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A comment on Well, We Failed – Wattage is shutting down. Parent comment

Re:Well, We Failed – Wattage is shutting down by patmcc on Tuesday May 05, 2015 @08:03PM (#9495804)
An investor should be willing to make a "10% chance for a 100X return" type investment, but no, I wouldn't usually suggest that to my friends and family unless the amount of money was not significant to them. I don't think that's a red flag; investors have different risk tolerances for good reasons.
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Re:Well, We Failed – Wattage is shutting down by beambot on Wednesday May 06, 2015 @03:24AM (#9497049)
What you describe is a basic application of the Kelly Criterion: https://en.wikipedia.org/wiki/Kelly_criterion

It helps you determine how much of your bankroll you can wager depending on (1) the odds, and (2) the size of your bankroll. It's the same reason why you shouldn't (mathematically) play the lottery (when it's expected value is actually positive) unless you're already filthy rich. The same math applies for hyper-risky startup investing.

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