I agree with you that we should stop saying “funding overhang”. I’m also not advocating for Sam or Dustin to sell their stocks and put their money into supposedly safer assets.
What should be done in my opinion is to work harder on diversifying and increasing the amount of money available to EA causes and make sure that GiveWell et al. have to decrease “the bar” faster and more consistently (makes stuff more predictable and therefore probably more effective). One way (out of many) to do so that seems pretty obvious to me would be to put even more money into the effective giving landscape to convince millions of people in the world to give more effectively (again, I’m biased). A decent chunk of that would come from income and not equities. Still correlates with the global markets but much less so.
To a certain extent effective giving organizations are already receiving considerably more money than a couple of years ago but as long as several have a counterfactual multiplier (donations raised / cost of raising donations) of > 10 I think we should be much more aggressive since it kind of pays for itself many times over (and also to hedge against a possible prolonged bear market).
I agree with you that we should stop saying “funding overhang”. I’m also not advocating for Sam or Dustin to sell their stocks and put their money into supposedly safer assets.
What should be done in my opinion is to work harder on diversifying and increasing the amount of money available to EA causes and make sure that GiveWell et al. have to decrease “the bar” faster and more consistently (makes stuff more predictable and therefore probably more effective). One way (out of many) to do so that seems pretty obvious to me would be to put even more money into the effective giving landscape to convince millions of people in the world to give more effectively (again, I’m biased). A decent chunk of that would come from income and not equities. Still correlates with the global markets but much less so.
To a certain extent effective giving organizations are already receiving considerably more money than a couple of years ago but as long as several have a counterfactual multiplier (donations raised / cost of raising donations) of > 10 I think we should be much more aggressive since it kind of pays for itself many times over (and also to hedge against a possible prolonged bear market).