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Nvidia is still run by a founder, while the other two aren’t. I’d always bet on a founder over a McKinsey consultant or a Harvard MBA.
by ralph84 3y ago
Nvidia is still run by a founder, while the other two aren’t. I’d always bet on a founder over a McKinsey consultant or a Harvard MBA.
- hasmanean 3y agoWell a founder can make decades long bets. Any other company would have had an annual review of progress or a review any time mid-level leadership changed hands. Assuming a 50/50 chance of survival each time, the odds of the project lasting 10 years would be 1 in 1024.
- JoshTko 3y agoThis is a silly take the two largest companies are headed by non founder MBA grads. Each who grew their respective companies ~10x.
- Retric 3y agoWhich is underperforming compared to Nvidia. It’s not that founders are more skilled, it’s that successful ones who stick around have different priorities. The long term performance of their existing stock is worth more than hitting targets. Not a guarantee of success, but something to consider.
- magicalist 3y ago> It’s not that founders are more skilled, it’s that successful ones who stick around have different priorities. The long term performance of their existing stock is worth more than hitting targets. We're still talking about the current first derivative of their stock price. Let's not go overboard reading those tea leaves.
- Retric 3y agoThe market is pricing in those tea leaves. Look at the P/E ratios of Nvidia (95) and Facebook (31) vs Apple (29) and Google (25).
- outside415 3y agoPE is stupid. at least do forward PE or DCF... cmon.
- Retric 3y agoForward PE is tea leaves built on tea leaves.
- rezonant 3y agoMeanwhile I'm of the opinion that Google started it's slide downhill during Larry Page's time as CEO. Somewhat ironically, I think Google's brightest days had Eric Schmidt (MBA, "adult in the room") as CEO. This isn't to say MBAs are always a good thing either, and certainly Google isn't a typical example.
- VirusNewbie 3y agoEric Schmidt started his career as a hacker at Bell Labs. He is an MBA in name only.
- gregw134 3y agoBell labs, xerox parc, and sun microsystems. Quite the technical resume. >Early in his career, Schmidt held a series of technical positions with IT companies including Byzromotti Design, Bell Labs (in research and development),[19] Zilog, and Palo Alto Research Center (PARC). During his summers at Bell Labs, he and Mike Lesk wrote Lex,[23][7] a program used in compiler construction that generates lexical-analyzers from regular-expression descriptions. Sun Microsystems In 1983, Schmidt joined Sun Microsystems as its first software manager.[19]
- Wohlf 3y agoThere's plenty of founders who ran their companies in to the ground, and even more who never got it off the ground in the first place. There's no guaranteed recipe for success.
- Jensson 3y agoWe are talking successful founders here, that is a very different group from all founders. > There's no guaranteed recipe for success. Yes, which is why he said bet on, not know it will win.
- deleted 3y ago[deleted]
- __loam 3y agoI will never understand the culture of founder worship.
- kdnvk 3y agoWhat a minor thing to extrapolate into your world model.
- rldjbpin 3y agosurvivorship bias here. also it has become a bad habit to judge everybody based on market cap or stock price. this has significantly contributed to margin-chasing behaviour in the industry lately. they just tasted this level of success. i would be cautious and wait a few quarters before handing out judgements.
- dakial1 3y agoPlenty of MBAs and ex-McKinsey Consultants at NVIDIA (including leadership). Nobody builds a company the size of NVIDIA alone.