Value Investing In A Social Network

Value Investing In A Social Network

“It can compound really, really quickly.” The power of social media to build a network for investing purposes is invaluable to hedge fund manager Dan McMurtrie of Tyro Partners. He talks with Mike Green, of Thiel Macro, about how he carved his own path with Twitter and how it helps his decision making.

The Philosophy: Social media, and Twitter more specifically, is one of the best tools for networking. 

  • “We think of the capitals compounding, but also you need your human capital and your network capital to compound. And Twitter is a remarkably efficient way of doing that. The other thing is you can kind of just go and throw something out there, and Twitter is going to tell you what it thinks of it. So you can constantly be iterating how you interact with people, how you’re putting ideas out there, what you’re doing. And we started going to happy hours and all this.”
  • “We decide we’re going to research based on where we think there are things worth knowing over 5 or 10 years. Doesn’t mean that it has to be a growth industry. It can be an industry that’s not going away. And we want to have an intellectual property base that we build off of that. And that’s not just models and reading and all that. That’s also building up the network, and we know what’s going on.”
  • “That takes time to build, and you have to maintain that. And so it takes several years for it to really start rolling, and then it becomes a fairly unstoppable snowball.”

How do you do it? You have to be a value add. Be reliable and a good person. 

The Rationale: Reciprocity is a real thing in this industry and people will look out for one another. If you champion others, help them, listen and share ideas, you will be top of mind for other people. They will look to help you when they can, give you feedback and “good things just start to emerge.” This is one major reason McMurtrie was able to improve his craft, find investors and has a network that helps his goals. 

Watch the Full Interview 70 Minutes

RELATED CATEGORIES: Learning, Market Analysis, Testimonial

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