Motley Fool Money
Finding “Home Run” Investments
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.
37:16
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Quick takeaways
- Venture capitalists prioritize A-list teams over ideas for successful investments.
- Established companies innovate by sourcing ideas externally to remain competitive in evolving industries.
Deep dives
Winners Curse in Investing
In venture capital and stock market investing, the threat of the winner's curse looms large. Investors often overestimate the fruits of victory, leading to disappointment. Venture capitalists aim for home runs with 100X returns, with most investments resulting in failure. The focus is on increasing the odds of hitting home runs to offset losses.
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