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I’m reminded of this one story of Asian business where the foreign team preps hard for a deal with a Chinese business, and it’s an incredibly high pressure thing where they are very worried about mistranslations and contracts and so on … (1/2)
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In fundamental equities research, one of my secrets was was that I used the "annoying face" method to generate alpha. This method involves meeting management or seeing videos/PR of them, and seeing if their face was annoying or not 1/n
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And then they sit down and the foreign MD and the Chinese businessman with his translator are sitting next to each other, and the Chinese businessman turns to the MD and says, in Mandarin, “you have an likeable and honest face.” And then they got the deal. The end. (2/2)
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(And it was a profitable partnership!) Sometimes I wonder about how to hire better, and how to get good at reference checks and evaluating people and seeing values and judging character, and then sometimes I hear Chinese stories about business and basically sigh.
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