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You can’t diversify radically from your own company and at the same time tell investors it’s the future and it’s going to be trillion dollar business etc. If he
by bblpeter 7y ago
You can’t diversify radically from your own company and at the same time tell investors it’s the future and it’s going to be trillion dollar business etc. If he really believed that he wouldn’t diversify. Look at Larry Ellison or the Google founders if you want examples of someone who believes financially in their stakes in their own companies.
- ptero 7y ago> You can’t diversify radically from your own company and at the same time tell investors it’s the future and it’s going to be trillion dollar business etc. Sure you can; in fact in many cases you should. Say, one knows (to keep things scientific; replace "knows" with "honestly believes" to somewhat reflect real life) his $100M invested in a company to have a 50% chance of being worth $1B in 5 years and 50% chance of being worthless. This means expected 500% return in 5 years, which should make (diversified) investors pour money in. But as a real person with $100M net worth, I do not want a 50% chance of zero net worth at any expected return rate. I would rather get $80-90M today, which will give my family 100% chance of financial independence, and leave $10-20M in as a riskier bet. My 2c.
- bblpeter 7y agoNot really. He already has enough money to live for a million lifetimes in luxury. There would be no reason to diversify at this point, unless of course he thinks Uber is doomed.