34 Comments
 

tech billionares are 100x smarter than finance billionares who got lucky with raising giant funds and then gambling using leverage

 

I'm sorry, but Zuck created a Hot'or'Not and MySpace killer by using fast follower strategy and buying a couple killer apps before anyone else knew what his strategy was. Those accomplishments coupled the Sheryl Sandberg hire and turning down Yahoo's offer warrant a spot in the "Shareholder Value Creation Hall of Fame" but he doesn't hold a candle to Gates, Allen, Page, Brin, Ellison, Benioff, Jobs and Bezos off the top of my head in tech world.

 
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Elon is a great mention. All the obvious reasons apply there.

I'm surprised Bill Gates isn't the first mention.

  • He is provably a genius on raw intellect.
  • He built a business that defined an entire industry during that sector's emergent period.
  • He created prodigious wealth for himself in the process - value and worth are two very different phenomena, so connecting the two is a feat in itself and at the scale he succeeded, remarkable - that would have been absurdly higher had he not voluntarily given away sums larger than many can fathom out of altruism.
  • He has directed not only billions of his own dollars, but the breadth of his intellect toward pressing problems affecting the lives of millions of people in some of the most disadvantaged parts of the world. His foundation has made huge dents in the fight against tuberculosis, malaria, pneumonia, HIV, has created sizable programs supporting maternal health, nutrition, water and sanitation, and a couple dozen other areas too lengthy to list.

I've met several billionaires in finance. Most don't have an academic pedigree to obsess over; they went to a good school, got into the industry, found a thing to manipulate, and were wildly successful at it.

I am permanently behind on PMs, it's not personal.
 

100%. Gates is solving the world's biggest problems - infectious diseases, energy, sanitation, education, sustainable food / clean meat. Listening to him talk about the future is like listening to an oracle telling you what's going to happen, and then it does. He dwarfs Jim Simons (whom I admire, but you can't put these two on same footing).

Also admire Musk who has revolutionized 3 different industries already.

I have massive respect for Zuck, but mostly for his charitable work and intellect, not for the company he built.

 

Do you think this has something to do with personality of many tech founders? My impression of a lot of people in tech is that they're less likely to be poring over company documents/expanding their "macro knowledge base", while that's what I imagine Marks did all day ever since his bschool days . Or I guess another way to put it is what do you mean by underwhelmed? How well they can hold a conversation on what they think is going on in their sector and where the investment opps are? Would that also be related to the "explosive wealth" aspect of many tech founders--they earn a lot quickly and often don't have the same need to develop the same way of thinking as a PE investor who earns wealth over 20 years might?

 

I admire Howard Marks and all but without his letters and later his book how different is he than the other fixed income billionaires at PIMCO, TCW, DoubleLine, and maybe even Met West? He’d tell you himself Gundlach is WAY smarter than he is; that’s why he owns a big chunk of the firm and put them in business. Howard is basically a contrarian that runs tighter tracking error than say a Jeremy Grantham, and writes even better than Jeremy. I’d take Sam Zell and Byron Trott over Marks.

 

While some guys are toiling away in the office for decades, going through multiple heart-attacks and divorces to build a billion dollar fortune, some guys from Stanford made an app that deletes photos in 10 seconds, and practically became billionaires overnight.

 

Have to go with Michael Milken. He created the high yield issuance market from nothing, financed the hostile takeover trend in the 80's, and had a huge role in the success of many other people (Ronald Perelman, Nelson Peltz, etc.) that have had a huge impact on finance and industry.

 

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