and serve others effectively is important.

Quotes

"We're not trying to be all things, all people. We're trying to be things where we can apply practical wisdom in a very long, biased, long duration, slow-moving, thoughtful partnership." ~ John Candeto

"Whatever your job is, it's to serve your clients, serve your customers, and serve your partners. If you believe that, what those you serve really need from you is the intersection of what you're curious about and capable of." ~ John Candeto

"The only asset you can't get more of is time. We don't even know how much of it we have. It can't be a game of 'spend all my time on this thing so that later I can do that thing.' It's got to be much more of a game of trade-offs and balance." ~ John Candeto

Links 

• John Candeto on LinkedIn
• John Candeto on Twitter
• John Candeto Email
• John Candeto Portal
• Phronesis Fund
• Wynton Marsalis
• Merrill Lynch

Connect with our hosts

• Mammoth
• Steve on LinkedIn

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Disclosure

All content on this podcast is for informational purposes of a general nature only, and does not address any particular individual or investment. Nothing in this podcast constitutes accounting, legal, tax, financial or other professional advice. The discussion on this podcast of any entity, product or service does not imply an endorsement thereof, and the podcast participants may have a financial interest, whether through investment or otherwise, in one or more of any such entities, products or services. Please seek independent advice from a financial professional about your investment needs.