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Why big winners don't matter if you size your investments wrong

The Full Ratchet · Investor Stories 460: The Math Behind Venture Returns, When...

“I think this is something that in the past I've underthought.”

2:30 / 2:57

I think this is something that in the past I've underthought. And so across a number of investments, I've had some big winners and I've had a bunch of losers. But if they weren't sized correctly and if they weren't designed to fit together, it didn't matter that you had the big winners because they weren't sized in the appropriate way to overcome the losers.

Yep. Yep. You're preaching to the choir for sure.

About this clip

An investor reflects on a crucial lesson about portfolio construction - having big winners means nothing if they aren't sized appropriately to offset the inevitable losers. The discussion highlights how proper position sizing can be more important than investment selection itself.

Why this clip

This captures a counterintuitive but critical realization that challenges the common focus on picking winners over proper portfolio management.

2:30 - 2:5727spersonal lesson
position-sizingportfolio-constructioninvestment-strategy

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