When it comes to the optimal team size for investment management, sometimes less is more.
Famously, Jeff Bezos thought that team size ought to be capped by the ‘two pizza rule’; if a team couldn’t be fed with two pizzas, it was too big.
This rule of thumb was coined in order to combat a common challenge facing teams trying to solve complex problems. In pursuits like investing, there is a tendency to increase the number of people providing input to the point that the team gets bloated and functions less efficiently.
