3 ms·
One lesson of the last ten years is the wealthy in the US are stunningly bad at spotting scam artists that appeal to their ideas of what an idealist should look
by fidotron 3y ago
One lesson of the last ten years is the wealthy in the US are stunningly bad at spotting scam artists that appeal to their ideas of what an idealist should look like.
Arguably many people have this weakness and merely lack the resources to deploy when it is triggered.
- tommiegannert 3y agoThere's an alternative explanation: if you're good enough at convincing me to invest with you, you'll do the same with others. As long as I'm in early, you will make me money, even if I know the house of cards will eventually crumble. By then, I won't be a bag holder. (Probably.) I.e. greed and pride/hubris. The idealist image is just the current behavior that the investor expects will attract subsequent investors. This would explain bubbles much better than "rich people seem to be taking random walks." Edit: A.k.a. https://en.wikipedia.org/wiki/Greater_fool_theory https://en.wikipedia.org/wiki/Greater_fool_theory, though my point is it's not driven by foolishness.
- fidotron 3y agoYou’re an optimist! I would argue the Sequoia writings about SBF and the farce with Theranos indicates these people actually did believe what they were being sold. I guess one interpretation is Sequoia were the greater fool.