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That is, maybe the problem is who we decide are "well qualified capitalists" I don't think that's a problem, as I don't think the decision is "well-qualified"
by mikestew 5y ago
That is, maybe the problem is who we decide are "well qualified capitalists"
I don't think that's a problem, as I don't think the decision is "well-qualified" as in competent, but rather "won't end up on the dole if this investment falls through". Henry Kissinger isn't signing up for food stamps/EBT because his Theranos investment went belly-up. The problem is that many thought, "well, if Henry Kissinger is in...", without asking about Mr. Kissinger's qualifications to evaluate medical claims.
- HWR_14 5y agoOh, "qualified investor" qualifications. In that case, why does anyone think that they would be particularly skilled at hiring CEOs?
- perl4ever 5y agoCompared to who?
- HWR_14 5y agoI'm not sure why they would be more skilled than any random people off the street, or a coin flip, etc. There's no reason to think they produce a result better than whatever control group you can think of compared to any other subset of people.
- perl4ever 5y agoThe modal random "qualified investor" is probably a dentist, not Kissinger.
- HWR_14 5y agoAnd your point is you think Dentists (or Kissinger) should be presumed to be good at choosing a CEO?
- perl4ever 5y agoI don't know why the person that started this subthread thought the CEO was chosen by the investors. Holmes founded the company beforehand, then people gave her money. As far as I know. So it seems a bit off to frame it as though someone else founded the company and hired her.
- myWindoonn 5y agoA company without investors is a bootstrapped small business. Investors without a company are venture capitalists. Without investors, a company never becomes a startup, never has front-page articles in newspapers and magazines, never gets invited onto cable news for interviews, never hires expensive talent, never buys sports cars for its executives, never spends millions of dollars on advertising, etc. Without investors, Holmes never would have mattered. The investments are what enabled her to commit the fraud.
- perl4ever 5y agoI don't see anything obviously incorrect about all that, but it's irrelevant to the fact (if I'm not mistaken) that the investors didn't get a business and hire a CEO to run it, they found a business with a CEO.