YouSaid · the spoken record

Bill Janeway

lines on the record: 124
first: 2016-01-04
most recent: 2016-01-04
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“That's right. And so I would say that it's thinking in advance about what you're going to do, what's plan B, what's plan C, what are you going to do when the world goes against you? When you plug it in, it doesn't light up.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's a very, very good question. I think I learned how Important, well, this is something I learned from my mentor, Ed Giles. Ed used to say, A winner is somebody who knows what to do and he's a loser. What's the backup plan? What's the hedge? What's the Cash in the bank that you the extra resource that you have that lets you survive when the world goes against you there's a quote that's attributed to Keynes nobody can ever find it in any of his writings that the market can remain wrong longer than you can remain liquid solvent”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Reading and thinking about the context in which you're working, not just going down the line, because the way things have opened up so much, there's so many diverse possible opportunities. But I do respect, I do recognize that it is so competitive today that There's no guaranteed road. You know, Thomas Edison said 90% perspiration, 10% inspiration. The perspiration really matters, but the informed mind can find opportunities for the inspiration too.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“But I'd say one bit of advice is combining a really open mind, really reading and reading broadly with a willingness to get down to work. I mean, one of the things that just has thrilled my wife and me about our son is that he just loves to get dug into doing real work. Academics, yes, but actually real work out there doing his apprenticeship. So looking for opportunities to whatever the job may be, but learning how to, as Woody Allen said, showing up is half the battle, showing up on time, doing the job you're asked to do, and then looking for what more there is to be done. Somebody is over and above the Call of Duty. Absolutely. But also, as I say,”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“On the contrary, and Oxford has a wonderful program, philosophy, politics, and economics, PPE. And our son was born. So the University of the Univers”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, first of all, the world is very, very competitive. It's more competitive than it was. It's more open. There's more access. And that's unquestionably a good thing. I speak a bit as a father, as a very proud father of my 26-year-old son, who went to Oxford as it happened. Oxford's a great university.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes. I had no idea. And second, we also are celebrating my 50th reunion at Princeton have funded a program in financial economics at Princeton, which I'm delighted to say has taken root.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“His college. And by the way, Cambridge now has a very well managed professional endowment fund, which I'm pleased to say over the last year or two has done at least as well as Harvard and Yale and Princeton. So the money that's given to Cambridge is very well taken care of. And the breadth of the donations and the breadth of the professionalism of fundraising at Cambridge in the last 15 years has been tremendous. It really is a great achievement. Celebrating the emergence of Cambridge's own revival of post-2008 economics. My wife and I just made another major contribution, $25 million for a professorship in financial economics and a fund for economics, which will guarantee That the core research funding is perpetuated. It's an endowment, not spend down money.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“But they'd spent two, three generations where if you ask somebody about giving some money to Cambridge, the answer would be, hey, I pay my taxes. So building a culture of philanthropy is a generations-long process.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“didn't only raise money, we raised consciousness. We raised consciousness among alumni, among leaders of other universities.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“that finance and economics are one discipline what goes on in the stock market, what goes on in the real economy, goes on in the banking system, all of that needs to be brought together. That's why my wife and I initially funded the Cambridge Endowment for Research and Finance. But it was really joining forces with an extraordinary woman, Alison Richard, had been provost of Yale. She became vice chancellor of Cambridge at the start of the new millennium. And we launched what I said to Alison, we should present this as this is the first fundraising campaign for Cambridge since Henry VIII knocked off the monasteries. It will not be the last. And it isn't. We completed that campaign. We raised more than a billion pounds. Nobody had done that in Britain ever before.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And at the same time, internally, Cambridge was going through some internal reforms towards a greater degree of professionalism in the leadership, the academic leadership and the governance of the university. So on the one hand, given this deep history of Keynes and my”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So this idea of the universe, of a national or a state university as a public good, was being dismantled. Cambridge with its incredible history from Newton to Darwin to Cricken Watson to Keynes, probably the source of more original thinking that changed the world over the last 500 years. Cambridge was discovering that it, too, like the American universities, was going to have to depend on private philanthropy to supplement, if not replace, the money that had been coming from the government. So I got involved as an American who knew something about philanthropy. After all, if you're a Princeton alumnus, you know about fundraising.