Because a great company and a diversified life are not the same thing. If 90 percent of your net worth is equity in one private company, you are making a leveraged bet with your family's security, not just your ambition. Companies that look unstoppable can stall, get disrupted, or hit a bad funding market, and private equity is illiquid exactly when you would most want to sell. Worrying about concentration is not disloyalty to your company. It is refusing to let a single outcome decide everything about your life.
2 resources, 1 link-checked.
The clearest short piece on how to think about giving up and holding equity, and why a smaller slice of a bigger outcome is the whole game.
From paulgraham.com by Paul Graham
Open paulgraham.com →The best reminder that avoiding ruin beats chasing returns, and that wealth is the money you don't spend. The whole founder concentration problem, told as stories.
From The Psychology of Money by Morgan Housel
