Re:DHH: Are you sure you want to be in San Francisco?
by gojomo on Tuesday April 22, 2008 @05:17PM
(#170989)
Much of the "go big with other people's money" culture is by design.
People are naturally risk-averse -- moreso than pools of capital would prefer. Capital wants to maximize expected return, and will smooth out the variance by diversification, rather than trading away raw expected return for stability.
People are naturally risk-averse -- moreso than pools of capital would prefer. Capital wants to maximize expected return, and will smooth out the variance by diversification, rather than trading away raw expected return for stability.