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, when I went to Cambridge on a Marshall Scholarship in 1965, just exactly 50 years ago, four years I was there just changed my life. And getting reconnected with Cambridge, as I did in the 90s in particular, at a time when a major change was going on in Britain. It had already been going on in the US. From the end of World War II through the 1980s into the 1990s, Cambridge and the other great British universities, Oxford, of course, were essentially funded by the government. They were essentially national institutions. But just as the state universities in America, in effect, over the course of 50 years have been privatized. So that state legislatures are responsible for less than 10% and declining, and probably most of that goes for the football coach's salary.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“If there's one thing that I feel that I've had an unfair advantage of because of the education I had, it's being able to bring to the immediate situation, whether it's a dot-com bubble in 2008 or whether it's the global financial crisis, 2000 or the global financial crisis in 2008, it's a longer-term historical perspective that crosses over from economics to politics and back again.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And this conflict that, of course, exploded in the Civil War, then after the civil rights amendments, the states struck back and segregation was entirely a function of state law. Then with the New Deal and the Great Society, the 30 years of the exertion of federal authority over the states, and then now the counterthrust against that. Under the Roberts Court. So this is, very little attention has been paid to what goes on at state level in the US, but for citizens and non-citizens in America, what happens at the state level is at least as important at the federal. It's a great book.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's written by a historian named Gary Gerstel, G-E-R-S-T-L-E. He just moved from the United States to Cambridge, England, as the Paul Mellon Professor of American History. It's an extraordinary exploration of the dynamic contradictory. Intersection between the federal government whose powers were enumerated, listed in the Constitution. And the state governments which inherited the more or less unlimited power of the British police power, the British state. So that even while the federal government is limited by the Constitution and the Bill of Rights, The states could tell you whether you could own another human being. You were allowed to marry? Whether you could own a home, the power of the state was effectively limitless.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It came out last year and it's about how during the 19th century in the United States we evolved a whole array of new institutions for dealing with the risks and uncertainties of an industrializing economy adopting British patterns of maritime insurance to insurance of for railroads. And right through the creation of credit unions sharing financial risk, it's a tremendous book. I really recommend it very strongly.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, of course, the general. But boy, if you read it before 2008, and by the way, and Tim Geithner's memoir, my partner Tim Geithner, who's president at Warburg with us now, He talks about how immersed in the Asian financial crisis of the late 90s, he read Minsky. So he was prepared intellectually for 2008 in a way that most policymakers were not. So Minsky's work tremendously important. There are two books that I've read recently that I would recommend to everyone. They're not directly economics books. One is a book by young historian called Jonathan Levy. It's called Freaks of Fortune.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, this dynamic feedback between what's happening in the stock market and what's happening with real investment from John Maynard Keynes to John Vogelstein, in my experience, is a seamless web Those were my mentors.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And so he helped me understand that, you know, being patient, looking for where the world isn't looking, building new businesses, or it actually ties very closely to Keynes. There's a wonderful passage in Keynes' general theory where he talks about how the value, the price of shares in the market has an inevitable impact on investment activity in the real economy. He says it makes no sense to start a new business if you can buy one on the stock exchange more cheaply than it would cost to start it. Keynes, this is a 1936. He saw the LBO business in advance. And on the other hand, he said it could be worthwhile to take an extravagant amount of money to invest in a startup like BEA if you can float it on the stock exchange for a profit.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“John Vogelston. John Vogelstein was the founding chief investment officer and president of Warburg Pinkis. John was a great investor. He hired me. He gave me my shot at Warburg Pinkis. And he had, as I say, an extraordinary nose for markets. And he was one of the fundamental contrarians.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Kane's John Maynard Keynes was a great investor. I didn't know him personally. He died when I was three years old. So I was going to say,”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“They worked for Fred back in the early 1980s. So Fred and I collaborated. We created a number of companies together. One of them was emerged as life technologies, the company that provided the tools for all the people doing biotechnology. So that was my third mentor before I joined Warburg Pinkis.