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Navigating Market Skepticism and Maintaining Conviction in Venture Investing
Retaining conviction in the face of market skepticism requires a belief in predicting the future rather than solely focusing on the present. Understanding historical forces and trends in technology is crucial to forming a view of the future. The approach involves studying patterns and underlying dynamics rather than relying solely on metrics or charts. By spending considerable time on research and developing frameworks, one can strengthen their conviction. However, unforeseeable events like exogenous shocks can challenge these frameworks, requiring mitigation strategies like ensuring companies have longer runways. Writing a detailed book as a testament to one's conviction can help pressure-test and validate the investment thesis.