Every portfolio and every decision can be decomposed into being long something and short something. By weighting one area of the portfolio higher than another, you are short on the underweighted parts of the portfolio.
The same is true for decision-making at a startup. Scarce resources mean you can only invest in a certain number of things at any one time. This portfolio of decisions can be analyzed by thinking about what you are short and long on if that makes sense.
Read 15 Lessons From Newfound Research.
See also:
- What’s the trade?
- The focusing illusion shows us the natural bias towards overestimating the importance of what we pay attention to (being long on something)