great recruits are either high alpha, low beta. High alpha means high, compounding impact/returns. Low beta means low risk and volatility. As an inve… - Auren Hoffman

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great recruits are either high alpha, low beta.
High alpha means high, compounding impact/returns. Low beta means low risk and volatility. As an investor or employer, you want both—but they rarely coexist. High-return assets usually come with higher volatility, while low-volatility assets tend to deliver lower returns.
Big companies optimize for recruiting low beta people: predictable, repeatable outcomes with minimal volatility. Start-ups are more likely to focus on spiky high-alpha people.

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Alternative Names: Auren Raphael Hoffman

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This is the #1 thing that most people who work at data companies do not understand. Most people think that they need to hoard the data. But the data increases in value if it can be combined with other interesting datasets. So you should do everything you can to help your customers combine your data with other data. One way to make data easy to combine is to purposely think about linking it — essentially creating a foreign key for other datasets.

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People that drop out of college are way worse off than people that never go in the first place (outside of outliers like Zuck, Gates, etc.) - all the debt, none of the benefit

its a huge policy failure that policymakers treat everyone’s higher ed completion probability as 100%. In reality the completion rate is roughly 50%.

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