Throwing money at every start-up without proper due diligence would look silly years later. Sachin Tendulkar came from Shardashram Vidyamandir School, but that does not mean that every Shardashram pupil would be picked up by the indian cricket team. It also did not make those who bought their bats from the same shop, top class players like Sachin Tendulkar. That is exactly the kind of behaviour one often sees in the investment world. Investors overestimate the replicability of success.
You may want to read our earlier post on similar lines here.
#RidingTheRollerCoaster – 131