Monte Carlo Simulation
topic on 1 show · 2 statements across 2 episodes
2 statements about Monte Carlo Simulation, every show
Stebbings: A 23-company VC portfolio captures 84% of diversification benefits
“And I've kind of, you know, run the numbers with a Monte Carlo attached to it. And you're like, actually, you know, like 23 gets 84% of the benefits of diversification. I think it is. And, you know, you only get an incremental seven or whatever it is for 40 co…”
Harry Stebbings: Venture portfolio diversification benefits level off at 23 companies
“I just yesterday ran a Monte Carlo simulation on kind of the benefits of diversification, and at 23, you get to 85%, and they tail off pretty significantly after that, so I couldn't agree more with you on the 25.”