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Absolutely. And Fred put the money together, financing together for that. Ten years later, 15 years after Arthur Rocket put the money together for Fairchild Semi. Same kind of way. Fred taught me. About how to understand the internal dynamics of a business, follow the cash. Fred, you had these pillows made up that said corporate happiness is positive cash flow and used to throw them at his entrepreneurs in between yelling and screaming at him. I used to tell them that the only compliment he ever gave me was that he never offered me a job. But the guys who founded Axel, one of the great firms in the world.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“He taught me about going deep, really understanding the dynamics of the industry, whether it's chemicals or computing in which you want to play a role in finding investments and defining investment opportunities. And then the third was an extraordinary man named Fred Adler. Fred Adler in the 1980s, 1970s and 80s was an iconic venture capitalist. He was a lawyer. He was a turnaround artist. A crisis manager, and he was a venture capitalist. And Fred had an unusual personality. He was very tough, very tough with people who worked for him. He had funded one of the second of the great mini-computer companies, Data General. He built a firm called.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Very. Exactly right. Tit for tat sales of votes, so to speak. Exactly how the collaboration between the two could create a great country. Second mentor was Ed Giles. Ed Giles gave me my shot at Eberstadt. He was one of the greatest investment analysts in history. He had three business cards. Chemical analyst, director of research, and president. He only used the chemical analyst card.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Blown up by the crash of 29 and the Depression, but during the war, he ran industrial mobilization for World War II on a dollar a year. In between, he started his own firm and created the first mutual fund after 1929, the first fund investing only in the science-based industries. That's why it was called Chemical Fund. After the war, he wrote the National Security Act for 1947. Which created the Defense Department. He was a public, private financier, public servant. I knew him from when I was a boy. He was a great Princeton alumnus. He was one of the funders of the original Woodrow Wilson School. He taught me about this intersection between Wall Street and Washington, this dynamic play between private and public sector.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I'd say there were three. First of all, there was the founder of the firm I joined soon after he died. His name was Ferdinand Eberstadt. He was probably the greatest unknown American of the middle of the 20th century. Really? In 1929, he wrote, 1928, he wrote the young plan that was going to save the world from reparations and war deaths.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“World. And he's been a genius at exploiting the opportunity to maximize growth subject to minimum positive cash flow. And I think it is because people appreciate that he can generate more cash flow. He can trade growth for cash flow any day he wants through a dozen different levers.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And we're going to see which of these companies are able to monetize the usage that they're generating in order to generate positive cash flow. It doesn't have to be a lot. Amazon doesn't generate a lot of positive cash flow, but you and I know that Jeff Bezos has about 53 different levers. He wants to generate cash. He just tweaks free shipping. Another buck on Amazon Prime. He's got an infinite number of ways because he's got a real sustainable business.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And the other is sooner or later. Positive cash flow is corporate happiness. Sooner or later, if you have a sustainable business, you're going to be paying your bills based on what your customers give you, not what your investors give you.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So you have these examples, you have these proof points. One of the jokes, one of the lines people use is it's motivated the unicorn bubble is motivated by FOMO, fear of missing out. In pursuing the next FAGA, Facebook, Apple, Google, Amazon So for the time being, As long as these companies have access to what appears to be limitless capital, so they're avoiding two marks to reality. There are two ways these valuations will get marked to reality. One is they do an IPO.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Rational self Even the South Sea bubble, the South Sea company was going to take over all the trade to South America as the Spanish Empire collapsed. But this time the story is very plausible because with the internet matured as a medium for distributing and consuming services. With zero cost and just incremental renting the cost of running it, the reach, the potential scale of these new companies appears to be limitless. So you have the”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, the premium, paying premium for illiquidity Is the one thing you know it won't last, it won't last. Every bubble, and the unicorn bubble is a bubble. Every bubble has a plausible story somewhere under the hood.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“They're paying a premium. Now, in the old days, back when there was no IPO market in my prior life. We raise capital at my old firm at Uberstadt back in the late 70s for emerging growth companies that were already profitable, that were growing at 20, 30, 40 percent. And we valued them at 30, 40 percent below the public companies because there was no liquidity.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Right, and they have been paying valuations that are higher than the comparable valuations of already public web services companies. They're paying up.