levered beta is all you need - by Ethan Ding

In volatile markets with strong tailwinds, being early and riding market momentum ("levered beta") outweighs superior product quality or team capability—as evidenced by AI SDR companies like 11x and Lovable gaining market traction despite inferior products and leadership, simply because they captured early positioning in a category that benefits from the broader AI boom. The author argues that founders obsessed with building defensible competitive advantages ("alpha") miss that in today's explosive growth markets, mere correlation with market trends while maximizing leverage can generate outsized returns regardless of actual innovation or execution quality.

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