This is not a political blog, and thus the purpose of this post is not political commentary but a look at the facts and extracting a lesson from the outcome.
There is a valuable lesson we can all learn from this election: the most prepared and most qualified doesn’t always win. In another context, investing in the tried and tested while great, might not reap the results/yields you want/expect.
If I had told you to invest in the Donald winning the election at the beginning of this election, would you have?
- Zero political/government experience
- Unfiltered commentary
- No plan
- Controversial financial background
- track record
- landing the democratic nomination
- celebrity endorsements
Result: Close second
Lesson and how does this relate to VC?
I was re-reading the book Good to Great the other day and was looking at the companies the author defined ” “Greatness” as financial performance several multiples better than the market average over a sustained period” (source: Wikipedia)
Take a look at the companies. The one that sticks out to me is Circuit City. HRC, is our Circuit City this election. A sure thing, that is no longer relevant.
Lesson & Takeaway: While investing in a “sure thing” was profitable in the past, we are in a different era, one where risk and return are becoming prevalent in the most unexpected places. Go back to the drawing board and rethink how you invest.