Welcome back to the Deal Camp Channel! In this fifth and final video of the series, we are talking about a powerful strategy for learning about an industry you don't know and investing safely: the 100 Breakfasts, Lunches, and Dinners (100 BLDs).
How Does the 100 BLDs Strategy Work?
The 100 BLDs strategy is a simple process that can be incredibly effective. To illustrate, I'm going to tell you a story about Jeff Sandefer, a former Wildcatter Oil Man and one of my teachers from the Acton MBA program.
In the early 1980s, Jeff Sandefer was finishing up his Harvard MBA and decided to interview 100 of the best people in the world who were experts in the oil and gas industry. Through this process, he identified an opportunity to drill for oil in the Gulf of Mexico. He then used this report as a calling card to investors and secured the capital to hire a team of oil and gas engineers who had taken early retirement due to the crash in the oil field.
Jeff and his team were able to identify major leases in the Gulf of Mexico and drill for oil. It was a huge success and, within a few years, he sold the company for over 400 million dollars.
The Power of the 100 BLDs Strategy
The power of the 100 BLDs strategy is that it gives you a calling card, network, and access to the people and capital you need to get something done. It also gives you the opportunity to add value to the people you are talking to, such as offering them a free copy of the report you create.
When using the 100 BLDs strategy, it is important to have an end goal in mind. Jeff knew he wanted to be in the oil and gas industry, and he was able to identify the opportunity and capitalize on it. You need to do something similar: camp out on an industry, pick people who are embedded there, and figure out how to learn from them and add value.
The 100 BLDs strategy is a powerful way to learn about an industry you don't know and invest safely. By camping out on an industry, picking people who are embedded there, and adding value, you can develop an expertise and pattern recognition that will give you an advantage in the market. Coupled with a partner or Management in Place, this strategy can be incredibly effective.