Gurley argues that during risk expansion periods, average entrepreneur quality declines as easy capital attracts people from banking and consulting.
“And I think you actually, that entire time that risk is increasing, the quality of your average entrepreneur that's getting funded is actually going down.”
Gurley urges entrepreneurs to ask what it means to be greedy when everyone else is fearful.
“I think it was Graham and Dodd before Buffett that said, be fearful when others are greedy and greedy when others are fearful.”
Gurley argues that entrepreneur quality declines during boom times and improves when risk appetite falls.
“I think you actually, that entire time that risk is increasing, the quality of your average entrepreneur that's getting funded is actually going down.”
Gurley argues taxing unrealized capital gains would undermine entrepreneurial incentives and is nearly impossible to implement.
“this crazy idea to tax unrealized capital gains and how that in and of itself is not only almost impossible to implement, but also would undermine the very incentive that entrepreneurs have to go create businesses.”
Gurley reports Tito launched his vodka company which became North America's best selling spirit with 100% ownership.
“Tito's is now the most best selling spirit in North America. He owns a 100% of it himself.”
Gurley says Tito's generates 400 million dollars annual free cash flow with founder owning 100 percent.
“which he owns 100% of, and I think it's doing $400,000,000 a year in free cash flow.”
Gurley cites Tito's founder who worked twenty years in other fields before starting vodka company.
“There's a gentleman named Burt Beveridge who was a seismologist undergrad, worked in oil and gas for ten years, got scared actually because he was in Latin America, things got dicey, became a mortgage broker for another ten years, and then one weekend convinced himself to launch a vodka company named Tito's,”
Gurley says Chinese entrepreneurs have greatest cultural affinity with American entrepreneurs globally based on social interactions.
“the one place where I find the most cultural affinity between entrepreneurs, between American entrepreneurs and some foreign entrepreneurs, China. Like, the most like mindedness.”
Gurley finds Chinese entrepreneurs have the most cultural affinity with American entrepreneurs globally.
“of all the places I've visited around the world, the one place where I find the most cultural affinity between entrepreneurs, between American entrepreneurs and some foreign entrepreneurs, China. Like, the most like mindedness.”