On Wed, Nov 25, 2015 at 5:54 PM, Kiriki Delany <kir...@streamguys.com> wrote: > [...] > > Bottom line, is the industry needs to be increasing value, because the flip > side.... working for no profit, surviving off investment only... there's no > end-game. You see this cycle time and time again as market share is grabbed, > then underperforming companies are rolled up. In this process value is > destroyed. > > Ultimately this is also why it's extremely damaging for investors to > constantly invest in companies that don't make a profit, and don't provide a > successful economical model for the services/products provided. These > companies largely live on investor money, lose money, and in their wake > destroy value for the entire industry. Of course the end-game for the > investors is to make money... I'm always surprised how strong > investment/gambles are for non-profitable companies. I guess there is no end > to those with too much money that have to place that money somewhere. As the > rich get richer, there will only be more dumb money cheapening the value > proposition. After all, who needs value when you have willing investors.
I'm confused. If these companies largely live on investor money, lose money, and destroy value...how is it that a scant two sentences later, the rich are getting richer, and there is _more_ dumb money? I would posit the rich get richer because they *do* see value in the investments they make. That is, value is being created in these deals...just not for everyone. Matt
