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Between the breadth of their investments and the favorable terms they can get due to their size and positioning it seems very unlikely they'll significantly und
by Traster 8y ago
Between the breadth of their investments and the favorable terms they can get due to their size and positioning it seems very unlikely they'll significantly under perform the market in the long term. Quite literally, they're so diversified it seems very unlikely that they can completely burn the money.
It seems unlikely for them to outperform, but I don't think it's likely that they'll be notably underperforming.
- rapsey 8y agoThey are spending crazy money at the tail end of a long bull run. It would not be the first time they messed up in this way.
- hodder 8y agoDefine "the market". They are diversified across the "new tech" sphere, which on average produces mostly losers and a few big winners. Diversified tech funds or VC funds as a category, which mostly ignore the large cap and mega cap sphere, have historically underperformed the market except for a group of elite VCs. What this means for Softbank remains to be seen, but the very act of dumping this much money indiscriminately into new tech cos may have juiced valuations to the point of hindering future returns on the basket.