Michael Moritz - Lessons From 40 Years of Investing and Writing - [Invest Like the Best, EP.491]

Patrick O'Shaughnessy welcomes Michael Moritz, a partner at Sequoia Capital and a renowned author, to discuss a career spanning four decades in venture capital and journalism. Moritz shares profound insights gleaned from his family's history as refugees, his experiences backing some of the world's most influential companies, and his unique approach to understanding human behavior.

The Enduring Imprint of Family History

Moritz begins by reflecting on the profound impact of one's family history, particularly the formative years, on who a person becomes. He emphasizes that parents, often unwittingly, leave an indelible imprint on their children. This realization was a significant, unexpected gift from writing his book, which involved a deep dive into his own family's past. He describes this process as "excavating the deep memories of childhood," which helped him understand why he reacts to certain things in the way he does. Moritz believes these absorbed "imprints" remain with individuals throughout their lives, shaping them as both "angels and demons."

Patrick then asks Moritz about his own family's history, specifically the contrasting choices of his two grandfathers during the rise of Nazi Germany. His paternal grandfather, a civil servant in Bavaria, was a conservative by nature and deeply believed in the German state's endurance. He also had a pension, which was crucial for his survival. These factors made him reluctant to leave Germany until it was too late, and he and his wife eventually perished. Moritz highlights that even if one decided to leave, there were immense obstacles, including finding a place elsewhere that would accept them and paying significant taxes to the Nazi government for exit visas.

In stark contrast, his maternal grandfather, a cattle trader in a rural village, was more "streetwise" and entrepreneurial. He was not burdened by the need to collect a state pension and was always able to sustain himself. This grandfather, along with his wife, managed to escape Germany by the "skin of their teeth," just 72 hours before war broke out. Moritz takes away a crucial lesson from this: the necessity of always having a "bolt-hole," a place to go if things get too hot. He humorously adds, "you can never have enough passports."