5 Conversations that broke our frames this week

Key Concepts

• Leverage
• Contrarian Thinking
• Independent Thinking
• Network Effects
• Market Opportunity Validation
• Ocean Tech
• Mormon Influencers
• Creator Economy
• Values-Based Living
• Time in Market (Engineering Version)
• Product Marketing
• AB Testing
• Behavioral Economics

Justin Cck: Early Stage Investing and Contrarian Thinking

• Main Point: Justin Cck, an early investor in GrubHub, Snapchat, and Stitch Fix, exemplifies contrarian thinking and deep conviction in his investment decisions.
• GrubHub Example: Cck cold-called and even flew to Chicago to meet the GrubHub team after being unable to reach them, demonstrating his persistence.
• Snapchat Example: Despite Snapchat's small user base (100-150k) and perception as a "silly" app, Cck recognized its potential as a communication tool, not just a photo-sharing platform like Instagram or Facebook.
• Research and Validation: Cck compared Snapchat's daily usage to iMessage and WhatsApp, discovering that its engagement metrics were similar to messaging apps, not social media, which validated his investment thesis.
• Key Quote: "Snapchat...people think it's about photos...but actually we use photos for communication." - Evan Spiegel (paraphrased by Justin Cck)

Will O'Brien: Ocean Tech as the Next Frontier

• Main Point: Will O'Brien is building an ocean tech company, arguing that the ocean is a vast, unexplored space ripe for technological innovation, similar to the current interest in space tech.
• Concept: The ocean is presented as the "next space," an untapped area for investment and technological advancement.
• Real-World Application: O'Brien is actively building an ocean tech company and is aware of several others in the space.

Steve hton: Billionaire Insights and Family Dynamics

• Main Point: Steve hton, a billionaire, provides insights into wealth creation, family values, and the surprising profitability of Middle America mom influencers.
• Wealth Creation: hton made his initial fortune through door-to-door sales, then leveraged the Savings and Loan crisis to acquire cheap land, later investing in storage units and oil/gas leases.
• Family Fame: hton's wife, Jen hton (Turtle Creek Lane on Instagram), and two daughters are famous for their over-the-top home decor and relatable content, respectively.
• Mormon Values: The hton family explicitly stated and lived by their values, emphasizing kindness, support, and intentional living.
• Family Time: The importance of a large home to accommodate family gatherings and foster closer relationships is highlighted.
• Key Observation: Middle America moms are a highly profitable audience for the creator economy.
• Values: The family's explicit values and intentional living, rooted in their Mormon faith, were a key takeaway.
• Real-World Application: The success of Jen hton's Instagram account and her daughters' content demonstrates the potential of the Middle America mom influencer market.
• Helicopter Accident: Steve hton was involved in a helicopter accident shortly after the podcast recording, highlighting the fragility of life.

James Courier: Network Effects and Life Decisions

• Main Point: James Courier, from NFX, emphasizes the importance of network effects in life decisions, arguing that every choice is either joining or leaving a network.
• Contrarian View: Courier criticizes those who leave San Francisco solely for tax benefits, arguing that they will lose out on valuable network opportunities.
• Network Examples: College choice (alumni network), city of residence (career opportunities), and skill acquisition (professional network) are all examples of network-based decisions.
• Key Quote: "When someone tells me they do that [move for taxes], I think that decision is foolish." - James Courier
• Personal Reflection: The discussion prompts reflection on the decision to move away from San Francisco for family reasons, weighing the benefits of family proximity against the loss of the tech network.

James Altucher: Extreme Personality and Newsletter Success

• Main Point: James Altucher, a successful newsletter writer, exemplifies extreme personality traits often associated with high achievement.
• Business Success: Altucher's "Choose Yourself Financial" newsletter generated $130 million in revenue last year.
• Eccentric Behavior: Altucher's reclusive lifestyle (not leaving his house for weeks) and unique perspectives highlight his unconventional approach to life and work.
• Key Quote: "I love DoorDash because...I don't leave my house for like three to six weeks at a time." - James Altucher
• Agora Connection: Altucher sold his newsletter to Agora, a large newsletter business known for its aggressive marketing tactics, which he personally dislikes.

Sheal Manat: Epic Side Quests and Amusement-Driven Pursuits

• Main Point: Sheal Manat, a VC, is portrayed as an "epic side quester" who pursues various interests and projects purely for amusement, often leading to unexpected opportunities.
• Side Quest Examples: Becoming a certified travel agent, considering buying an ambassadorship, getting married in the metaverse (sponsored by Taco Bell), and starting an auction company for domain endings.
• Thistle Story: Manat's investigation into the food delivery space led him to realize its unsustainability, inspiring him to create Thistle, a successful food delivery company.
• MrBeast Incident: Manat challenged MrBeast's claim of being on an abandoned island, highlighting his attention to detail and willingness to question popular narratives.
• Justin Bieber Music Video: Manat's clip from his online Bachelor show made it into a Justin Bieber music video.
• Key Observation: Pursuing personal amusement can lead to unexpected opportunities and valuable experiences.
• Key Quote: Respect for people who value their own amusement as the highest order bit.
• Real-World Application: Manat's diverse side quests demonstrate the potential for personal projects to evolve into successful businesses or unique experiences.

Furon: Time in Market and VR Enthusiasm

• Main Point: Furon, a co-founder of AppLovin, exemplifies the "time in market" principle by maintaining a consistent interest in technologies like VR, even when they are not popular.
• Early Crypto Adoption: Furon invested in Ethereum early on, demonstrating his foresight and willingness to invest in emerging technologies.
• VR Advocacy: Furon's continued enthusiasm for VR, despite its current lack of mainstream adoption, highlights his commitment to long-term technological trends.
• Key Concept: The engineering version of "time in market" involves staying consistently engaged with a technology, regardless of its current popularity.
• Meta Ray-Bans: The discussion highlights the potential of the Meta Ray-Bans as a promising platform for future applications.
• Leap Motion and Masquerade: The acquisitions of Leap Motion and Masquerade demonstrate that even companies that don't achieve product-market fit can be valuable for their technological expertise.
• Key Strategy: Building a strong engineering team focused on emerging technologies can lead to acquisition or the development of breakthrough applications.

Chisos Boots: Product Quality and Marketing Opportunity

• Main Point: Chisos Boots, a company founded by Will Roman, exemplifies the importance of product quality and the potential for growth through effective marketing.
• Craftsmanship: Roman quit his tech job, moved to Mexico, and apprenticed to learn boot making, emphasizing his commitment to quality craftsmanship.
• Marketing Gap: Despite the high quality of Chisos Boots and positive reviews, the company lacks effective marketing, particularly in highlighting Roman's unique story and the brand's commitment to quality.
• Tortilla Principle: The "tortilla principle" emphasizes the importance of communicating the unique aspects of a product or service that justify its higher price or value.
• Sushi Restaurant Example: A sushi restaurant increased revenue and conversion rates by raising prices and using more descriptive language to highlight the quality of its ingredients.
• Key Strategy: Restaurants should AB test their menus to optimize pricing and language.
• Key Quote: "You can like the same thing can be sold just with uh with better words with better marketing and like dramatically change your business."
• Real-World Application: The Chisos Boots example demonstrates the potential for a high-quality product to achieve greater success through improved marketing and storytelling.

Conclusion

The podcast episode explores various aspects of success, from contrarian investing and identifying emerging technologies to building strong products and effectively communicating their value. It emphasizes the importance of independent thinking, pursuing personal interests, and staying committed to long-term trends. The discussion also highlights the power of storytelling and marketing in conveying the unique qualities of a product or service.