Sublime
An inspiration engine for ideas
if i had to summarize great investing in a single word, it would be “asymmetry.”
seek opportunities where the possibility of gains wildly outweighs what you can lose, which is typically capped at 1x your investment.
you’re not playing for a 1.5x or 2.0x outcome, you could be playing for a 10x, 20x, or even 100x outcome.
competition drives valuation.
Scott Kupor • Secrets of Sand Hill Road
The amount of equity is calculated by taking the difference between market and cash ($300,000 – $120,000 = $180,000) and multiplying it by four years ($180,000 × 4 = $720,000). This amount is then divided by a factor somewhere between 1 and 2, which represents a very conservative estimate of the increase in value of the equity over four years. A
... See moreAlex MacCaw • The Great CEO Within: The Tactical Guide to Company Building
Strategy Capital S
Joe Maceda • 7 cards
So: what we're looking for is trades that offer large, unlimited upside with small, fixed costs.
Richard Meadows • Optionality: How to Survive and Thrive in a Volatile World
desire to maintain a diversified portfolio, venture capital is intended to produce what investment managers refer to as alpha—excess returns relative to a specific market index.
Scott Kupor • Secrets of Sand Hill Road
Lowe’s had a financial leverage ratio of 2.1, meaning that for every dollar in equity, the firm had $2.10 in total assets. (It borrowed the other $1.10.) A financial leverage ratio of 2.1 is fairly conservative, even for a fast-growing retailer.