In the stock market, you can prove, mathematically, that you are always better off diversifying your portfolio of stocks than picking one: you can earn the same return with much lower risk (to optimize, you pick stocks that have as little correlation as possible).
Could the same thing work in life? That is, I THINK that I want to be an entrepreneur after I graduate. Of course, though, there are real risks: I could earn a comfortable living working for someone else as part of a large corporation. The entrepreneur lifestyle choice is potentially one of high risk and high reward.
Let’s say I have a friend who is very happy working for someone else and earning a comfortable living, but he/she has a little bit of risk tolerance and likes the idea of a gamble, to some extent.
Wouldn’t we both be better off if we teamed up? We could agree to split our salaries forever, for richer or poorer, ’til death do us part. We would both share in the gains and losses of the other. If I fall on my face, (s)he carries me a bit. If I start a company that is wildly successful, (s)he shares in the rewards.
Would you do it? With whom? What are the implications to capitalism? Government?
joel
