AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
1min snip
#7 – Michael Mauboussin: The Fascinating World of Increasing Returns
Scaling Theory
Investing: Focus on Returns, Not Accuracy
In investment strategy, the emphasis should not be on the frequency of making correct predictions but rather on the disparity between gains from successful investments and losses from unsuccessful ones. Achieving a success rate above 50% can be misleading, as it overlooks the critical factor of the magnitude of profits compared to losses. This principle is particularly relevant in venture capital, where potential returns from a few successful investments can outweigh the losses from others, highlighting the importance of carefully assessing risk and reward.
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode