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I think SoftBank has too much money either don't know how to do with it, or don't know how to do money management.
by mtw 7y ago
I think SoftBank has too much money either don't know how to do with it, or don't know how to do money management.
- swarnie_ 7y agoI think its a sign of the late economic cycle, nothing is cheap and titans have already been established in the last 11 years. I'd be inclined to hold my money and see what shakes out of the next inevitable market shake up. But then i'm not running softbank for good reasons....
- charlesdm 7y agoIt likely is, but I do wonder how much QE has played into permanently raising the prices of assets. I won't make that bet, but it could very well be years before something major happens.
- rapsey 7y agoSo many companies doing IPOs lately, seems to me we are reaching a top. Private money running out, lets go for public.
- charlesdm 7y agoFor tech, yes. But does that mean the whole economy or tech sector goes into a recession? I.e. will the fact that Uber tanks after IPO have an effect on Apple?
- rapsey 7y ago2008 was a housing bubble and it cut everyone at the knees.
- T-A 7y agoHousing is a huge component of the US economy. Total value in 2018: $33.3 trillion [1], 1.6x GDP (20.9 trillion) [2]. Tech is about 5% of GDP [3]. [1] https://www.housingwire.com/articles/47847-us-housing-market-value-climbs-to-333-trillion-in-2018 https://www.housingwire.com/articles/47847-us-housing-market... [2] https://www.thebalance.com/u-s-gdp-5-latest-statistics-and-how-to-use-them-3306041 https://www.thebalance.com/u-s-gdp-5-latest-statistics-and-h... [3] http://www.ianhathaway.org/blog/2017/5/31/how-big-is-the-tech-sector http://www.ianhathaway.org/blog/2017/5/31/how-big-is-the-tec...
- opportune 7y agoYou're comparing the total value of all housing to GDP vs. an actual percent of GDP. That's not an apples to apples comparison. A quick lookup tells me construction is about 4% of GDP. And financing/ancillary services for that construction, if I had to estimate, might make up another 2% at most. Which is pretty close to tech
- T-A 7y agoYes, but what happened in 2008, and caused the crisis referred to by rapsey, was that housing lost a large fraction of its value. It was not a drop in construction, financing etc that tanked the economy; it was the loss of value, which left a giant hole in balance sheets. The apples-to-oranges comparison was introduced by rapsey, I merely provided the numbers.
- swarnie_ 7y agoSome real stinkers as well (although some ok ones). My guess is that Uber will be the poster child that kills this IPO season or at least comes to define it.
- ksec 7y ago>I think its a sign of the late economic cycle Agree but I think this late cycle period still has a few more years to go.
- ingenieros 7y agoHalf of that fund belongs to Saudi Arabia which almost never gets mentioned: https://www.reuters.com/article/us-softbank-vision-loan-exclusive/exclusive-softbanks-saudi-backed-vision-fund-to-raise-4-billion-in-debt-idUSKCN1NE21Z https://www.reuters.com/article/us-softbank-vision-loan-excl...
- dx034 7y agoThey have a lot of money and already own sizeable positions in the tech sector. Finding companies that are large enough to make it worth investing while not increasing concentration doesn't leave many options for them.