#96 Worm Capital: On Worm Theory, The Worm Algorithm, and Investing in Disruptive Technology | Eric Markowitz, Head of Research

In Episode #96, we explore worm theory, the worm algorithm, and investing in disruptive technology. We’re joined by Eric Markowitz, Head of Research at Worm Capital. We cover being an optimistic and open-minded investor, time horizons and thinking in decades, and constructing a survivable portfolio. “I think we're just optimists. I think that we believe that technology and the culture that we live in will actually improve over time, that there will be more efficiencies across the market, that our lives will improve, that there can be some really great opportunities for wealth creation.” – Eric Markowitz EPISODE GUIDE (LINKS, QUOTES, NOTES, AND BOOKS MENTIONED) https://www.danielscrivner.com/notes/worm-capital-investing-in-technology-and-disruption-eric-markowitz-spotlight-show-notes  FULL TEXT TRANSCRIPT https://www.danielscrivner.com/notes/worm-capital-investing-in-technology-and-disruption-eric-markowitz-spotlight-transcript  CHAPTERS This episode is our definitive guide to Worm Theory and investing in disruptive technology. In it we cover: (00:00:00) – Introduction (00:03:30) – Worm Capital’s focus on technology, innovation, and disruption (00:07:43) – Investing in the customer value proposition as it stands (00:16:19) – The Worm algorithm for investing (00:21:22) – Being an optimistic and open-minded investor (00:26:01) – Time horizons and thinking in decades (00:32:50) – Conviction and concentration (00:42:39) – Constructing a survivable portfolio (00:52:22) – Worm theory (01:02:00) – Investing in Tesla ABOUT WORM CAPITAL Worm Capital runs a concentrated long only strategy and invests in technology, innovation and disruption. They hold a concentrated portfolio of between five and 10 positions that today includes Shopify, Spotify, Tesla, Airbnb, Amazon, and NextEra Energy. Since inception, Worm has compounded their investors capital at over 31% per year, while the S&P 500 has delivered just over 15% over the same period. Worm Capital has a unique approach to investing, which they call the Worm Algorithm and Worm Theory to understand how they've generated such incredible returns over the last decade. 💌 FREE NEWSLETTER https://www.outlieracademy.com/newsletter 🎙 LISTEN ON iTunes: https://podcasts.apple.com/us/podcast/outlier-academy/id1523851182 Spotify: https://open.spotify.com/show/58edVNgqaPNaCSGSxM6pef?si=88f37a5d20434775 Overcast: https://overcast.fm/itunes1523851182 ABOUT OUTLIER ACADEMY Learn timeless lessons on work and life from iconic founders, world-renown investors, and bestselling authors. Outlier Academy is the forever school for those chasing greatness. Past guests include Gokul Rajaram of DoorDash, Scott Belsky of Benchmark and Adobe, Joey Krug of Pantera Capital, Mark Sisson of Primal Kitchen, Luke Gromen of The Forest for the Trees, and Brian Scudamore of 1-800-GOT-JUNK. Website: https://www.outlieracademy.com Twitter: https://www.twitter.com/outlieracademy ABOUT DANIEL SCRIVNER Outlier Academy is hosted by Daniel Scrivner. Over the last 15 years, Daniel has led design teams at Square and Apple, turned around a $3M+ ARR SaaS business, and invested in more than 100 companies. He launched Outlier Academy in 2020 to learn from the world’s best founders, investors, authors, and peak performance experts. Website: https://www.danielscrivner.com Twitter: https://www.twitter.com/danielscrivner Learn more about your ad choices. Visit megaphone.fm/adchoices