Ep. 354: The Babe Ruth Effect: Frequency v. Magnitude with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Babe Ruth Effect in VC and Venture Capital
The Babe Ruth Effect occurs in many categories of investing, but it's especially pronounced in VC and venture capital. People are constantly trying to avoid losses; if you're willing to accept small losses, you're on the path to an edge. As Bill Gurley states, venture capital is not even a home run business. It's a grand slam business. And for those foreign investors out there that don't know a grand slam, that's when all men are on the basis, you get a home run.
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