Warren Buffett is quoted as having said “Be bold when others are fearful and be fearful when others are bold.” We educate ourselves by reading and learning from excellent investors and entrepreneurs–here is our reading list.
This quote summarizes one important dimension across which a person or a firm can maintain a contrarian view and generate outsized returns.
A great source of inspiration for me in working on the gumi Cryptos Capital fund is my Partner, Hironao, Kunimitsu who is CEO of gumi Inc, but also General Partner of gumi Cryptos Capital. He is able to provide bold leadership in the mobile gaming business which is a notoriously fickle and challenging industry, and has time and again generated successful game hits from gumi.
Through his actions it becomes clear the source of his success, which is that he knows when to be patient, and when to be impatient.
In reflecting on the blog’s title and theme, I would like to assert that this characteristic of Mr. Kunimitsu is a deep part of the philosophy that gumi Cryptos Capital aspires to.
This is exactly why we continue to patiently and steadily deploy capital into this cryptographic asset and blockchain market even though, and in fact partly because many funds have pulled back. We took a long term view of the pullback as we did of the bull market.
We benefit from a perspective of history, which is that what the dotcom crash taught us is that the survivors of the downturn became the leading companies for decades, and that building during downturns results in deeper investment into better products and infrastructure that leads to higher market returns–for the survivors.
Although we expect ourselves to be bold, we also expect our Entrepreneurs to be realistic. We want portfolio companies to value runway, to raise sufficient capital and to pursue runway-extending revenue strategies.
gumi Cryptos Capital has written about 18 checks between $250k to $1M so far in the past 18 months, and we continue to deploy capital from our $30M fund in our measured pace without skipping a beat. We expect to be considerably diversified in the blockchain sector across a great many areas (as to which areas, please read our blog post on our thesis).
We are investors who have patience. I won’t say that we “are patient” because we take pride in our ability to understand when we should be patient and when we should be impatient. We understand the limits of our knowledge and perspective, but we assert what we believe and want all of our entrepreneurs and partners to push back with their honest and frank views.