I’m a big fan of thinking of bets in highly uncertain environments in terms of options. With growth options, I usually advise thinking of new opportunities as options - in which you place a small bet with a contained downside, that buys you the right, but not the obligation to make bigger bets later on. Thus, you spread your risks, and if you win, you have the potential to win big.
Real Options, the Living Dead, and how to…
I’m a big fan of thinking of bets in highly uncertain environments in terms of options. With growth options, I usually advise thinking of new opportunities as options - in which you place a small bet with a contained downside, that buys you the right, but not the obligation to make bigger bets later on. Thus, you spread your risks, and if you win, you have the potential to win big.