30 by 30

I travelled back to my hometown for Christmas this year and took the time while I was there to enjoy the company of old friends over drinks in familiar pubs. I spent one such night with a former colleague and great friend whom had always provided me with a sounding board and personal “level” during our time together in banking.

As we sat alternating rounds at one of our old haunts, he described to me a renewed outlook he had developed over the past several months of particularly long hours at work. He had come to the realization that in addition to professional success, personal zest for life was an equal contributing factor to one’s happiness. Accordingly, he resolved to inject some life back into his waking hours, and that began with a definition of what living meant.

When he sat down to define the things that made him happy, it became apparent that so many of us think that happiness is defined by “having”. That is to say – having a 56″ TV, having a nice car, having an arbitrarily high account balance. What my friend realized is that “having” is a poor substitute for “doing”. Thinking back, I realized he was right. The happiest times in my life have not stemmed from things I had, but from things I did. The state championship my senior year of high school. The spontaneous overnight drive with roommates to Florida for a weekend in college. A wild weekend in New York City with my brother and a close friend. Experiences pay dividends far richer than possessions.

So, rather than medicating with shiny toys, my friend resolved to spend his money “having” remarkable experiences with friends. He told me he sat down to write out 30 things he wanted to experience while he was still young and relatively unencumbered by family, mortgage, and age. We made plans to accomplish at least three of them in 2010 together. His list is titled “30 by 30″, and these are the things he wrote down.

1. Travel to Las Vegas and witness a title fight from the good seats.
2. Learn guitar well enough to play cover songs for tips one night in a bar.
3. Ski the back bowls at Vail without falling.
4. Headline the local paper just once, for something positive.
5. Get lost for a summer weekend in the Rockies with only a tent, sleeping bag and camping stove.
6. Chop down a tree for firewood.
7. Soak up the tropical weather and several mojitos in Miami.
8. Learn mixed martial arts.
9. See the Sox play at Fenway, curse at visiting team with local Bostonians.
10. Travel through Europe for several weeks without a defined itinerary.
11. Become “first name basis” friendly with a celebrity I admire.
12. Climb to the peak of a mountain tall enough to be an accomplishment (more than a day hike).
13. Attend a Hollywood party – with an invitation.
14. Pick up a girl who is way out of my league.
15. Rent a Ferrari and drive the Northern California coast.
16. Learn to snowboard.
17. Live like a king for a week in Buenos Aires.
18. Become a recognized expert in a topic of my choosing, however narrow.
19. Grow a real, outdoorsman-caliber beard.
20. Sail for a week in the Bahamas, on a rented boat, without a guide.
21. Become a good enough sailor to achieve #20.
22. Attend a party at a rooftop bar with a view in New York City.
23. Climb to the top of the Eiffel Tower.
24. Experience the neon and culture shock in Tokyo.
25. Become a regular at a local bar. Enjoy free drinks.
26. Beat one of the old men in the park at chess.

See the following bands live, from up close:

27. Billy Joel.
28. Journey.
29. John Mayer.
30. The Goo Goo Dolls.

An ambitious list for sure, and one that will probably not end up fully marked off by his 30th birthday. However, if even half of the items do get accomplished, they should provide some excellent fodder for reminiscing next time we share a pint at Christmas. To those following along at home – what things would you put on your “30 by 30″ list? If you’re over 30, what are some things you still want to experience before retirement (i.e. – things you don’t want to put off)?

Also, if this is a topic that interests you, make sure to read Paul Graham’s essay “Stuff” which discusses the “over-stuffing” of America. Take the money you would spend on “stuff” and spend it on something that’s actually going to increase your happiness level – life experience.

New Beginnings at Hosting.com

This post is slightly overdue since most that know me have already heard the news, but several months ago I left investment banking and joined Hosting.com as Integration Project Manager. In my new role I’ll be focusing on the integration of acquired companies, as well as internal strategic projects as needed between acquisitions.

I went into finance after college because I recognized that while I had some hands-on entrepreneurial experience building a startup company, I still had a lot of learning to do when it came to the way larger established companies were run, financed, and sold. If I wanted to grow into a successful investor or to repeat my entrepreneurial success on a larger scale, I needed develop my financial skills and experience a variety of industries and companies. I got all of this experience and more during my time working with the many bright people at Edgeview Partners. Having a ringside seat next to our partners and clients gave me a great appreciation for all the considerations and work that go into corporate finance and dealmaking. In addition to intense hands on financial experience I got, the many late nights hardened and groomed a messy college senior into a stronger, more polished young adult.

However, in time, I realized that I really missed being around technology every day and working with a team to grow a business. Additionally, many of the most talented entrepreneurs and investors I’ve met and spoken with are also great operators, and I knew that I still had a lot to learn in that regard. I wanted to get back to growing a company. Last year’s turmoil and uncertainty in the financial industry provided the final push that I needed to break out of my routine, take some risks, and seek out something new. I connected with a long-time family friend who was able to point me to what would turn out to be the perfect combination of all the things I was looking for – Hosting.com in Denver, Colorado.

