Viewing a single comment thread. View all comments

ThetaGangThroweway OP t1_j1zwz2a wrote

It doesn't bother you that VC and crowdfunding have identical payoffs? I say it's more evidence of the efficient market hypothesis, but for the post's purposes it shows how the system as it is set up incentivizes rockstar CEOs. Mr. Gates and Mr. Jobs were among the first, and Mr. Musk is simply the most recent. But you'll notice all the above keep announcing new R&D projects that require funding regardless if their team has finished the old one. The big bucks are in starting massive projects, not finishing them. Once they are finished their profits can be easily valued with conventional math and the stock price (and executive options/shares) will crash. Furthermore, micro-industries surrounding them will crash. Like Amazon Aggregators that simply buy a portfolio of profitable online stores with VC and borrowed money... Turns out the returns of those were identical to leveraged exposure to Amazon.

You don't need a mastermind creating growth. People will figure that part out even if you don't want them to. I argue no one should try to manipulate markets in any fashion, even if it is done with the best intentions.

1