Hacker News Reader

To follow that line of thinking, it could be way more profitable for you to take your $180/yr "bonus" and put it into angel investments. If you have decent connections and have a good eye - you'll probably have a much higher expected return than your 1% at a startup.

View on HN

Or just investments in an index fund. I know someone who mad a pretty big pile of money at a company and he told me that he could have done a lot better than angel investing. He still does some--but only companies he particularly believes in.

How does he know he could have done better? Did he actually calculate a realistic rate of return for high risk short term investing or did he assume he would reliably pick winners?

I assume he just looked at his rate of return vs. NASDAQ/S&P over the same period. A lot of people here assume that startup investing is a road to wealth (that's only open for the wealthy) and that mostly isn't true.

Reply on news.ycombinator.com