Principal-Agent Problem: Act Like an Owner

Naval

• Episode: Principal-Agent Problem: Act Like an Owner
• Website: Naval
• Feed URL: https://naval.libsyn.com/rss
• Duration: 00:06:42
• Published: 2019-07-08 20:13

If you think and act like an owner, it’s only a matter of time until you become an owner.

• A principal is an owner; an agent is an employee 0:00

• A principal’s incentives are different than an agent’s incentives 1:08

• If you can work on incentives, don't work on anything else 2:15

• When you do deals, it’s better to have the same incentives 3:15

• If you’re an employee, your most important job is to think like a principal 4:05

• Deal with small firms to avoid the principal-agent problem 5:29

Transcript: http://nav.al/principal-agent