Motley Fool Money Finding “Home Run” Investments
10 snips
May 26, 2024 Ilya Strebulaev, a Professor of Private Equity at Stanford, and Alex Dang, a tech executive with experience at Amazon, delve into investment strategies that emphasize the value of striking out to achieve big wins. They discuss the concept of an 'anti-portfolio' and the importance of outside perspectives for investors. Engaging examples like a piggy bank auction illustrate the excitement and risks in bidding dynamics. They also explore how leading companies innovate through external collaboration, showcasing lessons vital for stock investors.
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Venture Capital Home Runs
- Venture capitalists prioritize home runs because most investments fail.
- A few big wins cover losses and generate substantial returns.
Missed Opportunity - Google
- A billionaire VC shared his biggest regret: missing out on Google.
- He declined to meet the founders, illustrating the importance of considering all opportunities.
Due Diligence vs. Spray and Pray
- Venture capitalists prioritize in-depth due diligence over a spray-and-pray approach. This allows for meaningful follow-on investments in successful ventures.
