Portfolio Theory For Creatives

Aug 20, 2024

When we're in school, we're taught an intuition: to do well on tests, avoid making mistakes. That one shot in a test is all that counts.

This intuition, however, is entirely wrong when it comes to creative and entrepreneurial work. You need to unlearn it as soon as possible.

A more accurate view of reality is that it's nearly impossible to predict the success of creative work.

Venture capital funds invest in over 100 companies, aiming to pick at least one outlier success. They can't predict which company will succeed, so their best strategy is to diversify their portfolio to increase the probability of having a winner.

Music labels sign hundreds of artists, not knowing which one will be the most successful. These are bets they make on creative success, which is very hard to predict. They construct a portfolio of creative bets.

As a creative, you shouldn't focus on taking one "perfect" shot. It hurts your chances of success if you limit yourself to working on something for a year, then releasing it to the world, hoping it will take off.

The better approach for creatives is to view their catalog as a portfolio of bets. Instead of creating one "perfect" piece of art and overthinking every detail, it's better to create 100 pieces of art you're proud of. Your probability of success increases significantly with the number of shots you take and the number of works in your portfolio.

Although this may sound like a rational approach to creativity that conflicts with its nature, I think it works in the opposite way. Volume in creative work is the biggest predictor of quality and success. As a creative, you need to learn to overcome resistance repeatedly by sharing your work. The role of volume is undeniable in refining one's craft. The good news is that this volume correlates perfectly with maximizing your chances of success by viewing your catalog as a portfolio, rather than taking a few shots and hoping to get lucky.