“I think we're just optimists. I think that we believe that technology and the culture that we live in will actually improve over time, that there will be more efficiencies across the market, that our lives will improve, that there can be some really great opportunities for wealth creation.” – Eric Markowitz
Eric Markowitz (@EricMarkowitz) is Director of Research of Worm Capital, an investment firm focused on technology innovation and disruption. He worked as an award-winning investigative business journalist with bylines in Inc., The New Yorker, and Newsweek magazine before joining Worm Capital in 2016.
For more, explore the transcript of this episode.
Topics discussed with Eric Markowitz
- 00:03:30 – Background on Worm Capital
- 00:07:43 – Investing in the customer value proposition as it stands
- 00:16:19 – The Worm algorithm for investing
- 00:21:22 – Being an optimistic and open-minded investor
- 00:26:01 – Time horizons and thinking in decades
- 00:32:50 – Conviction and concentration
- 00:42:39 – Constructing a survivable portfolio
- 00:52:22 – Worm theory
- 01:02:00 – Investing in Tesla
Eric Markowitz Resources
- Connect with Eric Markowitz: LinkedIn | Twitter | Worm Capital
- Warren Buffett
- Arne Alsin
- Christopher Tsai
- Charlie Munger
- The Nightcrawler
- Bill Belichick
- Worm theory
- Steve Jobs
- Jeff Bezos
Terminology from this episode
Eric Markowitz's Favorite Books
Eric shared his all-time favorite books including:
101 Years on Wall Street: An Investor's Almanac by Norton Juster
- 101 Years on Wall street provides a complete stock market chronology of the past 100 years. It traces the Dow Jones advance from 28 to 2,800 and includes commentary on historic market forces. Patterns continually repeat themselves on Wall Street, and this book offers investors summaries, comparisons and yearly retrospects of long trends such as bull and bear markets, shorter sequences such as panics, and includes a seasonal almanac of monthly trends like September dangers and a political almanac of election-market sequences. Eric Markowitz keeps 101 Years on Wall Street on his desk as a reminder that the market is just a series of cycles and everything passes.
- Buy it now: Print
The Alchemy of Finance by George Soros
- Dubbed by BusinessWeek as “the man who moves markets,” Soros made a fortune competing with the British pound and remains active today in the global financial community. Now in The Alchemy of Finance, Soros presents a theoretical and practical account of current financial trends and a new paradigm by which to understand the financial market today. It details Soros’s innovative investment practices along with his views of the world and world order. It also describes a new paradigm for the “theory of reflexivity” which underlies his unique investment strategies. Eric Markowitz loves George Soros in part because he loves people who started in one direction (in George Soros case as a failed philosopher), but end up going in a very different direction.
- Buy it now: Print | eBook | Audiobook
Up in the Old Hotel by Joseph Mitchell
- Saloon-keepers and street preachers, gypsies and steel-walking Mohawks, a bearded lady and a 93-year-old “seafoodetarian” who believes his specialized diet will keep him alive for another two decades. These are among the people that Joseph Mitchell immortalized in his reportage for The New Yorker and in four books—McSorley's Wonderful Saloon, Old Mr. Flood, The Bottom of the Harbor, and Joe Gould's Secret—that are still renowned for their precise, respectful observation, their graveyard humor, and their offhand perfection of style. These masterpieces (along with several previously uncollected stories) are available in Up in the Old Hotel, which presents an indelible collective portrait of an unsuspected New York and its odder citizens—as depicted by one of the great writers of this or any other time. Eric Markowitz loves Up in the Old Hotel because of its fascinating insights into what makes people tick, their desires, and how little those we've all really changed over time.
- Buy it now: Print | eBook | Audiobook
If you enjoyed this episode with Eric Markowitz, don’t miss our other interviews with the world’s best investment minds:
- #104 Driehaus Capital: Investing in Emerging Markets and The Great Pendulum Shift | Outlier Investors
- #78 Luke Gromen on Inflation, Gold vs Bitcoin, and Owning Real Assets | Outlier Investors
- #57 NfX: A Masterclass on Network Effects and Investing in Network Effect Businesses | Outlier Investors
- #25 Simon Mikhailovich: A Masterclass on Why and How to Invest in Gold | Outlier Investors
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Marshall noted his appreciation for Munger’s business philosophies; this list of books that Munger himself has recommended gives a good depiction of his thought processes.
Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger by Peter D. Kaufman
This collection of Charlie Munger quotes is probably on the bookshelf of every investor.
Charlie Munger: The Complete Investor by Tren Griffin
A great summary of Munger’s investing strategy and mental models for entrepreneurs and investors.
A Few Lessons for Investors and Managers From Warren Buffett by Peter Bevelin and Warren Buffett
A great resource for entrepreneurs and investors alike.