Tren Griffin+ Your Authors @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Apr. 09, 2020 1 min read + Your Authors

"[Avoid] companies that have negative optionality.”

(1) focused on a niche market, (2) employees with limited technical skills, (3) raised too much money at an inflated early valuation or (4) are highly leveraged,

are examples of negative optionality.  https://www.google.com/amp/s/25iq.com/2013/10/13/a-dozen-things-ive-learned-from-nassim-taleb-about-optionalityinvesting/amp/ 

"Financial options may be expensive because people know they are options and someone is selling them and charging a price—but most interesting options are free, or at the worst, cheap.”

"Make sure the optionality is not priced by the market.”

"The edge from optionality is in the larger payoff when you are right, which makes it unnecessary to be right too often.” NNT

 https://www.bloomberg.com/news/articles/2020-04-08/taleb-advised-universa-tail-risk-fund-returned-3-600-in-march 


You can follow @trengriffin.



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