Dear recruiters:
If you call me offering candidates, please tell me how many national merit scholars you have immediate access to.
Thank you,
Your neighborhood engineer
i've been ruminating on this problem of talent misallocation for 15 or so years.
my first job company was going through a long acquisition and looking for the next gig i had a thought i still haven't been able to leave behind:
"in high school, I was a national merit finalist. there were ~ 2000 others nationally, of the roughly 2m high school kids per year, we already know who the top 0.1% are by a mostly fair standard test. how come no one follows up with those people?"
We have computers and websites like linkedin, these lists are not difficult at all to get and then to use the lightspeed communications device to find people.
my raw horsepower is down from 2006 but not by more than 50%, so i bet we can pick up a ton of misspriced people with low effort who are about my age. and their experience will help offset the decline in cognition.
all in it will probably cost $5 - 10k pp to find/develop guys that will be worth $1m+. Seems like a positive trade. $10m to find like 20 guys who would really be about it, and that's a 2% success rate (🤣).
i have like a dozen of these $10m - $100m social impact businesses, they all pencil but below the WACC so they are type b businesses.