Concept · Investment & Valuation
Lollapalooza Effect
Origin: Charlie Munger
Biological Parallel
The Cambrian Explosion wasn't caused by one factor—rising oxygen, Hox gene mutations, predation pressure, and hard-part evolution converged simultaneously. Each mechanism amplified others: predation favored armor, armor enabled new niches, niches drove speciation. The result was 20 million years of unprecedented diversification. Munger's lollapalooza effect describes these same multiplicative cascades: independent factors aligning don't add, they multiply into phase transitions.