Today’s
hot IPOs are literally superheated, much like the dot coms of the
late 1990s. Yet investors are falling for “this time it’s
different” hype once again.
Why not? Wall Street is feasting on the fees the underwritings are generating. And the media has what to talk about. While the youngsters who created the companies have become billionaires without even creating viable business plans that can assure long-term, expansive profits.
This is a teaching moment for what can be taught in a practical M.B.A. financial course. Businesses with no viable business plans that can make billionaires out of its creators. Only in America!!!
Why not? Wall Street is feasting on the fees the underwritings are generating. And the media has what to talk about. While the youngsters who created the companies have become billionaires without even creating viable business plans that can assure long-term, expansive profits.
This is a teaching moment for what can be taught in a practical M.B.A. financial course. Businesses with no viable business plans that can make billionaires out of its creators. Only in America!!!
The best these billionaire entrepreneurs can do, if they remain in the business before bailing out, is to use the valuable stock to buy other companies who may be able to assure long-term, expansive profits. That is, if a gullible, really-profitable target can be found to accept an offer they can’t refuse. (See the Earl J. Weinreb NewsHole® comments.)
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