Understanding when Price Matters in Investments

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When investing in companies, it is crucial to determine in advance whether the price of the investment matters or not. For companies with vast opportunities like Alibaba, Facebook, Google, or Amazon, the size of the market or opportunity is so large that the initial price becomes insignificant. In contrast, for companies with smaller market sizes, being disciplined about the price is essential. Making the distinction between when price matters and when it doesn't upfront is crucial for successful investments. An example highlighted a missed opportunity due to considering the price too important initially, overlooking the immense potential of the market. Learning to assess whether price is a determining factor in an investment is key to making successful investment decisions.

Doug Leone is the Global Managing Partner @ Sequoia Capital, one of the world’s most renowned and successful venture firms with a portfolio including the likes of Google, Airbnb, Whatsapp, Stripe, Zoom and many more.

Marcelo Claure is the Founder & CEO of Claure Group, a multi-billion-dollar global investment firm. He is the Executive Chairman and Managing Partner of Bicycle Capital, a $500M Latin America-focused growth equity fund, and was appointed Chairman in Latin America of SHEIN, the global #1 on-demand fashion company in the world. Claure was also the CEO of SoftBank Group International where he launched SoftBank’s $8B Latin America Funds, and had direct oversight for SoftBank’s operating companies.

Geoff Lewis is a Founder and Managing Partner of Bedrock, one of the breakout and new venture firms of the last decade, famously in search of narrative violations. He serves or has served on the Board of Directors for companies including Lyft (NASDAQ: LYFT), Nubank (NYSE: NU), Epirus, and Vercel.

Bill Ackman is the CEO of Pershing Square Capital Management, L.P., an SEC-registered investment adviser founded in 2003. Pershing Square is a concentrated research-intensive fundamental value investor in long and occasionally short investments in the public markets.

Martín Escobari is Co-President, Managing Director and Head of General Atlantic’s business in Latin America. Martín is Chairman of the firm’s Investment Committee and also serves on the Management and Portfolio Committees.

Orlando Bravo is a Founder and Managing Partner of Thoma Bravo. He led Thoma Bravo’s early entry into software buyouts and built the firm into one of the top private equity firms in the world.

In Today's Episode on Price Sensitivity We Discuss:

Doug Leone: Why the attitude of "deploy, deploy, deploy will get so many in trouble"?
Marcelo Claure: How to know when price matters and when it does not?
Geoff Lewis: What is the right framework to assess price at an early stage?
David Tisch: How does the importance of price change vis a vis company vs portfolio?
Orlando Bravo: What have been Thoma Bravo's biggest lessons on price?
Cyan Banister: Why does Cyan believe there will be a reckoning?