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0 pointsDomenic_S14y ago0 comments

> Again, once you have doubled your money and gotten it back, you can invest it anywhere you like, including the same companies you may have before. But now you have twice as much money.

Again, that's exactly wrong. As far as the fund is concerned, that money's gone.

Let me help you understand with this link: http://www.danshapiro.com/blog/2010/08/vc-insanity-economics...

Pay special attention to the section entitled, "They don’t appear to be particularly interested in making large amounts of money."

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dkrich14y ago

Exactly. The money is gone "as far as the fund is concerned." But that money is no more gone than it is when I sell stock and convert it to cash. A fund not recognizing money does not mean that that money ceases to exist.

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