Accelerating Growth Rate
Gallery:
Site Images Exhibit 1. Accelerating Growth Rate. Our investment base is growing, so the frequency of blockbusters must increase on top of that growth rate. Our blockbusters come sporadically, and so we see zero blockbusters in year nine, and thirty in year ten, followed by thirty in year eleven, etc. Interocularly, when you step back and look over decades, you clearly see an accelerating growth rate in the number of blockbusters, as driven by increased frequency of blockbuster successes on top of the growth rate of the investments. If we can't show accelerating growth rate investors (and funding agents) will be sorely tempted to revert to 'old money' approaches to the investments, that is to say, dividing number of blockbusters by number of investments in a year, and asking what went wrong in years 9, 12, and 15.
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