@2024/11/03 11:37 PM - Hashim Alsharif

In The Credit Investor's Handbook, Michael Gatto introduces the concept of “PHD candidates”—those who are Poor, Hungry, and Driven. These individuals are fueled by a desire to learn, a need to succeed, and an ambition to carve out their own path. Gatto highlights Bob O'Shea’s journey from Security Pacific Bank to Bear Stearns, where he pioneered the bank loan trading market, redefining how banks manage liquidity. By age 24, he joined Goldman Sachs, transforming its loan business and earning partnership at just 29. O'Shea exemplifies the relentless drive of PHD candidates, proving that success often stems not from privilege but from sheer determination.

What Makes PHD Candidates Unique

The defining quality of "PHD candidates" lies in their unique drive. Unlike others, they’re Poor Financially — a tough place to be, but one that fuels their resilience. Their hunger to learn isn’t just a casual curiosity; it’s a necessity born from the need to succeed. These individuals aren’t motivated by a safety net or the comfort of wealthy backgrounds; instead, they’re driven by an urgency to build something substantial. Their ambition stems from a genuine need to create a path forward, fueled by a relentless desire to grow and make it on their own terms.

Why Choose These Over the Credentialed?

It’s a challenging decision, but those who’ve "already made it" rarely have the same momentum or drive as those who are Poor—“the ones who sometimes laugh about their cards getting declined for insufficient funds”—and Hungry for growth. For people who come from nothing, growth isn’t just a goal; it’s an addictive pursuit born out of necessity. Without the luxury of credentials or a comfortable starting point, they have to work ten times harder, willing to push themselves to the limit if they believe it will be rewarding. They can’t fall back on impressive titles or qualifications when the going gets tough—they’re all-in, relying on sheer will and tenacity to get ahead.

The Startup Market and PHD Candidates

The early startup market in Saudi Arabia isn’t typically pioneered by those who are Poor, Hungry, and Driven. Startups here are often seen as a venture for the wealthy; the high costs and substantial risks mean that many PHD candidates simply can’t afford to pursue them. Frankly, I’m bearish on those with easy access to resources driving this space. Startups thrive when led by people who are aggressive out of necessity—not as a choice but because it’s a matter of survival. It’s not a playground for those with rich parents or prestigious degrees they can fall back on while dabbling in a startup as a side project until a “real job” in consulting or investment banking comes along.

Startups need founders who see this path as their only life and who are fully committed to making it work. When I meet people at events who lack that same drive, I’m less inclined to engage; we don’t share the same vision or mission to build and thrive. Saudi needs more aggressive PHD candidates—people who feel like their lives are on the line with every decision, who can’t afford to fail, and who will push relentlessly to move forward.

I believe this mindset is also rooted in a cultural attitude. We grow up with the perception that companies are built by those with wealthy backgrounds, inheriting both capital and connections to continue family legacies. There’s a limited understanding of the true potential of venture capital and how powerful it can be for building transformative businesses.

As for me, I definitely identify as a PHD candidate. I understand the challenges firsthand, but I’m confident that time will reveal what’s possible for those who are Poor, Hungry, and Driven.

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© 2024 Hashim Alsharif