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Most companies are destined to fail. If you invest $1.75 billion logically, you invest $1m in 10 companies, then after a year take the best-performing of those
by ponker 6y ago
Most companies are destined to fail. If you invest $1.75 billion logically, you invest $1m in 10 companies, then after a year take the best-performing of those and invest another $5m in each, take the next three and invest $1m more to give them another year, and let the bottom three fail. A year later you see if any of the middle three have done well, put $5m into those, and $50m into the top performers of the A-list batch. In doing so you will find yourself investing more money in the stronger-performing companies and overall you are unlikely to lose massive amounts of money (you will only be investing hundreds of millions of dollars in companies that are already very successful, so even if they don't achieve what you wanted them to, you will at least be able to recover some of your investment).
Or, you can just go and bet $1.75b on rolling a six and sit there scratching your head when it doesn't work out.