Friday, April 8, 2011

Searching for Black Swans

I love this quote from Vinod Khosla, speaking about why he only invests in technologies that have a 90%  chance of failure.
I never compute returns. If you start forecasting cash flows, you lose innovation, you lose instinct. You leverage yourself down to mediocrity.
Are you betting on black swans? If not, how are you going to find them?