Blitzscaling works for startups, not investments

Letter # 86 | 10 May 2022 |

Many startups use Blitzscaling to quickly subdue competition before they even get a chance to catch up. It has been successfully used in several other areas (like wars, movie distribution, etc.), but is sadly finding increasing use now… in investments!

In today’s article in ET, we look at how Archegos learnt the ill-effects of blitzscaling the hard way, and the reasons why, what works for startups and movie distribution, does not work for investments (proprietary AND professional money management). Read here: portfolio valuation: Blitzscaling can take your portfolio valuation up quickly, but you can fall badly too – The Economic Times (indiatimes.com)

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