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Some of those sophisticated investors are also engaged in shameless capital extraction. Their investment thesis is based on the "Greater Fool Theory": they're g
by nradov 8mo ago
Some of those sophisticated investors are also engaged in shameless capital extraction. Their investment thesis is based on the "Greater Fool Theory": they're gambling that they can dump the inflated assets on another bag holder before it blows up.
- game_the0ry 8mo agoBut they might end being the bag holder themselves. And is the reputational risk worth it? I would say - no.
- igor47 8mo agoReputational risk is dead. All publicity is good publicity, the alternative is obscurity aka being a loser
- Zanfa 8mo ago> And is the reputational risk worth it? Yes! The only metric that matters is assets under management, since that’s where funds take their cut. Nothing else matters. A16Z used to be a respected investor, then they went crazy deep into crypto scams and their AUM exploded, so they made more money than ever before.
- kjkjadksj 8mo agoTo be fair that theory works handsomely.