Marc Andreessen on Warren Buffett and Betting On Change


In a recent article I wrote on MicroCapClub, I talk about studying ALL of the greats of investing, not just the best investors in your niche of investing. This is something I put into practice a few years ago and it greatly enhanced my investing strategy. Microcaps are predominantly small emerging companies that just so happen to be publicly traded. It’s silly to think I can’t learn things from private equity, venture capital, and even deep value investors.

Here is an excerpt from an interview done with Marc Andreessen from Tools of Titans written by Tim Ferriss:

Study The Opposites

In addition to studying his competition in tech and early-stage investing, Marc studies value investors on the completely opposite side of the spectrum, such as Warren Buffett and Seth Klarman. This doesn’t mean they invest in the same types of companies; rather, the synergy is related to first principles.

Tim: [joking]: “You’re not going to invest in See’s Candies [one of Buffett’s investments]?”

Marc: “No. No. Absolutely not. Furthermore, every time I hear a story like See’s Candies, I want to go find the new scientific superfood candy company that’s going ot blow them right out of the water. We’re wired completely opposite in that sense. Basically, he’s betting against change. We’re betting for change. When he makes a mistake, it’s because something changes that he didn’t expect. When we make a mistake, it’s because something doesn’t change that we thought would. We could not be more different in that way. But what both schools have in common is an orientation toward, I would say, original thinking in really being able to view things as they are as opposed to what everybody says about them, or the way they’re believed to be.”

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Winston Churchill – The Speed of Change