Investing in High Variance Persons

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Investing in individuals with high variance can be approached like purchasing a call option on their potential, rather than direct equity exposure. This strategy allows for capturing the upside while limiting downside risk to the opportunity cost. The concept was applied to owning shares of Chamath's SPAC as a cheap call option, providing the flexibility to redeem for cash if dissatisfied with a deal or keep the stock to benefit from the upside.

This week, Byrne Hobart and Erik Torenberg discuss a lesser-known Chamath Palihapitiya story, the index rebalancing trade as a postmodern part of finance, AI labs, crypto, and more. beehiiv: Head to https://beehiiv.com and use code "MOZ" for 20% off your first three months.

Byrne Hobart is hiring an associate! Check out the JD here: https://www.thediff.co/jobs/

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TIMESTAMPS:

(00:00:00) About the Show

(00:00:20) Chamath, IAC, and Tinder

(00:16:20) Sponsors: Babbel | Beehiiv

(00:18:54) Chamath continued

(00:18:54) Twitter, Threads

(00:22:40) Twitter, Twitch

(00:24:12) Twitter, API

(00:28:37) Meme coins