{"id":2486,"date":"2025-01-04T11:43:24","date_gmt":"2025-01-04T11:43:24","guid":{"rendered":"https:\/\/bullseye.ac\/blog\/?p=2486"},"modified":"2025-01-04T11:43:26","modified_gmt":"2025-01-04T11:43:26","slug":"the-impact-of-skewed-returns-on-investment-strategies","status":"publish","type":"post","link":"https:\/\/bullseye.ac\/blog\/social-sciences\/the-impact-of-skewed-returns-on-investment-strategies\/","title":{"rendered":"The Impact of Skewed Returns on Investment Strategies"},"content":{"rendered":"\n

Number of words: 164<\/p>\n\n\n\n

Our results at Founders Fund illustrate this skewed pattern: Facebook, the best investment in our 2005 fund, returned more than all the others combined. Palantir, the second-best investment, is set to return more than the sum of every other investment aside from Facebook. This highly uneven pattern is not unusual: we see it in all our other funds as well. The biggest secret in venture capital is that the best investment in a successful fund equals or outperforms the entire rest of the fund combined. This implies two very strange rules for VCs. First, only invest in companies that have the potential to return the value of the entire fund. This is a scary rule, because it eliminates the vast majority of possible investments. (Even quite successful companies usually succeed on a more humble scale.) This leads to rule number two: because rule number one is so restrictive, there can\u2019t be any other rules.<\/p>\n\n\n\n

Excerpted from \u2018Zero to One\u2019 by Peter Thiel<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Number of words: 164 Our results at Founders Fund illustrate this skewed pattern: Facebook, the best investment in our 2005 fund, returned more than all the others combined. Palantir, the second-best investment, is set to return more than the sum of every other investment aside from Facebook. This highly uneven pattern is not unusual: we … Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[28,9],"tags":[],"acf":[],"yoast_head":"\nThe Impact of Skewed Returns on Investment Strategies - BullsEye<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bullseye.ac\/blog\/social-sciences\/the-impact-of-skewed-returns-on-investment-strategies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Impact of Skewed Returns on Investment Strategies - BullsEye\" \/>\n<meta property=\"og:description\" content=\"Number of words: 164 Our results at Founders Fund illustrate this skewed pattern: Facebook, the best investment in our 2005 fund, returned more than all the others combined. 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