Confession: How Investments Are Like Pinball Machines

So I have a confession to make:  I own a pinball machine.  And not some little toy either, a full sized, modern, 300 pound piece of awesome. spiderman playfield And what makes this really ridiculous is that I live in a studio apartment. So what does this have to do with investing? If you live in a NYC apartment and you buy a pinball machine, then you buy your absolute favorite.  You only have room for one, so you don’t settle. I love that Spiderman machine; it is, by far, my favorite game.  Since I only have room for one I didn’t worry as much about price, I went for the best. Early stage investing is similar, there are only so many deals an investor can do since their time is a limiting factor. And since the big winners are worth many times the initial investment, price is not as important. If a partner can only do one or two deals a year they have to choose the best, their absolute favorites.

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