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"The Riff" with Byrne Hobart and Erik Torenberg cover image

E34: Chamath & Tinder, Threads API, and the Difficulties of Scaling AI Labs

"The Riff" with Byrne Hobart and Erik Torenberg

NOTE

Investing in High Variance Persons

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.

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