Thursday, March 28, 2013

Winterspeak — Marc Andreesson: Strangely self-serving?

The post argues three points:
1. The middle class is now missing out on hot-IPO action because all the value creation is happening in private markets, and post-IPO performance is disappointing as the company is already past its prime. Therefore, we should loosen the rules barring non-accredited investors from primary markets.
2. Kickstarter, and other crowd funding projects, actually expose these individuals to seed stage investments that are the most risky.
3. We need to roll-back decimalization, so there is a larger spread in trading small cap stocks, making it easier for financial firms to profit from their trading.
Marc Andreesson: Strangely self-serving?

1 comment:

Matt Franko said...

If the thing actually makes money why sell it at all?

The emerging trend seems to be to privatize businesses that actually make money.... See Dell, Heinz, Koch Bros., Mass Mutual, etc

Look at Pinterest, CNBC alleges that WWW version of a house Frau's kitchen refrigerator door pictures is worth 7B and they have no sales at all as far as I can tell...

If you can somehow get someone to pay you 7B for something that has no sales I guess that is good work if you can get it... Those days may be over though for now.

Current emerging trend in this now 4-year ZIRP environment seems to be 'reverse IPO' for legitimate businesses that actually make money...