1. An important perspective on investing is the notion of a Power Law. You can make lots of terrible investments, but if you select just 1 company that’s a massive winner — that 1 company will make up for the losses and even provide additional gains.
2. When evaluating what stage to invest at, keep this concept in mind: The earlier the stage, the higher the likelihood of failure. Conversely, the earlier the stage, the lower the valuation of the business (which can result in substantial returns).
3. So, as an investor, diversification is key to mitigate risk and maximize your chances of winning. Diversification can be thought of in 2 forms:
   • Time Diversification: Deploying capital consistently over time. This provides opportunities to observe how different market dynamics play out, enter new markets that open up, and tap into new founders that come online.
   • Size Diversification: Spreading out your capital across many companies. Having more companies in your portfolio increases your chances of achieving the Power Law dynamics.