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55 | Chris Schelling | The Psychology of Investing

The Greatness Machine

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The Importance of Allocation in Investing

The idea of allocation by vintage is similar to dollar cost averaging in the public markets. You're buying more when it's cheaper over a whole period, not just one year. In private equity, your businesses are always sold and you've got to continually redeploy that money. So how fast do you get capital deployed determines how fast you should deploy it.

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