This long-tail distribution of returns is why it's important to be bold. Big winners pay for so many experiments.

Derek Thompson
This long-tail distribution of returns is why it's important to...
This long-tail distribution of returns is why it's important to...
This long-tail distribution of returns is why it's important to...
This long-tail distribution of returns is why it's important to...
About This Quote

In an interview, Jack Dorsey shared that the long tail distribution of returns is important to be bold. To understand what he means, we'll have to go back to an old concept called the law of large numbers. The law of large numbers states that over a large number of trials, the average or expected result should be close to the average or expected result for a similar situation, overall. What this means is that you can expect a certain return for a stock with a wide distribution of returns, but there's also a good chance you'll get a return in the middle of the distribution.

In other words, there's a good chance you'll get something between -0.5 and +0.5 or anything in between. The key here lies in being bold enough to invest in stocks with wide distributions of returns because you can get average returns from them.

Source: Hit Makers: Why Things Become Popular

Some Similar Quotes
  1. No matter how old you are now. You are never too young or too old for success or going after what you want. Here’s a short list of people who accomplished great things at different ages1) Helen Keller, at the age of 19 months, became... - Pablo
  2. I don't care if you're black, white, straight, bisexual, gay, lesbian, short, tall, fat, skinny, rich or poor. If you're nice to me, I'll be nice to you. Simple as that. - Robert Michaels
  3. Keep your best wishes, close to your heart and watch what happens - Tony Deliso
  4. I find the best way to love someone is not to change them, but instead, help them reveal the greatest version of themselves. - Steve Maraboli
  5. Plant seeds of happiness, hope, success, and love; it will all come back to you in abundance. This is the law of nature. - Steve Maraboli
More Quotes By Derek Thompson
  1. Imitating recent successes is a game that everybody knows how to play. But seeing the next big thing before anybody else sees it is far more valuable... It means being a little bit wrong at just the right time.
  2. This long-tail distribution of returns is why it's important to be bold. Big winners pay for so many experiments.
  3. Quality, it seems, is a necessary, but insufficient attribute for success.
  4. It is not merely the feeling that something is familiar. It is one step beyond that. It is something new, challenging, or surprising that opens a door into a feeling of comfort, meaning, or familiarity. It is called an aesthetic aha.
  5. Initially [my favorite books] seem to immerse me in another life, but ultimately they immerse me in me; I am looking through the window into another person’s home, but it is my face that I see in the reflection.
Related Topics