Harvard and Yale concentrated with venture capitalists…
“Harvard and Yale concentrated with venture capitalists that got the best calls and brainpower. Very few firms made most of the money, and they made it in just a few periods. Everyone else returned between mediocre and lousy. When returns happened, envy rippled through institutional money management. The amount invested in venture capital went up 10 times post-1999. That later money was lost very quickly. It will happen again. I don't know anyone who successfully resists this stuff. It becomes a new orthodoxy.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Venture capital yields extreme returns for few, creating cycles of hype and loss, which repeat over time.
In simple terms: VC invests heavily, rewarding few and causing cycles of boom and bust.
Key Takeaway
Diversify and stay cautious in VC investments.
Themes
finance
investment
market cycles
Mood
skeptical
analytical
Type
observational
advisory
When to use this quote
- startup funding
- portfolio management
Key Concepts
risk
capital allocation
institutional behavior
Questions to Reflect On
- Why do investors chase trends?
- How to protect against market cycles?
A Different Perspective
VC hype can obscure fundamentals.