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Q uncovering the ones that actually work, and then finding the The right amount to charge for a week, um, where you can make money and they still will be a customer. But how does technology enable all this and how is it starting to change things? Because I hear you describe the sort of landscape. How do we then come in with new ideas that help change what you described?
A So I think software is a huge part of it, because this is exactly, like, the reason why you charge very high interest rates is you just, it, it is this regression to the mean of, or not even regression to the mean, it's like, I don't know, so I feel like I'm protected with a margin of error if I just charge you a lot. Part of this is a regression to, or just going back in a time machine to an earlier place, so I find this very fascinating. Like, a hundred years ago, you go to the general store, And you left your wallet with your gold ingots and your silver back in your home, and you say, hey, general store owner Joe, you know me, I'm Alex. Uh, I don't have the money right now, but I live, like, right near the saloon. Like, I'll go pay you back next week.
AI assessment note: “So I think software is a huge part of it, because this is exactly”
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Q a second. So Alex, you, you make the investment and you've got this vision for the company, uh, and the opportunity. What have we learned about the feasibility of the opportunity based on the company performance? It's another way of asking, like for people who haven't been following the company trajectory, you know, how have things gone? What have we learned? What are the ups and downs been, et cetera?
A Well, so, uh, there was a point in time where open door was such a good idea. Um, you know, there, there's a saying that we use a lot of venture capital. It's like, you know, you want to invest in a bad idea, something that looks like a bad idea, that's actually a good idea, because if it looks like a good idea, then it becomes a bad idea. Um, and Opendoor was somewhere in between the two of these, because Zillow was like, oh my God, like, you know, Rich Barton comes back to Zillow, Spencer leaves, and it's like, I have to go do what Opendoor does. Um, everybody was getting into iBuy and Offerpad, you know, popped up, but like Zillow was the big one, and, um. They couldn't do it. Uh, well, so, but, but here's why they couldn't do it. It's an interesting story, and, like, the other part of the story is, like, Ben Thompson wrote a post that almost, like, kind of summarizes in a more eloquent form, like what I was talking about with, like, you know, if you get all the, if you get all the supply or just a small sliver of proprietary supply, you get all the demand, and once you have all the demand, then you can have your own, then supply just comes to you, and that's how you finally build a marketplace, and I think rumor has it that Rich Barton reads Ben Thompson, uh, as, as everybody should, because Ben Thompson is very, very smart, like, holy shit, we have to do this.
AI assessment note: “Zillow was like, oh my God, like, you know... I have to go do what Opendoor does.”
