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"Google and Facebook each tried to stick it to the bankers in their own ways." This is a good example of a situation where you should stay close to what you kn
by larrys 13y ago
"Google and Facebook each tried to stick it to the bankers in their own ways."
This is a good example of a situation where you should stay close to what you know and stop thinking you can outsmart people who make a living a certain way everyday and know as much or more than your advisers. And definitely more than "you" (meaning the google guys) who made decisions based on things they read or what they were advised as opposed to having an actual seat of the pants feel for why something is done a certain way. And the pros and cons.
There is a reason, you know, why people cooperate with the "mafia" and pay the vig and play the game. Is it right? No. But stick to what you know and stop thinking you can outsmart others out there who do something for a living and have established procedures and actually do add value in a system that essentially works. So others take their cut.
- ars_technician 13y agomathattack is wrong though. Both Google and Facebook improved the amount of money the company got instead of lining the underwriter's pockets with that money.
- mathattack 13y agoWith all due respect (and I'm wrong a lot!) Google left quite a bit on the table. Their stock price went up 500% from $85 over the next year. Wouldn't they have been better off capturing some of that? The jury is still out on Facebook. Their IPO could hurt them getting money in the future, but maybe not. It's not the underwriters who get paid when stocks double, it is the people they allocate the stock to.