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One of the best startup posts I've read yet - big kudos to @yegg, he's the man. Thinking that you're going to win by just playing one or two hands is dumb. I a
by sayemm 16y ago
One of the best startup posts I've read yet - big kudos to @yegg, he's the man.
Thinking that you're going to win by just playing one or two hands is dumb. I also don't like the view that entrepreneurs do it because their personality naturally gravitates towards risk, that's just not smart business.
Only way to win is to take advantage of high EV moments in life, but to also maintain a long-term view and mitigate risk along the way so you can keep playing the game for as long as possible - survival goes before anything else.
Max Levchin failed 4x before he hit it with PayPal. No one becomes a great entrepreneur overnight.
- ruang 16y agoUsing investment as an analogy, this is like a barbell strategy. Put most of your portfolio into bonds and put 10% into pure speculation like out-of-the money options.
- sayemm 16y agoNo, it's not. It's more like the Kelly strategy: http://en.wikipedia.org/wiki/Kelly_criterion http://en.wikipedia.org/wiki/Kelly_criterion Be ready to seize opportune times, but never risk disaster. The world's greatest entrepreneurs and investors didn't get to where they are today with diversification strategies. They did it by concentrating the bets they made in life.