Using finance analogies for decision-making:
For example, if you go to law school and get a job at a large law firm, you're you're betting against volatility, you're betting that the future looks a whole lot like the recent past just a slightly better version of it.
For example, if you go to law school and get a job at a large law firm, you're you're betting against volatility, you're betting that the future looks a whole lot like the recent past just a slightly better version of it.
So in that sense, your position is analogous to selling puts.
If volatility goes up, then you're probably going to lose out even if you don't know specifically what source of volatility would cause you in particular problems.
If volatility goes up, then you're probably going to lose out even if you don't know specifically what source of volatility would cause you in particular problems.
Doing startups, i.e call options, means you care more ant volatility than expected value, b/c modal outcome for a startup is that you'd have been better off working
You care abt raising the variance such that there's a remote chance that you make enough money to change your life
You care abt raising the variance such that there's a remote chance that you make enough money to change your life
Analogy is helpful but flawed to be sure.
You can't have a portfolio in parallel: You can't say I want 60% of my career right now to be at a big company r n & 40% percent to be at a startup. It has to be 100% either way.
Of course doesn't take into account emotional aspects :)
You can't have a portfolio in parallel: You can't say I want 60% of my career right now to be at a big company r n & 40% percent to be at a startup. It has to be 100% either way.
Of course doesn't take into account emotional aspects :)
These thoughts came from my episode w/ Byrne:
