In this episode, we explore the concept of optionality—how small, strategic decisions can lead to outsized rewards with limited downside risk. From ancient philosophy to modern financial strategies, discover how recognizing and seizing options can unlock opportunities in both life and investing. Topics covered include: How call and put options workThe difference between American and European style options and why it mattersWhy options are positively skewedExamples of using optionality in business and lifeWhy it can be challenging to commit when an option is "in the money" Sponsors Shopify - Sign up for a $1 per month trial period NetSuite - Download the CFO’s Guide to AI and Machine Learning Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Antifragile by Nassim Nicholas Taleb—Penguin Random House The Wisdom Of Finance: Discovering Humanity in the World of Risk and Return by Mihir Desai—Harper Academic Refuse to Choose!: Use All of Your Interests, Passions, and Hobbies to Create the Life and Career of Your Dreams—Penguin Random House An Economist Walks into a Brothel: And Other Unexpected Places to Understand Risk by Allison Schrager—Penguin Random House Related Episodes 482: Unlocking the Power of Positive Skewness: Strategies for Investing, Business, and Creativity 268: How To Better Manage Risk See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How do buyouts, venture capital, and growth equity work? Has private equity outperformed the stock market, and can individual investors pursue these investment strategies? Topics covered include: How are private equity funds structured, and what are the feesHow is private equity performance measured, and how has it performedWhy does private equity have such a large dispersion of returns compared to the public stock marketWhat is private equity dry powder, and why is there much of itWhat are some ways individuals can invest in private equity and why should they use caution in doing so Sponsors LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs NetSuite  Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Understanding Private Fund Performance by Kaitlin Hendrix and Mamdouh Medhat—SSRN What Drives Private-Equity Performance Persistence? New Deal-Level Evidence by Axel Buchner and Susanne Espenlaub and Abdul Mohamed—SSRN Unlocking the Power of Relationships: Limited Partner Networks and Performance in Private Equity by José Carlos Franco de Abreu Neto and Saito Richard—SSRN Private equity dry powder growth accelerated in H1 2024 by Dylan Thomas and Annie Sabater—S&P Global Private Equity Gets Creative to Buy Time for More Gains. Clients Say Pay Me Now by Allison McNeely and Dawn Lim—Bloomberg Related Episodes 458: Dissecting Stock Returns: Financial Engineering or Genuine Growth? 440: Beware of Platform Risk 350: How to Invest in Startups on Equity Crowdfunding Platforms? See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.