banx comments on Open thread, Dec. 15 - Dec. 21, 2014 - Less Wrong

2 Post author: Gondolinian 15 December 2014 12:01AM

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Comment author: banx 19 December 2014 12:30:15AM 0 points [-]

you should split your donations just as you split your investments, because of risk.

Isn't it the case that most investment opportunities have essentially the same expected returns, due to market efficiency? In that case you want to diversify, since you can lower the variance without lowering the expected return. But if you can identify a single giving opportunity that has a significantly higher expected return than the alternatives, then it seems like you'd want to concentrate on that one opportunity.