4 ms·
there are two sets of percentages in the article, they just happen to be the same. 50% ownership in a company with a 50% chance of making $1 million, versus 2
by sfamiliar 18y ago
there are two sets of percentages in the article, they just happen to be the same. 50% ownership in a company with a 50% chance of making $1 million, versus 20% ownership in a company with a 20% chance of making $20 million.
using the same percentages for both thing is maybe a little confusing, and it's not explained terribly well. the numbers are really immaterial to his point -- going for short money on good odds is better than going for ridiculous money on long odds. keeneland teaches me the same thing every spring and fall at the meets.
- DougBTX 18y agoHe doesn't talk about ownership, those are "expected value" calculations: basically, how much you would expect to make per deal if you did 100+ of these deals.