"“You are betting on me to hang 30 pieces of art in Howie's gallery, the Larry David gallery. And you will pick the 2 that went to zero,” Lindzon said on Barry Ritholtz's Masters in Business podcast. His goal is one company that turns into a “100-bagger.”"
"“Seed investing is governed by a power law: a handful of winners pay for everything. Lindzon admits the discomfort. ‘Our job is to find a Robinhood. And we found many of them, you know, LifeLock, Robinhood, Beehive,’ he said. He recently invested in Alpaca, which ‘powers 1,000 Robinhoods around the world.’”"
"“The release valve, he said, is integrity: ‘The integrity of telling my investors that upfront is the release.’ I have followed Lindzon's writing for over a decade, and this is the through-line: tell people what you are actually doing, then go do it.”"
"“Robinhood ( NASDAQ:HOOD | HOOD Price Prediction) is the canonical Lindzon win, and the company keeps illustrating his power-law point in public form. Shares are down 32% year to date to $76.55, after Q1 revenue of $1.067 billion missed the $1.135 billion consensus and crypto revenue collapsed 47% to $134 million. Yet event contracts rose 320% year over year, and the Gold subscriber base hit 4.3 million. One product line dies, another compounds.”"
A seed fund approach is framed around a power law in which a small number of winners cover the losses from many failures. The fund manager tells limited partners in advance that most investments will go to zero, using a gallery metaphor to describe selecting only a few outcomes. The goal is to identify a company that becomes a 100-bagger, while acknowledging that many bets will not succeed. Integrity is presented as the mechanism for maintaining trust by being explicit about the risk. A major example is Robinhood, which illustrates how one product line can decline while other areas grow, reinforcing the thesis that winners can emerge through shifting dynamics.
Read at 24/7 Wall St.
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