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So what you're saying is that if you take all of the successful companies out of an investor's portfolio, that portfolio will have a lower value.
by il 13y ago
So what you're saying is that if you take all of the successful companies out of an investor's portfolio, that portfolio will have a lower value.
- waterside81 13y agoWell I think more precisely, he's implying if you take out the few heavy hitters, then the value drops precipitously.
- ibdknox 13y agoOr stated even more precisely, the mean and median are very different :)
- guiambros 13y agoNo, he/she is saying that "average" is a poor metric to represent the totality of the samples. This is particularly true when you have such a high standard deviation. By eliminating some of the biggest outliers, you're reducing the standard deviation, thus making the average metric more representative. You'd also have to disregard the companies with very low or no value, but it seems this was already done in PG's original statement: "Of the 285 _that have_ valuations..."