"Investors looked at Yahoo's earnings and said to themselves, here is proof that Internet companies can make money. So they invested in new startups that promised to be the next Yahoo. And as soon as these startups got the money, what did they do with it? Buy millions of dollars worth of advertising on Yahoo to promote their brand. Result: a capital investment in a startup this quarter shows up as Yahoo earnings next quarter-- stimulating another round of investments in startups."

"Build it, and they will come. Make something great and put it online. That is a big change from the recipe for winning in the past century."

"There is a huge standard deviation among 26 year olds. Some are fit only for entry level jobs, but others are ready to rule the world if they can find someone to handle the paperwork for them."

"A company that made programmers wear suits would have something deeply wrong with it."

"I found that when I was at Yahoo, I couldn't help thinking, "how will this sound to investors?" when I should have been thinking "is this a good idea?""

"We were open with investors about that from the start. And we were careful to create something that could slot easily into a larger company. That is the pattern for the future."

"As Fred Brooks pointed out, small groups are intrinsically more productive, because the internal friction in a group grows as the square of its size."

My addition here would be that CraigList has only 21 employees.

Paul Graham on "What the Bubble got right"