Everyone claims that they understand the power law in angel investing, but very few people practice it. It's hard to conceptualize the difference between a 3x and a 300x (or 3000x) return.

It's common to make more money from your single best angel investment than all the rest put together. The real risk is missing out on that outstanding investment, not failing to get your money back on all your other companies.

Angel investors asking for onerous downside-protection terms pisses founders off, misaligns incentives, and harms the investor's chance of getting into the best deals—those are hotly pursued and good founders check references. Focus on investing at a reasonable price and don't try to 'win' on any other terms.

Founders make the mirror-image mistake: obsessing over a high sticker price. Altman has seen many founders price out good investors and end up facing a down round a year later, because price gives founders something quantitative to compete on.

Most people have terrible intuition about risk/reward in general. The end of the world only happens once; it's very unlikely to be Monday morning. CNBC watchers would be better off keeping a cushion in cash and not selling stocks after every panic.