Art $ Attention

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Concentrated Bets
davidsherry.substack.com

Concentrated Bets

David Sherry
Jan 12
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Concentrated Bets
davidsherry.substack.com

In this interview, I was surprised to learn that Bill Miller, legendary investor, is roughly 50% in BTC and 50% in Amazon.

Warren Buffet, today, is nearly 50% in Apple.

This is not what you imagine portfolio composition to be from the investors so many look up to.

Then again, these are the best in the business, and so it makes sense that they would do something different than the average.

But what does this tell us about portfolio composition?

Simply, that these concentrated risks are part of the game some investors are playing, which is not purely about diversification, limiting losses, and limiting volatility.

  • Your average investor diversifies to limit losses and volatility. To keep a modest range of compounding.

  • Venture-style investors concentrate investments to accept many losses for large potential upside, with riding-out volatility as the price of admission.

Now that people have access to venture-style deals via liquid tokens, fractionalization, etc. it’s helpful to understand if you’re playing the venture-style game or not with your portfolio.

It’s hard for your average investor to understand that 90% of your portfolio holdings can decline, while the remaining 10% can 100x, and this construction was highly worth it.

Not everyone can have that conviction, patience, or ability and skill to pick the winners which continually compound.

Arguably most will not.

Now that this game IS available, is it the game you are choosing to play?

And if it’s the game you’re playing, do you have the psychology, conviction, and work put in to match what you’re holding?


XX I’m David Sherry, I coach early-stage founders, invest in crypto, and write on the overlap of investing, crypto, and the creator economy.

You can join my Telegram chat for more real-time notes on what I’m thinking.

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