What They Dont Teach You At Stanford Business School

Stuff you can't learn in B-school: LARRY CHIANG

Baseball is like BJ is like Entrepreneurship and VC

leave a comment »

By Larry Chiang

I love baseball because watching pitches is like counting a six deck shoe of cards during Black Jack.

The first three pitches in baseball matter more than your holding two face cards (20) while the dealer shows a 4 card, 5 or 6 card.

“There is a .200 difference in batting avg between 1-2 and 2-1”. Translated: your likelihood of success is 200 basis points higher as a hitter if you can coax a 2-ball – 1 strike count (2-1). Similarly, the 1-2 count is 1 ball, two strikes…the count is detrimental to the hitter and advantageous to the pitcher.

In baseball, like entrepreneurship, the pitcher pitches their pitch to a “hitter”. In entrepreneurship, a hitter is a VC VIP

Entrepreneurship is like baseball because if you fail 66.9% of the time, you’re in the Hall of Effen Fame (as a “0.331” hitter technically you fail 66.9%). The difference between hitting 331 and 269 is not statistically significant to casual on-lookers. To those that count cards, watch baseball, and pattern recognize entrepreneurs, it MATTERS.

It’s the first three pitches that matters. “There is a .200 difference between 1-2 and 2-1”

To those that study “inside entrepreneurship”, the subtle difference .331 and .269 is statistically staggering. 33.1% versus 26.9% can make your VC career using Moneyball*.

It’s the THIRD pitch that matters to LPs. “There is a .200 difference between 1-2 and 2-1” need bibliography?! Google “MoneyBall Larry Chiang”

ENGR145’s Anchor Concept: Lemonade and Gua Gua Guacamole

It moves you to the right on the entrepreneur bell curve

CEO of Duck9
Stanford University Entrepreneur in Residence, Emeritus

Duck9 = “Deep Underground Credit Knowledge” 9
125 University Avenue/ 100
Palo Alto CA 94301
http://www.duck9.com/ass
650-566-9600
650-566-9696 (direct)
650-283-8008 (cell)

****************
Editor of the BusinessWeek Channel “What They Don’t Teach at Business School” http://whattheydontteachyouatstanfordbusinessschool.com/blog CNN Video Channel: http://ireport.cnn.com/people/larrychiang

Read my last 10 tweets at http://www.Twitter.com/LarryChiang

Author, NY Times Bestseller
http://whattheydontteachyouatstanfordbusinessschool.com/blog/?s=Ny+times+bestseller

“What They Will NEVER Teach You at Stanford Business School” comes out 11-11-14

http://www.fastcompany.com/embed/c0d4562ea2049

52 Cards. Two Jokers. What They DO Teach You at Stanford Engineering

Emergency swings and cutting deals as an 9 year old

##########
Duck9 is part of UCMS Inc.
http://www.ucms.com
630-705-5555

Advertisements

Written by Larry Chiang

April 25, 2013 at 6:06 pm

Posted in Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: