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Warren Wednesday 3/22

In the 1982 Berkshire Hathaway shareholder letter, Warren Buffett wrote:

“Once management shows itself insensitive to the interest of owners, shareholders will suffer a long time from the price/value ratio afforded their stock.”

When looking into a web3 project consider what you know about the founders. The most credible builders in web3 are doxxed. This means that the public knows who you are, what you look like and what you stand for. Many leverage their profile picture (PFP) as a means of digital identity and a way to stand in solidarity with their project or community.

However, when it comes to investing, the ability to identify a particular founder or team is critical. Let me be clear, if you are interested in investing in a web3 project and the founder slide looks like this…

…please consider looking for other options.

Buffett picked winning businesses by picking winning management. He invested in the founders and teams managing those companies. Although this observation is forty years old, we should remain emphatic in aligning investments with talented founders.

Indeed, getting these details is easier than ever before today. Leverage social platforms like Twitter and Discord to get a clear picture of the team leading a project. This allows you to protect your hard-earned investment dollars.

Bonus points if you can find and connect with them on LinkedIn to know if the founders are credible.

Our friends @NFTEthics bring up some valid points to consider as well…


Be sure to analyze what these founders are saying outside of their project. Look at how they view risk and value the community. If they spend time on the road speaking at conferences or grinding in Twitter spaces, it’s likely that they are legitimate players looking to advance the ecosystem; not rug the project.

As popular platforms and projects emerge, founders are compelled by their communities to dox themselves as a way to instill trust in the trustless environment of web3. The founders behind the Blur NFT marketplace, DeGods and y00ts NFT collections are great examples.

If you can’t find substantial positive info, pass. If they are unwilling to show themselves, pass on the opportunity.

management matters, pick winning teams and projects in web3

A quick disclaimer…just because you CAN identify who leads the project does NOT automatically mean it will be a success. Knowing the identities of Sam Bankman-Fried or the executives at Silicon Valley Bank didn’t prevent disaster.

Remember, you can do all the research and due diligence in the world. Unfortunately, nothing can protect your investment from outright fraud, malfeasance, or poor business decisions by company management. Consider what you know about the founders.Get as much information as you can and it will best position you for success.

If you found this post interesting give us a follow and stay tuned for more Warren Wednesdays featuring excerpts from our book, Warren Buffett in a Web3 World.

We took over 1,000 pages of wisdom from the Oracle of Omaha and condensed it into a snackable, easy-to-read investment guide to help you on your journey to grow wealth in the web3 space!