3 ms·
once YC is public, mutual funds could buy it and then we could invest in those mutual funds to really diversify our exposure.
by anon808 14y ago
once YC is public, mutual funds could buy it and then we could invest in those mutual funds to really diversify our exposure.
- mkramlich 14y agoTaking this to the logical extreme: in the "YC goes public" scenario, go ahead and just invest in a truly market-wide index fund. The problem with this direction is that as you diversify away your exposure to downside, you also diversify away your exposure to upside. Because you get a smaller slice of YC's returns/growth and a larger slice of a bunch of other, presumably worse performing, businesses.