Title: Antifragile: Things That Gain from Disorder
Author: Nassim Nicholas Taleb
Everyone who deals with uncertainty (which is everyone - especially startup investors). This book presents many amazing examples that will have you questioning how you approach life, including perspective-changing questions.
-Barbell strategy for investing: have a portion of your investments in hyper-conservative assets, and the remainder of your investments in hyper-risky (and high potential reward) investments. Startups and equity crowdfunding fit the bill perfectly for high risk and high potential reward.
-The startup investment analogy to nature and evolution: nature does not pretend to know what the future will bring; organisms and life function based on random perturbations to DNA and diversity to live through randomness. Similarly, when investing in startups through equity crowdfunding - especially as it's so new and limited data is available - instead of trying to predict the future, use intelligent diversification, asset allocation, and build a portfolio that will thrive no matter what the future brings.
-The Turkey Problem in investing
Categories: asymmetric risk/reward, portfolio management, risk, startup investing, psychology.
In-depth review and additional take-aways (blog post coming soon)