When investing, look for companies in the unsexy + boring categories. Why? Because everything in the universe is a supply & demand curve. People want to work on things that are sexy and simple. Doing the opposite tends to lead to less competition, and therefore, higher returns. Without complexity, itâs hard to be differentiated. And the sexy and complex categories attracts brilliant entrepreneurs who are hard to compete with (From Charles Songhurst, image below)1.
1. Perell, D. 18 of my favorite frameworks: 1) Location, vocation, relation: Where you live, what you do, who youâre dating or married to. Try not to change more than one at a time. 2) Do something fast, do it for cheap, do it at a high quality. Pick two. 3) Head, heart, wallet: Three https://t.co/i6MoAysOT9. https://x.com/david_perell/status/1777365903815950677 (2024).