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While that philosophy is valid (especially as the higher expected value also obviously comes with higher variance), if you are an investor who invests in dozens
by meterplech 16y ago
While that philosophy is valid (especially as the higher expected value also obviously comes with higher variance), if you are an investor who invests in dozens of companies over years it seems like an argument worth considering. Obviously though, these events get more media coverage, blog attention etc... than the ones that fail.
- secretasiandan 16y agoI would disagree strongly. Perhaps we have different meanings of the term miniscule. Do you still include it if its on the order of 1E-6? Lets say you have interest 100 companies over 30 years, which is pretty hard to do anyways. What percentile event is it that you get a piece of a 1E-6 event in one of your companies? Pretty low. My thought is that you don't increase your wealth meaningfully and especially don't feed your family with lottery tickets. And that is the exact example I brought up.