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The Perfect Blend: Invest Like Graham & Calacanis ☕️
Rustic Flute
June 26, 2024
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Hey there! 🌟
Today’s post is critical. It’s directly related to this newsletter's main mission—to empower you to make startup investment decisions based on time-tested wisdom and cutting-edge information.
Don’t miss this one, and read until the end!
Today, we're blending old-school wisdom with new-age hustle. We're diving into Benjamin Graham's "The Intelligent Investor" and Jason Calacanis's "Angel: How to Invest in Technology Startups." 🧑💻
Whether you're a careful saver or a risk-taking entrepreneur, this issue has all the necessary insights. ⚠️ Or, you can just speak to an advisor.
🪢 Integrating Graham’s Approach to Angel Investments
After reading "The Intelligent Investor," I wondered how Benjamin Graham’s conservative and disciplined approach could be adapted to the high-risk world of angel investing. His foundational principles would remain but with a twist to accommodate the dynamic nature of startups.
Let's dive deeper into how his principles can adapt to the startup ecosystem:
✳ In a sea of hype, seek startups with genuine value. Graham would advise:
↪ Looking for companies priced below their true potential
↪ Focusing on strong fundamentals over flashy pitches
↪ Identifying unique advantages that the market might be overlooking
📊 Due Diligence: Beyond the Numbers
Dive deep, but don't just crunch numbers. A Graham-inspired approach involves:
✳ Analyzing the complete picture – financials, market potential, and competitive landscape. But equally important? Evaluating the founders.
🤔 Are they visionaries with the grit to execute?
🤔 Do they have the adaptability to navigate the unpredictable startup journey?
🌐 Strategic Diversification
Spread investments across various startups and sectors
Balance high-risk, high-reward opportunities with more stable prospects
Remember: in the startup world, even a few big wins can offset multiple losses
📈 Patience: The Ultimate Virtue
✳ In an ecosystem obsessed with rapid growth, channel Graham's long-term mindset. Focus on building a portfolio of enduring value, not chasing the next overnight success. True innovation often takes time to realize its full potential.
To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.
P.S Here’s an excellent review of the book that might convince you to read it 😎
Jason's all about backing visionary founders who can shake up markets. He doesn't just write checks – he dives headfirst into the startup rollercoaster, armed with modern tools and a powerhouse network! 🎢💼
You might wonder, "Is there someone who can help me balance high-risk, high rewards with a more traditional, stable investment strategy?" Absolutely! |  |
How would Calacanis adapt his strategies if he had met Graham? ✒️
1. 👥 Founders + Fundamentals = Win
✳ Calacanis would still hunt for visionary founders, but he'd add Graham's focus on financial health. The result? A more balanced startup evaluation method!
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2. 🛡️ Risk Management with a Twist
✳ Calacanis would beef up his risk management game:
He would look for clear paths to profitability, emphasize sustainability (Graham would be proud!), and still chase innovation but with a safety net 🥅
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3. 📊 The Ultimate Portfolio Mix
✳ Picture this: High-risk startups + stable value investments
Potential for big returns?
Stability for the long haul?
Graham's principles in a modern package? Double.
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4. 🕰️ Patience is a Virtue
✳ Both Graham and Calacanis agree: Good things come to those who wait
↪ Maintain a long-term view
↪ Ride out market ups and downs
↪ Remember: Big returns often need time to grow
By blending Calacanis's knack for spotting disruptive startups with Graham's disciplined approach, we get a strategy that's both exciting and grounded. It's like mixing a shot of espresso with a smooth latte – the best of both worlds! ☕️
🤝 Bridging Eras: Graham Meets Calacanis
Imagine a world where Benjamin Graham, the father of value investing, crossed paths with Jason Calacanis, the modern angel investing guru.
Here's a fun AI spin on their get-together 👾
🤔 How would their choices evolve if they read each other’s books?
🤔 How would they adapt and integrate their strategies?
🔄 Graham’s Adaptation:
Embracing Innovation: More open to high-growth tech startups. 📈
Dynamic Evaluation: Combine financial scrutiny with assessing visionary founders. 🔗
🔄 Calacanis’s Integration:
Enhanced Risk Management: Adopt Graham’s rigorous financial analysis. 📝
Long-Term Focus: Embrace a longer-term investment perspective. 🫂
🌟 Combined Strategy:
Balanced Portfolio: Mix innovative startups with stable investments. ⚖️
Comprehensive Analysis: Use financial analysis, leadership assessment, and market potential. ✍️
💡Real-World Example:
Imagine investing $250K in a fintech startup:
Graham-style: Analyze fundamentals, project 15% annual growth.
Calacanis-style: Leverage the network, provide hands-on support.
Hybrid approach: Do both, plus plan for a 7-10 year hold.
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Happy investing, and may your portfolios be as diverse and dynamic as the legends who inspire them!
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