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Here's what's really weird. This has not happened before. This is unique. Here you have major investment firms, you know, Fidelity, T-Row. Are paying”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, of course. But the fact that the market risk is low, even though the technology risk is huge, is what distinguishes biotech from infotech. In information technology, the market risk is at least as big as the technology risk. Whether you're building the infrastructure or whether you're exploiting it with these new applications and solutions, how many dot-com babies went bust? How many of the unicorns today are going to wind up lying down and falling over after their mark to reality? Let's talk about”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And one way to think about this for investors, early stage investors, is, you know, there are two states of the world. We get through the FDA, we make a gazillion dollars. We fail, we lose everything. Half a gazillion sounds pretty good.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Fundamental difference between biotech and information technology. In biotech, when you sit down and say, we're going to try to apply this molecule to cure that disease. If it works, if you get through the FDA, you know what the market is. You know it's big.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“A little bit of water looks like an ocean. Exactly. Very well put, Barry. But there were real returns and a whole wave of new companies that began to go public and that validated the venture capital model, particularly around IT. Also around biotech. Now, biotech Biotech shares with IT the same dependence on long-term government investment in research.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And that enabled pension funds to start investing in venture capital. Before that, it had been wealthy families. And it had been a few university endowments, but it was very limited capital. After 1980, the capital began to open up. In nineteen eighty three, the IPO market opened up. Between 73 and 83, there were just a couple of windows. One window, December 1980. Apple goes public, Genentech goes public. Then the great Federal Reserve Chairman Paul Voker sends rates to 20%. IPOs stop.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Other things? Well, originally when it was first established, there were very tight rules about what pension fund trustees could do with the money. That they were responsible for. They had to be very conservative. The amendments to the regulations in seventy nine created a kind of safe harbor. You could take a portion of the pension fund and be let us say a little more risk-seeking.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“EMW Ventures was $41 million. Lionel used to say it was all the money in the world. And it was set up as a corporation. They took all the money down on day one. Despite that, it generated net to the investors 15% through the 1970s when the stock market was a disaster. If they'd taken the money down step by step the way we all do today, it would have been 30%. So there was an experimentation, trial and error. Going on about financial innovation. Venture capital was an institutional innovation, which by 1980 began to reach scale because of a regulatory change.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Tiny number of individuals. There were a bunch on the East Coast. East Coast tended to be family offices like Venrock. The Rockefeller family JH Whitney, the Whitney family, and the West Coast tended to be these new partnerships. But even as late as 1970, the model, the business model, hadn't been established. So there was a guy called Ned Heiser in Chicago. He started to firm, it was a corporation. It had some preferred stock, which was what was owned by the limited partners and had the preferred return and the common stock, which was in effect the carried interest, was owned by the general partners. When Warburg Pincus went from putting deals together on a case-by-case basis, you know, with some entrepreneurs in one room and some rich family representatives in another and created its first fund in 1971.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“In the end of the 50s, and he puts together the financing for Fairchild Semiconductor. With Sherman Fairchild the industrialist. That's why it was called that. Those were the geniuses, the treasonous... Six, I guess. Treason is seven who left Shockley. That was Bob Noyce and Gordon Moore. Right, right, right. Federico Fajine. And they started what, from Fairchild, which then begat Intel. And that's when Silicon Valley begins to be Silicon Valley.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“This is still in the 60s. And then on the other hand, an extraordinary entrepreneurial stockbroker named Arthur Rock follows the New York Giants to San Francisco. And the baseball giants.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“We'll fill it in. That becomes $70,000 becomes hundreds of millions of dollars. Digital equipment is in a way the first truly great. Technology investment. Out of ARD, some of the youngsters got some backing from the Watson family, created Greylock Ventures”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, getting the timing, it's an interesting history. So American research and development, ARD, the great General George Dorio. Starts ARD in the late 1940s, takes him about five years to scrap together a few million dollars out of the Boston Trust industry and makes a bunch of investments, none of which really work very well, but put $70,000 behind an engineer named Ken. Oh my God, I'm blanking.”
2016-01-04 · Masters in Business · An Interview With Bill Janeway: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source