#96 Worm Capital: On Worm Theory, The Worm Algorithm, and Investing in Disruptive Technology | Eric Markowitz, Head of Research

In Episode #96, we explore worm theory, the worm algorithm, and investing in disruptive technology. We’re joined by Eric Markowitz, Head of Research at Worm Capital. We cover being an optimistic and open-minded investor, time horizons and thinking in decades, and constructing a survivable portfolio.

“I think we're just optimists. I think that we believe that technology and the culture that we live in will actually improve over time, that there will be more efficiencies across the market, that our lives will improve, that there can be some really great opportunities for wealth creation.” – Eric Markowitz

EPISODE GUIDE (LINKS, QUOTES, NOTES, AND BOOKS MENTIONED)

https://www.danielscrivner.com/notes/worm-capital-investing-in-technology-and-disruption-eric-markowitz-spotlight-show-notes 

FULL TEXT TRANSCRIPT

https://www.danielscrivner.com/notes/worm-capital-investing-in-technology-and-disruption-eric-markowitz-spotlight-transcript 

CHAPTERS

This episode is our definitive guide to Worm Theory and investing in disruptive technology. In it we cover:

• (00:00:00) – Introduction
• (00:03:30) – Worm Capital’s focus on technology, innovation, and disruption
• (00:07:43) – Investing in the customer value proposition as it stands
• (00:16:19) – The Worm algorithm for investing
• (00:21:22) – Being an optimistic and open-minded investor
• (00:26:01) – Time horizons and thinking in decades
• (00:32:50) – Conviction and concentration
• (00:42:39) – Constructing a survivable portfolio
• (00:52:22) – Worm theory
• (01:02:00) – Investing in Tesla

ABOUT WORM CAPITAL

Worm Capital runs a concentrated long only strategy and invests in technology, innovation and disruption. They hold a concentrated portfolio of between five and 10 positions that today includes Shopify, Spotify, Tesla, Airbnb, Amazon, and NextEra Energy. Since inception, Worm has compounded their investors capital at over 31% per year, while the S&P 500 has delivered just over 15% over the same period. Worm Capital has a unique approach to investing, which they call the Worm Algorithm and Worm Theory to understand how they've generated such incredible returns over the last decade.

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