THE FLYWHEEL OF SUCCESS If you are investing in…

THE FLYWHEEL OF SUCCESS If you are investing in a strategy where you expect to lose nine out of ten times, you need a few things to be successful 1. Deep Pockets-Diversifying across lots of different companies re-quires very deep pockets. Individual investors who bet on their brother-in-law's tech startup have horrific odds compared to the professionals who allocate their portfolio across numerous companies. 2. Longevity-The most successful venture firms have numerous vehicles and launch new funds every two to four years (as a new vintage). This gives them diversification across market cycles. Spreading their investments out over time also improves the odds of one of their funds containing the next Facebook, SpaceX, or Salesforce. 3. Deal Flow Startup entrepreneurs inevitably aim to secure in-vestments from the best venture capital firms, who can provide invaluable wisdom and guidance in addition to funding.

— from The Flight Plan (Purpose/Wisdom/Risk) · Holy Grail of Investing: The World's Greatest Investors Reveal Their Ultimate Strategies f

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