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Aug 12, 2016 · 27m · 20vc

20VC: Wealthfront's Adam Nash on What Makes Great CEO's & Why Humans Suck At Investing

Adam Nash · 20m spoken Harry Stebbings · 5m spoken
0:00 / 0:00

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In this episode of The 20 Minute VC, host Harry Stebbings interviews Adam Nash, President and CEO of Wealthfront, regarding executive leadership, product management transitions, organizational scaling, and how automated financial advice outperforms emotional human investors.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Harry holds 21.9% of the talking time here. How this is scored →

Harry as informed peer 2.4 Guest teaching 2.8 Guest disagreement 1.4 Harry pushing back 1.4
05100:0010:0020:001:27–3:55 · Harry as informed peer 2/10 Adam Nash's Path to Wealthfront CEO and Executive Transition Harry asks open-ended questions about Adam's background and his transition to CEO. Adam explains his move from Greylock and LinkedIn to Wealthfront, referencing Reid Hoffman's transition model with Jeff Wiener.3:56–10:11 · Harry as informed peer 2/10 Product Management Principles vs. CEO Leadership Responsibilities Harry asks whether product managers function as mini-CEOs. Adam politely reframes this notion, explaining that product managers focus on acute detail while CEOs focus on high-level team organization and long-term strategy.10:13–15:29 · Harry as informed peer 3/10 Scaling Operations, Hiring Design Talent, and Succession Planning Harry demonstrates strong background preparation by quoting Adam's recent retweet regarding succession planning. Adam responds by expanding on leadership maturity and building sustainable organizations.15:30–21:48 · Harry as informed peer 3/10 Automation in Finance and the Flaws of Human Investors Harry prompts a discussion on robo-advisors and market democratization by citing a McKinsey report. Adam educates the host on academic data showing that retail investors underperform markets by 4 to 4.5 percentage points due to emotional biases.21:48–26:30 · Harry as informed peer 2/10 Quick Fire Round: Favorite Books, Productivity, and Future Vision In a rapid quick-fire segment, Harry guides Adam through short topics including book choices, CEO time management, and favorite news feeds. Adam shares insights on decision prioritization and long-term automated advice.1:27–3:55 · Guest teaching 3/10 Adam Nash's Path to Wealthfront CEO and Executive Transition Harry asks open-ended questions about Adam's background and his transition to CEO. Adam explains his move from Greylock and LinkedIn to Wealthfront, referencing Reid Hoffman's transition model with Jeff Wiener.3:56–10:11 · Guest teaching 4/10 Product Management Principles vs. CEO Leadership Responsibilities Harry asks whether product managers function as mini-CEOs. Adam politely reframes this notion, explaining that product managers focus on acute detail while CEOs focus on high-level team organization and long-term strategy.10:13–15:29 · Guest teaching 2/10 Scaling Operations, Hiring Design Talent, and Succession Planning Harry demonstrates strong background preparation by quoting Adam's recent retweet regarding succession planning. Adam responds by expanding on leadership maturity and building sustainable organizations.15:30–21:48 · Guest teaching 4/10 Automation in Finance and the Flaws of Human Investors Harry prompts a discussion on robo-advisors and market democratization by citing a McKinsey report. Adam educates the host on academic data showing that retail investors underperform markets by 4 to 4.5 percentage points due to emotional biases.21:48–26:30 · Guest teaching 1/10 Quick Fire Round: Favorite Books, Productivity, and Future Vision In a rapid quick-fire segment, Harry guides Adam through short topics including book choices, CEO time management, and favorite news feeds. Adam shares insights on decision prioritization and long-term automated advice.1:27–3:55 · Guest disagreement 1/10 Adam Nash's Path to Wealthfront CEO and Executive Transition Harry asks open-ended questions about Adam's background and his transition to CEO. Adam explains his move from Greylock and LinkedIn to Wealthfront, referencing Reid Hoffman's transition model with Jeff Wiener.3:56–10:11 · Guest disagreement 2/10 Product Management Principles vs. CEO Leadership Responsibilities Harry asks whether product managers function as mini-CEOs. Adam politely reframes this notion, explaining that product managers focus on acute detail while CEOs focus on high-level team organization and long-term strategy.10:13–15:29 · Guest disagreement 1/10 Scaling Operations, Hiring Design Talent, and Succession Planning Harry demonstrates strong background preparation by quoting Adam's recent retweet regarding succession planning. Adam responds by expanding on leadership maturity and building sustainable organizations.15:30–21:48 · Guest disagreement 2/10 Automation in Finance and the Flaws of Human Investors Harry prompts a discussion on robo-advisors and market democratization by citing a McKinsey report. Adam educates the host on academic data showing that retail investors underperform markets by 4 to 4.5 percentage points due to emotional biases.21:48–26:30 · Guest disagreement 1/10 Quick Fire Round: Favorite Books, Productivity, and Future Vision In a rapid quick-fire segment, Harry guides Adam through short topics including book choices, CEO time management, and favorite news feeds. Adam shares insights on decision prioritization and long-term automated advice.1:27–3:55 · Harry pushing back 1/10 Adam Nash's Path to Wealthfront CEO and Executive Transition Harry asks open-ended questions about Adam's background and his transition to CEO. Adam explains his move from Greylock and LinkedIn to Wealthfront, referencing Reid Hoffman's transition model with Jeff Wiener.3:56–10:11 · Harry pushing back 2/10 Product Management Principles vs. CEO Leadership Responsibilities Harry asks whether product managers function as mini-CEOs. Adam politely reframes this notion, explaining that product managers focus on acute detail while CEOs focus on high-level team organization and long-term strategy.10:13–15:29 · Harry pushing back 1/10 Scaling Operations, Hiring Design Talent, and Succession Planning Harry demonstrates strong background preparation by quoting Adam's recent retweet regarding succession planning. Adam responds by expanding on leadership maturity and building sustainable organizations.15:30–21:48 · Harry pushing back 2/10 Automation in Finance and the Flaws of Human Investors Harry prompts a discussion on robo-advisors and market democratization by citing a McKinsey report. Adam educates the host on academic data showing that retail investors underperform markets by 4 to 4.5 percentage points due to emotional biases.21:48–26:30 · Harry pushing back 1/10 Quick Fire Round: Favorite Books, Productivity, and Future Vision In a rapid quick-fire segment, Harry guides Adam through short topics including book choices, CEO time management, and favorite news feeds. Adam shares insights on decision prioritization and long-term automated advice.

