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0 pointsiamsb6y ago0 comments

How is investing in companies which are already 100 bn in valuations more risky than SP500?

I am sure all investors who put money in these companies when they were risky, made very good returns, far more than SP500.

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2 comments · 2 top-level

It's not the size but the way they operate:

* plan is to forego profits to gain market share, negative earnings

* free cash flow is negative

* lots of debt.

Dropbox -40%, Uber -28%, Pinterest -23% since the IPO.

Are you saying that all one needs to do is put money into the risky companies that will succeed and avoid the risky ones that won't?

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