When I arrived in Denver to interview, I spent the entire cab ride from the airport to Hosting.com headquarters with my face pressed against the back window – the snow-capped Rockies, brown high plains, and expansive western sky were an arresting contrast to the rolling green hills of Charlotte. I met with several executives, and after a few hours discussing the job, my qualifications, and the quarterback woes of the Buffalo Bills, I knew Hosting.com was a place I could come to make a difference, gain some hands on experience in a growing company with great people, and (maybe most importantly) to get excited about work everyday.

Today, I’ve been here for just over three months, and each day has been interesting and educational. Hosting.com has been a great fit for me because it provides an opportunity to combine the financial and deal-related skills I learned in investment banking with my entrepreneurial drive and interest in technology. It’s also been extremely refreshing to “get on the bandwagon” after so much transactional work and actually focus on the long term success of the company. Everything I’m working on is directly focused on scaling our business, improving efficiency, or serving customers – it’s great to be able to get involved on an operational level. Being on the inside of a world-class datacenter/hosting company has given me a new appreciation for the massive network infrastructure that runs our modern internet. It’s also exciting to be on the cutting edge of much of the cloud computing architecture that will run the internet of tomorrow.

All in all, it’s been a great move for me, and I’m very glad to be back in the technology industry and back in a hands-on role. Wearing jeans to work isn’t too bad either.

PS – I’ve also made a commitment to update this blog more frequently in 2010 now that I’ve got a little bit more time available to write. You’ll still see plenty of posts in the “Finance and Economics” category, but also expect some more fleshed out content under “Technology” as I try to write more about cloud computing, applications, and internet infrastructure in general.

On Chrysler, Private Equity and Bailouts

The auto industry’s recent troubles have shoved normally secretive private equity firm Cerberus Capital into the spotlight, as its portfolio company, Chrysler, heads to Washington to ask for a bailout. Much has been written decrying Chrysler’s audacity, claiming Chrysler is less deserving than Ford or GM because it is privately held, or with headlines like “If Cerberus will not invest further in Chrysler, why should the taxpayers?”

I strongly disagree with this argument, and the general one that just because Chrysler is not public, it is less deserving of a bailout than Ford and GM. You may be surprised at the actual ownership of Ford and GM – the majority of their shares are held by investment houses similar to Cerberus.71% of Ford’s outstanding equity is institutionally owned, and in addition, 40% of its voting rights are controlled by the Ford family. GM is 78% institutionally owned.

Also, why is the public not aghast that Ford and GM cannot raise additional equity from their existing shareholders? If Ford and GM cannot float additional equity on the public market, why should the taxpayer invest? The answer is that none of the Big 3 can raise additional equity because their market cost of capital is astronomical. This is why the government has to step in – neither the private nor public markets are willing to make any sort of further bet on these companies.

In addition, Cerberus has agreed to forfeit any profit it may make on its Chrysler investment if it receives government money. Ford and GM’s public shareholders have clearly made no such promise.

To be clear – I am in no way in favor of a bailout for any of the Big 3. These are sick companies, and they need to die. However, discriminating against Chrysler because they are privately held is really inappropriate.

The Magic of Facebook Ads

I had an amazing experience tonight on Facebook that I thought I would share.

Barack Obama is coming to Wake Forest tomorrow. Limited tickets were available for free on a first come, first serve basis to the student body. Unfortunately, I wasn’t quick enough, and didn’t get a ticket, and neither did my two roommates. After four years at Wake, I’ve missed the chance to see a number of big name political speakers, and I wanted to make sure I got to see at least one before graduation.

I tried emailing my fraternity’s listserv to see if anyone had any extra tickets they weren’t using – no luck. I emailed the president of the campus College Democrats – no tickets left, the event is sold out. However, I was determined to get a ticket, so I turned to the best medium I knew to contact as many college students as possible – Facebook.

At 11pm tonight, approximately 10 hours before the doors were scheduled to open for Obama’s speech, I created a Facebook ad offering $25 to anyone with extra tickets. I was easily able to target it to all students at Wake Forest (though I could have customized it further – by interests, class year, major, and many other criteria). I chose to pay per click, and set a maximum budget of $5. After I pressed “Create my ad”, it was a matter of minutes before Facebook had shown my ad over 6,000 times. Within the hour, I received messages from 4 separate people offering to sell me their tickets. The entire thing cost me $4.97 – that’s only about 8/100ths of a cent per impression. (As a side note – this is incredibly low as far as online advertising goes – a problem for Facebook that has been mentioned before as one of their biggest weaknesses)

Tomorrow morning both of my roommates and I will see Barack Obama speak in a sold out coliseum that I didn’t even have tickets to until less than 10 hours before the event.

Now that’s the power of the internet and social networks – and it’s those kinds of results and precise targeting that make Facebook worth $15 billion (though I do think that’s a bit high, considering their monetization difficulties).