Josh Kushner - Concentration and Conviction - [Invest Like the Best, EP.459]

Josh Kushner believes insecurity is the greatest driver of innovation. He seeks out driven individuals, often first-generation or from overlooked backgrounds, who feel they have something to prove. This initial spark must eventually transition into a more sustainable, internal motivation.

Josh Kushner models Thrive's role on that of the Medici family: to enable artists (founders) to create their masterpieces. This means understanding their place is to support, not to be the hero. He draws a direct parallel to film studio A24, which focuses on enabling directors and actors.

Thrive's 'Holdings' strategy is built on the belief that AI shifts disruption from 'outside-in' (startups) to 'inside-out' (incumbents). The key assets for AI transformation are proprietary data and internal experts who can fine-tune models, giving established companies a new, defensible advantage.

Josh Kushner's grandmother escaped a Nazi ghetto by digging a 600-foot tunnel with a spoon. He views her story of impossible resilience as an anchor for perspective. It reminds him that no professional struggle will ever compare, and no personal achievement will ever surpass what she accomplished.

Kushner insists on a small team not just for investments, but across the entire firm (legal, finance). By hiring '10x people' in every role and giving them full transparency and autonomy, everyone feels authorship over decisions, breaking the traditional hierarchy where only the investment team matters.

When facing criticism for making large, concentrated investments in a downturn, Josh Kushner sought advice from Stan Druckenmiller. The legendary investor's response was that running into a 'burning building' with your best ideas is the right move, but the burden is on you to 'fucking pick right.'

Thrive's reputation for writing massive checks wasn't a deliberate market-cornering strategy. It was a bottom-up, service-oriented reaction to the needs of its portfolio companies. When Stripe needed $6B to avoid an IPO and OpenAI needed capital, Thrive's job was simply to provide it.

Guided by Marcus Aurelius's 'Meditations,' Thrive’s culture strives to be 'the same man in both good times and in bad times.' This principle helped the team remain unfazed by a decade of criticism and now helps them stay grounded amidst praise, ensuring they don't get distracted by external validation.

After Thrive's quick, successful exit from Instagram, Josh Kushner expected congratulations from mentor John Winkle-Reed (now TPG CEO). Instead, he got a piercing lesson on humility: 'never believe your own bullshit.' This became a core tenet at the firm, reminding them to stay grounded amidst success.