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by rexstjohn 1592 days ago
This is probably meant to be, partially, in comparison to Warren Buffet, who famously claims to invest based on reading of financial statements (and other documents) in search of “good businesses.” https://www.amazon.com/Warren-Buffett-Interpretation-Financi...

Suspect that both Buffet and Paul’s real methods rely heavily on instinct, context, relationship networks, combination potentials, personality and pattern matching which can’t be fully documented or quantified or imparted.

I remember having a conversation with my brother once about a protein powder being recommended by some bodybuilder or another. His response: “Yes, he says that he looks that way because of this powder, but what does he actually do?” Answer: Steroids.

Suspect the same is true of many great success stories in business.

4 comments

Or all sorts of things you cannot publicly admit to without undermining your reputation.

For example, say that you have a resume packed with awards. The secret to getting nominations for awards and scholarships is usually to write it yourself and send it to a friend/teacher/colleague for signature, not waiting around hoping that someone deems you worthy.

As most wait for someone to deem them worthy, many awards are less competitive than they appear to be.

But you could never admit to this, as it would devalue you in the eyes of others.

Warren Buffet is not investing in startups. There is a big difference between an established business and a startup, insofar that established business has already demonstrated its potential. In startup potential is unknown, yet it's all that it has to offer
they fundamentally do different things. VC investors make money when a company goes public or is sold off, it's effectively a Keynesian beauty contest. Buffett tries to find companies that are long term viable.
Warren's conversations are also short though. The difference is he invests in mature companies. He studies their books, then asks the CEO a few questions. If he likes the answers he invests.

It's rather different from investing in a startup. Plus all of YC's startups presumably receive some boost from exposure on HN and reddit.