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IMO the only thing he did "wrong" was to make excellent returns within the bounds of a tax vehicle and with investment classes that most of us are typically exc
by maerF0x0 5y ago
IMO the only thing he did "wrong" was to make excellent returns within the bounds of a tax vehicle and with investment classes that most of us are typically excluded (accreditation, VC exclusivity)
If we should be mad about anything it's that it's so difficult for the general public to get a good slice of diversification including the asset classes that turn 1000s into millions.
Yes we can go work at a startup, but that is all the eggs in one basket. Better to spread that risk around 10+ investments like VCs do
- deleted 5y ago[deleted]
- rajup 5y agoI agree. All the annoying animations and hyperbole in the article notwithstanding, it does not seem as malicious as the article tries to portray it. It is rather disappointing that there are barriers to some of these investments but I think without these barriers you would open the gates for all sorts of malicious actors taking advantage of unsophisticated investors.
- maerF0x0 5y agoI wonder if there are good VC firms that would let people participate in funds around the $1000 threshold? Like if I could give Garry Tan $1000 to just participate, no questions or interaction required just fill out the forms sign the check, see you in 10yrs... I know part of the issue is that many VCs have a high touch process for the people signing $100k checks, but maybe if they made it more streamlined they could generate more diverse investor base and just say to them "You wont hear from us, no you cant help, see you in 10yrs" kind of mentality.
- jppope 5y agoThey actually are opening up to unaccredited investors, you just need to have a CFP or CPA or something like that (not sure of the actual requirements, I just know that they recently changed them)
- astrange 5y agoThe change is that having one of those certs now makes you an accredited investor. You don't have to be accredited to invest in something like a VC fund anymore using something like Wefunder. However it's extremely risky and generally painful to even find out if the thing you invested in 3 years ago even still exists.
- jgalt212 5y agoI think the fraud to be found here is whether or not the purchases these IRA's made were made at fair value. Given the astronomical rates of return realized by some, not all, of these mammoth IRAs, you can probability establish such facts. Similar to Madoff's eternally steady fund returns being impossible. A good litmus test would be, what is the rate of return of a person's investments made outside an IRA vs inside the IRA.
- kova12 5y agoare you sure you are not plain jelaous he's good at making money and you are not?
- dane-pgp 5y ago“When I was poor and complained about inequality they said I was bitter; now that I'm rich and I complain about inequality they say I'm a hypocrite. I'm beginning to think they just don't want to talk about inequality.” ― Russell Brand
- deleted 5y ago[deleted]
- r00fus 5y agoIf what he did was legal, I dare you do do the same. I bet you any financial/tax advisor would strongly suggest you don't. What he did wasn't actually legal. He just got away with it.