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Open Source Is the Next Big Thing
The Open Compute Foundation defines open standards for how all these products work. If you want your hardware to go into the Facebook data server room, it has to be compatible with their open source framework. That means no one can have an IP claim against Facebook because you basically sworn off your IP. It just gives Facebook more leverage with a broader spectrum of suppliers.
Brought to you by Protekt's REST sleep supplement, Athletic Greens's AG1 all-in-one nutritional supplement, and Shopify global commerce platform providing tools to start, grow, market, and manage a retail business.
Bill Gurley (@bgurley) has spent more than 20 years as a general partner at Benchmark. Before entering the venture capital business, Bill spent four years on Wall Street as a top-ranked research analyst, including three years at Credit Suisse First Boston.
Bill also maintains a blog on the evolution and economics of high technology businesses called Above the Crowd.
Over his venture career, he has worked with such companies as GrubHub, Nextdoor, OpenTable, Stitch Fix, Uber, and Zillow.
Bill has a BS in computer science from the University of Florida and an MBA from the University of Texas. He is also a chartered financial analyst. Bill is a board trustee at the Santa Fe Institute, a research and education center focused on the study and understanding of complex adaptive systems.
Please enjoy!
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This episode is also brought to you by Athletic Greens. I get asked all the time, “If you could use only one supplement, what would it be?” My answer is usually AG1 by Athletic Greens, my all-in-one nutritional insurance. I recommended it in The 4-Hour Body in 2010 and did not get paid to do so. I do my best with nutrient-dense meals, of course, but AG further covers my bases with vitamins, minerals, and whole-food-sourced micronutrients that support gut health and the immune system.
Right now, Athletic Greens is offering you their Vitamin D Liquid Formula free with your first subscription purchase—a vital nutrient for a strong immune system and strong bones. Visit AthleticGreens.com/Tim to claim this special offer today and receive the free Vitamin D Liquid Formula (and five free travel packs) with your first subscription purchase! That’s up to a one-year supply of Vitamin D as added value when you try their delicious and comprehensive all-in-one daily greens product.
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[05:51] The book Bill calls "the most efficient short-form MBA one can find."
[07:31] Sell-side analysts vs. buy-side analysts.
[09:45] Financial models, rules of thumb, and making (sometimes wrong) decisions.
[17:28] Howard Marks and Stan Druckenmiller.
[19:26] Micro vs. macro investing.
[20:40] Institutional Investor's All-America Research Team.
[24:16] Expanding distribution.
[27:04] Return On Invested Capital (ROIC).
[33:10] Repurposing good ideas for alternative applications.
[37:01] The conviction of network effects.
[38:58] SaaS and open source.
[42:40] Bet sizing.
[44:04] Equal partnership over hierarchy.
[50:08] Lessons learned from partners.
[52:57] Recommended resources.
[58:46] Problems open source can solve.
[1:09:28] Building a better network with the interest graph.
[1:13:42] Dissecting Bill's Twitter thread about risks and sudden valuation resets.
[1:23:50] The Metaverse.
[1:29:00] Revenue and earnings quality matter.
[1:31:02] Undervalued competitive advantages.
[1:35:02] Jeff Bezos: corporate mad scientist?
[1:40:42] The counterintuitive condemnation of company camaraderie.
[1:45:37] Tobi Lütke.
[1:48:51] Books Bill has gifted frequently.
[1:52:29] The Santa Fe Institute.
[1:54:35] Bill's board.
[1:56:32] Cultivating anti-tribalism.
[1:58:13] Twitter: what is it good for?
[2:01:14] Newsletters and other resources Bill relies on.
[2:03:05] Bill's book in progress.
[2:04:12] Regulatory capture.
[2:09:10] Predicting what America will look like in 10-20 years.
[2:10:50] Parting thoughts.
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For show notes and past guests on The Tim Ferriss Show, please visit tim.blog/podcast.
For deals from sponsors of The Tim Ferriss Show, please visit tim.blog/podcast-sponsors
Sign up for Tim’s email newsletter (5-Bullet Friday) at tim.blog/friday.
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Discover Tim’s books: tim.blog/books.
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Past guests on The Tim Ferriss Show include Jerry Seinfeld, Hugh Jackman, Dr. Jane Goodall, LeBron James, Kevin Hart, Doris Kearns Goodwin, Jamie Foxx, Matthew McConaughey, Esther Perel, Elizabeth Gilbert, Terry Crews, Sia, Yuval Noah Harari, Malcolm Gladwell, Madeleine Albright, Cheryl Strayed, Jim Collins, Mary Karr, Maria Popova, Sam Harris, Michael Phelps, Bob Iger, Edward Norton, Arnold Schwarzenegger, Neil Strauss, Ken Burns, Maria Sharapova, Marc Andreessen, Neil Gaiman, Neil de Grasse Tyson, Jocko Willink, Daniel Ek, Kelly Slater, Dr. Peter Attia, Seth Godin, Howard Marks, Dr. Brené Brown, Eric Schmidt, Michael Lewis, Joe Gebbia, Michael Pollan, Dr. Jordan Peterson, Vince Vaughn, Brian Koppelman, Ramit Sethi, Dax Shepard, Tony Robbins, Jim Dethmer, Dan Harris, Ray Dalio, Naval Ravikant, Vitalik Buterin, Elizabeth Lesser, Amanda Palmer, Katie Haun, Sir Richard Branson, Chuck Palahniuk, Arianna Huffington, Reid Hoffman, Bill Burr, Whitney Cummings, Rick Rubin, Dr. Vivek Murthy, Darren Aronofsky, Margaret Atwood, Mark Zuckerberg, Peter Thiel, Dr. Gabor Maté, Anne Lamott, Sarah Silverman, Dr. Andrew Huberman, and many more.
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