4 ms·
this part is relevant to startups: (see figure 7) "A biotech company (usually) faces positive uncertainty, a bank faces almost exclusively negative shocks. I c
by hs 18y ago
this part is relevant to startups: (see figure 7)
"A biotech company (usually) faces positive uncertainty, a bank faces almost exclusively negative shocks. I call that in my new project "concave" or "convex" to model error."
concave to model error: Bank, Short volatility, security
convex to model error: Long options, biotech, technology, entrepreneurship, etc
- mooneater 18y agoI find his ideas fascinating. I also wish he had a much better editor, with good grammar. So I guess he is saying startups have a small but real chance of massive success. True, maybe obvious, but still music to my ears!