Thread by @trengriffin

Marc Andreessen describes the approach of a venture capitalist as “buying a portfolio of long–dated, deeply–out-of-the-money call options.”

Munger: "What we want are the favorable odds. We figure the volatility over time will take care of itself."

"You may consciously purchase a risky investment if you believe your gain, weighted for probabilities, considerably exceeds your loss, comparably weighted, and if you can commit to a number of similar, but unrelated opportunities. Most venture capitalists employ this strategy" WB

Jobs “Stay hungry, stay foolish" probably meant “Be crazy but retain the rationality of choosing the upper bound when you see it. Any trial and error can be seen as the expression of an option, so long as one is capable of identifying a favorable result and exploiting it." Taleb