speaking balance: gold is Harry, purple is the guest (3 minute bins)

0:00 · Harry 59.4% · guest 40.6%0:00 · Harry 59.4% · guest 40.6%3:00 · Harry 23.7% · guest 76.3%3:00 · Harry 23.7% · guest 76.3%6:00 · Harry 6.9% · guest 93.1%6:00 · Harry 6.9% · guest 93.1%9:00 · Harry 17.1% · guest 82.9%9:00 · Harry 17.1% · guest 82.9%12:00 · Harry 12.4% · guest 87.6%12:00 · Harry 12.4% · guest 87.6%15:00 · Harry 20% · guest 80%15:00 · Harry 20% · guest 80%18:00 · Harry 9.6% · guest 90.4%18:00 · Harry 9.6% · guest 90.4%21:00 · Harry 8.7% · guest 91.3%21:00 · Harry 8.7% · guest 91.3%24:00 · Harry 24.7% · guest 75.3%24:00 · Harry 24.7% · guest 75.3%27:00 · Harry 100% · guest 0%27:00 · Harry 100% · guest 0%
Sharpest disagreement ▶ 6:04 Rejecting the mini-CEO metaphor

Adam directly reframes Harry's prompt by stating 'I don't think that's quite right' and explaining why product managers differ fundamentally from company CEOs.

 Hardest push from Harry ▶ 5:48 Challenging PM vs CEO boundary

Harry actively synthesizes Adam's product description to push a specific premise, asking whether product managers are effectively CEOs of their own miniature departments.

