Buyers and Builders
00:45:15 · Cyrus Hessabi, Mikk
I think if you're a founder because you're trying to hire people. And, you know, to my point on the ship being in the middle of the of the store, you need people who can take care of various areas without you being everywhere. I think it's probably around those things. [00:45:32] S0: And now coming back to today, what companies, what industries you are most excited about today? Like, right after finishing this meeting, things you're working on, what are you most excited about?
00:45:44 · Cyrus Hessabi
[00:45:44] S1: I mean, I'll tell you this. I think there is a I can list so many sub industries, like a laundry list doesn't necessarily add value. And I think also the laundry list is going to be full of these niche names now, niche sectors that I think are not necessarily kind of more like abstract. Think I'll tell you directionally what I like. I think I continue to be very excited about spaces that are just, you know, out of the beaten path in a way, like that are not intuitive, and that you need to... There's some sort of barrier to entry in terms of interest and research to get to them. I think industries that are... Services industries that are continuously facing supply demand bottlenecks kind of to Shore's point, but I think that's, you know, something I share. With a highly localized right to win, it's much better if you're not competing with someone across from the... On the other side of The US and you're competing with your own your own local competitors. And I think also with a high share of work that AI can now do. So I really care about kind of an AI approach as well, and where you could create a lot of value in doing so because there isn't that many other people who are thinking about it because just the kinds of people that are going into these industries are not, you know, still in a limited pool. And I think also really, really spending time on like non cyclical stuff. I think one thing I'm realizing is we live in a world increasingly that is very, very volatile. You might say in the course of history, it's normal, but we rather left a normal period to go back to normal. But anyway, I think with that in mind, it's very hard in a way also to make this to back stories that are for ten years from now. I don't know what's happening next week. Like, how can I make a bet on ten years? So businesses that are kind of, you know, I think one thing that that that drives a lot of my investment thesis, and it's funny, I've waited until the fifty fifth day of this podcast to say that. But I think I wrote this piece on my Substack called Investing in What Does It Change? And I think that is the crux of my investment thesis personally is one of the we always talk at VC, we love to talk about what's going to change. This is what's changing. This is what's happening. This is how the world's going. Impact of XYZ.
00:47:59 · Cyrus Hessabi
I think for the most part, actually the world doesn't change. I think people are driven by the same things they are today as they were Egypt five thousand years ago or in Roman Empire two thousand years ago, whatever. I think because the species doing it are the same, I. E. Humans, the drivers and the incentives are basically the same. And so I think the industries around the societies that we build are also fairly the same. And I think as a result, especially now with this convergence of so many things at once, AI, geopolitical changes, demographic changes, you name it, climate change, you just add so many things that are shifting at once that are fairly structural to how we really live and work. I think the best things in my view that I like to spend time on are things that don't change. You know, industries that we always need. We always need to be insured. We always need to fix things. We always need to have a house. The house always needs to be repaired. We always need to file taxes and accounting. You know, I can go on and on, but I think if it doesn't change over time, fantastic. That's what I like, by the way, one more thing. And by the way, to bring it back to AI enabled services, the crux of what I like about AI enabled services is to leverage the positive change brought by AI to further cement something that doesn't change. You know, maybe I'm gonna say something a bit controversial, but if you're backing like an AI agent business, you're betting on the change itself that people adopt your AI agent business, right? AI agent for debt recovery. I don't know. I don't wanna name any names. But if you're backing the service, the service isn't gonna change. We need it. But the AI is just help... The change that whichever form it takes, you're backing, you're benefiting from it because you're on the side of the equation that stays the same. Is is that making sense?
00:49:49 · Mikk, Cyrus Hessabi
[00:49:49] S0: Yeah. It makes sense. It makes sense. [00:49:51] S1: I think that's that's that's the crux of of of why I've been so excited about AI for the traditional economy, because the traditional economy doesn't change, in my view, for the most part. [00:50:00] S0: Okay, Cyrus. Really, we went to all sorts of different places sometimes because I don't see me understand all those things so well. But thanks thanks a lot for doing this. Last question. What is your favorite book? You've seen a lot, you do a lot, different industries, different things you've done. What is something you really enjoy reading?
00:50:00 · Mikk, Cyrus Hessabi
[00:50:00] S0: Okay, Cyrus. Really, we went to all sorts of different places sometimes because I don't see me understand all those things so well. But thanks thanks a lot for doing this. Last question. What is your favorite book? You've seen a lot, you do a lot, different industries, different things you've done. What is something you really enjoy reading? [00:50:17] S1: Wow, my favorite book? I haven't even been thinking about this for a while. Mean, so many different categories. I think one book that I really like is... This is gonna be a bit for yourself, I know. But there's a French author from three centuries ago, Voltaire, who wrote a book called Candide, like the word Candide. And it's in one sentence is the story of naive person that goes from happy in a world where they know nothing to fairly sad in a world where they know everything. So it's kind of like, do you wanna be ignorant and happy or all knowing and sad? And I've always thought about that question. I think I know all knowing and sad if we have to make a choice. But I think it's interesting because it's the journey you always take from the beginning of an investment. You're very much like, oh, this is amazing. I love this. And everything is kind of rosy and green flag. And over time, you realize so many of your beliefs are actually shattered by confrontation with reality, but it's still worth it because that's kind of what makes your life, I guess, in a way worth living in my view.
00:50:17 · Cyrus Hessabi, Mikk
[00:50:17] S1: Wow, my favorite book? I haven't even been thinking about this for a while. Mean, so many different categories. I think one book that I really like is... This is gonna be a bit for yourself, I know. But there's a French author from three centuries ago, Voltaire, who wrote a book called Candide, like the word Candide. And it's in one sentence is the story of naive person that goes from happy in a world where they know nothing to fairly sad in a world where they know everything. So it's kind of like, do you wanna be ignorant and happy or all knowing and sad? And I've always thought about that question. I think I know all knowing and sad if we have to make a choice. But I think it's interesting because it's the journey you always take from the beginning of an investment. You're very much like, oh, this is amazing. I love this. And everything is kind of rosy and green flag. And over time, you realize so many of your beliefs are actually shattered by confrontation with reality, but it's still worth it because that's kind of what makes your life, I guess, in a way worth living in my view. [00:51:23] S0: Okay, Great decision. Again, thanks a lot for doing this. Let's wrap up here. Thank you for your time and talk to you soon. [00:51:31] S1: Yeah. My absolute pleasure. Thank you, Mikk. Pleasure and honor to be here.