Lessons from Martin Shkreli

Martin Shkreli, the controversial entrepreneur and former pharmaceutical executive, has been the source of numerous provocative quotes and "learnings" on business, investing, and life. Often unapologetic and direct, his statements have garnered both intense criticism and a cult following.

On Business and Capitalism

On Profit Maximization: "My shareholders expect me to make the most profit. That's the ugly, dirty truth." [1]
On Drug Pricing: "If you have a drug that is $100 for one course of therapy, and you know that you can charge $100,000, what should shareholders think when you say, 'I'd rather not take the heat'?" [1][2]
The "Aston Martin" Analogy: In defense of raising the price of Daraprim, he said, "If there was a company that was selling an Aston Martin at the price of a bicycle, and we buy that company and we ask to charge Toyota prices, I don't think that should be a crime." [3][4]
On Capitalism: "There's no doubt — I'm a capitalist. I'm trying to create a big drug company, a successful drug company, a profitable drug company. We're trying to flourish." [5]
A "Great Business Decision": When a journalist questioned the 5,000% price hike of Daraprim, Shkreli responded it was "a great business decision that also benefits all of our stakeholders." [5]
Likening Himself to Robber Barons: "I don't mean to be presumptuous, but I liken myself to the robber barons." [1][2]
On Being a "Capitalist": "Everybody's doing it. In capitalism, you try to get the highest price you can for a product." [1]
On Being Irreverent: "Most of the drug CEOs I know, they're not themselves - they're what people want them to be... I'm a little bit more irreverent, and I'm not going to change just because I have this job." [6]
The "Robin Hood" Defense: "I'm like Robin Hood. I'm taking Walmart's money and doing research for diseases no one cares about." [7]
On Entrepreneurial Drive: "I always wanted to start a public company and make a lot of money." [1][2]

On Investing and Finance

On Hedge Funds: Shkreli has explained that modern hedge funds are largely for institutional investors, with high capital requirements that exclude average people. [8]
On Quantitative Investing: He finds quantitative investing "very dry" and prefers investing in sectors he knows deeply, like biotech. [8]
On Trading Discipline: "Trading requires this crazy discipline that I just don't have. I've gotten better at it over the years but it's still not my like forte." [9]
On His Early Hedge Fund: At 23, he started his own hedge fund, which he later called a "big mistake." [9]
On Learning from Trading: "The trading helped me learn... I learned the drug industry so damn well." [9]
On Finding Success: Shkreli's real financial success came from starting drug companies rather than just trading stocks. [9]
On the S&P 500: He has stated that most hedge funds don't beat the S&P 500. [8]
On the Difficulty of Trading: Shkreli has noted how few people can successfully sustain themselves through trading, estimating he knows only about six such individuals well. [10]
On Investment Returns: "Historically even the best investors the real professionals consider 10 to 20% annual returns to be outstanding performance." [11]
Advice for Aspiring Investors: "You should focus on what can you market. If you become the expert in semiconductor stocks, someone will want to hire you." [12]
On Portfolio Strategy: A sample portfolio he discussed was 40% long, 40% short, and 20% cash, emphasizing the importance of being cash-heavy. [13]
On the Importance of the CEO: "The CEO is one of the most important factors, do you trust him to make big profits 10 years from now?" [13]
On Dollar-Cost Averaging: He has advised investors to "Think Again" about simply dollar-cost averaging into index funds. [11]
On ADHD in Investing: "If you have ADHD that's not good in the stock market because you're like a buzzing bee constantly buzzing to the next stock... but you never focus enough to complete that one stock." [12] He also stated, "You're not gonna make it in this business... if a drug company has 35 drugs you got to look at 35 drugs. You can't just look at one and guess on the other 34." [14]
On Starting with No Capital: For those without capital, he suggested ventures like using AI for Kindle Direct Publishing or e-commerce, stating, "You need business income, f--- trading." [15]

On Success, Failure, and Mindset

On Failure: "The key to success is not being afraid of failure. Embrace it and learn from it." [16]
On Excellence: "Never settle for mediocrity. Always strive for excellence in everything you do." [16]
On Humility: "Never let success go to your head. Stay humble and remember where you came from." [16]
On Hard Work: "Success is not about luck, it's about hard work and determination." [16]
On Doubt: "People will always doubt you until you prove them wrong. Use that doubt as fuel to propel yourself forward." [16]
On Self-Sacrifice: "My whole life has been one theme of self-sacrifice for my investors." [1][2]
On Obsession: To succeed, he suggests a period of being "possessed and obsessed" with your goals. [17]
Beyond Wealth: "Just because you're rich, doesn't mean you're respected or should be respected or you're a good person." [17]
On Risk-Taking: "Innovation requires risk-taking. You can't be afraid to fail." [16]
On Vision: "Compromise will only hold you back from achieving greatness. Stay true to your vision." [16]

On His Persona and Controversies

On His Public Image: "I may be misunderstood, but I know I'm making a difference." [16]
Self-Proclaimed Genius: "You have to understand, I'm more than just a CEO. I am a genius, a polymath, and a visionary." [16]
On Public Perception: "Invariably, when people read the headline about Martin Shkreli, they hate Martin Shkreli. When they get to know Martin Shkreli, they love Martin Shkreli." [1]
Threat to Ghostface Killah: In a video, he threatened Wu-Tang Clan member Ghostface Killah, demanding a written apology. [18]
On His Arrest: He claimed he was targeted by law enforcement "for his price hikes of the drug Daraprim and his flamboyant personality." [4]
On Testifying Before Congress: Shkreli invoked his Fifth Amendment right while smirking at lawmakers, leading to rebukes from representatives. [3]
On His Conviction: During his sentencing, a tearful Shkreli stated, "The only person to blame for me being here today is me. I took down Martin Shkreli." [3]
On Politics: "Politics are well past logic. It's entertainment." [1]
On Donald Trump: "I think Trump's going to make pharma great again. He's coming from the business world, so he understands there has to be a profit." [18]
On Bernie Sanders: After Sanders rejected his campaign donation, Shkreli tweeted his anger. [18]

Miscellaneous

On the Wu-Tang Clan Album: After purchasing the one-of-a-kind album for $2 million, he called it a "wonderful investment." [1]
On His Upbringing: "My parents were immigrants and janitors." [1]
On Personal Habits: "I did sleep on the floor of my office sometimes. I didn't brush my teeth as often as I should have." [1][2]
On Money as a Tool: "Money is just a tool. It's how you use it that makes all the difference." [16]
On Curing Diseases: "I want to cure many diseases and save children's lives." [1]

Learn more:

Lessons from Martin Shkreli

On Business and Capitalism

On Investing and Finance

On Success, Failure, and Mindset

On His Persona and Controversies

Miscellaneous

Written by Antoine Buteau

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