Category: Quotes

“Outsized returns often come from betting against conventional wisdom, and conventional wisdom is usually right.

Given a 10 percent chance of a 100 times payoff, you should take that bet every time.

But you’re still going to be wrong nine times out of ten … We all know that if you swing for the fences, you’re going to strike out a lot, but you’re also going to hit some home runs.

The difference between baseball and business, however, is that baseball has a truncated outcome distribution. When you swing, no matter how well you connect with the ball, the most runs you can get is four. In business, every once in a while, when you step up to the plate, you can score 1,000 runs.

This long-tailed distribution of returns is why it’s important to be bold. Big winners pay for so many experiments.”

-Jeff Bezos

Hat Tip : HA

Source : WhatsApp Forward

There is no precise metric to look at. The smaller a company, the more critical the CEO is. If a company becomes 1000 and 10’000 people, the relative importance of the CEO begins to diminish and the value of the team grows.

I once told a room of 200 professional investors at an investment conference in Omaha that I would give twenty bucks to anyone in the room that could name four CEOs of Exxon after John D. Rockefeller. Nobody could step up to collect the money.

– Tom Gayner