💰Peter Thiel: 7 Investing Secrets (#62)

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Peter Thiel is worth $7.19 billion dollars.

These 7 questions:

1️⃣ The Engineering Question

Can you create breakthrough technology instead of incremental improvements?

👉🏼 Going from 1 → n means doing more of what has already been done.

👉🏼 Going from 0 → 1 means doing something that has never been done before.

Is your offer groundbreaking?

2️⃣ The Timing Question

Is now the right time to start your particular business?

👉🏼 Sequoia Capital asks every startup this question: Why now? 

👉🏼 It is often better to be the last company to market vs the first.

👉🏼 Hit the timing right and take down the entire market.

3️⃣ The Monopoly Question

Are you starting with a big share of a small market?

👉🏼 Don't build your startup in a large market.

👉🏼 Start by dominating your niche.

👉🏼 Bezos focused on dominating a small niche market– online books.

👉🏼 Don't get 1% of a $1B market, get 80% of a $1M market.

4️⃣ The People Question

Do you have the right team?

👉🏼 Example: failure of clean-tech VC in 2000s.

👉🏼 Clean-tech executives would run around wearing suits and ties.

👉🏼 Thiel passed on founders who 'dressed up' to pitch.

5️⃣ The Distribution Question

Do you have a way to not just create but deliver your product?

👉🏼 Every successful product/service has an effective distribution channel.

👉🏼 Marc Andreessen advises founders to hustle to get their product in the hands of people– the world is a big place.

6️⃣ The Durability Question

Will your market position be defensible 10 and 20 years into the future?

👉🏼 In 2002, 80% of the value of PayPal came from cash flows received in 2012.

👉🏼 You get to grow as the market grows and escape competition.

7️⃣ The Secret Question

Have you identified a unique opportunity that others don’t see?

👉🏼 Most good ideas don’t look like good ideas at the start.

Are all the hard problems solved?

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