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True, but conversely, one standout that does well could alone hit the target. If you believe that the successful companies follow a power law distribution, you'
by projectramo 10y ago
True, but conversely, one standout that does well could alone hit the target. If you believe that the successful companies follow a power law distribution, you'd expect something like that.
- vkou 10y agoThat would be the case if valuations were independent of each-other (Which is a bit of a stretch even in a truly efficient market, like the NYSE.) On the other hand if, say, AirBnB and Palantir have a dismal IPO in 2018, that will likely bring valuations down across the board.