The Answer That Made Michael Milken Say No to an Investment

The transcript discusses the decision-making process in financing businesses, highlighting a specific case involving an oil drilling company. The speaker emphasizes the importance of understanding business techniques and not hesitating to ask questions. A particular drilling technique called 'Close Alaji' is explained, which involves drilling close to where others have drilled, without any geological basis. The decision was made not to finance this company due to the lack of a sound technique.

What does the speaker suggest about ideas that were not financed?

• They sometimes succeed.

• They are always successful.

• They always fail.

• They are never worth considering.

What was the focus of the presentation mentioned by the speaker?

• A new technology startup.

• An oil drilling and exploration business.

• A real estate investment.

• A renewable energy project.

What technique did the company use in their drilling process?

• Close alaji.

• Advanced geological analysis.

• Seismic testing.

• Hydraulic fracturing.

Why did the speaker decide not to finance the company?

• The company had no data.

• The drilling technique lacked scientific basis.

• The market was too competitive.

• The company was too expensive.

What lesson does the speaker highlight about understanding concepts?

• It's better to pretend you understand.

• Always ask questions if you don't understand.

• Rely on others to explain later.

• Avoid asking questions to save time.