Talent as leverage

10x engineers, tech bubbles, and the PayPal mafia

 
The “10x” in “10x engineer” conveys leverage just as the “3x” in “3x S&P” does. As an investor, leverage can multiply the returns you receive from a great investment thesis. And similarly, if you’re a founder with a great vision, your superstar employees will help you realize it faster and better. However, if you put these A players to work on a misguided startup idea, then you’re paying for your gamble with a high six figure salary that doesn’t generate returns and crowds out other investments (offices, marketing, compute, etc).

This is not to mention the most significant risk of hiring extremely competent and ambitious people – you are training and spotlighting potential competitors. The governing body in France after the revolution and its terrors made a highly leveraged bet in the person of Napoleon Bonaparte. He delivered stupendous returns – Italy, parts of Austria, and even a serious shot at Egypt. But these gains came with an equally large risk premium – when he returned to Paris, he orchestrated a coup that made him ruler of France. What else did you expect from a man who could conquer half of Europe for you?

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Πηγή: dwarkeshpatel.com