Jay Hoag - Keys to Successful Growth Investing - [Invest Like the Best, EP.429]
Episode publishedPodcast: Invest Like the Best with Patr...Invest Like the Best with Patrick O'Shaughnessy
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Something I speak about frequently on Invest Like the Best is the idea of life's work. A more fun way to think about it is that I'm looking for maniacs on a mission. This is the basis for our investment firm, Positive Sum, and it's the reason why I'm so enthusiastic about our presenting sponsor, Ramp. Not only are the founders, Kareem and Eric, life's work level founders, certainly maniacs on a mission, they have created a product that is effectively an unlock for founders and finance team to do more of their life's work by streamlining financial operations, saving everyone their most precious
Patrick O'Shaughnessy is the CEO of Positive Sum. All opinions expressed by Patrick and podcast guests are solely their own opinions and do not reflect the opinion of Positive Sum. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of Positive Sum may maintain positions in the securities discussed in this podcast. To learn more, visit psum.vc. My
guest today is Jay Hogue. Jay is the cofounder of Technology Crossover Ventures known as TCV, which pioneered the growth investing category and has backed legendary companies like Spotify, Netflix, Expedia, and many others over three decades. Jay explains how macro factors like regulation have become unexpectedly central to technology investing. He offers his contrarian take on today's market, arguing that consumer Internet represents significant opportunity while most investors chase SaaS and AI deals. We discussed investing in new technology versus commercialization, TCV's evolution from col
Yeah. I mentioned, yeah, we did this, I think, in September of twenty twenty one. And as a long time Chicago Cubs fan, I'm quite superstitious. So I'm sure it didn't cause the tech reset in 2022, but let's hope that will not have a recurrence. Let's see what's different. There's always parallels and similarities to prior periods of time. I guess what is different is particularly as technology has gotten so big over now the thirty years of TCV and the forty three years of my career, the focus on macro, which is not something I spent a lot of time focusing on, really is different. So regulation
What feels most opportune about this market? Where do you think that there's the most opportunity to earn strong returns making new investments starting today? The
world has shifted so strongly in the last several years. And, again, I'm leaving COVID out for the moment because that such a unusual time where I think as you think about technology investors, huge focus on SaaS, huge focus on all things AI, and huge de emphasis of consumer based Internet businesses. And so I think that's actually a pretty interesting opportunity where one can be contrarian, and we continue to see interesting private opportunities that I think most of the world's not focused on.
I was talking to a founder actually just building something new in consumer today. There's a heavy AI angle to it, but nonetheless, consumer. And he made an interesting observation, which was how hard it was for him to go find venture investors who are great, who primarily focus on consumer. It's almost like a dying breed of people, exactly to your point. If you could describe why you think that is and what about consumer is interesting today, because it does seem like a lot of the big consumer businesses started fifteen, twenty years ago and have just dominated ever since, and there seems to
I don't think necessarily it's less white space because you could argue that the big enormous Internet franchises co
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