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Theranos was valued $9B yet no one sleuthed the actual machine. Nikola Motor Co was valued $22B with a "fully functional" truck rolling downhill. Maddoff ponz
by BbzzbB 4y ago
Theranos was valued $9B yet no one sleuthed the actual machine.
Nikola Motor Co was valued $22B with a "fully functional" truck rolling downhill.
Maddoff ponzied $65B without a business.
It really is wild that so much money gets thrown at frauds without proper due diligence.
- quickthrower2 4y agoBecause it is a gold rush.
- vlovich123 4y agoThere’s a difference between a gold rush and a mad scramble to steal everything possible before the ship sinks.
- netheril96 4y agoEverybody just assumes that somebody else has done the due diligence. Why else would the company be valued so much? They think. The more the value, the more people jump in assuming others have done the due diligence. So all it takes is a few people with enough money or influence jumping in at the beginning.
- tluyben2 4y agoThis exactly; when your banking or investment app shows the stock, you assume already that it has been vetted by people who know so much more about all this than you.
- everybodyknows 4y agoManagers at GM who signed off on the Nikola stake then had an overwhelming career incentive to hide any bad news, however criminal.