“Unconventional behavior is the only road to superior investment results, but it isn’t for everyone. In addition to superior skill, successful investing requires the ability to look wrong for a while and survive some mistakes”
or in other words “can´t lose usually goes hand-in-hand with can´t win” these are quotes of Howard Marks from his epic newsletter to his clients -he is the famed founder of Oaktree- https://www.oaktreecapital.com/docs/default-source/memos/2014-04-08-dare-to-be-great-ii.pdf?sfvrsn=2
So why is this relevant for us or needs to be repeated here 10 years later? the more efficient the VC market gets via information symmetry and access to worldwide capital and plattforms like AngelList the more VC´s have to look at the lessons learned from main street investors in public markets. Venture Capital (and so called “Private” Equity — aren´t all PE deals auctions these days ?) moves more into the space of public investing. Everybody and her dog reads Techcrunch and subscribed to the umpteenth tech newsletter or listens to A16 podcasts…ofcourse software is eating the world…and when I was coding software at IBM in the 80ties in PL/I and Cobol nobody was fired for buying IBM but…
He moves on: “Most great investments begin in discomfort. ….But it isn’t easy to do things that entail discomfort”.
Do we really think that the partnership of KPCB high fived themselves after Jeff Bezos left the invest committe in 1996 after they put in $ 8M because they knew the future ? (By the way the one and only significant pre-Ipo VC funding). Jeff Bezos needed more than 60 meetings to raise money. http://thenextweb.com/media/2012/11/29/in-the-early-days-amazon-founder-jeff-bezos-attended-60-investor-meetings-to-raise-1m-from-22-people/#gref and there was plenty of time to be right until now ;)http://www.fool.com/investing/2016/06/15/1-stock-that-turned-3000-into-over-1-million.aspx
so….reading newsletters and following the trend with ever bigger tickets and funding rounds will bring average returns if at all…leave your comfort zone — but you need better skills and have to do your homework to beat the odds.