#015 Jeff deGraaf

Notes from the Masters in Business interview. List at [iTunes](https://itunes.apple.com/us/podcast/mikes-notes/id1055386383), [Overcast](https://overcast.fm/itunes1055386383/mikes-notes), [Soundcloud](https://soundcloud.com/mikesnotes).

Lessons:

  1. Knowing the pot and the payout. Sometimes you can take big risks. know the pot and payout. Cliff Asness addressed this, so too did Charlie Munger: “Any damn fool can see that a horse carrying a light weight with a wonderful win rate and a good post position etc., etc. is way more likely to win than a horse with a terrible record and extra weight and so on and so on.”
  2. To use the tools you have requires a deep understanding.
  3. Technical and fundamental analysis is a spectrum for thinking. Nate Silver pointed out that sabermetrics is merely to make scouting better, nothing more. As T. Roosevelt wrote, title mattered “only in so far as it widened the chance of achievement.” Also true for your “camp” or “point of view.”
  4. “Markets will fib, but not lie” said deGraff. We should know the rules of the game.
  5. Be your best customer. As Ben Thompson wrote: (The Amazon Tax) “The cost to build AWS was justified because the first and best customer is Amazon’s e-commerce business…The cost to build-out Amazon’s fulfillment centers was justified because the first and best customer is Amazon’s e-commerce business”