This is one of those counterintuitive of things about investing because increasing sample size decreases variance *above trivial sizes*.https://twitter.com/matthlerner/status/858252565213057024 …
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Replying to @patio11
Everyone remembers that from stats 101 but forgets that literally every sample size ever discussed by an investor is **tiny**.
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Replying to @patio11
Am I right to read that as "angel investors can't diversify with only private companies"?
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Replying to @WindAddict @patio11
Do you know of any resources that explain how to build a portfolio to counter the risk of investing in your own business?
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Replying to @WindAddict
No. I think it's mostly generic financial advice (max IRA; use index funds or similar), avoid investing in tech (concentrates).
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Replying to @patio11 @WindAddict
Also I really think that founders should think through their insurance situation *thoroughly*. (Risk of career-ending events.)
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(I've had a personal long-term disability policy for a while; stroke or similar before big success is terrifying to me.)
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