Re:Raspberry Pi Trading plans £370m+ stock market IPO
by phkahler on Tuesday November 30, 2021 @12:19PM
(#29394616)
>> Is this the inevitable outcome in all cases or is this a symptom of a flaw in our model?
The problem seems to be that "investment" these days is all about selling to someone else at a higher price. Stock performance has decoupled from company value but people still try to "meet expectations" anyway.
One driver is low interest rates. Another is the 401k plans in the US where every middle-class employee is systematically pushing money into the market. this provides an ultimate sucker for every VC to sell to since the end-game is to IPO at astronomical valuations.
The problem seems to be that "investment" these days is all about selling to someone else at a higher price. Stock performance has decoupled from company value but people still try to "meet expectations" anyway.
One driver is low interest rates. Another is the 401k plans in the US where every middle-class employee is systematically pushing money into the market. this provides an ultimate sucker for every VC to sell to since the end-game is to IPO at astronomical valuations.