Is being 'top quartile' any good?June 29, 2011: 9:05 AM ET
What if we judged everything by venture capital standards?
By Larry Cheng, contributor
Historically, the measure of success in the venture capital business has been consistent top-quartile performance. Each firm generally compares their fund performance to funds that started the same year or vintage, and if they beat the top-quartile threshold put out by Cambridge Associates, they feel good about themselves. This got me thinking about whether being top-quartile in other avenues of life would even be considered as "good." Here's a little sampling:
From professional sports
- Major League Baseball batting average: There are 750 MLB baseball players, making the top quartile threshold 188. That batter is Alfonso Soriano with the Chicago Cubs with an inconspicuous batting average of .270.
- NBA Scoring: There are 452 NBA players, making the top-quartile threshold 113. That player is Jordan Crawford of the Washington Wizards who averaged a respectable 11.7 points per game.
- U.S. State Populations: There are 50 U.S. states, with the top-quartile spot being Washington with 6.7 million people (with the top spot being California at 37 million).
- Country Nominal GDP: There are 181 countries listed in Wikipedia with the top-quartile threshold occupied by Czech Republic with $192 billion (with the top spot being the US at $14 trillion).