Chapter
The Power of Inverse Incentives in Business
30:24 - 38:45 (08:21)
Tim Paris taught the host of the podcast about the idea of the inverse incentive that is used to balance incentives given to employees to achieve particular goals, resulting in a successful business. The conversation also includes the idea of starting a modern-day version of Constellation or what Andrew is doing, where strong business with a great cash flow is bought and owned forever.
Clips
The podcast discusses the effectiveness of using specifically tailored software for niche businesses like golf clubs and how it can be a reliable source of income for software companies.
30:24 - 33:03 (02:39)
Summary
The podcast discusses the effectiveness of using specifically tailored software for niche businesses like golf clubs and how it can be a reliable source of income for software companies. The guest has unique views on business principles and emphasizes the value of consistency in decision-making, much like Warren Buffet.
ChapterThe Power of Inverse Incentives in Business
Episode#74 - The $72B Chinese startup you’ve never heard of, a mysterious billionaire and the guide to post-corona opportunities
PodcastMy First Million
The executives of Berkshire Hathaway do not receive share options as compensation in order to avoid incentivizing the short-term boosting of share prices.
33:04 - 34:47 (01:43)
Summary
The executives of Berkshire Hathaway do not receive share options as compensation in order to avoid incentivizing the short-term boosting of share prices. However, many companies still buy overvalued stock when temporarily pumping enthusiasm or energy.
ChapterThe Power of Inverse Incentives in Business
Episode#74 - The $72B Chinese startup you’ve never heard of, a mysterious billionaire and the guide to post-corona opportunities
PodcastMy First Million
Podcaster talks about the importance of balancing incentives in a business and introduces the concept of inverse incentives.
34:47 - 38:45 (03:58)
Summary
Podcaster talks about the importance of balancing incentives in a business and introduces the concept of inverse incentives.