All of these things also apply to startups. And creates a VC groupthink of "portfolio theory" that necessitates huge (10,000x) returns, which costs the public a lot of viable small/medium enterprises that are not victims of the perverse incentives.
I wonder if the "optimal" theory is portfolio in this case, or if there is a new generation of VC/pharma investors who want a higher probability at a lower return.
I wonder if the "optimal" theory is portfolio in this case, or if there is a new generation of VC/pharma investors who want a higher probability at a lower return.