Venture Capital and Greater Fools

Venture Capital and Greater Fools. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
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Speaker 3 (00:31):
Watchdog on Wall Street podcast explaining the news coming out
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consumer advocate, analyst and trader Chris Markowski.

Speaker 4 (00:46):
Venture Capital and Greater Fools. So there is this big
big Web summit in the Lisbon, Portugal right now. All
the venture capitalists are there and they're very sad. They're
not happy at all. It's it's a hard not like

(01:06):
for BC's it's a hard knock life. Yeap, you have
tough time for venture capital because not a lot IPOs,
not a lot of IPOs. They're none too happy, not
enough m and a activity out there, so they can't
get rich quick. Am I making sense here? Well? I

(01:30):
don't know. Maybe longtime listeners will get it. This is
how venture capital works in today's day, and age has
been going on like this for a while. They act
as incubators and fun companies in their infancy stages. Again,
a lot of it is a hype machine. Their goal

(01:53):
is to blow out of those companies when they go public.
Used to be used to be, but it would go
public fairly quickly. You could have gotten in at the
ground level at Google and Amazon and Apple and a
myriad of other companies back in the day. But that
all changed. They found a way to get all of

(02:15):
the insiders rich off of you. Who's you? Who's you?
Greater fools again, this perverse game of musical chairs where
the music stops and you are left holding the bag
more often than not, at ridiculous valuations, absolutely insane valuations.

(02:38):
That's their goal. They don't care about you, and they're
complaining here, oh my god, we don't have a lot
of liquidity. We can't get out of these positions. Well,
these companies are so great well, I mean, they could
remain private and they could start paying shareholders, they can
start paying a dividend. But that's that's not the game

(03:01):
for them. They're not interesting in building companies for the
long term. They're interested in getting in and getting out
as quickly as possible. And they actually are admitting to it.
They're admitting to exactly their game. Again, you don't have
to participate. I mean, time and time and time again,

(03:24):
we've warned you about all these companies when they were
going public evaluations in these things. Yeah, sometimes people listen.
Sometimes they don't. Well, more often they don't. Don't be
a greater fool watchdog on Wall Street dot com.

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(04:36):
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