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by chii 2003 days ago
That's just another way of expressing the concept that opportunities are limited.

Large investors (like those with $10B) can certainly take advantage of small opportunities, but just not with their full amount. But because they are large, there may be multiple small opportunities which they participate in, and diversify on, rather than a small investor who must commit to a single small opportunity (which forces them to take on individual/concentrated risk).

So it's not true that the $10M investor is better off.

1 comments

You are only one person, taking on more opportunities takes more of your time and subcontracting investments can only do so much. Jeff Bezos turned 300k start to 100 billions, a 300 000 times return on investment. Do you think he could have turned 100 billion to 30 quadrillions? Obviously not, it would be something like 100 billion to 1 trillion at best.

Investing in yourself or projects you run is the main way to get rich, otherwise you just get average returns but if you invest in yourself you can bet on you being much better at doing things than the rest of the world expects.