a bearded guy on wall street

have you ever seen a bearded guy on wall street? Cromwell is now, but was not at the time

david cromwell ex 30 years at jpmorgan including president and CEO of jpmorgan capital. adjunct professor at yale som

32% IRR in 1990-1995.

30 years at wall street at the same place!

key takeaways:

  • big business maybe riskier than small business
  • type A people die. stress
  • people think ideas are stolen. the value is in the ability to execute on the idea, not the idea.

discussion:

small business at 6m vs 20K large companies. 50% of economy, 75% of job places.

big companies are shriking

generalizations about entrepreneurs characteristics:

  • desire for personal responsibility
  • want to be in control
  • desire direct feedback, quick, too
  • high degree of commitment
  • tolerance for ambiguity. i prefer the term ‘uncertainty’.
  • persistence. not easily frustrated.
  • love working long hours
  • flexibility
  • organizing skills
  • spotting opportunities in the future
  • want to do something vs want to be something
  • rules are guidelines, not rules
  • manipulative
  • action oriented
  • focused, one problem at a time
  • do not earn more money, but more satisfaction

cromwell’s top 10 traps:

  • hire good people. any doubts? do not hire. integrity is the number one issue
  • stuck with ceo
  • blind optimism. enthusiasm and persistence are good, but need flexability. leads to ineffecient capital, no backup
  • lack of foucs
  • no boss. pick a ceo and treat her like one
  • spiraling costs
  • first class vs garage
  • no diversity. 3 engineers
  • market segment failures. size too large, no reason for customers to change
  • weak management: integrity, hire low, inflexibile. spend a lot of time worrying about the CEO

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