3 ms·
"New companies" versus "companies that go IPO" are completely different categories. It's an obvious point when you think about it. This is survivorship bias: m
by daguar 14y ago
"New companies" versus "companies that go IPO" are completely different categories.
It's an obvious point when you think about it. This is survivorship bias: many new companies fail (with a return of ~zero) before becoming a part of the IPO sample.
- hessenwolf 14y agoYes, but a Pareto distribution looks just the same if you left censor it at some point.