 Biggest teaching moment ▶ 17:06 Educating on human investment underperformance

Adam cites Burton Malkiel and Dalbar research data to demonstrate to Harry that individual retail investors underperform market returns by over four percent due to emotional flaws.

 Harry holds his own ▶ 12:53 Bringing up host research on succession planning

Harry showcases detailed research by citing Adam's specific Twitter retweet regarding succession planning, using it to direct the conversation on executive leadership.
the scores for every segment, with the reasoning behind each
ChapterTopicHarry as informed peerGuest teachingGuest disagreementHarry pushing backWhy
Adam Nash's Path to Wealthfront CEO and Executive Transition 2311 Harry asks open-ended questions about Adam's background and his transition to CEO. Adam explains his move from Greylock and LinkedIn to Wealthfront, referencing Reid Hoffman's transition model with Jeff Wiener.
Product Management Principles vs. CEO Leadership Responsibilities 2422 Harry asks whether product managers function as mini-CEOs. Adam politely reframes this notion, explaining that product managers focus on acute detail while CEOs focus on high-level team organization and long-term strategy.
Scaling Operations, Hiring Design Talent, and Succession Planning 3211 Harry demonstrates strong background preparation by quoting Adam's recent retweet regarding succession planning. Adam responds by expanding on leadership maturity and building sustainable organizations.
Automation in Finance and the Flaws of Human Investors 3422 Harry prompts a discussion on robo-advisors and market democratization by citing a McKinsey report. Adam educates the host on academic data showing that retail investors underperform markets by 4 to 4.5 percentage points due to emotional biases.
Quick Fire Round: Favorite Books, Productivity, and Future Vision 2111 In a rapid quick-fire segment, Harry guides Adam through short topics including book choices, CEO time management, and favorite news feeds. Adam shares insights on decision prioritization and long-term automated advice.

Statements from this episode (8)

Insight
Nash: Reid Hoffman's handover to Jeff Weiner is the model CEO transition
“You know, Reid Hoffman, who I'm very close with is obviously the founder and has been the person guiding LinkedIn since the get-go, but the way that he brought Jeff Wiener on board and kind of empowered him to run that company I think is a model for how those …”
Adam Nash Aug 12, 2016 ▶ 3:26
Insight
Adam Nash: Product managers must define the game and set metrics
“The best product managers do a good job for their cross-functional teams of leading them by defining what game they're playing. And then second, how do you keep score?”
Adam Nash Aug 12, 2016 ▶ 5:16
Assertion Supported
Wealthfront grew from 17 to approximately 140 employees under Adam Nash
“When I joined Wealthfront there were 17 people at the company and now we're just about a 140.”
Adam Nash Aug 12, 2016 ▶ 10:57
Assertion Partly supported
LinkedIn had no dedicated user experience team in early 2007
“When I joined LinkedIn in the beginning of 2007 they didn't even have a user experience team, right?”
Adam Nash Aug 12, 2016 ▶ 14:21
Assertion Supported
Retail investors underperform the market by 4.5 percentage points, says Adam Nash
“The doll bar research indicates that individuals underperform the market, not by 10 or 20 basis points, not by half a percent, but by four to four and a half percent, depending on the time period.”
Adam Nash Aug 12, 2016 ▶ 17:30
Prediction Not checkable as stated
Computers will outperform human financial advisors by 2026, predicts Adam Nash
“At Wealthfront, we actually believe that over the next 10 years, we're going to see computers do this better than their human counterparts.”
Adam Nash Aug 12, 2016 ▶ 19:44
Assertion Supported
Wealthfront approached $4 billion in AUM and 75,000 clients in 2016
“And now to see us getting close to, you know, four billion dollars and you know, over 75,000 clients and see the entire industry reshaping so that everyone's going to offer an automated service.”
Adam Nash Aug 12, 2016 ▶ 25:21
Prediction Held up
Automated financial advice will see major adoption by 2021, predicts Adam Nash
“Right now, people are fairly skeptical about this idea that we can move beyond automating investment and move to automating financial advice. But I think within the next three to five years, you're going to see phenomenal improvements in detailed, personalized…”
Adam Nash Aug 12, 2016 ▶ 25:58
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