Invest Like The Best
Episode 419 Finding Future S&P 500 Companies
Invest Like The Best

Episode 419: Finding Future S&P 500 Companies

Invest Like The Best

Episode 419

Finding Future S&P 500 Companies

Neil Mehta is the founder of Greenoaks Capital. We cover his favorite stories from being a long-term investment partner to companies like Coupang and Carvana, why he looks for founders with maniacal focus and ambition who are building jaw-dropping customer experiences, and the mechanics behind successful investing partnerships.

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Show Notes:

(00:00:00) Introduction and Show Overview

(00:00:56) Guest Introduction: Neil Mehta

(00:02:37) Neil's Background and Early Influences

(00:06:22) Green Oaks Capital: Investment Philosophy

(00:08:26) Case Study: Coupang

(00:13:21) Focus and Ambition in Founders

(00:19:12) Greenoaks' Unique Approach

(00:34:53) Challenges and Learnings at Greenoaks

(00:35:35) Memories of Early Days and Key Investors

(00:37:10) The Green Oaks Pitch and Investment Philosophy

(00:39:34) Early Career and Lessons from Hong Kong

(00:43:30) The Partnership with Benny

(00:46:32) Investment Strategies and AI Insights

(00:49:10) Navigating Competition in Venture Capital

(00:57:51) High Conviction Investments: Case Studies

(01:05:27) Investment Strategy and Company Turnaround

(01:06:03) Dinner with the CEO: A Personal Insight

(01:07:43) Fundraising and Investment Philosophy

(01:09:33) Exploring Alternative Capital Structures

(01:11:51) Adventures in Emerging Markets

(01:17:38) Reflections on Success and Criticism

(01:24:50) Philanthropy and Community Impact

(01:30:49) Final Thoughts and Personal Anecdotes

Finding Future S&P 500 Companies

Introduction

Patrick
Today is a special episode. My guest is Neil Mehta, founder of Greenoaks Capital. In 2012, aged 27, Neil left D.E. Shaw to start Greenoaks with his friend Benny Peretz. One of their first investments was in Coupang, a South Korean e-commerce company led by founder Bom Kim. Neil was so convinced of Coupang's potential that he invested 40% of their initial $50 million fund into the company—a bet that eventually returned about $8 billion.

Over its first 13 years, Greenoaks has backed legendary companies like Figma, Wiz, Carvana, Stripe, Discord, Rippling, and Toast—generating over $13 billion in gross profits with a 33% net IRR. Henry Kravis, one of Neil's early investors, describes him as "extremely disciplined" with "exceptional timing" who has "gone against the tide many times."

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