Max's Musings #1 – Low margins, authenticity, how to find unique insights, good vs bad investors, and AGI.

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Welcome!

Each week, I’ll share 3 learnings, 2 top conversations, and 1 challenge related to company building, health, productivity, and life.

At the bottom I’ll highlight some ‘top finds’ for the week.

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1. Talk to show authenticity

Often we speak to build rapport or say things others want to hear.

But I think it’s way more powerful to speak to express what you believe in.

That way you draw in like-minded others, spark conversation, create serendipity, and become memorable.

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2. Low margins are a forcing function

Low margins force companies to be operationally rigorous.

It’s part of why Amazon has such a great culture and processes, whereas Google’s huge margins in search create complacency.

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3: “Look for what you notice but no one else sees.”

This is one way to find your unique insights.

Often we gloss over the difference between our perception and that of others, but it can be a real source of edge.

This is another version of “what do you believe that most people disagree with”.

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1. How would you build this if you had AGI?

I spoke to a founder friend, Kai, who is a 22-year-old whiz who said the most important question he asks himself is, “How would we build this if we had an AGI?”

What a great question.

Given the rate of change and magnitude of change, it’s important to consider not just today but the future. This question should be an input into capital allocation decisions.

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2: Good investors vs bad investors

Chatting with Deena, one of the general partners at Lux Capital, reinforced what I continue to believe is the difference between good and bad investors.

Bad investors tend to ask questions to tick off a checklist, whereas good investors seem to have hypotheses in their minds that they’re validating and invalidating.

Bad investors focus on everything, whereas good investors narrow in on the few things that matter.

This ability to focus on the few variables that matter applies not just to good investors but also to good thinkers more broadly.

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I've been grappling with this feeling of doing less individual contributor work and more manager work.

I find this a bit challenging because I’ve always prided myself on the quality and quantity of my output.

But it’s important to shift to empowering others and realise others can do tasks better than me.

The irony is that while I feel like I’m doing less, the team feels more empowered than ever. We’re moving quickly. Our culture is really strong.

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