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“Show me the incentive and I will show you the outcome.” — Charlie Munger He has evidence of excessive risk taking (Tiger Global's returns), and an incentive
by kolbe 4y ago
“Show me the incentive and I will show you the outcome.”
— Charlie Munger
He has evidence of excessive risk taking (Tiger Global's returns), and an incentive structure that makes it logical for them to behave this way. That alone isn't "baseless." Also, it's Tiger Global, not Tiger Direct.
- cmeacham98 4y ago> He has evidence of excessive risk taking (Tiger Global's returns) Loss does not prove excessive risk, even excessive loss. There is always a risk of loss in any investment. Whether this was 99% going to happen, or Tiger Direct was very safe and this is a 1/10000 case of bad luck cannot be determined by looking at the amount lost.
- robocat 4y ago> He has evidence of excessive risk taking (Tiger Global's returns), and an incentive structure How are Tiger Global’s incentives different from any other VC? Even the majority of hedge funds have a 2+20 structure with similar incentives.