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unbelievable. After seeing this, can anyone doubt that luck is a major factor in success? These investors won't even take the time to do the most basic due dili
by bllguo 9y ago
unbelievable. After seeing this, can anyone doubt that luck is a major factor in success? These investors won't even take the time to do the most basic due diligence. They have no business managing millions of dollars.
- grizzles 9y agoVenture capital tends to be a badly performing asset class. Here a VC's motivation is easy to discern, it's a way to kick the can down the road. You take a liability (your shitty investment) and Fortress magically transforms it into something that looks vaguely asset-like (a portfolio of shitty investments). The only question is if the top up you pay will be worth it to the LPs. To the VC it is, because it saves embarrassment. Due to this moral hazard, there is a maybe an argument to be made here that distressed asset industry kind of breaks capitalism.
- bllguo 9y agoI appreciate the insight. There is more nuance here than my comment would suggest. What I said probably applies more to the initial investors, before Theranos was fully exposed as fraudulent.