Comment by tliltocatl

Committees' investment tends to be not very diversified and often too risk-averse because of how blame placing works. E. g. most of soviet's cloning of chip (and many other products) wasn't due to lack of engineering skill - it's just less risk for the bureaucrats running the show. R&D for an original chip is risky and timing it to the next November the seventh is likely to not work. Cloning is a guaranteed success.

The whole point of capitalism is that one is entitled to the consequences of their own stupidity or the lack thereof. The investors are more willing to take the risks because their losses are bounded - they are risking only as much as they are willing, rather than their status in an organization. Of course once all investors ends up investing into the same bubble there is no real advantage over a committee.