>"that's exactly what you do" No, it isn't what I would do. You might re-balance your portfolio if your capital is limited, but you'd be crazy to sacrifice hi

>"that's exactly what you do" No, it isn't what I would do. You might re-balance your portfolio if your capital is limited, but you'd be crazy to sacrifice high expected returns for the sake of zero beta. Admittedly, my personal portfolio is much smaller than Peter's. >"How much do you bet?" If I were looking to profit from games? A lot. What I wouldn't do is go to a game with worse odds, that paid me for a roll of 6, for the sake of "diversifying", which is essentially what you're implying by saying Thiel sold his stake for this purpose. I would stick to the game with the best odds just like I would stick to the asset with the highest expected return. I other words, if Mr. Thiel truly believed FB was a $100BB company, he'd be a fool to sell off his shares right now. I think this reveals that he doesn't really believe that. Neither do I, so I don't blame him.