4 ms·
Ask HN: Why not to ask questions from the Groupon early investors
If investors like Buffet, Soros, Faber sell or buy big stakes in some companies then they very often explain their decisions, also they explain what companies and industries they suggest or do not suggest to invest in,
so I was trying to ask from the early Groupon investor Jason Fried why he cashed out on Groupon on HN , there was no answer and people started to label me of "being like a tabloid journalist" , that "its Jasons business only" , "he may have needed liquidity" etc. ( so total liquidity need of early investors was around 1 billion then? )
http://news.ycombinator.com/item?id=2617160
Not sure that it is a tabloid journalism - because Wall Street Journal also lists 3 main reasons why to worry about Groupon shares -
and one of the reasons is that the early investors have taken out nearly 1 billion dollars already ( thats right - 1 billion with a b )
http://blogs.wsj.com/deals/2011/06/03/groupon-ipo-3-reasons-to-worry/?KEYWORDS=groupon+ipo
So - how high is the probability that this may indicate that some average investors who are not very informed about internet business - may get fooled pretty soon ?
And if the average Joe is meant to get fooled by Groupon shares soon - then it may be bad for the whole internet industry ...
so - it seems like a critical question to ask - why so many early investors cashed out on groupon
what makes one to worry is also the fact that the IPO was organized by Goldman Sachs
https://home.chicagobusiness.com/clickshare/authenticateUserSubscription.do?CSAuthReq=1&CSProduct=crainschicago-web&CSTargetURL=http://www.chicagobusiness.com/article/20110114/NEWS07/110119905
and this bank is on record for creating financial investment products for their clients while
behind the curtain betting against their own products
http://www.rollingstone.com/politics/news/the-people-vs-goldman-sachs-20110511