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Because everyone should have the exact same risk tolerance as you. And if they don't, they're wrong. There's no two ways about it.
by harryh 11y ago
Because everyone should have the exact same risk tolerance as you. And if they don't, they're wrong. There's no two ways about it.
- seansmccullough 11y agoBoth the odds and rewards are much smaller than most people assume. You can take all the risks you want - if the rewards don't justify it, it's a bad deal.
- harryh 11y agoI agree with you that some people probably overestimate those two things. But I also think that other people tend to lump all startups together with the assumption that the risk is more or less the same across all of them. In reality risk/reward ratio certainly varies by at least 10x across opportunities. Consider the difference between a seed stage company with no users and a product that doesn't even work yet vs a Series B company with significant traction and 10s of millions in the bank. These can be hugely different situations. But, even if you ignore this, I come back to the concept of risk tolerance. No matter what #s you choose, there are certainly people out there who by dint of personality, age, or financial situation are perfectly willing to take on a lot of risk.